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Airline Business Plan

Launching an airline is challenging. Even harder is running it successfully. Starting with a new airline business and progressing to established market players requires ongoing learning and adaptability.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your airline business? You’re at the right place. Our airline business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
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How to Write An Airline Business Plan?

Writing an airline business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Airline services:.

Highlight the airline services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of airline company you run and the name of it. You may specialize in one of the following airline businesses:

• Full-service carriers
• Low-cost carriers
• Regional airlines
• Charter airlines
• Cargo airlines
• Describe the legal structure of your airline company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established airline service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your airline business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Airline Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the airline services your business will offer. This list may include services like,

• Passenger flight
• Baggage handling
• In-flight services
• Seating options
• Loyalty programs
• Special assistance

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your airline plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and your unique services. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your airline company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your airline business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for the airline, such as aircraft, baggage handling systems, flight operations systems, revenue management systems, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your airline business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your airline business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your airline business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample airline business plan will provide an idea for writing a successful airline plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our airline business plan pdf .

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Frequently asked questions, why do you need an airline business plan.

A business plan is an essential tool for anyone looking to start or run a successful airline business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your airline company.

How to get funding for your airline business?

There are several ways to get funding for your airline business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your airline business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your airline business plan and outline your vision as you have in your mind.

What is the easiest way to write your airline business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any airline business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in an airline business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Airline Business Plan Sample

Published Feb.01, 2021

Updated Apr.19, 2024

By: Jakub Babkins

Average rating 4.8 / 5. Vote count: 6

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Table of Content

Do you want to start an airline company?

An airline business provides air transport to passengers on a national and international level. The business is undoubtedly much more profitable than other usual businesses. However, it comes at the cost of a difficult startup.

Starting an airline business is an inevitably expensive venture. The costs of jets, the salaries of qualified and experienced pilots, salaries of the crew, charges paid to the airport, payments to government and travel agents combined make a huge cost.

Therefore, if you are exploring how to build an airline business plan, you must first make sure that you will be able to manage a large team and expenses. To start this business, the first step would be creating a business plan. In this blog, we’re providing a business plan for airlines written for the startup, Bruce Airlines.

Executive Summary

2.1 the business.

Bruce Airlines will be a registered and licensed aviation business startup headquartered in Charlotte. The business will be owned by Bruce Greg, former COO of Aer Lingus.

2.2 Management of Airline company

Managing an airline company demands a lot of experience and expertise. Because the slightest mistake of anyone can lead to huge money and even life losses. In this airline business plan executive summary pdf we’ll be providing all details about Bruce Airlines. So you would have complete knowledge of what to include in your starting up airline business plan.

To manage an airline company, you’ll be needed to employ aviation attorneys, schedule coordinators, aviation technicians, flight attendants, pilots, and administrative staff.

To ensure the smooth running of business’ operations, Bruce Airlines will offer just 45 destinations across the globe in the initial phase.

2.3 Customers of Airline company

The customers of our airline will mainly be businesspersons and officers who need to travel internationally. Moreover, the general public and tourists will also be our target customers.

2.4 Business Target

Our target is to cover the startup expenses within two years of the launch. Moreover, we also aim at earning a net profit margin of $27k per month by the end of the second year and $49k per month by the end of the third year.

Company Summary

3.1 company owner.

Bruce Greg completed his pilot training at American Airlines Cadet Academy at the age of 21. After that, he did an MBA from Harvard University and joined Aer Lingus as a company manager. He served at several managerial posts and eventually became the company’s, Chief Operating Officer. He served as COO for six years and then decided to launch his own airline.

3.2 Why the airline company is being started

Bruce has always been associated with the airline business. He decided to launch his own airline to be an entrepreneur and earn the most by utilizing his skills and experience.

3.3 How the airline company will be started

Step1: Creating A Business Plan

The first step before starting an airline company is to create a business plan for airlines company. Bruce studied several examples of business plans for airlines and developed his start an airline business plan himself. We are providing the business plan he created in this sample business plan airline company.

Step2: Acquiring Required Licenses & Permits

Step3: Establish Headquarter, Values & Services

Bruce Airlines will be headquartered in Charlotte. The company will come into contact with airports and the government to negotiate the fee for hangars and for scheduling flights and routes. Meanwhile, the company will define its services, values, and customer care policies to get recognized.

Step4: Hire The Staff

To run an airline company, you need to hire a large staff. Due to the responsible and delicate nature of work, Bruce decided to recruit staff after rigorous testing and interviewing. The list of staff he’ll hire will be given in the upcoming sections along with their job descriptions and salaries.

Step5: Promote & Market

To attract customers amid huge competition, it is essential to develop an effective marketing strategy. And to come in contact with stakeholders who can indirectly promote your company.

Step6: Establish Online Presence

In this era, it is really important to establish a strong website presence. Bruce decided to launch a website that provides electronic ticketing and flight booking system to facilitate his customers.

Like all other airlines, Bruce Airlines will also be offering four travel classes. The services and luxuries associated with each class are listed here. If you want to build your own airline you can take help from this business plan template airlines.

• Economy Travel Class: This will be our basic class consisting of normal quality seats, foods, and extras for those looking for economical travel. The leg space, seat width, and screen size will be a lot lesser than all other classes. However, it will be adequate for a short flight.
• Wider and Comfortable Seats
• Quality foods and refreshments
• 16-inch entertainment screen
• Extra things including hot towels, toothbrushes, headsets, etc.
• Extra Comfortable Seats (More width, inclination)
• High-quality foods and refreshments
• 20-inch entertaining screen
• Extra things including eye masks, headsets, towels, and others.
• High priority check-in security
• High priority baggage handling
• Mini-Suites with privacy doors and noise-dampening curtains
• Storage compartments
• 26-inch entertainment screen
• Personal wardrobe
• Comfortable seat that reclines into super-comfy bedding with temperature control
• Finest foods and drinks made by world-renowned chefs
• Amenity kit including toothbrushes, face creams, lip balms, ear-plugs, and other things.

Marketing Analysis of Airline Company

Marketing analysis is a very important part of airlines business plan template. It analyzes the target market and target customers. Moreover, it also explains how much price you should set to meet your financial goals while attracting more customers than your competitors.

In this starting an airline business plan we are providing the marketing analysis done for Bruce Airlines. Here we have analyzed the global market trends for this business and the general groups of people that can be considered as potential customers.

If you are looking for how to write a business plan for an airline you can take help from airline business models pdf.

5.1 Market Trends

According to IBISWorld, more than 22k global airline businesses are running in the United States, employing more than 2.5 million masses. According to the same source, the business holds a huge market size of $686 billion.

Despite that the industry is already quite large, still, It is expected to grow more in the coming years. The growth is forecasted based on the surge in travel activities and expansion in the middle-class population in the coming years.

5.2 Marketing Segmentation

5.2.1 Business Persons

This group of our customers comprises of businessmen and women who need to travel to several countries as part of their business. This group is expected to avail of our first class and business class travel tickets. As this category usually arrange business trips and meetings, therefore, we expect this group to avail our services in groups.

5.2.2 Foreign Officers

Our second target group comprises high officials who need to travel on regular basis to meet their job responsibilities. This group is also expected to avail of our first class and business class travel tickets.

5.2.3 Tourists

Our third target group will comprise tourists who board airplanes frequently to reach out to remote locations. This category is expected to travel mostly in economy and premium economy class.

5.2.4 General Public

Lastly, general people who have to travel far-off places on an urgent basis will also be our target customers. This group is expected to avail mostly our economy class service.

5.3 Business Target

• To earn a profit margin of $49k per month by the end of the third year
• To achieve an average rating above 4.77 by the end of the second year
• To achieve a CSAT score above 92 by the end of the first six months
• To increase our travel destinations from 45 to 55 within three years of our launch

5.4 Product Pricing

Our prices will lie within the same ranges as that of our competitors. However, we will offer several discounts in the startup phase.

Marketing Strategy

Bruce Airlines will come up with several competitive aspects to get ahead of its competitors. In this airline marketing strategy pdf we’re providing the marketing strategy of Bruce Airlines. So that you can have help in making your own airline marketing business plan.

6.1 Competitive Analysis

We expect to get popularity among our customers due to the following competitive aspects.

• Electronic booking and ticketing facility
• Additional amenities
• Discounted rates in the first two months
• Dedicated flight attendants
• Highly customer care oriented policies

6.2 Sales Strategy

To advertise our startup, we’ll

• Promote our services through travel agent companies , social media campaigns, and Google Local ads services.
• Offer a 30% discount on the economy, premium economy, and business class tickets for the first two months of our launch.
• By launching our frequent-flyer program for privileged and loyal customers.
• By making our website SEO and by investing in artificially intelligent chatbots.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

An airline company needs a lot of staff to manage operations. Therefore you should make a detailed list of required employees with their job descriptions as you write a business plan for an airline.

7.1 Company Staff

Bruce will be the CEO himself. The staff he’ll hire is listed below:

• 1 Chief Operating Officer
• 5 Pilots with ATP certifications
• 9 Flight Attendants
• 2 Airline Operations Agents
• 3 Avionics Technicians
• 3 Airline Station Agents
• 1 Aviation Attorney
• 2 Sales Executives
• 1 Social Media Manager
• 6 Security Officers
• General Cabin Crew

7.2 Average Salary of Employees

Financial plan.

The airline company is not like other usual businesses. Starting and running an airline business is extremely expensive due to the high costs involved in

• Purchasing Airplanes
• Recruiting highly qualified pilots
• The fee paid to the government and airports
• The fee paid to travel agents
• Frequent loss due to empty seats
• Salaries of a large workforce
• Maintenance costs
• Money spent on marketing and advertisement

Therefore due to the high costs involved in airline operations, you need to be very much careful in managing your finances. Your financial plan for this business must draw a trajectory to earn targeted profits despite these huge expenses.

As Bruce had all the knowledge to create a financial plan, he carried out this task himself. In the case of your startup, if you are not a professional financial analyst, you must hire the services of one. To get a rough idea of what to expect from your professional financial plan writer , we are providing the financial plan of Bruce Airlines in this starting airline company business plan.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

All tables in PDF Download Airline Business Plan Sample in pdf Professional OGS capital writers specialized also in themes such as drop shipping business plan , import and export business plan , logistics business plan , airmall business plan and helicopter business plan .

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Create an Airline Business Plan

Blog > how to create an airline business plan, table of content, introduction, executive summary, market analysis, business description, business structure and organization, marketing and sales strategy, fleet and operations, financial projections, funding and investment, risk analysis and mitigation, regulatory and legal compliance, sustainability and environmental, our other categories.

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Reading Time : 14 Min

Business plan 101.

The airline industry has experienced exponential growth and transformative changes over the years, making it an attractive sector for entrepreneurs seeking to launch their own airlines. However, navigating this competitive landscape requires a well-crafted and comprehensive airline business plan. In this guide, we will walk you through the essential steps and key components of creating an effective airline business plan that will lay the foundation for your success in the aviation industry. As a trusted startup consultant service provider, Stellar Business Plans is here to support you in turning your aviation dreams into reality.

An executive summary serves as the snapshot of your entire airline business plan . It succinctly outlines your airline’s vision, goals, financial projections, and growth strategies. This section sets the tone for the rest of the plan, capturing the attention of potential investors and stakeholders.

Example: “Skyline Airways is a visionary airline committed to redefining air travel by providing unparalleled luxury and convenience to business and leisure travelers. Our strategic expansion plans and commitment to customer satisfaction make us a strong contender in the aviation industry. This executive summary outlines the key components of our business plan, showcasing the promising potential of Skyline Airways.”

Stellar Business Tip: Keep your executive summary concise yet impactful. Highlight the unique selling points of your airline and emphasize how it addresses the pain points of customers.

Understanding the dynamics of the airline industry is crucial for making informed decisions. Conduct an in-depth market analysis, including market trends, target customer segments, and competitor landscape. Utilize relevant statistics and data to present a comprehensive overview.

Example: “The global airline industry is projected to witness substantial growth in the coming years, driven by increasing disposable incomes, growing tourism, and expanding business travel. According to the International Air Transport Association (IATA), global air passenger numbers are expected to double in the next two decades, reaching 8.2 billion by 2037.”

Stellar Business Tip: Leverage market research and industry reports to substantiate your claims. Show that your airline’s strategies are well-aligned with market opportunities.

This section delves into the core aspects of your airline, including your mission, unique selling proposition (USP), and the services you will offer. Introduce your airline’s history and highlight significant milestones that demonstrate your readiness for success.

Example: “FlyRight Airlines was founded with a vision to revolutionize the travel experience for passengers through exceptional customer service and innovative technology. Our commitment to punctuality, safety, and personalized service sets us apart from competitors. As an industry-disruptor, FlyRight Airlines has been recognized with the prestigious ‘Best Customer Service’ award for three consecutive years.”

Stellar Business Tip: Showcase your airline’s achievements and accolades to build credibility and confidence among potential investors and partners.

Outline the legal structure of your airline and discuss the management team’s roles and expertise. Provide an organizational chart to showcase the hierarchy and responsibilities of key personnel.

Example: “SkyJet Airways is registered as a private corporation in accordance with aviation regulations. Our management team comprises seasoned professionals with extensive experience in the aviation and hospitality industries. John Smith, our CEO, brings over 20 years of leadership experience in major airlines, ensuring efficient operations and strategic decision-making.”

Stellar Business Tip: Highlight the expertise of key team members and their significant contributions to the success of your airline.

Develop a robust marketing and sales strategy to attract and retain customers. Utilize data-driven insights and statistics to demonstrate the effectiveness of your marketing initiatives.

Example: “SkyGlide Airlines’ marketing strategy focuses on digital channels, social media, and influencer partnerships to reach our target audience effectively. Our market research indicates that millennial travelers heavily influence travel decisions, and thus, we invest significantly in social media marketing and user-generated content to create brand loyalty.”

Stellar Business Tip: Showcase your understanding of your target market’s preferences and how your marketing efforts align with their expectations.

Detail your fleet composition and specifications, including aircraft types and capacities. Discuss aircraft maintenance and safety procedures, emphasizing your commitment to ensuring a reliable and secure airline.

Example: “AirWings Fleet consists of modern and fuel-efficient aircraft, including Airbus A320neo and Boeing 787 Dreamliner, ensuring a comfortable and eco-friendly flying experience. Our partnership with leading maintenance providers guarantees the highest standards of safety and reliability, with regular maintenance checks and adherence to regulatory guidelines.”

Stellar Business Tip: Focus on the safety and comfort features of your fleet to instill confidence in your airline’s operations.

Create comprehensive financial projections based on market research and sound assumptions. Utilize charts and tables to present revenue forecasts, cost structures, and projected profitability.

Example: “Our financial projections anticipate steady growth, with projected revenue of $100 million in the first year, reaching $500 million by the fifth year. This growth will be supported by a robust marketing strategy, optimized operational costs, and an expanding customer base.”

Stellar Business Tip: Provide a clear breakdown of revenue streams and cost drivers to demonstrate your financial stability and growth potential.

Explain the initial investment required to launch and operate your airline. Showcase your budget for start-up costs and capital expenditures, providing clarity to potential investors about the financial requirements.

Example: “AirSprint Airways requires an initial investment of $50 million, which will cover aircraft acquisition, staff training, marketing campaigns, and administrative expenses. We are seeking strategic investors who share our vision of transforming air travel and are committed to long-term partnerships.”

Stellar Business Tip: Clearly articulate your funding needs and explain how the investment will be utilized to drive the growth of your airline.

Identify potential risks in the airline industry and outline your risk mitigation strategies. Present contingency plans to assure stakeholders of your preparedness for challenges.

Example: “SkyWings Airlines has conducted a comprehensive risk analysis, identifying potential risks such as fuel price volatility, geopolitical tensions, and regulatory changes. Our risk mitigation strategies include hedging fuel costs, diversifying routes, and maintaining strong relationships with aviation authorities to navigate regulatory changes smoothly.”

Stellar Business Tip: Address potential risks proactively and demonstrate your airline’s ability to adapt to unforeseen circumstances.

Discuss the licensing and certification requirements necessary for operating an airline. Show how your airline will comply with aviation authorities and regulations.

Example: “AviaJet is committed to maintaining the highest standards of safety and compliance with all aviation regulations. We are currently in the process of obtaining an Air Operator’s Certificate (AOC) and expect to launch operations after receiving all necessary approvals from the Civil Aviation Authority.”

Stellar Business Tip: Emphasize your commitment to adhering to all legal and regulatory requirements to gain trust from investors and passengers.

Impact Promote sustainability initiatives and demonstrate your commitment to reducing the airline industry’s environmental impact. Showcase your airline’s dedication to adopting eco-friendly practices.

Example: “EcoFlight Airlines is dedicated to minimizing our carbon footprint and preserving the environment. We are investing in modern, fuel-efficient aircraft, adopting sustainable inflight practices, and exploring alternative fuels to achieve carbon neutrality by 2030.”

Stellar Business Tip: Highlight your airline’s commitment to sustainability, as it aligns with the growing eco-consciousness of travelers.

Creating an airline business plan requires careful planning, extensive research, and a clear vision of your airline’s future. By following this comprehensive guide, you are equipped to build a solid foundation for your airline’s success. Stellar Business Plans is here to provide you with expert guidance and support in crafting an impressive business plan that will impress investors and stakeholders. Together, we can embark on a journey to make your airline a soaring success. Get ready to take flight with Stellar Business Plans!

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Updated On : September 2, 2023

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Airline Business Plan: Writing Effective Airline Business Plans

To write a successful airline business plan , you must take several important trends in the airline industry and broader economy into account. What affect will these important trends have on the new airline?

• Continuing volatility in oil and other commodity markets
• A decline in personal disposable income as the economy slows
• Anxiety over flying and travel restrictions as a result of terrorist attacks and war
• Recent financial hardships and bankruptcies of major airline companies

Important Airline Business Plan Questions to Answer

To write a convincing aviation business plan and successfully launch your new airline, you must have confident answers to the following questions:

• What is the market demand for your new airline business?
• How will you prove the feasibility of your new airline?
• What kind of financing will you need, and how much?
• What types of investors will you seek capital from?
• What relevant past experience does your management team have, which you can leverage in your business plan?
• What strategic partnerships will you forge?
• What is your marketing plan and how will you grow your airline’s customer base?
• What are your airline’s future financial projections?
• What is your new airline’s “unfair competitive advantage” and how will you create barriers to entry?

How to Finish Your Airline Business Plan in 1 Day!

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Airline Business Plan FAQs

What is the easiest way to complete my airline business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Airline Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of airline you are operating and the status; for example, are you a startup, do you have an airline that you would like to grow, or are you operating a chain of airlines?

Other Helpful Business Plan Articles & Templates

How to Start an Airline: A Guide for Entrepreneurs

How to Start an Airline

The aviation industry is a major contributor to the global economy, generating trillions of dollars in revenue and supporting millions of jobs. For entrepreneurs with a passion for flying, starting an airline can be a dream come true. However, it’s important to be aware of the challenges involved before you take the plunge.

In this article, we’ll provide a comprehensive overview of the process of starting an airline, from securing funding to obtaining regulatory approval. We’ll also discuss the key factors to consider when choosing a business model and aircraft type.

So if you’re thinking about starting your own airline, read on for all the information you need to get started.

Starting an airline is a major undertaking that requires a significant amount of capital, expertise, and planning. However, it can also be a very rewarding venture that can provide you with the opportunity to make a real difference in the world.

This guide will provide you with the information you need to start your own airline, from researching the industry to creating a business plan. We’ll also cover the legal and financial aspects of starting an airline, as well as the challenges you’re likely to face along the way.

If you’re passionate about aviation and have a dream of starting your own airline, this guide is for you.

Research the Industry

The first step to starting an airline is to research the industry. This will help you understand the challenges and opportunities that you’re likely to face, as well as the current market trends.

Here are some things you should research:

• The history of the airline industry
• The current market trends
• The competition
• The target market for your airline

Learn about the history of the airline industry

The airline industry has a long and fascinating history. It began in the early 1900s with the first commercial flights. These flights were very short and expensive, and only a few people could afford to travel by air.

Over the years, the airline industry has grown and evolved. Today, there are thousands of airlines operating all over the world, and air travel is more affordable than ever before.

Learning about the history of the airline industry will help you understand the challenges and opportunities that you’re likely to face. It will also give you a better understanding of the current market trends.

Identify the current market trends

The airline industry is constantly changing. New technologies are emerging, new routes are being developed, and the competition is fierce.

It’s important to stay up-to-date on the latest market trends so that you can adapt your business accordingly. Here are some of the key trends to watch:

• The growth of low-cost carriers
• The increasing demand for air travel
• The development of new technologies
• The growth of the global economy

By understanding the current market trends, you can make informed decisions about your airline’s strategy and operations.

Analyze the competition

There are many different airlines operating in the world today. Each airline has its own unique strengths and weaknesses.

It’s important to analyze the competition so that you can understand their strengths and weaknesses, and identify opportunities to compete with them. Here are some things to consider when analyzing the competition:

• Their market share
• Their financial strength
• Their product offerings
• Their customer service

By understanding the competition, you can develop a strategy to compete with them and win market share.

Determine the target market for your airline

The target market for your airline is the group of people who you’re most likely to sell your tickets to.

It’s important to define your target market carefully so that you can develop a marketing plan that appeals to their needs and interests. Here are some things to consider when defining your target market:

• Their income
• Their location
• Their lifestyle
• Their interests

By defining your target market, you can develop a marketing plan that will help you reach your customers and sell your tickets.

Create a Business Plan

Once you’ve researched the industry and analyzed the competition, you’re ready to create a business plan.

A business plan is a document that outlines your business goals and objectives, as well as the strategies you’ll use to achieve them. It’s an essential tool for any entrepreneur who wants to start a business.

Here are some of the key components of a business plan for an airline:

• Executive summary
• Mission statement
• Vision statement
• Products and services
• Marketing plan
• Financial plan
• Legal structure
• Management team

A well-written business plan will help you raise capital, attract investors, and get your airline off the ground.

Define your business goals and objectives

The first step in creating a business plan is to define your business goals and objectives. What do you want your airline to achieve? What kind of impact do you want to have on the world?

Your goals and objectives should be specific, measurable, achievable, relevant, and time-bound. For example, you might set a goal to increase your market share by 10% in the next year, or to launch a new

3. Get the Financing You Need

Starting an airline is a capital-intensive business. The cost of purchasing aircraft, developing a route network, and marketing your airline to potential customers can be significant. As a result, it is important to secure the necessary financing before you launch your airline.

There are a number of potential sources of financing for airlines, including:

• Government loans and grants . Governments often offer loans and grants to airlines in an effort to promote economic development. These loans and grants can be a valuable source of financing for airlines, but they often come with strings attached. For example, the government may require the airline to provide certain services to underserved communities or to hire a certain number of local workers.
• Private equity . Private equity firms are often willing to invest in airlines that have the potential for high growth. However, private equity firms typically require a high return on their investment, which can put a strain on the airline’s finances.
• Venture capital . Venture capital firms invest in early-stage companies that have the potential for high growth. Venture capital can be a good source of financing for airlines that are just starting out, but it is important to note that venture capital firms typically take a significant equity stake in the company.
• Debt financing . Airlines can also finance their operations through debt financing. Debt financing can be a good option for airlines that have a strong track record of profitability. However, it is important to note that debt financing can increase the airline’s financial risk.

When considering different sources of financing, it is important to weigh the benefits and risks of each option. The best source of financing for your airline will depend on your specific circumstances.

3.1 Identify Potential Sources of Financing

The first step in securing financing for your airline is to identify potential sources of financing. There are a number of different sources of financing available to airlines, so it is important to do your research and compare your options.

Some of the potential sources of financing for airlines include:

• Government loans and grants
• Private equity
• Venture capital
• Debt financing

Once you have identified potential sources of financing, you can start to reach out to potential investors and lenders.

3.2 Prepare a Pitch Deck to Present to Investors

Once you have identified potential investors, you will need to prepare a pitch deck to present to them. A pitch deck is a presentation that summarizes your business plan and highlights the key points that you want investors to know about your airline.

Your pitch deck should include the following information:

• A brief overview of your airline’s business
• The market opportunity that you are targeting
• Your competitive advantages
• Your financial projections
• Your management team

Your pitch deck should be well-organized and visually appealing. It should be concise and to the point, and it should highlight the key points that you want investors to remember.

3.3 Secure the Necessary Financing

Once you have prepared your pitch deck, you can start to reach out to potential investors and lenders. The process of securing financing can be time-consuming and challenging, but it is essential if you want to start your airline.

When pitching to investors, it is important to be prepared to answer questions about your business plan, your market opportunity, your competitive advantages, and your financial projections. You should also be prepared to discuss your management team and your plans for the future.

The process of securing financing can be complex, but it is important to remember that there are a number of potential sources of financing available to airlines. With careful planning and preparation, you can secure the financing you need to start your airline.

4. Launch Your Airline

Once you have secured the necessary financing, you can start to launch your airline. The process of launching an airline can be complex, but it is essential if you want to start operating flights.

The following are some of the steps involved in launching an airline:

• Obtain the necessary licenses and permits
• Hire employees
• Purchase aircraft
• Develop a route network
• Market your airline to potential customers

4.1 Obtain the Necessary Licenses and Permits

The first step in launching an airline is to obtain the necessary licenses and permits. The specific licenses and permits that you need will vary depending on the country in which you are operating. However, some of the most common licenses and permits include:

• An air operator certificate (AOC)
• A foreign air carrier permit (FACP)
• A certificate of public convenience and necessity (CPCN)
• A security clearance

How much does it cost to start an airline?

The cost of starting an airline can vary significantly, depending on the size and scope of the operation. A small regional airline with a few planes and a limited route network can be started for as little as $10 million. However, a major full-service airline with a large fleet and a global reach can cost upwards of $1 billion.

What are the legal requirements for starting an airline?

The legal requirements for starting an airline vary from country to country. However, some common requirements include obtaining a license from the government, meeting safety regulations, and providing insurance.

What kind of aircraft do I need to start an airline?

The type of aircraft you need will depend on the size and scope of your operation. A small regional airline may only need a few small planes, while a major full-service airline will need a large fleet of different types of aircraft.

How do I get customers to fly my airline?

There are a number of ways to attract customers to your airline, including marketing, advertising, and public relations. You can also offer competitive fares, good service, and convenient routes.

How do I make money as an airline?

Airlines make money by selling tickets to passengers. They can also generate revenue from cargo, food and beverage sales, and ancillary services such as baggage handling and airport lounges.

What are the challenges of starting an airline?

There are a number of challenges associated with starting an airline, including high start-up costs, intense competition, and government regulations. However, if you are successful, you can potentially earn a significant profit.

Is it a good time to start an airline?

The airline industry is cyclical, and there are times when it is more difficult to start an airline than others. However, there are also opportunities for new airlines to enter the market, especially in emerging markets.

How can I learn more about starting an airline?

There are a number of resources available to learn more about starting an airline, including books, articles, and online courses. You can also contact the government agency responsible for regulating airlines in your country for more information.

Starting an airline is a complex and challenging undertaking, but it can also be a very rewarding one. By following the steps outlined in this article, you can increase your chances of success. However, it is important to remember that there is no guarantee of success. The airline industry is highly competitive, and there are many factors that can affect your business’s success.

If you are still determined to start an airline, you should be prepared to work hard and make sacrifices. It will take time and dedication to build your business into a success. But if you are passionate about aviation and have a strong business plan, you can achieve your dream of starting your own airline.

Here are some key takeaways from this article:

• Do your research and make sure you have a solid business plan.
• Get the necessary permits and licenses.
• Find the right aircraft and crew.
• Market your airline and attract customers.
• Manage your finances carefully.
• Be prepared to work hard and make sacrifices.

If you follow these steps, you will increase your chances of success in starting your own airline.

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How to Start an Airline: A Quick-Reference Guide

Are you an avid flyer with an entrepreneurial spirit? Do you obsess over the economics of aviation and wonder if you could introduce a new airline model to the market yourself? Well, if you think you have what it takes to start an airline, you have made it to the right place. In this article, we will go over all the essential steps required should you want to see new customers board your from-scratch airline. 

The Business Plan

If you are like me, every time you fly an airline you view their decisions and practices with a critical eye. Why do some airlines charge ancillary revenues, and some allow you to check bags for free? Is there any economic sense behind why you pay for checked bags but not carry-ons? Ultimately, the promotions airlines run, the fares they charge, the quality they offer, etc. are all guided by a business plan . 

A simple Google search will tell you that a business plan is a “formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.” For an airline, a business plan is meant to attract private investors to help bring the airline to fruition, meaning it must be robust and well-thought-out. The most important details a business plan must contain are the why and the how : What gaps exist in the airline industry (the premise—why—for the idea), and how will the airline fill the gap?

A well-developed business plan will contain a sophisticated analysis of competition in the industry, often localized to airports the airline will call home, focus city, or hub. This analysis typically breaks down what current airlines charge, where they fly, and how well they perform financially.   

But beyond the initial why , there needs to be a heightened focus on how exactly the airline fills the existing gaps. These gaps will look very different depending on the type of airline you want to run. A commercial airline will obviously fill price or service gaps, but a charter airline may try to offer a subscription service to target wealthier customers who don’t have many choices at present.

The business plan will also demarcate the type of service you wish to offer, and the route structure you will implement at the onset. Will you have a single hub and numerous spoke routes? Will you fly point-to-point with rock-bottom prices like Skybus attempted to do in the late 2000s?

Airports range in size and market potential and are limited by gates and slots. Choosing the right base airport will have large implications on the size and scope of your airline. Serving the “correct” destinations from your base is another important matter; justifying your routes to investors will require detailed analysis, numbers, and financial projections.

Business Plan - other considerations

One of the other key considerations in a business plan is the type of aircraft you wish to operate. For airlines like Southwest and Ryanair, the Boeing 737 family is the only aircraft they operate. This aids in the standardization of training and maintenance fleet-wide, keeping operating costs low. For legacy carriers like Delta and United, their fleet is huge and varied with aircraft from Embraer, Airbus, and Boeing all in the fleet. You may also just be considering starting a small airline—and thus only desire small aircraft. All of these options are important for consideration.

When choosing the type of aircraft to operate, it is critical to consider fuel economy and cost. The Boeing 737 MAX is arguably the most fuel-efficient aircraft on the market today but it comes at a steep price. New startup airlines such as Avelo Airlines decided to lease used 737-700 aircraft to save money, but other airlines may opt to purchase new planes directly from Airbus, Boeing, or other manufacturers.

Importantly, consultants who you may work with on a business plan will offer guidance on what aircraft would suit your plan the best. As an example, for a high school project, I worked with StartupBoeing to write a mock airline business plan for a low-cost airline based in San Bernardino. StartupBoeing obviously has expertise with Boeing aircraft, and like any group associated with an airline manufacturer, encouraged me to use Boeing aircraft and offered data on the financial performance and economics of Boeing aircraft specifically.

Business plans not only shape the present to sway investors but are helpful in informing the future. Successful airline business plans will outline growth strategies and opportunities. After all, isn’t the main goal of running an airline to turn a profit? Turning a profit may be hard to come by with such a small initial operation, but with new hubs, routes, planes, or staff, growth is possible. How will you grow your airline?  

Beyond the framework of your airline being outlined in the business plan covering strategy and service, you’ll need to highlight important financial information using modeling. How many passengers do you expect to carry, and how much revenue will that bring in?  What costs will you incur, and how much will fuel cost you? Southwest Airlines is notorious for hedging jet fuel and famously got a deal for jet fuel in the early 2000s for rock-bottom prices. If the costs are calculated correctly and the future balance sheet looks clean, you’ll secure the much-needed investment to pursue your airline further.

With a solid business plan, strong financial backing, aircraft in order, and slots obtained, one of the next logical steps is to name the airline. Many airlines, like Breeze Airways, decided on a name late in the process. Key tenets of the business plan were made public well in advance of the inaugural flight, and for years the Airline was referred to as Moxy—with the only known details being the airports served, planes acquired, and pricing scheme.  

A strong name is essential not only for marketing but visibility as well. Many of the modern names today ooze elegance—"StarLux" for example—and others reflect elements of laid-back fun: "PLAY Airlines".

Certification

With a name and plan in pocket, obtaining the necessary certification to take to the sky is the logical next step. Aviation is guided by a single large principle: safety. Flight attendants give a safety briefing every flight, and as the airlines always say, safety is our number one priority. Evidently, airlines have to verify that they are safe first before they take to the sky; certification is the way to do this.  

Ultimately, an airline must acquire an Air Operator’s Certificate (AOC). Regulations vary by country and the governing body, but the requirements typically remain the same. In the United States, the Federal Aviation Administration (FAA) is responsible for overseeing and handing out such certificates. The American Code of Federal Regulations notes that the following requirements must be met for most AOCs:

• Sufficient personnel with the required experience for the type of operations requested.
• Airworthy aircraft, suitable for the type of operations requested. At least one aircraft must be in the fleet to obtain an AOC.
• Acceptable systems for the training of crew and the operation of the aircraft (Operations Manual).
• A quality system to ensure that all applicable regulations are followed.
• The appointment of key accountable staff, who are responsible for specific safety-critical functions such as training, maintenance and operations.
• Carriers Liability Insurance (for Airlines) – Operators are to have sufficient insurance to cover the injury or death of any passenger carried.
• Proof that the operator has sufficient finances to fund the operation.
• The operator has sufficient ground infrastructure, or arrangements for the supply of sufficient infrastructure, to support its operations into the ports requested.
• The certificate is held by a legal person who resides in the country or region of application (for EASA).  

Additionally, Simple Flying notes that supplemental information is required by the airline when submitting an application for the AOC. This includes: 

• The organization of the company
• Where the operation will be based and the location of the business
• The intended AOC management structure
• The competence of the individuals who will be working for the operation
• How the AOC will be financed
• What sort of operation is required
• What aircraft will be operated
• What geographical area is operated in

Finally, following this, an airline must obtain an Operator Certification from the FAA.

Next, airlines must hire the necessary staff to conduct operations. This goes beyond just internal staff on the business side; airlines require operations staff at the airport to ensure flights can board, load baggage, check in customers, clean cabins, cater food, etc. The quality of this branch of staff can have a major impact on the image of your airline. 

Some low-cost airlines dedicate less attention to the customer-facing aspect of operations, while JetBlue famously spent significant amounts of money on flight attendant training to ensure they had the best staff possible upon launch. Ryanair follows a self-handling model, where they train their own staff in-house and don’t rely on a third-party source. Other times airlines will be forced to use external staff at large airports where they otherwise don’t have an established presence. 

Final Steps

With staff hired and the necessary certifications obtained, the airline can start working towards the final steps prior to launch. Most importantly, the airline needs to build a presence in the press and market themselves favorably. After all, customers will tend to choose airlines that have a good reputation, and often airlines begin with no reputation at all due to poor marketing. The internet and social media have made marketing significantly easier; if your airline has substantially lower fares than the competitor, this is something to market beforehand. Use bright colors and a fun name? You might attract new customers who want a more fun flying experience.

The key to good marketing is targeting the right customer base. A leisure airline will want to target leisure travelers primarily, and a legacy airline like Delta has to consistently cater to a mix of leisure and business travelers. Knowing your competition will be key since you can outmarket their weakness. Are you offering a new nonstop route that another established airline at your home base doesn’t offer? Are you offering a new class of service your competitors don’t offer?

The airline will also have to hire remaining staff positions. Beyond the customer-facing roles and business operations side, the airline will need lawyers, engineers, route planners, HR managers, and more. Make sure you leave no role unfilled! As with customer-facing roles, recruiting the right staff goes a long way. If you can use data effectively, you might be able to find the next untapped route to boost profit, or effectively advocate for slots at airports you want to serve in the future.   

At this point, the airline is ready to launch. You have the planes, staff, certifications, financial backing, customer base, and airport approval. Now it is time to market the launch date and plan an equally suitable party. Lavish is good here: airlines often give out gifts, food, drinks, and other goodies at inaugural flights. Maybe your CEO can give a speech to rile up the crowd, but ultimately, your goal here is to convince the airport and its passengers that your airline deserves its gates and slots. In other words, the market deserves your airline because it is innovative and adds something that currently is lacking. 

Your product is not first sold when a passenger sits down and judges the seat, but when they come to the gate for the flight and staff speak on behalf of the airline.

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How To Start An Airline Business

An in-depth overview.

No matter what time of year or state of the world and its economy. Starting an airline is going to be a considerable investment of time, money and require a large amount of capital. Just like any other startup, you’re going to need a business plan. However unlike most startups, airlines do tend to have more moving parts and obstacles to add to the equation. Having a thorough business plan that tackles important aspects such as:

• Executive summary
• Industry and target market
• Competitive analysis
• Opportunity
• Service offering
• Marketing and distribution plan
• Operations plan
• Management team
• Risks and mitigation plan
• Financial and operating projections
• Implementation schedule
• Capitalization plan

Will only assist with maneuvering through those challenges by solidifying the right contacts, certifications and approvals for helping get your airline business into service in a reasonable amount of time. Some requirements may even be needed before properly drafting up your business plan. While some areas of certification will require proof of funds or capital. However, having these markers in place will only make going through the entire process a little bit smoother.

If despite these factors, you’re still determined to learn more about how start an airline. Then the following information will be beneficial in commencing your journey and having a chance at success along the way. With the current state the world is in right now. Starting an airline may or may not be as challenging, considering the recent changes to the travel industry and added health / safety protocols.

It should be noted that this is a very complex area of discussion. It’s an industry that goes through many changes and can be adjusted or updated almost yearly or more. The country you live in can also change how this process works, so please use this as a general guide as opposed to a rule book.

What to Know About How to Start an Airline Company

1.) airline market analysis & industry overview, 2.) understanding your operating environment, 3.) aircraft sourcing & selection, 4.) commencing operations of your airline, things to also consider, additional resources.

Although it is considered a worthy component. A business plan is only one important aspect of what you will need to prepare in order to begin the process of starting an airline. Below is a brief overview of the other important components that you will require, in order to gain approval and successfully launch your airline business.

Part of analyzing the market, is understanding what niche or consumer need that your company can fulfill. When entering into such a competitive space. You’re going to want to have your ducks in a row. Competition is going to be very fierce and unless you bring something fresh or unique to the table. You are going to have a hard time surviving against other carriers of the same size or larger.

A few questions you may want to consider asking yourself or your team are:

• Do you see a need that your airline can fulfill?
• What does the competition currently look like?
• What does your airline provide to the market that is beneficial or unique?
• What services do you plan to offer? (charter, passenger service, cargo etc.)

Another thing you may want to consider when analyzing the market is the frequency of flights at the airport you wish to operate from. If you’re a well-known or full service carrier, traveling in and out of high traffic airports may not be a problem. If you are new however, that may be an issue. It might be more effective to operate out of an airport or hub that is not as busy. Not only does this give you more opportunity to handle your operations with care and at an optimal level. It also allows you that extra interaction with your customers, which in turn helps them to get to know you better as a new carrier.

They say, an aircraft on the ground is an aircraft at a loss . Which for many startup airlines seems to be a challenge, if not thought about beforehand (or discussed in their plan). Keep in mind that no matter how many hours your aircraft is in the air. There are still many fixed costs that need to be taken care of each month. Natural disasters and world economic crisis are other challenges that have made it difficult for airlines to stay afloat. Events like 9/11 have not only increased restrictions on travel, but have also imposed new security guidelines, safety protocols and operating costs.

For more on the commercial aviation market. You can visit the links below from IATA & Boeing. These sources help detail the type of information you will want to look at before starting your business plan.

Some of the information that you can find includes analysis of:

• Commercial market outlook
• Airport, country & regional data
• Air cargo forecast (worldwide)
• Domestic passenger markets
• Demographic trends
• Finance market outlook

IATA Market Analysis Reports | Boeing Market Analysis

For a broader view of what is projected to change in the coming years within the industry. See this article on the 7 trends that will reshape the airline industry by the Boston Consulting Group.

Once you’ve had a chance to look at the market and start forming ideas as to your approach and where you might fit in. You will want to start looking into your operating environment. This includes the different standards, government & federal regulations, rights or certificates etc. that you will require in order to legally open your doors and get your aircraft into the air.

Some of these certificates and regulatory requirements include:

• Economic Authority (DOT)
• Safety Authority (FAA)
• Part 135 Air Carrier & Air Operator Certification
• Part 121 Air Carrier Certification
• Airline Operator Certificate (AOC)
• Airworthiness Certification

Some other areas to consider when looking into your operating environment include; maintenance, repair, employees, training, fuel and more.

International Traffic Rights

The Freedoms of the Air was formulated in 1944 and is an international civil aviation agreement which consists of nine freedoms. This allows permission for a particular airline to enter into a country’s airspace. ETOPS (Extended-range Twin-engine Operational Performance Standards) is another program and set of standards where you will need to gain approval. ETOPS , is essentially a certification that allows Twin-engine aircraft to travel on particular flight routes that may be further than 60 min from the closet airport / hub that can accommodate an extended diversion or emergency landing.

These are just a few examples of the rights and regulations that you will need to have in order to advance your business plan and achieve the goals you have set forth in reaching. The information above should give you an idea of the regulatory standards within the environment you are looking to get involved in. Pair that with tax laws, labor laws, regularly changing safety standards etc. And it may start to sound quite overwhelming.

However, once you gain an understanding of your operating environment. The requirements needed for that environment and how to navigate seamlessly with your team. You will then be in a position to start taking more action on the steps in your business plan, to begin operating your airline as envisioned.

Once you have come to an understanding of your business’ focus and the opportunities you would like to take advantage of. Have thoroughly analyzed your market and competition. Finished planning and scheduling your route, analyzed traffic estimates etc. It should be somewhat clear as to the size and number of aircraft you wish to operate within your airline.

If you plan to serve a small capacity of passengers or travel over a short-range. You may want to look into a light jet, medium jet or a turboprop. However, if you’re looking to serve a large capacity of passengers or travel or a long-range. You might be better off looking into an Airbus or Boeing instead.

When you have figured out how many aircraft and the type you wish to contain in your fleet (new or used). At this point, you are going to need a broker or a supplier to help research and source these aircraft for you to lease or purchase outright.

Aircraft Management

Aircraft management is essentially the control and oversight of all services that are required to operate your aircraft. In many cases you’re going to have to hire more than one full-time pilot along with maintenance staff. It is also beneficial that your pilots and maintenance are already trained to operate and service similar aircraft that you will be purchasing. In addition to the above, you’re going to have to look into hiring; flight crew, avionics technicians, airline administrative support, sales management, flight dispatch, ground airport station attendants, airline ticket agents, passenger service agent, aviation attorney and more.

Besides having to decide between a large or a small management company. Determining what style of management you are looking for, is also important. For example, aircraft management can be handled from two different approaches. Charter or turnkey.

With charter aircraft management. The management company will provide chartering services, while the operator is able to maintain aircraft operations. Essentially working closely together. On the other hand, turnkey aircraft management allows the management company full control of the aircraft available. This means that they take full control of the operational and management responsibilities.

When locating a good aircraft management company. Try not to settle for any offer, but rather look for a company that has your best interest in mind and is willing to stick with you for the long haul. *Finding a team that understands your vision and supports your company direction is even better.

For more information on the buying or leasing process, be sure to click here for a fairly detailed guide . If you’re in need of a broker or supplier to assist with finding aircraft for your airline. Don’t hesitate to give us a call or send us an email .

Starting your airline, maintaining your airline and continuing your momentum as you progress through each year. Is quite challenging and a large reason why many startups do not succeed or turn much of a profit.

Once you open your doors, there is a good chance that you will cut deeply into your initial investment and capital quite quickly in the first few months. Despite what you may have forecasted in your business plan. There is a large possibility that you will need to spend more than anticipated to reach the targets that you initially set forth.

It will also be challenging to maintain a flight schedule with a full capacity of passengers on a consistent basis. Marketing, promotion and any other legitimate means that you can think of to spread the word about your business, will be essential to the growth of your airline. If and when you’re able to build a consistent customer base. You should then be able to start seeing some return on your investment. As an airline, this should be your main focus regardless of what type of airline you choose to operate.

As mentioned previously, an aircraft on the ground is an aircraft at a loss. However there are ways that you can make a profit whilst your aircraft is on the ground. Some of these methods include cargo / freight. Although keep in mind that if you choose to move cargo, there is a higher chance it will cause more wear and tear on your aircraft as opposed to passenger transport.

For assistance and to learn more information on how to start your airline and get it up and running. We recommend taking a look at what Boeing has to offer in this area. They can not only help get you to the point of approval, but can also help educate and instil confidence in your vision and plan along the way.

If you’re familiar with Startup Boeing and are looking for additional options. Contact us and we can see who we can put you in touch with.

• Fuel costs especially for startups can be quite high. In some cases, you may be looking at fuel costs taking up anywhere from 30-50% of your overall expenses.
• Many airline operators choose to lease rather than purchase their aircraft. It’s more cost effective up front to lease five aircraft than it is to buy five aircraft. Especially when you’re just starting out. Keep in mind, just like any business. The larger your order, the larger your potential for a bigger discount. *As per Boeing, leasing represents more than 40% of in-service commercial aircraft ownership.
• Both Boeing and Airbus are seeing an increase in cancellations. Thus allowing aircraft to be sold at larger than usual discounted prices to free up their backlog.
• The owner of Ryanair believes that once air travel is able to continue as normal. There will be a price battle among the already established players. Being a new airline might be difficult if you’re trying to compete in this price battle from the get go.
• As per Business Insider, Virgin America was one of the most successful startup airlines in recent history . Virgin began their operation with a single Boeing 747 airliner in 2007. They later grew and expanded their fleet as demand started to increase. Virgin was then acquired by the Alaska Air Group (Alaska Airlines) in December of 2016 and the department of transportation (DOT) issued an operating certificate for the combined airlines in January 2018.
• As a startup, it’s important to be aware of the level of competition you will be dealing with from full service carriers. It has been demonstrated, that legacy or full service carriers will try to squeeze out smaller low-cost carriers when given the opportunity. Other tactics include but aren’t limited to; reducing available seats and increasing airfares, slot sitting etc.
• 2020 is said to be the first time since the financial crisis in 2008 that the airline industry has seen such a decline. If you’re into stocks and understand the importance of buying low and selling high. Then this is not necessarily a bad time to get involved. The bigger question is, can you still make something that can sustain itself while being profitable during this time?
• An example of an actual airline business plan from a company in London, United Kingdom from Reference for Business.
• Here is another example of a business plan from Bplans . This plan was also created by another company and cannot be re-used. Right click the page to be prompted to download the document. *If you submit your email, they will provide you with explanations on how to fill out each section at a professional level.
• IATA’s Economic Performance of the Airline Industry.

For more information on the leasing process , navigate here. Or, click here to go back to the homepage .

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Airline Business Plan

Related Topics

Trucking business plan sample, auto repair shop business plan sample, freight brokerage business plan.

Click here to view this full business plan

Executive Summary

Market factors favor inauguration of a new airline to meet the demand for additional, higher-quality passenger and cargo service linking Western Europe with the rapidly expanding markets of Southeastern Europe and Turkey, and linking Southeastern European destinations, via Western European hubs, to trans-Atlantic and global destinations.

This new airline will base its business and marketing strategies on achieving high, and profitable, load factors through absorption of unmet demand in three key air-traffic categories: unserved and under-served routes on which high unmet demand currently exists or can be readily developed; serving key niche markets where demand is either unmet or poorly served; and meeting peak traffic demands on certain key regional, seasonal, and variable routes where very high load factors can be predicted despite existing but lower-quality competition, or where competition cannot meet the demand.

In addition, the proposed new airline will be designed around, and operated utilizing, the most up-to-date electronic, informational, and aviation technologies to ensure low operating and marketing costs, maximum efficiency in deployment of its resources, and a high level of customer service and convenience. And it is this final element – dedicating the airline, its staff, and its organization to providing a high level of customer service and convenience, and efficiently meeting the needs, wants, comfort, and safety of the passenger – that will assure the proposed airline’s rapid acceptance in the marketplace and its long-term growth and success.

Particularly in the post-09/11/01 environment, experience in Europe has shown that those carriers which can maintain a “mean-and-lean” operation while still meeting the needs and desires of the traveling public, with the right fares, will not only survive, but can prosper.

The six key characteristics leading to the success and profitability of this new carrier will be:

• Provision of high-quality service on routes and in markets that currently are either unserved, poorly served, or under-subscribed by existing carriers, thereby setting both a new trend and a new pace in air service to and within the Southeastern European region.
• Employment of cost-effective, up-to-date regional aircraft that will be sized right for the market and the route, leading to higher load factors, reduced costs, improved efficiency and flexibility, greater passenger comfort and satisfaction, and higher net profits. Outfitting these aircraft with the latest aviation technologies and navigational equipment will help ensure the highest level of reliability, punctuality, safety, and customer satisfaction.
• Utilization of the latest electronic and informational technologies in sales and marketing; reservations, ticketing and check-in; scheduling and resource planning; cargo tracking; and operational oversight. Such techniques as internet marketing, reservations, and sales; electronic ticketing and check-in; online quality control, resource planning, operational oversight, cargo and baggage tracking, and customer service, all will reduce staffing requirements while offering ease-of-use and greatly enhanced access by, and convenience to, the customer.
• Recognition that not everyone is geared for the electronic world, leading the proposed airline to provide a high level of non-electronic service as well, particularly to the many newer, less-experienced travelers – but future loyal customers – found in the region.
• Ensuring a friendly, cooperative, enjoyable, yet highly professional face to the customer.
• Development and implementation of cooperations, associations, and partnerships with other larger, more established, and highly regarded airlines both within and beyond the region to provide an extensive range of connections, through fares, frequent-flyer mileage sharing, and other passenger and client advantages through interline arrangements, code shares, common hubbing, and so forth.

In short, the goal of this new airline is to be known to the passenger and the cargo customer by its proposed motto: “We’ve got a job to do, and we do it every day – for you!” A key element contributing to the success of this new carrier will be its organizational and management team. Leading this team is Balkan Consortium Holdings USA, Inc. (BalkConsort), a U.S. corporation that is regionally based in Southeast Europe and which knows the region and its business needs. BalkConsort, together with its partner companies and associations throughout the countries of Southeast Europe and beyond, identifies business and profit opportunities and develops projects and strategic partnerships to implement and benefit from them.

As explained in the Company Summary that follows later in this business plan, BalkConsort USA’s interest and ownership in the proposed airline will transfer first to a new off-shore holding company, BC Holdings International Ltd, and then to a daughter company registered in a member state of the European Union (“BalkConsort EU”), both of which will be established prior to the airline’s start-up. Due to current European Union requirements that E.U. nationals hold the majority interest in an E.U.-flagged carrier, and the importance of an E.U. air operators certificate (AOC) to the new airline’s overall business plan, a majority ownership stake in the new airline, either directly or through “BC Holdings EU,” must be by E.U. nationals.

Joining the BalkConsort USA/BC Holdings International team are aviation, finance, and marketing experts with long and successful track records, including extensive experience organizing and managing other start-up airlines of both a regional and global scope. This organizational and management team, which is described in greater detail in the section of the business plan dealing with the Management Team, will help reduce the risk and ensure the success of the proposed new carrier.

1.1 Objectives

The proposed airline will have as its primary objectives the following elements:

• To establish and operate a new regional airline aiming specifically at linking Western Europe with the rapidly expanding markets of Southeastern Europe and Turkey, and linking Southeastern European destinations, via Western European hubs, to trans-Atlantic and global destinations.
• To provide service and absorb unmet demand in three key traffic categories: unserved and under-served routes on which high demand currently exists or can be developed; serving key niche markets where demand is either unmet or poorly served; and meeting peak traffic demands on certain key regional, seasonal, and variable routes where very high load factors can be predicted despite existing, but lower-quality, competition.
• To implement an organizational and marketing strategy that will, beginning in the first year of flight operations, achieve average passenger load factors in the 65-85 percent range, depending on route and season, and increasing thereafter to the 75-90 percent range, thereby maximizing revenues and return on investment while minimizing risk.
• To achieve revenues in excess of [XYZ] million USD per quarter within the first six months of flight operations, and exceeding [XYZ] million USD per quarter, by the end of the first year.
• To achieve net operating profits in the [XYZ] percent range within the first 12 months of flight operations, an annualized return-on-investment of approximately [XYZ] percent by the end of the second year of operations, and steady growth enabling rational expansion of the airline thereafter.
• To achieve the projected results starting with three mid-to-large-size regional aircraft, growing to five by the end of the first year of operations, similar to the 99-passenger British Aerospace Avro RJ100 or 85 – 99-seat Avro RJ85 regional jet aircraft, obtained on either a dry-lease or purchase basis; supplementing those aircraft with larger, longer-range passenger aircraft and cargo liners on a charter or wet-lease basis to serve peak-demand and intermittent routes and periods, as well as cargo demands, as called for by the business plan; and incrementally expanding the fleet size and scope on a dry-lease or purchase basis to at least double its initial capacity by the beginning of the third year of operations to accommodate projected passenger and cargo growth in the business plan’s out-years.
• To gear operations, and present a professional, serious, growth-oriented image from the outset, that will set the stage for reasoned, planned expansion, mirroring growth rates projected for the first year of operations, and that will enable the airline to extend its regional scope and, in future years, to transition from its initial regional status into a larger continental and intercontinental carrier.
• As an element critical to achieving the airline’s other key objectives, to identify and develop key interline alliances, cooperations, associations, and partnerships with other larger, more established, and highly regarded airlines both within and beyond the target region that will enable the proposed airline to provide an extensive range of connections, through fares, frequent-flyer mileage sharing, and other passenger and client advantages through interline arrangements, code shares, common hubbing, and so forth.

1.2 Mission

The proposed new airline’s mission, simply stated, is to fill a niche in the growing air-travel and cargo markets linking Western Europe, and points beyond, to Southeastern Europe and Turkey; to achieve high, and profitable, load factors by identifying and serving key routes and city pairs currently unserved, under-served, or poorly served, and where significant unmet demand exists; and to set a new standard for air service and professionalism both within the target market region and beyond.

By utilizing the latest aviation, electronic, and informational technologies, and by designing effective and efficient systems and building in quality control from the outset, we aim to ensure the highest level of service, operations, and safety, all based around the needs, wants, comfort, and convenience of the passenger and the cargo client. This combination of technology, service orientation, and quality oversight will help keep costs at a minimum and maximize profits to the airline and its investors. It also will help build the strong customer satisfaction and excellent reputation that will enable the airline to build solid, and crucially important, interline arrangements necessary to expand its scope and customer attraction in the early stages, and which will lead to continued long-term growth both within the target market area and, looking toward the future, beyond.

In short, this airline wants to be known by its proposed guiding motto: “We’ve got a job to do, and we do it every day – for you!”

1.3 Keys to Success

In descending order of importance, the five critical keys to success for the proposed new regional airline are:

• Employing an experienced, highly professional management team that combines vision; realism; financial ability; solid knowledge of the aviation business; familiarity with, and belief in, the utilization and benefits of the latest aviation, electronic, and informational technologies; on-the-ground knowledge of the region and markets to be served; realization of the crucial importance of an organization’s personnel to its success; and a total familiarity with, and commitment to, the overall mission and goals of the proposed new airline.
• Intelligent, progressive, and aggressive marketing that identifies the airline as a different kind of player, one that is sharper and smarter, and with a higher level of professionalism and operational standard than is the norm in the target region. Concentration on safety, with highly trained, dedicated, and professional personnel, caring for the passenger and the passenger’s needs and wants, the advantages offered by advanced technology, and straightforward, understandable, highly competitive tariffs and fare pricing, all will form key pillars of the marketing strategy.
• Identification, through careful market research, of unserved or under-served routes and city pairs in the target market area with sufficient passenger demand to enable high load factors and profitable operations utilizing the category of aircraft envisaged.
• Use of an all-jet fleet of newer, modern, Western-built regional aircraft that offer a high level of comfort, safety, and fuel and operational efficiency and flexibility, which meet all normal aviation standards, and which offer sufficient, but not excessive, passenger and cargo capacity on the envisaged routes.
• Use of advanced electronic and information technology to reduce staffing and other operational costs; expand the potential market base; readily capture sales opportunities; simplify and speed passenger, baggage, and cargo handling; and enhance customer convenience and satisfaction.

Additional important, though less critical, keys to assuring the airline’s success include the following:

• Identifying, negotiating, and entering into, in the pre-operational stage and early on, beneficial associations, cooperations, and partnerships with larger, more established, highly regarded carriers both within and beyond the target market region to offer interline arrangements, through fares, frequent-flyer mileage sharing, and convenient hubbing and long-distance onward connections to passengers. Successful execution of this element of the business plan is crucial to the overall success and growth of the airline, and must be kept in mind in the organizational plan and structuring of the airline.
• Establishing a high level of operational oversight and quality control that will ensure that the airline always lives up to its marketing commitments and fulfills the promise of a high level of service, customer satisfaction, convenience, and safety, at a reasonable, highly competitive fare.
• Avoiding the temptation to go head-to-head with established carriers on routes that already are well-served, unless solid evidence exists of additional, significant pent-up demand, or widespread customer dissatisfaction with existing services.
• Maintaining flexibility that enables the airline to always respond and adapt to changing market conditions and opportunities, without being erratic, and employing equipment, scheduling, and staffing on a basis that is sufficient to get the job done properly, efficiently, and at a high rate of return, without “overkill” or fielding costly excess capacity or, conversely, unduly cancelling scheduled flight operations.
• Identifying, developing, and quickly and cost-effectively exploiting opportunities for new markets, new market concepts, and expanded sales potential.
• Supplementing regularly scheduled passenger service with both regularly scheduled and also special cargo services when and where sufficient demand exists, and also with seasonal, peak-period, and other intermittent passenger services on certain key regional, seasonal, and variable routes where very high load factors can be predicted despite existing but lower-quality competition, or where competition cannot meet the demand. Larger, longer-range, or specialized aircraft may be employed on a charter or wet-lease basis to provide these supplemental, but potentially highly profitable, passenger and cargo services.
• Looking to combine the core aviation business with ancillary marketing concepts and activities and ground-based operations that support, supplement, and complement the aviation elements of the business, including such activities as package-, group-, and charter-travel program offerings; value-added sales and customer services, both land- and Internet-based; construction and operation of enhanced passenger-, baggage-, and cargo-handling facilities and services; and other logical business pursuits both within and outside the immediate aviation business.
• Avoiding growth for growth’s sake, and instead looking for solid niche-enlargement opportunities that will allow incremental, but always profitable, expansion.

Company Summary

The plan for the envisaged new regional airline is an outgrowth of the market research and regional experience of Balkan Consortium Holdings USA, Inc. (BalkConsort), garnered over a nearly three-year period, beginning in mid-1999. BalkConsort, which is proposing to found the new airline, is a U.S. corporation registered in the State of Delaware and headquartered in Chicago, Illinois, with a Southeastern European regional headquarters located in Panorama, just outside Thessaloniki, Greece. BalkConsort, together with its partner companies and associations throughout the countries of Southeast Europe and beyond, identifies key business and profit opportunities and develops projects and strategic partnerships to implement and benefit from them.

Early on following its establishment in the region in mid-1999, BalkConsort identified a growth opportunity in the aviation and travel sector in Southeast Europe. This opportunity is occasioned by growing economic, political, and social stability, and consequent significant business expansion, within and between most of the countries of the region; vastly expanded outside contact and support with and for the region, occasioned by the aftermath of the Bosnia and Kosovo conflicts; extensive UN, NATO, and other international-organization operations in the region; and such multilateral initiatives as the Stability Pact for Southeast Europe, the Southeast Europe Cooperative Initiative, and the Southern Balkan Initiative.

Additionally, the company has determined that maximum potential from this growth opportunity can be obtained not only by linking certain key destinations within the Southeast European region, but by linking the region with carefully selected destinations in Western Europe and beyond. It further has identified significant unmet demand, and significant short-, medium-, and long-term growth potential, represented by Turkey and the rapid growth of the Turkish economy and its domestic and international air-travel market, particularly in light of Turkey’s growing economic and political integration with the European Community and Europe as a whole.

Ancillary Travel Services In response to the growing travel-market potential of the region, represented in particular by the large expatriate community living and working in parts of the region, including Bosnia-Herzegovina, Kosovo, the Former Yugoslav Republic of Macedonia, and Albania, BalkConsort established Hassle-Free Holidays, a package-travel wholesaler and retailer, in mid-2000.

Both Hassle-Free Holidays and its partner organizations are expected to feed customers and traffic to the regional airline and utilize the airline’s services when possible, and will act as additional low-cost outlets for marketing the airline through their planned electronic-commerce websites. Locally established retail travel agencies can serve as a base for the airline’s sales and operations in the key niche market of Kosovo, and Hassle-Free Holidays already has established other close links with retail agencies in Skopje, Thessaloniki, and Athens, and is working on developing similar relationships with agencies in Istanbul, Ankara, Tirana, and elsewhere both within and outside the Southeast European region.

Other related company activities of BalkConsort BalkConsort currently maintains strategic partnerships or associations with companies in the following functional and geographic areas, all of which can serve to support, augment, or supplement the proposed new airline’s core aviation business:

• Construction, construction management, and construction technology (U.S., Greece, Turkey, Albania).
• Environmental engineering, including water and waste water treatment and solid-waste management (U.S., Italy).
• High-level security, demining, and explosive-ordnance removal (U.K.).
• Aviation services and airport development (Albania).
• Travel services and package travel development and marketing (Greece, FYRO Macedonia, Kosovo, global).
• Free trade zone development (U.S.).

The company owns 50 percent of a private U.S.-Albania joint venture limited-liability company, Rruget e Mira sh.p.k., founded in early 2001 and based in Tirana, Albania. The joint-venture company is set up to undertake primarily public road and street construction and reconstruction projects, as well as general construction and development projects, in Albania.

It also is considering tendering, either on its own or more likely in conjunction with a major international engineering and construction firm, for the build-operate-transfer (BOT) concession the Government of Albania will let for the planned new passenger terminal for Rinas (Tirana) International Airport. In addition, BalkConsort also holds exclusive license rights to two advanced U.S.-developed construction technologies in the 10 countries of Southeast Europe, including Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Greece, Macedonia, Slovenia, Romania, Turkey, and Yugoslavia (including Kosovo).

These technologies, combined with other building technologies, products, and methodologies the company and associated companies represent, can offer significant advantages to the new airline should it pursue, either on its own or in conjunction with BalkConsort, development and construction of new passenger-, baggage-, and cargo-handling facilities and other related installations.

Legal relationship and company status of the new airline BalkConsort intends to spin-off the proposed new airline operating company into a separate legal entity under the continued partial ownership and general oversight of BalkConsort, acting as a holding company. Investments in the new airline may be made either through BalkConsort, as a share of its total capital holdings, through an E.U.-based daughter company described later in this section that will be BalkConsort’s proxy for its interests in the new airline company, or directly into the new airline operating company.

To obtain maximum flexibility in terms of certification and flight and landing rights, it is important that the primary carrier operate under an air operator’s certificate (AOC) granted by an European Union country. Since current E.U. requirements stipulate that European Union nationals (companies and individuals) hold the majority ownership interest in any E.U.-flagged carrier, it is critical that overall ownership in the new airline be structured in such a way that the majority interest is held by E.U. nationals.

According to its overall organizational plan, BalkConsort anticipates reorganizing itself into an off-shore holding company (BC Holdings International Ltd), most likely registered in Anguilla, and transferring the current share ownership of Balkan Consortium Holdings USA, Inc. to the new off-shore holding company. BalkConsort USA will then become a daughter marketing company of BC Holdings International, with a majority of its shares owned by U.S. stockholders (necessary for it to fulfill its role as a U.S. marketing company capable of winning U.S. government contracts reserved for U.S.-owned companies), and a minority share owned by BC Holdings International as a holding company. The corporate organizational plan then calls for the establishment of a daughter marketing company in the E.U., similar to BalkConsort USA, to be held partly by BC Holdings International as minority shareholder and with a majority of ownership held by E.U. nationals. This daughter company (BalkConsort EU) may own all or part of the new airline operating company, provided that majority ownership in the airline meets E.U. requirements for an E.U.-flag carrier.

BalkConsort (in its new identity as BC Holdings International and as “BalkConsort EU”) anticipates maintaining or appointing positions on the new airline operating company’s board of directors proportional to its direct or indirect ownership interest in the airline, with other board positions held or named by other investors in the airline proportional to their ownership interests. Additionally, some board positions will be held by non-equity members, nominated by BalkConsort and the other investors and strategically selected by the board, whose presence and guidance can serve to advance the new airline’s operations, business interests, financial positioning, and expansion. It is anticipated that the new airline operating company will be established as a limited-liability company in one or more E.U. countries, the country or countries to be determined based on tax requirements and relative tax and business operating advantages, and other substantive considerations. For instance, registering and basing the company in Luxembourg may offer significant tax, as well as logistic, advantages to the new airline.

Meanwhile, it may be necessary to register a subsidiary company in another country, such as Switzerland for example, to obtain necessary landing rights or slots in that country. Furthermore, if – as is being considered and is detailed elsewhere in this business plan – the airline acquires British-built aircraft, it may be advantageous from the perspective of obtaining British export financing to base the company outside the U.K. Additional AOCs may be obtained by subsidiary carrier companies established outside the E.U. for substantive reasons such as outlined above. The final company structure, including ownership arrangements, national company registrations and AOCs, and basing, will be determined based on consultation and negotiation between BalkConsort and prospective investors, and with the expert guidance of its project team of tax, business, and aviation advisors and consultants, and others as may be needed.

2.1 Company Ownership

It is anticipated that a portion of the ownership in the new airline operating company will be held by BC Holdings International Ltd, most likely through an E.U.-registered daughter company, along with one or more strategic private investors. Investment in the new airline operating company may be made directly in the airline operating company or through investment in BC Holdings International or its E.U. daughter company as the holding company for the airline, with shares apportioned according to the equity investment involved. However, as previously stated, the majority ownership stake in the new airline must be held by E.U. nationals for the airline to qualify for an E.U. AOC, considered an essential element of the overall organizational plan. BalkConsort is prepared to discuss and negotiate specific ownership arrangements in detail with prospective investors. Equity requirements are discussed in the Start-up Summary that follows.

For planning purposes, any subsidiary airline companies established by the parent airline operating company, as described in the previous section, shall be considered to be wholly owned subsidiaries of the parent airline operating company, although individual sub-ownership arrangements may be made in individual cases of such subsidiary companies, particularly in cases where local ownership interests might be required by prevailing law in the countries in question. Balkan Consortium Holdings USA, Inc., the current entity formulating this proposal, is a privately held Delaware (U.S.A.) corporation. As noted in the previous section, a new off-shore holding company, BC Holdings International, Ltd., will be set up, with stock ownership in BalkConsort USA transferring to the new entity. It is anticipated that subsequently BC Holdings Ltd. will set up an E.U. daughter company which would then hold a share of the new airline, based on its relative stake in the airline.

2.3 Company Locations and Facilities

Financial, traffic, and other studies currently are underway to determine the optimal prime basing location for the proposed new airline. Among the locations under study are the following eight:

• Luxembourg, Luxembourg;
• Berlin, Germany;
• London City Airport, London, United Kingdom;
• Stanstead Airport, London, United Kingdom;
• EuroAirport, Basel/Mulhouse, Switzerland/France;
• Amsterdam, The Netherlands;
• Cologne/Bonn, Germany;
• Munich, Germany.

In selecting a location to base the new airline, the following 11 major considerations are being evaluated, in roughly descending order of relative weight:

• The tax and business regime in place in the selected locale. A low profit tax rate and a regulatory and political climate supportive of business, and particularly foreign investment, are key considerations.
• The availability of relatively low-cost facilities suitable for basing both the business and aircraft-support operations, as well as the aircraft, is another key consideration.
• The availability of sufficient landing and parking slots and gate facilities to permit the desired level of service at the base airport.The ability to interconnect with one or more major carriers for onward interline arrangements both within Europe as well as to trans-Atlantic and global destinations.
• A location that, given the maximum range of the selected aircraft, will enable non-stop flights to the most important destinations within the new airline’s service area in Southeastern Europe and Turkey and, at most, one-stop service to more distant or secondary destinations.
• The existence of relatively high-traffic volume between the base location and one or more key interchange points to provide sufficiently high load factors between the base location and onward destinations and points of origin.
• The existence of a reasonably high level of cargo traffic, including opportunities for interline trans-shipment of both inbound and outbound cargo.
• The support of a larger airline with which the proposed new airline can establish a particularly close working relationship.
• The support of local airport and aviation authorities to facilitate establishment, certification, and ongoing operation of the airline and its aircraft.
• A location outside of the U.K. to facilitate British trade finance on acquisition of the new aircraft, should decisions be made to acquire British-built Avro aircraft as previously noted, as well as to purchase, rather than lease, the aircraft.

A range of other factors, including the availability and cost of local skilled workers, the growth potential of the market selected, year-round climatic and weather conditions as they may affect flight operations, the “cache” of the locale for marketing purposes, the cost and convenience or difficulty involved in command and control of the airline involving key personnel, some of whom may be based at various other locations, and so forth.

It is anticipated that most routine maintenance will be performed at the base location, with some more minor maintenance and repairs relegated to other locations in the route network. In both cases, most of this routine maintenance and repair work will be contracted out to established and experienced service providers, reducing the need for the new airline to maintain its own extensive maintenance and repair teams and facilities. The airline will, however, perform its own normal line maintenance at home base and will utilize locally available services away from home. Aircraft also may be based at key airline hub locations away from the home business base as well. With acquisition of British-built aircraft, major overhauls and heavy maintenance may be performed at British Aerospace’s Woodford facility in the U.K. on a selective basis. In addition, it is anticipated that separate fixed-cost maintenance agreements will be entered into for both the airframes and the engines, or these elements will be included in any dry-leasing arrangements entered into.

Estimates for total labor and spare parts costs have been calculated as a fixed per-hour cost and included in the portion of this business plan dealing with anticipated operating costs. Sufficient apron and hangar space for staging, parking, and storing, as needed on a short-term basis, up to the entire initial five-aircraft fleet will be required at the base location and any other hub locations selected. As the fleet expands over time, additional parking and storage space will be needed either at the main base location or at regional hubs in the airline route network. Additionally, sufficient office space, preferably in one central location at or near the base airport, will be required to house the airline’s main administrative offices and its central reservations system. While the airline may consider establishing its own sales offices in key market locations, in general sales will be handled through a combination of Internet marketing utilizing the airline’s own website as well as other Internet travel websites, designated general sales agents in given locales, and regular travel agencies everywhere.

As demonstrated throughout this business plan, it is clear that a strong growth potential exists for the future, and the airline will gear itself toward sensible, well-based growth and solid financial and business planning. The proposed new airline has the potential to become a strong, well-established, and – as the numbers indicate – extremely profitable carrier, starting from now.

3.1 Service Description

In reviewing the planned services to be offered by the proposed new airline, this plan will divide services into two main categories: passenger services and cargo services. Within each category, the service strategy, as well as general services to be offered, are presented and reviewed.

3.2 Competitive Comparison

In comparing the proposed new airline to its competitors, there are at least two levels of comparison that must be considered; the usually lower-standard airlines, both scheduled and charter, flying out of the Southeastern European region, and the higher-standard, more highly regarded airlines operating out of Western Europe.

Beating the former source of competition is both a reasonable and an essential goal. But comparing favorably, and even standing notably above, the latter also is an important objective since these airlines will represent direct competition to the new airline on many of its projected key routes, despite efforts to avoid such competition to the extent feasible. Fortunately, several of the key distinguishing characteristics planned for the new carrier not only will enable it to fare extremely well in both levels of competitive comparison, but will actually be achievable at a savings in cost and resources. In other words, by being smart, the new airline can be significantly better than its competition while at the same time accruing lower overall costs, a remarkably good combination.

In comparing the proposed new carrier to both its Southeastern European and its Western European competition, it is important to look at those factors that determine how most travelers choose an airline. They include the following (and the order of importance is different for each traveler and each situation, but the most important factors are listed):

• Safety, actual and perceived;
• Cost, and range of fares offered;
• Destinations served;
• Availability of seats;
• Availability of fares;
• Convenience of flight schedules, times of arrivals and departures;
• Frequency of flights;
• Connections, including reliability and convenience of connections;
• Nature of flights: non-stop, direct, number of stops, aircraft changes;
• Availability of different classes of service;
• Onboard comfort, service, meals, and amenities;
• Type of aircraft, including jet or non-jet, size, and speed;
• Age and condition of aircraft;
• Ease and efficiency of reservations and ticketing;
• Reliability and on-time departures and arrivals;
• Ground service;
• Reliability and quality of baggage handling;
• Friendly, competent service in reservations, check-in, and in the air;
• Overall reputation of airline;
• Nationality of carrier;
• Factors of personal preference.

While no airline probably can excel in every one of these areas, the closer an airline comes to “excellent,” or at least “good,” ratings in each of these key areas, the better it will fare in its competitive standing. Both in the overall design of the airline and its basic operational features, as well as in its management, quality control, and day-to-day operations, the proposed airline is expected to stand out positively in almost every regard.

Competition with Southeastern European carriers While not all Southeastern European carriers fit the stereotype presented here, and several are in the process of privatization and ostensible upgrading, most do operate at a lower level of service than is customary in Western Europe. It is not uncommon for carriers in the region to operate older Soviet-built equipment (perceived to be less comfortable, less safe, and less reliable than its Western competition – perceptions that often are accurate).

For instance, such competing airlines as Avioimpex of the Former Yugoslav Republic of Macedonia, Albanian Airlines (Albania’s Kuwaiti-owned private carrier), ADA Air (a smaller private carrier in Albania with which BalkConsort has been partnered for certain purposes), Hemus Air and Bulgarian Airlines, both of Bulgaria, Tarom, Romania’s state carrier, and even Malev, the Hungarian airline, still operate Soviet-era aircraft in their fleets. In some cases, these aircraft are turbo-prop powered, and not pure jet. While often it is relatively inexpensive to lease such aircraft, their operating costs tend to be significantly higher than newer, more fuel-efficient Western-built aircraft, and their safety, reliability, and noise factors are often poor, in some cases limiting their ability to operate in some markets.

Service levels are poor in general, among both scheduled and charter carriers, which represent a significant part of the market, particularly in service to Kosovo and Turkey, the two niche markets identified for the new carrier. By utilizing modern, safe, reliable, and cost-effective Western-built regional jet aircraft, the proposed new airline will offer a far more attractive alternative to the traveler both from within and outside Southeast Europe, and will be able to operate with far lower fuel and maintenance costs than the competition. The comfort, reliability, speed, and safety of the new airline’s aircraft all will enable it to be the airline of preference for virtually all business, government, and organizational travelers from both within and outside the target region when traveling to or within the region, and it also will be preferred by most leisure and personal travelers, including those from with the target region, as well.

Greater reliability and punctuality of the aircraft, augmented by state-of-the-art navigational devices that permit operation under a wider range of weather and visibility conditions, will enable the airline to compete most favorably on those bases also, and will ensure the least likelihood of flight cancellations, postponements, and missed or late connections. On the basis of fares, the new airline will offer highly competitive fares which, in many cases, should be below those offered by its Southeastern European competition. Higher load factors, combined with greater efficiency both in operational costs as well as in reservations, ticketing, and check-in, will enable the new airline to be highly competitive from both a cost and a quality perspective, and will also enable it to retain a higher percentage of its revenues.

In short, the local competition, except in a few cases (such as Aegean/Cronus Airlines, and to a lesser extent Olympic Airways, from Greece; Adria from Slovenia; in some cases Malev, from Hungary; and the Turkish carriers) will not represent very strong competition to the new airline, and particularly in attracting the primary market groups at which the new carrier will be aimed. Finally, the new carrier will be seeking out, as part of its business and marketing strategies, routes and city pairs that offer unserved or under-served demand. That strategy also will help reduce the threat from competition, and will enable the carrier to further establish itself as the carrier of choice in Southeast Europe.

Competition with Western European carriers The competitive picture is somewhat different when Western European carriers represent the competition. Many of the new airline’s competitive advantages relative to Southeastern European carriers are erased or at least minimized.

In most cases, the new airline will be competing with other carriers operating aircraft of a similar nature. Safety, comfort, convenience, and reliability, as well as in many cases cost, all are on a similar footing. To stand out from the crowd, the airline must do things either differently or better, or both, than its competitors, and it is here that both the design and the management of the new airline must be at their sharpest. The competition in this region will include such well-established carriers as Swiss International, Austrian, Tyrolean, Lufthansa, KLM, British Airways, Air France, Alitalia, Sabena, and others of that nature. More recent, lower-cost, and “hipper” start-ups such as EasyJet, Go Fly, Bluebird, Virgin Express, and others like them will represent even more challenging competition in some cases.

But unlike any of its competitors, which may employ one or two or several elements of the proposed new airline’s marketing strategies, informational and electronic technologies, and management techniques, none of them – none – employ the full range of those elements that the proposed new airline will employ. Consequently, the proposed new airline will be the real equivalent of a whole new generation of airline (regional or beyond), and will represent the kind of revolution in the aviation world that Pan Am, Icelandic, Laker Air, PEOPLExpress, Virgin Air Atlantic, EasyJet, and Air Blue represented in their day (and in some cases, their “day” is still today).

In that regard, the new airline might well be known as “TechnoAir” given its extensive deployment of state-of-the-art marketing, reservations, ticketing, check-in, baggage- and cargo-tracking, and operational and safety technologies. The advantages of these technologies include a net cost saving to the airline, greater convenience and ease for the passenger, and an image and reputation that will cause the new airline to stand out from the pack. Combined with a staff and management that will be carefully recruited, selected, trained, and motivated to be the best of the best, and to be the most customer-oriented in the business, the new airline also will soon become known by its motto: “I’ve got a job to do, and I do it every day – for you!” In other key areas – routes, schedules, and fares – the new airline also will be carefully designed to either compete highly effectively or, alternatively, to go where the competition is limited or non-existent.

Requirements for interline arrangements In order for the new airline to be able to obtain the interline arrangements such as code-shares, interline fare agreements, frequent-flyer mileage sharing, and so forth, that will be so important to its competitive posture and overall success, it must:

• Fly Western-built aircraft, preferably pure jet.
• Meet the standards to have a two-letter airline code.
• Meet the highest standards for safety, reliability, and service.
• Be accessible through normal reservations and ticketing systems.

Meeting these requirements, and negotiating the desired agreements, will be priorities from the outset in setting up the new airline. Additionally, partnering and interline arrangements will be carefully identified and sought that will offer the new airline strategic partnerships that will help give it the “cover” of larger, more established carriers, and also the status and service and growth potentials it will need to grow beyond its initial stage and to become a true presence in the aviation world.

3.3 Fulfillment

The primary issue regarding sourcing is the question of the type and source of aircraft to be employed in the new airline’s fleet.

Aircraft selection Several potential fleet aircraft and manufacturing sources are being considered and evaluated, including the following:

• Airbus Industrie ATR72, A-300, A-310, A-320
• Boeing 717, 737-500, 737-700
• Bombardier Canadair Regional Jet CRJ
• British Aerospace BAe 146-300, BAe 146-200QC*, Avro RJ85, RJ100, RJX85, RJX100
• Embraer ERJ-145
• Also, in an all-freighter configuration, the BAe 146-200QT** and BAe 146-300QT**

* QC = “Quiet Convertible” version allowing quick-conversion from passenger to full-freighter configuration; only five of these – the complete production run – currently are in service worldwide. ** QT = “Quiet Trader” all freight version, of which in service there are 13 in the 200 version and 10 in the 300 version.

With the exception of the turboprops ATR72 and the Saab 2000, all aircraft under consideration are pure jets. Given the strong “jet preference” among the flying public (for instance, Continental Express in the U.S. estimated that its load factors increased 33 – 50 percent when it switched from turboprops to jet aircraft, and similar results have been documented elsewhere, including in Europe), the overall greater speed and reliability, reasonably close operating costs (especially given the additional flights that can be operated daily), and the longer range offered by jets, the preferred aircraft type is a pure jet. It remains only to decide which is the “right” pure jet for the fleet.

A number of key factors have mitigated toward the BAe Avro RJ family of regional jets rising toward the top of the list as the probable aircraft of choice for the new airline. Among those factors are the following:

• Relatively low per-seat acquisition cost.
• Relatively low per-passenger-mile costs, given their added capacity over smaller regional jets, and high reliability factors in the newer versions (for instance, Aegean/Cronus Airlines of Greece, which operates six RJ100s on a very active daily schedule, has averaged above 99.6 percent departure reliability with its RJ fleet).
• Complete pilot and maintenance intercompatibility between the various members of the family (RJ70, RJ85, RJ100, and now the new RJX family as well), giving added flexibility in flight and maintenance operations and reducing training and simulator costs.
• Four-engine configuration which gives it an added safety factor (while also increasing operating costs, however).
• Spacious, comfortable cabin interiors that offer the only seat, aisle, and overhead bin dimensions available in a regional jet that are equivalent to those on standard-size jets.
• The option of flexible cabin and seating configurations that allow for varying the number of seats provided for various classes depending on demand, the number of seats abreast, types of seat coverings, the number of seats provided on a given flight, and so forth.
• Availability of the aircraft from various sources on both lease and purchase bases.
• The possible option of obtaining advantageous British export financing.\
• Ability to service the aircraft in many locations on the projected service network and the availability of major overhaul capabilities at the manufacturer’s own facilities in the U.K.
• Widespread passenger and industry acceptance of the Avro regional jets both within and outside Europe.

Seating capacity is an important consideration both from the point-of-view of capacity, load factors, and per-passenger-mile costs, but also from the point-of-view of “scope clauses” in pilot union contracts. In Europe, any airliner with 100 or more seats falls under the far more highly compensated “mainline” airliner contracts in place in the industry. Planes with 99 and fewer seats are considered “regional airliners” for contract and union purposes, carrying more economical compensation packages. One approach worth considering is to commence operations with one generation of aircraft with an option to return those aircraft to the lessor or manufacturer without penalty in an “upward trade” to acquire the newer generation aircraft when they become available.

Such options are commonly supported by manufacturers in their effort to market newer generation aircraft, and would enable the new airline to avoid any delays that might ensue from backups in the RJX build pipeline. Given the new airline’s stress on technology and the comfort of the passenger, combined with the very real considerations of lower operating and maintenance costs and greater flexibility, consideration of the latest generation of aircraft should be evaluated carefully, along with limiting seating to five abreast, including in Value Class as described elsewhere in this plan. However, factors such as initial acquisition cost, refurbishing costs, operating and maintenance expenses, reliability, operating parameters, customer preference, and financing packages available for purchase or lease all must be considered.

For purposes of the costing factors utilized in this business plan, acquisition and operating costs for dry-leasing new Avro RJ100 aircraft with a high-level of technical features and passenger amenities have been employed, with a cost comparison also made for purchasing the same aircraft. Adjustments would need to be made for other aircraft types or ages and acquisition methods.

Aircraft acquisition Another issue still being evaluated and which will be decided is the question of how to acquire the aircraft. For a variety of reasons, including the ease with which the leases can be cancelled by the lessor and the lack of “ownership” of the aircraft, wet leasing has been ruled out except for short-term acquisition of aircraft that would be employed in meeting peak demand-type services as outlined elsewhere in this business plan.

The two remaining options both need to be examined from cost, flexibility, and finance points of view: Dry leasing the aircraft (generally on a five-year lease), or outright purchase. Both provide long-term control over the aircraft, and while both options tend to restrict changes in the fleet that might be preferred after the initial years of operation, market conditions and high demand for aircraft indicate that it would be relatively easy to be released from the leases, or to sell or lease the aircraft to new owners or operators, or to return them to their sources.

A number of leasing sources are available for the BAe Avro aircraft being considered, and some used aircraft also are available from time-to-time on the market from various sources. In addition, new aircraft can be acquired directly from the manufacturer on a variety of different plans and options, as well as used aircraft on occasion. Cost factors employed assume dry leasing of new Avro RJ100 aircraft in 99-seat configurations, with a comparison for purchasing. It is anticipated that finance guarantees up to 85 percent of the acquisition cost of the aircraft could be obtained from the Export Credit Guarantee Department of the United Kingdom (ECGD) for purchasing British-built aircraft exported from the UK.

3.4 Technology

Flight may be based on aerodynamics, but the proposed airline will be based on technology, and lots of it. Efficiency and convenience through use of the most up-to-date informational and electronic technologies, in addition to modern aviation and navigational technologies, are guiding principals of the proposed new airline. Technology will also be a cornerstone of the new airline’s marketing strategy.

Among the technological features the new airline will offer are:

• Internet marketing and online reservations (e-reservations) and sales (e-sales) that will provide quick and easy access to airline schedules, flight availability, reservations, and ticketing to a wide range of customers worldwide. This eliminates payment of agency commissions and keeps costs low – savings that can be passed on to the customer.
• Electronic ticketing (e-ticketing) which will enable passengers to obtain their tickets online and avoid the need to obtain paper tickets from airline offices, travel agencies, or at the airport. It also frees the airline from having to stock, track, and issue tickets and maintain paper trails of them. Again, more savings for both the airline and the customer.
• Electronic check-in (e-check-in) that will virtually eliminate waiting in line to check-in for e-ticketed passengers, enabling them to confirm their identities, obtain their boarding passes, and check-in their baggage (and even purchase tickets upon check-in) utilizing a user-friendly kiosk that eliminates those last-minute frustrating waits to get to the counter. And it also greatly reduces the airline’s needs to staff check-in desks, control long lines, employ local contract ground staff, and expend money and resources on an antiquated system that only adds to the traveler’s inconvenience and frustration. Another win-win situation for both airline and passenger.
• Electronic baggage tracking (e-baggage tracking) which will enable the airline to track any piece of baggage from check-in to final pick-up and claim. If courier services can track parcels as they move around the world, and enable customers to track their parcels using tracking numbers and online tracking systems, then why can’t the same system be used to assure that no passenger will ever again have to wonder where his or her baggage might be? There may still be contingencies (such as late check-in, lack of space, security restrictions, late connections, and so forth) that cause baggage not to be placed on a given aircraft, but at least both the airline and the customer can be assured that they both know exactly where the given item of baggage is at any moment, and when it might be expected to arrive at the destination. This could well be an exclusive feature of the proposed new airline since no other airline appears to be utilizing it at present.
• Electronic cargo tracking (e-cargo tracking) is the same basic idea as e-baggage tracking, and will use the same basic system, only for tracking cargo and parcels.
• Electronic quality control (e-QC) is another innovation that will enable technology to create a far better flying experience for the customer, give airline management and staff greater control over airline operations and performance, and save time, effort, money, and staff resources in the process. What is envisaged is a central electronic matrix that controls and monitors scheduling of aircraft, equipment, personnel, supplies, and support materiel, and responds to problems, excesses, and deficiencies.

It also will track all elements of a given passenger’s or customer’s transactions and interactions with the airline, from initial flight inquiry through reservations, ticketing, check-in, flight, connections, and final baggage pick-up, claim, and check-out, as well as any standing preferences, follow-up comments, inquiries, or problems. It also will monitor things like weather conditions, flight delays or projected delays, gate jam-ups, and other contingencies, and will automatically notify both appropriate airline personnel as well as passengers and customers of any advisories, warnings, or changes.

• Electronic financial control (e-finance) will enable complete electronic financial control and monitoring of the airline’s finances, clear advantages.
• Additional technological features will be incorporated on-board the aircraft to provide flight crews with the latest navigational and communication technologies to assure the highest level of passenger safety and also airline reliability and punctuality. Included in this technology, in the case of the Avro aircraft, is all-digital ARINC 700 avionics with advanced Cat IIIb low weather-minimal landing capability to permit landings under the poorest permissible approach and visibility conditions.

Market Analysis Summary

Economic growth and the requirements of redevelopment, not to mention the impending entry of several countries in the region to the European Union, are creating increased demand for air services between Western Europe and the countries of Southeast Europe and Turkey.

The market combines a variety of elements all of which demand a higher quality of air service than often currently available:

• Business travelers requiring convenience, reliability, speed, and schedules built around business needs.
• Government and international organization travelers, requiring the same elements.
• Personal and leisure travelers from the Southeast Europe/Turkey region who have the money to travel by air and who increasingly demand a higher level of service and convenience, but at an economical cost.
• The “Diaspora,” Personal and leisure travelers originally from the Southeast Europe/Turkey region, but now living and working in sizable numbers in the countries of Western Europe, with the same demands.
• Western European personal and leisure travelers, primarily traveling on the airline’s routes between Western European points.
• Seasonal (primarily summer, with some limited niche markets in the winter period) holiday travelers, primarily destined for Greece, Turkey, and the islands of the Mediterranean. Cost, reliability, convenience, and destination are their concerns.

The proposed new airline will appeal to all these distinct groups by offering better quality service (and in some cases, offering service where none now exists), at a higher level of safety, comfort, and convenience, and at reasonable fares, than currently available. The new airline also will focus on the niche markets identified in the Service Description section of this plan, enabling it to better serve and to become identified as the carrier of choice for those markets.

4.1 Market Segmentation

A complete market analysis and segmentation will require a specific passenger and destination survey, the cost of which is included in the Start-up Costs for the airline.

Preliminary analysis (based on a variety of methods, including observation, interviews with travel- and airline-industry professionals, economic segmentation, future projections based on marketing plans, and experience with the region and market) for planning purposes, however, indicates the following approximate market segmentation overall (considerable variations, of course, would be anticipated depending on route, season, and other factors):

• Business – 15%
• Government and International Organizations – 10%
• Regional Resident Personal and Leisure Travelers – 20%
• Diaspora Personal and Leisure Travelers – 10%
• Western European Personal and Leisure Travelers – 5%
• Seasonal Holiday Travelers – 10%*

* The seasonal/holiday travel segment of the market to some degree distorts the overall market percentages, but might initially be anticipated for two reasons: first, it compensates for the drop in business and government travel that can be expected during the peak summer holiday travel season; second, a significant portion of this traffic is likely to be carried on flights employing specially chartered or wet-leased supplemental aircraft.

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United Airlines cuts hiring plans for 2024 due to Boeing delays

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Reporting by Rajesh Kumar Singh; Editing by Will Dunham

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Boeing's Starliner capsule is launched from Florida on first crewed space flight

Boeing's new Starliner astronaut capsule was launched from Florida on Wednesday in a much-delayed first test flight carrying a crew, a milestone in the aerospace giant's ambitions to step up its competition with Elon Musk's SpaceX.

Airline, Taxi & Shuttle Business Plans

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Aircraft Weighing Systems Business Plan

Heavy Lifting, Inc. will design and implement a new, more accurate system of weighing aircraft before take-off to meet current laws.

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Air Leo will fill a niche in the growing air-travel and cargo markets linking Western Europe, and points beyond, to Southeastern Europe and Turkey.

Airport Shuttle Business Plan

Valley Airporter provides scheduled shuttle transportation service between the regional metro airport and outlying communities.

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Premier Airport Transporation is an upscale livery service between businesses, residences and airport.

Limousine Taxi Business Plan

San Francisco Limo, an existing limousine service serving weddings, proms, and nights-out, is expanding into student transport, sightseeing, and elderly transportation.

Regional Airline Business Plan

Puddle Jumpers Airlines, Inc. is a commuter airline organized to take advantage of a specific gap in the short-haul domestic travel market.

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Double Decker Tours of Washington will offer tours of Washington DC monuments, government buildings, museums, etc. in London-style double-decker buses.

Taxi Business Plan

City Taxi is an established taxi cab company in San Francisco.

Before you write a business plan, do your homework. These sample business plans for the airline and aviation industry, including passenger air travel, pilot training, and aircraft equipment manufacturing, will give you a head start.

Running a taxi or limo service means you’re in the business of getting people where they want to go. To get your business where you want it to go, you need a business plan. Start by browsing our sample business plans for taxi, airport taxi, limousine, and shuttle businesses.

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Airline startups: the new airlines set to launch in 2024.

The aviation industry continues to grow, and new airlines are blazing onto the scene with unique operational plans as demand for travel increases.

• In 2024, 27 new airlines are set to launch, offering a range of unique features and services.
• The startup airlines aim to disrupt the industry from low-cost carriers to hydrogen-powered aircraft.
• Sustainability is a crucial focus for many of these airlines, which are committed to using sustainable aviation fuels and electric aircraft.

According to the International Airline Transport Association (IATA), around 4.7 billion people are expected to fly in 2024 , and revenues are expected to reach a record-breaking $964 billion, an increase of 7.6% over 2023.

So, the sector is ripe with opportunity, and many businesses are investing in and starting their airlines. According to Ch Aviation , 27 airlines will make their debut next year. Here is a quick snapshot of the airline startups you should consider in 2024.

The first quarter of 2024 is the busiest, with 18 airlines set to launch. Many of these airlines are subsidiaries of current carriers, which sets them up for a certain degree of success. However, there are some trailblazers among the conventional startups.

Air Japan (NQ) was previously the charter arm of All Nippon Airways (NH) but has been rebranded as a low-cost medium-haul carrier. Air Japan will exclusively operate Boeing 787 Dreamliners on wet leases from its parent airline, ANA. The airline will begin operations on February 6th and fly to Suvarnabhumi Airport (BKK) in Bangkok, Thailand, nine times a week.

Ecojet Airlines

Another airline focused on harnessing electric power, EcoJet Airlines, is a company based in Britain. The airline has purchased a single Q400 that uses a blend of conventional and sustainable aviation fuels (SAF). In November, EcoJet signed a deal with ZeroAvia for 70 of their hydrogen-electric turbofan powerplants. It also recently began hiring pilots to conduct ATR 72 operations in the middle of 2024.

The latest airline to come out of Saudi Arabia, Riyadh Air , has been very busy and eager to get operations underway next year. It is one of the few airlines on the list to have started building its fleet. The airline is awaiting deliveries on their order of 40 Boeing 787-9 Dreamliners.

The airline is based at King Khalid International Airport (RUH) and has plans to serve 110 destinations and order roughly 400 aircraft by 2030 . It has also signed its first Memorandum of Understanding (MoU) with Turkish Airlines for a potential codeshare.

SEM New Air Antilles

This airline is the new name of Air Antilles after its parent company was liquidated , effectively shutting the airline down. The airline operates in the Caribbean Islands and has a fleet of 10 ATRs. We have published a guide on the operator before . We expect the relaunched airline will have very few changes since it restarts operations with new management.

The second quarter of 2024 will see seven new airlines join the fray, four of which are from the Asian market. These are some of the airlines that pique our interest.

Global Airlines

Based in Great Britain, this airline is as unconventional as it gets. The airline’s business model is unique , and it claims that it wants to ‘disrupt the world of aviation.’ How does it aim to do this? By operating a fleet of A380 aircraft and exclusively flying transatlantic flights.

The airline claims that there is no ‘quality competition’ in its chosen segment, which will allow it to make money. It seems to discount the efforts of the six airlines that fly these routes, including legacy carriers American Airlines and British Airways . Staying true to its name, Global Airlines will operate flights from London to New York and Los Angeles.

Air Iveria is Georgia's new flag carrier. The airline plans to operate out of the capital city of Tbilisi to destinations that have yet to be announced. According to Business Media, the airline aims to have a fleet of 3 or 4 narrowbody aircraft and is looking for an initial investment of €20 million ($22.1 million).

The only airline slated for a third-quarter launch is Air Cahana. The airline is based in the US and focuses on hydrogen-powered aircraft. In its mission statement, the airline states it is ‘on a mission to decarbonize aviation.’ To keep costs down and make it more affordable, the airline will use a fleet of turboprop aircraft instead of jet aircraft.

According to the website, the airline plans to utilize the hydrogen powertrains. The airline signed a deal for 250 electric engines from ZeroAvia in June. These engines aren’t quite ready for commercial use just yet. Until then, Air Cahana will use SAF and steadily increase the percentage until the fleet operates on 100% clean fuel.

NEOM Airlines

The final airline to launch next year is Saudi Arabia’s NEOM Airlines. There is very little information about this airline. But it will be centered around the NEOM project, which aims to build ‘ a sustainable futuristic city.’

According to the Arab News , the project is headed by former Chief Operating Officer of British Airways and Air Canada, Klaus Goersch. He said the fleet will initially operate with existing aircraft but will soon pivot to newer ones. In the meantime, to keep in line with NEOM’s goal of sustainability, Goersch said that all of their aircraft will utilize a certain amount of SAF.

Looking ahead

It will be interesting to see how these airlines operate as they attempt to break new ground. If everything works out, we can expect to see green aviation takeoff, literally. More airlines are bound to become more confident in electric and hydrogen-powered aircraft, leading to the industry reaching its net zero C02 emissions much faster.

We’re excited for the future and hope you are, too. Happy New Year!

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American Airlines trims second quarter expectations as chief commercial officer exits

FILE - An American Airlines jetliner rumbles down a runway at Denver International Airport, Jan. 16, 2024, in Denver. American Airlines is lowering some of its second-quarter financial forecasts and has announced the departure of its chief commercial officer. (AP Photo/David Zalubowski, File)

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American Airlines is lowering some of its second-quarter financial forecasts and has announced the departure of its chief commercial officer.

Shares slid more than 14% Wednesday and shares of all other airlines fell as well. Passenger airlines were among the worst performers on the S&P.

American Airlines said in a regulatory filing with the Securities and Exchange Commission that it now anticipates second-quarter adjusted earnings in a range of $1 to $1.15 per share. Its prior forecast was for $1.15 to $1.45 per share. Analysts surveyed by FactSet forecast second-quarter earnings per share of $1.20, on average.

Total revenue per available seat mile is now expected to be down approximately 5% to 6%. Its prior forecast was for a decline of about 1% to 3%.

The airline said in the filing that CCO Vasu Raja will be leaving the company next month. He joined the company in 2004. Stephen Johnson, vice chair and chief strategy officer, was named to lead the commercial organization and assist with the search for a new chief commercial officer.

In February American Airlines announced that starting with tickets issued on May 1, customers would have to buy tickets directly from the airline or its partner carriers or from preferred online travel agencies if they wanted to earn points in its AAdvantage loyalty program. The airline said at the time that it would list the preferred travel agencies in late April.

When the changes were announced, Raja said in a prepared statement that American Airlines was looking to make travel more convenient for customers and that by booking directly with the airline customers would get the best fares and it would be the most rewarding for its loyalty program members.

But the changes were met with criticism by some customers, who were unhappy with the limitations being placed on how they could earn points for the loyalty program.

American Airlines CEO Robert Isom, speaking at the Bernstein Strategic Decisions Conference on Wednesday, said that Raja was an innovator and disruptor, but that a change was needed.

“He is a good friend, but sometimes we need to reset. And in this case, we do,” Isom said. “We have to be better at executing those long-range plans. We have to be more attentive to the marketplace. We have to be more detail-oriented, and we have to go forward as a team and really make it easy for American to do business with.”

Isom said at the conference that American Airlines no longer plans to differentiate who earns AAdvantage miles and who doesn’t, based on where they booked.

“We’re not doing that because it would create confusion and disruption for our end customer, and we’re going to make sure that we take care of it,” he said. “We’re listening to feedback. We’re learning and adapting.”

In April the pilots union at American Airlines said that there had been “a significant spike” in safety issues at the airline, including fewer routine aircraft inspections and shorter test flights on planes returning from major maintenance work.

American Airlines, based in Fort Worth, Texas, said at the time that it has an industry-leading safety management system. An airline spokesperson said then that the airline is in regular contact with regulators and unions “to further bolster our strong safety record and enhance our ever-evolving safety culture.”

I flew on a British Airways Airbus A320 for $195. It's definitely better than flying budget, but I can see why the airline is spending $9 billion on upgrades.

• British Airways is rolling out a new short-haul interior as part of its $9 billion transformation.
• I flew from Edinburgh to London to see what the current cabin is like.
• A new color scheme, better USB ports, and a bit more legroom are needed updates.

Back in 2006, British Airways was named the world's best airline by Skytrax, but its reputation has since declined.

In March, the UK flag carrier announced a $9 billion plan to turn things around . That included overhauling its IT system and continuing retrofits on its Airbus A380 jets — but perhaps the main change is a new cabin design for its short-haul flights.

One A321neo with the new seats is already in the skies. After seeing them in person at the March press event, I wanted to see how they compare to the old version, so I took a trip on an older BA plane in late May.

I definitely thought the flight was better than that of a budget airline, but it also wasn't perfect. BA can feel dated and inconsistent, but this makes me excited for the updates because they seem to solve lots of problems.

In March, British Airways unveiled its new short-haul interior as part of a $9 billion transformation after years of slumping popularity.

The new interior will feature on eight A320neo and A321neo jets, one of which is already in service.

I took a BA flight from Edinburgh to London Heathrow last month to check out the flag carrier's short-haul interior before the update is fully rolled out.

The booking process was quick to get through, although the website can be a bit glitchy. IT updates were another part of the transformation announcement.

My flight cost £153 ($195) but this was a last minute booking. Tickets a month in advance start at £87 ($111) at the time of writing.

That could be a similar price to easyJet depending on the time of day. With a larger carry-on allowance, access to Heathrow Airport, and a frequent-flyer program, I think it's a reasonable price. Add-ons are also cheaper — I paid £5 ($6.40) to pick an aisle seat.

As everyone boarded, I was slightly disappointed that the flight attendants didn't say hello to me.

In my view, a friendly greeting is an important, and easy, step to make passengers feel welcomed onto their flight. During a recent trip to compare Europe's three main budget airlines, easyJet's staff were the only ones to greet me, which gave the airline a big boost in my eyes.

I flew on Europe's 3 biggest budget airlines: easyJet, Ryanair, and Wizz. The best wasn't the cheapest, but its friendly staff made all the difference.

Although as I found my seat, there was a very friendly flight attendant making conversation with passengers.

I think one of BA's main problems is inconsistency — some of its crew are incredibly welcoming and attentive, but others can seem disinterested.

I spent a day learning how to be a flight attendant for British Airways' first-class cabin. From afternoon tea to the turndown service, there's a lot to know.

After sitting at the gate for 15 minutes, the pilot announced that we had missed our takeoff slot because there was a discrepancy with the hold luggage. However, I appreciated his calm demeanor and enthusiasm for making up time during the flight.

We took off 47 minutes after our scheduled departure time, but only landed 28 minutes late.

Shortly after takeoff, the flight attendants offered everyone a bottle of water and a small bag of either peanuts or cookies.

Of course this isn't particularly uncommon, but it was a nice reminder that I was flying on a legacy carrier compared to my budget airline reviews the month before. Plus, the cookies were good!

The ability to recline was also a helpful feature that you wouldn't find on budget airlines flying the same route.

I flew Ryanair for the first time. It may be Europe's biggest airline, but its endless extra fees mean I'm not convinced.

The seatback is pretty nondescript, but I found the tray table was spacious.

The upcoming design is similar, but note the USB-A and USB-C ports on the left.

I think that's a major improvement over the current layout, where two USB-A sockets are awkwardly situated down between seats.

At first, there was no power to the sockets and the passenger next to me had to ask the flight attendant, but they were polite and handled it well.

The leather seat was comfortable, but the legroom was a disappointment. It measures 30 inches, yet even at 5 foot 9, I felt somewhat cramped.

You would get a little more legroom in the new interior as there's more space inset beneath the tray table.

All the extra legroom seats are in business class, which BA calls Club Europe. Like most European carriers, it's the same seat design, except the middle seat is blocked off.

I flew business class both long and short-haul on British Airways, and I have no idea why anyone would pay for the latter

I thought the black-and-gray color scheme was a bit dull and stuffy. But the new version, in navy with red stitching, looks far more modern and gives some needed brightness.

The navy and red is suppose to evoke the British flag, but it also looks similar to a Delta Air Lines cabin.

I also checked out the aft bathroom which had plenty of space.

It had a BA-branded bottle of hand wash and moisturiser. Although the sink area was limited.

There wasn't any in flight entertainment but I was happy to read a novel on the 1 hour and 7 minute flight.

We touched down in sunny London 28 minutes behind schedule. Another benefit of BA versus budget carriers is the use of Heathrow Airport, the capital's largest hub with the most transport links.

There wasn't much to complain about on my flight beside the delay. But I think the new design will help boost BA's reputation. It would be ideal if it could be rolled out on more than just the new eight jets.

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