New costs for the airline

[Julian]

A few versions ago there is added a few new cost structures like ramp agents and customer service agents. But an airline haves more costs than that.


Hotel costs and other costs for crew on a trip

For employees who staying the night at an other airport, the majority of the carriers rent capacity in a local five star hotel but other airlines as Ryanair having the policy that the crew should organize there own hotel staying. I think a solution is to introduce a few options in the employee tab:
- A menu with selecting a few options as: crew should organize there own staying, airline paid the hotel and the option: Airline paid the hotel and gives the employees money to visiting a restaurant. 
- At the last option should be a slider to selecting the amount of money for that.
- If the airline paid the hotel, there should be a menu with hotel options from 1-star hotel to 5-star hotel.
All these options affecting the crew happiness but also the costs of course. 
With this cost there is also a difference between long haul and short haul since long haul crew have to stay longer period at the destination. Short Haul should staying one night on location and long haul three nights or longer.

Backoffice costs

There should be more costs at the office but to preventing that it being too much micromanagement there should be a few levels of hq in the game. This affecting also the image of the airline and number of bases and planes. Also there should be a difference between full service and low cost carriers in numbers of employees at the hq. I have made an example of how the levels of offices should look like. The salary of the management functions are also rising with the office levels.

Lv1: A hangar office, capacity one base and 15 planes. Number of employees 25 (CEO, CFO, CCO, CHRO, 4 Customer Service Agents, 4 Customer Service Representatives, 2 HR employees, receptionist, 2 Accountant, 4 Marketers, 2 Flight Dispatchers, 2 employees supply chain management) Building time 90 days.

Lv2: Small airline office, capacity two bases and 30 planes. Number of employees 50 (CEO, CFO, CCO, COO, CHRO, 8 Customer Service Agents, 8 Customer Service Representatives, 4 HR Employees, 2 receptionists, 4 Accountant, 8 Marketers, 4 Flight Dispatchers, 4 Supply Chain Management Employees, IT Support and 2 security guards. Building time 120 days

Lv3: Airline Office, capacity of four bases and 60 planes. Number of employees 100 (CEO, CFO, CCO, COO, CHRO, 16 Customer Service Agents, 16 Customer Service Representatives, 8 HR Employees, 3 receptionists, 8 Accountant, 8 Marketers, 10 Flight Dispatchers, 8 Supply Chain Management Employees, 4 IT support, 6 security guards, 8 Cafetaria staff. Building time 180 days

Lv4: Large Airline Office, capacity of eight bases and 120 planes. Number of employees 250 (CEO, CFO, CCO, COO, CHRO, 49 Customer Service Agents, 49 Customer Service Representatives, 32 HR Employees, 6 receptionists, 16 Accountant, 32 Marketers, 20 Flight Dispatchers, 16 Supply Chain Management Employees, 8 IT-Support, 10 Security Employees, 12 cafetaria staff. Building time 270 days.

Lv5: Mega Airline Office, unlimited capacity of bases and aircraft. Number of employees 500 (CEO, CFO, CCO, COO, CHRO, 96 Customer Service Agents, 96 Customer Service Repressentatives, 64 HR Employees, 12 receptionists, 25 Accountant, 64 Marketers, 54 Flight Dispatchers, 30 Supply Chain Management Employees, 22 IT Support, 16 Security Guard, 16 Cafetaria Staff. Building Time 360 days.

All this numbers are an example, I don't know how exactly the proportions are at an airline but there are lot's of functions there. For Low cost carrier the number of employees are the half of the numbers for a Full Service Carrier but it gives the airline more costs.
I have also made an example of the wages for that.

I have made two lists, one for the management which raises per level of the office and one for the employees.

CEO Lv1: $5.000, Lv2: $7.500, Lv3: $12.500, Lv4: $25.000, Lv5: $32.500
CFO,CCO,COO,CHRO: Lv1: $4.000 Lv2: $6.000, Lv3: $10.000 Lv4: $20.000 Lv5: $26.000

It's maybe a low wage $390.000 for an airline CEO in Europe or America, but I've a solution for that. A slider by employee wage salaries of Management and than in percentages of that. From 50% tot 200% so you can give yourself a high wage.

Employees is a lot easier to find average wages.

Customer Service Representatives: $2.900
Customer Service Agents: $2.427
HR Employee: $2.992
Receptionist: $2.288
Accountant: $4.138
Marketer: $3.686
Flight Dispatcher: $4.156
Supply Chain Employee: $4.348
IT Support: $3.083
Security Guard: $2.217

Here should also a percentage slider be necessary from 50% to 200%.

This was my first ideas about costs, next time I would introduce some airport related costs. If somebody have some more input? Please post it.

[nnick]

Hi,

Great work! I really like the idea of upgrading your office before you can become a mayor airline. 

Altough I think that selecting what services your crew will get, fancy hotels or not, is great. I do think that selecting how much money they will get for a stay goes a bit to far.

But this all could be combined with the striking feature very well! If you don't give enough services to your crew will go on a strike. And as for the "office expansions" maybe it would be an idea that you can open more bases and own more plane's but your staff is more likely to go on a strike.

Greetings,
nnick

[Julian]

But this all could be combined with the striking feature very well! If you don't give enough services to your crew will go on a strike. And as for the "office expansions" maybe it would be an idea that you can open more bases and own more plane's but your staff is more likely to go on a strike.

This last one fits easily when you have different wage levels through the bases, see some strikes at Air France last year.

I'm now reading about ground handling for new ideas, there are a lot of costs possible to add.

[r3dhawk95]

 as for the "office expansions" maybe it would be an idea that you can open more bases and own more plane's but your staff is more likely to go on a strike.

Or maybe instead of bases (because back office type things are usually located in and around the same building for easier communications), have the need to continuously improve the office space. so say at 100% new, you get a satisfaction % bonus, but as the office state and age of the office decreases (as well as constriction within the office due to staffing levels), that satisfaction % decreases accordingly.