Author Topic: Discussion of DDMS Posts/Deals  (Read 48742 times)

Offline Definitions

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Re: Discussion of DDMS Posts/Deals
« Reply #465 on: August 12, 2019, 12:47:25 PM »
I'm definitely having trouble understanding the post about the $840,000. A lot of the comments seem to not understand also.

How's 840,000 going to prevent them from losing money if the flights prove to be unpopular?
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Offline Dan

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Re: Discussion of DDMS Posts/Deals
« Reply #466 on: August 12, 2019, 12:56:10 PM »
https://www.dansdeals.com/airfare-deals/israel-flights/american-received-840000-reasons-launch-new-service-dallas-tel-aviv/#comment-1421608

@Dan
$560 per flight? so basically if one or two seats on each flight goes unsold then they dont make profit for the year?
i think these numbers might be "for accounting purposes"
That's correct. Profit is made at the margin.
Has nobody here taken business courses?
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Offline Dan

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Re: Discussion of DDMS Posts/Deals
« Reply #467 on: August 12, 2019, 01:22:25 PM »
I'm definitely having trouble understanding the post about the $840,000. A lot of the comments seem to not understand also.

How's 840,000 going to prevent them from losing money if the flights prove to be unpopular?

Like I told Lichtenstein, time for financial literacy courses in our communities.
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Offline Ergel

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Re: Discussion of DDMS Posts/Deals
« Reply #468 on: August 12, 2019, 01:25:04 PM »
Like I told Lichtenstein, time for financial literacy courses in our communities.
I understand what you are saying.
I guess the question is, if it costs $200K to fly the plane, you are saying that it will be easy for them to gross $194K. I guess people are asking, if it's a total flop, wouldn't it be possible that they could only sell $100K? Then that would eat through the subsidy very quickly
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Offline Dan

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Re: Discussion of DDMS Posts/Deals
« Reply #469 on: August 12, 2019, 01:26:44 PM »
I understand what you are saying.
I guess the question is, if it costs $200K to fly the plane, you are saying that it will be easy for them to gross $194K. I guess people are asking, if it's a total flop, wouldn't it be possible that they could only sell $100K? Then that would eat through the subsidy very quickly
They wouldn't launch the route if they thought it would be a total flop. The fact that it's only 3x weekly on a smaller plane means that the risk of a total flop is pretty low.
« Last Edit: August 12, 2019, 02:49:17 PM by Dan »
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Offline Mordyk

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Re: Discussion of DDMS Posts/Deals
« Reply #470 on: August 12, 2019, 01:52:30 PM »
That's correct. Profit is made at the margin.
Has nobody here taken business courses?
i have taken business course. but i also understand that a profit margin cant be a fraction of a percent of sales due to margin of error etc...

would you invest into something $200k (assuming thats the cost to fly the plane) only to make $580?

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Re: Discussion of DDMS Posts/Deals
« Reply #471 on: August 12, 2019, 01:56:13 PM »
would you invest into something $200k (assuming thats the cost to fly the plane) only to make $580?
So don't go into the airline business. That's actually a good number for an airline.
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Offline KSMH

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Re: Discussion of DDMS Posts/Deals
« Reply #472 on: August 12, 2019, 02:20:53 PM »
Interesting, AA is being subsided.
Maybe the big 3 shall complain and request a meeting with Trump.
Always praying for delayed baggage.

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Re: Discussion of DDMS Posts/Deals
« Reply #473 on: August 12, 2019, 02:47:04 PM »
Like I told Lichtenstein, time for financial literacy courses in our communities.
:D
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Re: Discussion of DDMS Posts/Deals
« Reply #474 on: September 16, 2019, 04:12:37 PM »
I think it should be assur to start a post with the word 'Hot' if it's not a hot deal. For a split second I got excited about this post :)

https://www.dansdeals.com/shopping-deals/family-deals/toys/hot-wheels-terrain-twister-remote-control-vehicle-24-97-walmart-61-price-drop/