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Airline Business Plan Sample

Published Feb.01, 2021

Updated Apr.19, 2024

By: Jakub Babkins

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

• Fill in the blanks – Outline
• Financial Tables

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:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

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:

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.
• Owners: List the names of your airline company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

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.

• Competitive Analysis: Identify and analyze your direct and indirect competitors . Identify their strengths and weaknesses, and describe what differentiates your airline services from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your airline company, such as airline deregulation, aviation security, consumer protection, competition regulation, etc.

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:

• Passenger flight
• Baggage handling
• In-flight services
• Seating options
• Loyalty programs
• Special assistance
• Additional Services: Mention if your airline company offers any additional services. You may include services like pre-booking seats, extra baggage allowance, in-flight entertainment options, onboard Wi-Fi, duty-free shopping, special assistance for passengers with disabilities, etc.

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:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, targeted advertising, content marketing, etc.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include partnering with other businesses, influencer collaboration, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts & offers, personalized service, etc.

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: Mention your business’s staffing requirements, including the number of employees or cabin crew needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your airline business. Your operational processes may include flight planning & scheduling, ground operations, aircraft operations, safety & security, customer service, 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: Mention the founders and CEO of your airline company, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

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: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your airline business’s assets, liabilities, and equity.
• Financing Needs: Calculate costs associated with starting an airline business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

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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StartupBoeing

Prepare for takeoff.

Starting an airline is tough. Running a profitable airline is even tougher. From startup airlines to established industry leaders, the process involves constant learning and adaptation.

Few businesses have as many variables and challenges as airlines. They are capital-intensive. Competition is fierce. Airlines are fossil fuel dependent and often at the mercy of fuel price volatility. Operations are labor intensive and subject to government control and political influence. And a lot depends on the weather.

But the intrepid entrepreneur is not alone. The StartupBoeing team assists entrepreneurs in launching new airlines. From concept through launch, StartupBoeing offers guidance, review, analysis, data, resources, contacts, and referrals to qualified startup airlines.

For further questions or dialogue, please e-mail us at [email protected] .

Market Analysis

Entrepreneurs who are considering a startup airline launch are wise to study the commercial aviation market. Three comprehensive publications are very useful in providing a detailed analysis of traffic growth, regional trends, and airplane requirements. They are produced by Boeing and highly regarded throughout the industry.

Commercial Market Outlook World Air Cargo Forecast Current Aircraft Finance Market Outlook

Operating Environment

Startup airlines must be aware of and operate within a framework of regulations, standards and guidelines. Included here is basic information on some of the primary international agreements and programs that shape the operating environment for commercial aviation.

Learn about the " Freedoms of the Air ," a set of international rights that allow a country's airlines to enter the airspace of another country or land there.

Find out more about ETOPS , or Extended Operations, a collaborative industry/government program allowing airplanes to fly routes with longer diversion times.

Business Planning

Successful startup airlines begin with a sound business plan. This detailed planning document typically includes:

• Analysis of the market and competition
• Brand positioning
• Description of the business and opportunity
• Details about the operation
• Management team biographies
• Discussion of risks and obstacles
• Pro forma financial statements/projections
• Capitalization plan
• Brand development
• Implementation strategy.

The business plan is the fundamental starting point for working effectively with theStartupBoeing consulting team. StartupBoeing provides free review services of the business plan and corresponding financials. We offer constructive suggestions, question assumptions, and challenge the entrepreneur to prove the concept just as prospective investors might. For entrepreneurs requiring assistance in preparing the plan itself, StartupBoeing can suggest advisors worldwide who specialize in such services.

The Structural Plan

The Airline Planning Roadmap (PDF) offers a conceptual sense of the necessary steps in launching an airline from idea through launch.

Business Plan Questions (PDF) provides a list of important questions to consider when writing the business plan.

Brand Foundation Overview (PDF) provides a list of steps to take to position your emerging brand based on your market analysis and a need to differentiate from existing competitors.

Structuring the Plan

The Airline Business Plan Outline (PDF) is a tool for capturing many of the important elements for successfully starting and operating an airline. While it is not a comprehensive structure for all airline concepts, it can serve as a starting framework for a business plan.

Airplane Selection

Target markets and frequencies are determined through traffic analysis and route/schedule planning. The startup airline is now positioned to select the appropriate airplane. Included here is basic airplane data a startup-airline can use to make a preliminary aircraft selection and complete a compelling business plan.

Interactive Aircraft Comparator

In-Production Airplanes

Out of production airplanes, passenger airplanes.

• 727 (727-100/-100C/-200)
• 737 (737-200/-200C)
• 737 (737-300/-400/-500)
• 737 (737-600/-700/-800/-900ER)
• 747 (747-100/-200/-300/SP)
• 747 (747-400/-400ER)
• 757 (757-200/-300)
• 767 (767-200/-200ER/-300/-300ER/-400ER)
• 777 (777-200/-200ER/-200LR/-300/-300ER)

Freighter Airplanes

• 707-320C Freighter
• 727-100/-200 Freighter
• 737-200/-300 Freighter
• 747-200F/-200SF/-100SF
• 747 Freighter (747-400/-400ER)
• 747-8F Freighter
• 757-200 Freighter
• DC-8 Freighter
• DC-9 Freighter
• DC-10 Freighter
• MD-11 Freighter

Boeing Converted Freighters

• 747-400 BCF

Airplane Support

Visit Boeing Support and Services to learn more about Boeing global customer support, including spares & logistics support, maintenance and engineering services, fleet enhancements and modifications, and flight operations support.

The Boeing Airport Compatibility Group assists the aviation community to address their airport-related issues regarding our airplanes, providing Boeing and McDonnell Douglas commercial airplane product information needed to promote the continued and timely development of the world's airports.

Boeing provides a variety of documents that provide Airplane Characteristics data for General Airport Planning . Sections within each document include airplane description, airplane performance, ground maneuvering, terminal servicing, operating conditions, and pavement data.

Learn more about the pallets and containers used to carry cargo on-board large Boeing aircraft, including specific designations, dimensions, descriptions and visuals.

View a glossary of airplane terms .

Airplane Sourcing

Selecting the optimal airplane based on market, network plan, traffic estimates, interior layout, economics, and performance requirements is a good start. But now the airline entrepreneur must source the airplane. Decisions must be made about lease-versus-buy and new-versus-used. Airplane availability may be a challenge. Such factors may drive the airplane selection or even change the business model.

An important first step in sourcing the airplane is to consider financing options . The two most common methods of financing airplanes are direct purchase and operating lease.

New Airplanes

Depending on current production line availability, financing, business plan, and desired launch date, a startup airline may consider purchasing a new production airplane.

Leasing New or Used Airplanes

Boeing works with major airplane leasing companies worldwide. StartupBoeing is able to match qualified startup airlines with Boeing's leasing partners.

Lease Rates

Boeing does not regularly track airplane market lease rates. However, a range of lease rates can be provided to qualified startup airlines.

Through Boeing Commercial Aircraft Customer Finance, qualified startup airlines can be matched with third party sellers/lessors of used airplanes.

Third Party Used Airplanes

Through Boeing's internal Trading Floor, qualified startup airlines can be matched with third party sellers/lessors of used airplanes. Other sources of used airplane availability include:

Operating Your Airline

Boeing offers startup airlines the industry’s largest portfolio of commercial aviation support and services essential for running a successful airline. Through Boeing Global Services startup operators have access to everything from training and interior modifications to aircraft maintenance and high-tech enhancements.

The following solutions are available to suit your specific startup plans and requirements.

Maintenance & Parts Solutions

Boeing’s Maintenance and Part solutions help you to manage maintenance, modification, repair, overhaul and upgrades of your fleet while simplifying your supply chain. One of the services most applicable to a new airline is Global Fleet Care.

Boeing’s Global Fleet Care gives you the most comprehensive maintenance program available.

Global Fleet Care can:

• Help a new entrant operator conserve startup maintenance program capital
• Provide a competitive hourly maintenance rate that reduces airline staffing requirements.
• Include initial parts provisioning
• Supply engineering services
• Provide 24/7 Customer Support and Airplane Health Monitoring

Flight Operations Solutions

Boeing’s Flight Operations Solutions provide full flight operations support that is scalable to grow as your airline expands and your operational complexity increases. From pilot training to start of operations and beyond, our suite of products will provide the highest quality tools for your crews to deliver an efficient flight operation.

Services most applicable to a new airline:

• Flight Planning
• Charts and Navigation
• Electronic Flight Bag (EFB)
• Pilot training and Simulator
• Performance Planning

Boeing Aviation Consultants

Boeing’s staff of experienced airline and consulting professionals can advise and assist with all activities associated with a new entrant airline.

Boeing’s Consultants can:

• Assist with securing an Air Operator Certificate (AOC) as well as other regulatory requirement filings
• Design and structure an efficient operations organization
• Advise in the development and regulatory approval of a maintenance program
• Design a parts optimization program
• Assist with route analysis and payload improvements
• Develop a fuel efficiency program
• Select Information Technology elements that are appropriate for the size of operation
• Prepare an airline for eventual transition to ‘smart’ airplanes

Once an airline is up and running, Boeing’s Aviation Consultants can also provide periodic, detailed operations analysis that can assist with optimizing your maintenance and fuel efficiency programs, as well as provide crew management solutions for best scheduling and utilization of crewmembers.

When you are ready to start your airline, Boeing is ready to help you every step of the way.

Boeing offers startup airlines a comprehensive array of tools and services for running a successful airline. Everything from training to interior design to financing to maintenance to high-tech enhancements and more. Available resources include:

• Aviation Partners Boeing : Fuel saving and performance enhancing Blended Winglets for a number of current production Boeing airplanes and out-of-production models
• Boeing Business Jets : Private, Business, and Government VIP configured Boeing production airplanes
• Boeing Support and Services : Customer Support, Material Management, Maintenance Services, Fleet Enhancement, Flight Operations
• Fuel Conservation Services : Optimizing your operations to maximize airplane fuel efficiency
• Jeppesen : Aviation Training, Charts & Navigation Services, Flight Planning and Custom Services
• Training & Flight Services : Maintenance and Flight Crew Training

Becoming a Customer

Whether you are starting a new airline with Boeing aircraft, adding your first Boeing aircraft to your existing fleet, or you are new to maintaining Boeing aircraft, we have the products, services, and information resources needed to get you off the ground and keep you flying.

Relationship

Creating a business relationship with Boeing can provide access to:

• Boeing expertise
• Support services needed for the introduction, operation and maintenance of your aircraft

What do you need?

If you are a Maintenance Repair and Overhaul (MRO) or repair station, please see the Intellectual Property Management - Licensing Questionnaire .

In order to obtain Boeing goods and services, it will be necessary to enter into an agreement with Boeing and set-up an account. To begin the account set-up process, complete and submit a Boeing Customer Questionnaire . This questionnaire must be completed and submitted electronically.

Upon receipt of the completed questionnaire and based upon the information you submit, Boeing will:

• Start the process of establishing an account so your company can do business with Boeing.
• Assign your company a Boeing customer code which will identify your company within Boeing for future business transactions.
• Identify you as the owner, operator, or lessee of the aircraft.
• Supplemental Agreement for Electronic Access (SA-EA)
• Supplemental Agreement for Electronic Enabling (SA-eE)
• Provide you with certain documents at no charge when the CSGTA and its supplements are signed and appropriate insurance is obtained.

Access to Boeing Part Page

Boeing Material Services offers the advantage of buying from the original equipment manufacturer (OEM).

Boeing also provides customers with access to the aftermarket for a wider breadth of resources to locate hard-to-find parts. From single transactions to supply chain management, Boeing provides you with the right part, at the right place, at the right time. For more access information, please contact [email protected] .

Intellectual Property Management - Licensing Questionnaire

Aircraft owner/operators and third-party service providers have particular needs for OEM products and services as they support the industry. These products and services may require the use of information that is created during the development and certification of Boeing products. Comments from the industry have helped us to establish a set of Intellectual Property licensing standards that address specific requirements and establish a fair and consistent fee structure for the use of the information developed.

Take the Intellectual Property Management - Licensing Questionnaire .

Customer Services General Terms Agreement (CSGTA)

The Customer Services General Terms Agreement (CSGTA) incorporates articles applicable to various Boeing products and services into a blanket-type agreement so that, once in place, only unique terms and conditions need to be negotiated when a customer requires a specific product or service. The benefits of this approach are:

• Faster responses to requests from customers for products and services.
• A reduction in resources and effort needed to implement and manage all Customer Support related agreements for both customer and Boeing.

Some examples of the products and services covered by the CSGTA are lease of parts and tools, purchase of spare parts and standards, retrofit kit changes, repair, modification, technical assistance/consulting, training services and technical data.

Two Supplemental Agreements are associated with the CSGTA. The Supplemental Agreement to the CSGTA for Electronic Access (SA-EA) incorporates articles specific to granting you electronic access to Boeing goods and services, specifically technical data available on MyBoeingFleet.com. The Supplemental Agreement to the CSGTA for Electronic Enabling (SA-eE) incorporates articles specific to software licensing.

Part 125 Airplane Operating Certificate (AOC)

To apply for a part 125 AOC you will need to provide certain documents to your regulatory agency such as the Maintenance Planning Document (MPD), Quick Reference Handbook (QRH), and Aircraft Flight Manual (AFM). Our business operations group will help you get access to these documents on a temporary basis to help you with your AOC application.

MyBoeingFleet (MBF)

MyBoeingFleet is Boeing's secure internet portal, providing authorized customers with access to the industry's most comprehensive range of support products and services for Boeing commercial aircraft.

Aircraft owners and operators - as well as maintenance providers, leasing companies, regulatory agencies and other third party service providers - use MyBoeingFleet to order parts, collaborate with Boeing experts, and obtain essential information such as drawings, documentation, manuals, and operational data and procedures.

Owner/operators and licensed maintenance providers can also access productivity solutions such as Maintenance Performance Toolbox and Airplane Health Management.

Frequently Asked Questions

I want to start an airline. how can the startupboeing site help.

The StartupBoeing site is filled with information that will be useful in starting an airline. In starting an airline, there are specific steps that should be followed, and they are laid out in order to help you along your journey.

• Step 1:  Market Analysis
• Step 2:  Operating Environment
• Step 3:  Business Planning
• Step 4:  Airplane Selection
• Step 5:  Airplane Sourcing

How can we obtain Boeing aircraft performance data for our planned operations?

The StartupBoeing team has found that this usually is not the first question to ask when starting an airline. The market opportunity and business plan will help shape what aircraft to fly. Once an understanding of the market opportunity and competitive environment are established, the StartupBoeing team can assist in providing suggestions for aircraft and ultimately performance data to fit the market opportunity.

Can Boeing lease me an aircraft?

Boeing generally does not lease aircraft. Aircraft leasing is usually done by third parties not associated with Boeing. To help you find these leased aircraft, Boeing has provided links to these parties found in the Airplane Sourcing section.

I want to buy a used aircraft from Boeing. How much does it cost?

Boeing generally does not sell used aircraft. Used aircraft are usually sold by third parties not associated with Boeing. To help you find these used aircraft, Boeing has provided links to these parties found in the Airplane Sourcing section.

Where can I find information on Boeing airplanes?

Information on passenger and freighter airplanes, along with information on cargo hold sizes can be found in the Airplane Selection section.

Where can I find a definition of aircraft terms?

A glossary of aircraft terms can be found here .

Where can I find airplane market data?

The Boeing Current Market Outlook (CMO) and World Air Cargo Forecast can be found in the Market Analysis section.

Where can I find information on business planning?

Information on business plans can be found in the Business Planning section.

Where can I find information about regulatory requirements?

Information about regulatory requirements can be found in the Operating Environment section.

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?

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Airline Company Business Plan [Sample Template]

By: Author Joy Nwokoro

Home » Business ideas » Aviation Industry » Airline

An airline company is a business that provides air transportation services for passengers and cargo. Its primary function is to use airplanes to carry people and goods between various destinations, both domestically and internationally.

The airline industry is a crucial part of the global transportation network and it plays a significant role in facilitating travel, trade, and economic growth.

The airline industry is highly competitive and subject to various economic, political, and environmental factors that can significantly impact its operations and financial performance. As a result, successful airline companies must be adaptive, innovative, and customer-oriented to thrive in this dynamic sector.

Steps on How to Write an Airline Company Business Plan

Executive summary.

Fly Mario® Airline Company, Inc. is a dynamic and customer-focused airline based in Dallas/Fort Worth, Texas, Texas, committed to providing safe, reliable, and convenient air transportation services. With a mission to connect people and places, we aim to be the preferred choice for both domestic and international travel, setting new standards of excellence in the airline industry.

Dallas/Fort Worth, Texas, as a major hub for business and tourism, presents significant opportunities for growth. With its diverse population and strong economic foundations, the city demands reliable air travel options, and Fly Mario® Airline Company, Inc. is poised to capture a substantial share of this market.

Fly Mario® Airline Company, Inc. was established in 2015, and since then, we have grown steadily to become one of the leading airlines in the region. Our modern fleet of state-of-the-art aircraft, combined with a highly trained and professional crew, ensures that our passengers experience unparalleled comfort and security throughout their journey.

Company Profile

A. our products and services.

Fly Mario® Airline Company, Inc. has an extensive route network, connecting major cities and popular tourist destinations in the United States and beyond. Our strategic partnerships with international carriers enable us to offer seamless travel options to our customers.

At Fly Mario®, customer satisfaction is our top priority. We are committed to providing exceptional service that exceeds expectations. From easy online booking to hassle-free check-ins and inflight amenities, we focus on every detail to make our passengers’ experience truly memorable.

b. Nature of the Business

Our airline company will operate with a business-to-consumer and business-to-business model.

c. The Industry

Fly Mario® Airline Company, Inc. will operate in the transportation industry (specifically within the aviation or airline industry).

d. Mission Statement

At Fly Mario® Airline Company, Inc., our mission is to connect people and places, providing safe, reliable, and exceptional air travel experiences. We are committed to exceeding our passengers’ expectations by delivering unparalleled service, convenience, and comfort.

With a customer-centric approach and a passion for innovation, we aim to be the preferred choice for domestic and international travelers.

e. Vision Statement

Our vision at Fly Mario® Airline Company, Inc. is to be a leading global airline, admired for our commitment to safety, excellence, and sustainability. We aspire to expand our route network, offering seamless connections to major destinations worldwide.

Through strategic alliances, cutting-edge technology, and an unwavering focus on customer satisfaction, we aim to set new industry standards while upholding our core values of integrity, responsibility, and respect.

f. Our Tagline (Slogan)

Fly Mario® Airline Company, Inc. – “Where Dreams Take Flight with Fly Mario®”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Fly Mario® Airline Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (President)
• Logistics and Operations Manager
• Human Resources and Amin Manager
• Maintenance Engineer
• Air Hostess
• Sales and Marketing Manager
• Accountants (Cashiers)
• Customer Services Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

• Solomon Stephen (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Jude Justin (Board Member) 18 Percent Shares
• Chris Fox (Board Member) 10 Percent Shares
• Merrick Baseman (Board Member) 10 Percent Shares
• Kate Hanson (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Fly Mario® has established a recognizable and trusted brand identity, known for its commitment to customer satisfaction and quality service.
• The airline has a wide range of domestic and international routes, providing passengers with numerous travel options and convenient connections.
• Fly Mario® prioritizes customer needs and consistently delivers exceptional experiences, earning customer loyalty and positive word-of-mouth.
• The airline operates a modern fleet of fuel-efficient aircraft equipped with the latest technology, ensuring safety, reliability, and environmental sustainability.
• Fly Mario® has forged strategic alliances with other airlines and travel partners, enabling access to additional destinations and offering seamless travel experiences.
• The airline employs a highly trained and motivated workforce, including experienced pilots, cabin crew, and ground staff, contributing to operational excellence.

b. Weakness

• In certain markets, Fly Mario® faces strong competition from well-established airlines, limiting its market share in specific regions.
• High operating costs, such as fuel expenses, maintenance, and airport fees, can impact profitability, especially during periods of economic downturn or rising fuel prices.
• The airline industry is influenced by various external factors, such as weather conditions, geopolitical events, and economic fluctuations, which can disrupt operations and revenue.

c. Opportunities

• Fly Mario® can explore new markets and routes to tap into emerging travel trends and growing demand in untapped regions.
• Investing in more fuel-efficient and advanced aircraft can lead to cost savings and a reduced environmental footprint, aligning with sustainability goals.
• Introducing additional ancillary services, such as in-flight entertainment, premium seat options, and travel packages, can enhance revenue generation.
• Embracing cutting-edge technology for ticketing, reservation systems, and customer interactions can streamline operations and improve the overall passenger experience.

i. How Big is the Industry?

The airline industry is indeed a big and significant sector in the transportation industry. As a matter of fact, the global airline industry generated hundreds of billions of dollars in annual revenue, making it one of the most revenue-intensive industries worldwide.

ii. Is the Industry Growing or Declining?

The airline industry is a growing industry. As a matter of fact, the demand for airline services has been steadily increasing in recent years. However, it is important to note that the airline industry is highly dynamic and can experience fluctuations based on various factors, including global economic conditions, geopolitical events, and health crises.

iii. What are the Future Trends in the Industry?

Airlines were expected to prioritize sustainability and environmental responsibility. This included investing in more fuel-efficient aircraft, exploring alternative fuels, and implementing eco-friendly practices to reduce their carbon footprint.

The industry embraced digital technologies to enhance passenger experience. This included mobile check-ins, personalized offers, in-flight Wi-Fi, and the use of artificial intelligence (AI) and data analytics to improve operations and customer service.

Post the COVID-19 pandemic, health and safety became a top priority. Airlines were anticipated to continue implementing stringent hygiene protocols, touchless check-ins, and enhanced cleaning measures to ensure passenger safety. The pandemic accelerated the adoption of remote work, leading to potential changes in business travel patterns.

The industry was exploring the use of hybrid and electric-powered aircraft to reduce emissions and fuel consumption, potentially leading to more sustainable aviation. Blockchain was gaining attention in the industry for its potential to streamline processes related to ticketing, baggage handling, and loyalty programs.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to the airline business and some of them are:

• Commercial airline (passenger airline)
• Jet charter
• Air ambulance
• Cargo airline.

v. Can You Sell a Franchise of Your Business in the Future?

Fly Mario® Airline Company, Inc. has no plans to sell franchises in the near future.

• The airline industry is fiercely competitive, with both established carriers and new entrants vying for market share, potentially leading to price wars and reduced profit margins.
• Fluctuations in fuel prices can significantly impact operational costs, affecting the airline’s profitability.
• Evolving aviation regulations and policies can impose compliance challenges and increase operating expenses.
• Unforeseen events, such as pandemics, natural disasters, or political crises, can disrupt travel demand and operations on a global scale.

i. Who are the Major Competitors?

• American Airlines
• Delta Air Lines
• United Airlines
• Southwest Airlines
• Alaska Airlines
• JetBlue Airways
• Spirit Airlines
• Frontier Airlines
• Allegiant Air
• Hawaiian Airlines
• Sun Country Airlines
• Virgin America
• SkyWest Airlines
• Mesa Airlines
• Republic Airways
• Endeavor Air
• ExpressJet Airlines
• Piedmont Airlines
• PSA Airlines

ii. Is There a Franchise for Airline Business? 

No, there are no franchise opportunities for the airline business because of the nature of the business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Airline Business?

Yes, there are various policies, regulations, and zoning laws that affect the airline business in the United States of America. These rules are put in place to ensure safety, fairness, and efficient operations within the aviation industry.

Federal Aviation Administration (FAA) is the primary regulatory body responsible for overseeing civil aviation in the United States. They establish and enforce safety standards for aircraft, pilots, and maintenance procedures. Airlines must comply with these regulations to operate legally and ensure the safety of their operations.

Airport Zoning Laws regulate land use around airports to ensure that developments near airfields do not interfere with flight operations. Zoning laws may restrict the height of buildings, noise levels, and other factors that could affect aircraft safety and efficiency.

Transportation Security Administration (TSA) Regulations is responsible for security in transportation systems, including aviation. They implement and enforce security measures at airports, such as passenger screening, baggage checks, and the screening of cargo to prevent threats to aviation security.

Airlines are subject to various environmental regulations aimed at reducing their impact on the environment, including emissions standards, noise restrictions, and fuel efficiency requirements. Federal Aviation Act provides the legal framework for aviation regulation in the U.S., defining the roles and responsibilities of various agencies and entities in the aviation industry.

The Department of Transportation (DOT) plays a significant role in regulating and overseeing various aspects of the airline industry, including consumer protection, airline competition, and enforcement of aviation-related laws.

Marketing Plan

A. who is your target audience.

i. Age Range

The target audience at Fly Mario® Airline Company, Inc. spans various age groups, with a primary focus on adults between the ages of 25 to 60. This demographic includes working professionals, business travelers, and leisure travelers seeking quality air travel experiences.

ii. Level of Education

The target audience comprises individuals with diverse educational backgrounds, ranging from high school graduates to those with advanced degrees.

iii. Income Level

Fly Mario® Airline Company, Inc. caters to a diverse income level audience. While it offers affordable and competitive ticket pricing to attract budget-conscious travelers, it also provides premium services and amenities for high-income passengers seeking luxury and convenience during their travels.

iv. Ethnicity: Fly Mario® Airline Company, Inc. aims to be inclusive and welcoming to passengers of all ethnic backgrounds.

v. Language

The airline’s services are available in multiple languages to accommodate passengers from different linguistic backgrounds.

It ensures that essential communication, including in-flight announcements and customer service interactions, is available in commonly spoken languages, making the flying experience more accessible and enjoyable for all passengers.

vi. Geographical Location

As a global airline, Fly Mario® Airline Company, Inc. operates across a wide geographical area, serving both domestic and international destinations.

vii. Lifestyle

The target audience for Fly Mario® Airline Company, Inc. encompasses a diverse range of lifestyles. It caters to business travelers seeking efficiency and convenience, families looking for a pleasant travel experience, leisure travelers desiring adventure and exploration, and individuals who value comfort and relaxation during their journeys.

b. Advertising and Promotion Strategies

• Content marketing
• Deliberately Brand All Our Trucks
• Email marketing
• Events and sponsorships
• Pay-per-click (PPC) advertising
• Referral marketing
• Search engine optimization (SEO).

i. Traditional Marketing Strategies

• Broadcast Marketing -Television & Radio Channels.
• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Affiliate Marketing
• Content Marketing.
• Email Marketing.
• Influencer Marketing.
• Mobile Marketing.
• Social Media Marketing Platforms.
• Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Create profiles on relevant social media channels.
• Gear up our profiles with a diverse content strategy.
• Start using chatbots.
• Run cross-channel campaigns.
• Use brand advocates.

c. Pricing Strategy

At Fly Mario® Airline Company, Inc., our pricing strategy is designed to offer a balance between affordability and value, ensuring that passengers have access to a range of ticket options while maintaining a high standard of service. Our approach considers various factors to remain competitive in the market and appeal to a diverse customer base. Key elements of our pricing strategy include:

• Dynamic Pricing
• Fare Classes
• Bundled Services
• Loyalty Programs
• Promotions and Special Offers
• Transparent Pricing
• Partner and Codeshare Agreements.

Sales and Distribution Plan

A. sales channels.

At Fly Mario® Airline Company, Inc., we employ a multi-channel approach to reach and engage with our customers, ensuring accessibility and convenience throughout the booking and travel process.

Our primary and most popular sales channel is our user-friendly website. Through our online booking platform, customers can easily search for flights, view available seats, compare fares, and make reservations. We offer a seamless and secure online payment system, providing customers with the convenience of booking their flights from the comfort of their homes or mobile devices.

We collaborate with travel agencies to expand our reach and cater to customers who prefer using travel agents for their bookings. By partnering with reputable agencies, we extend our sales network and offer our services to a broader audience.

b. Inventory Strategy

At Fly Mario® Airline Company, Inc., our inventory strategy ensures a well-maintained fleet, essential equipment, proactive maintenance, collaborative partnerships, supply chain visibility, a just-in-time approach, and flexibility. By optimizing resources and adapting to changing customer demands, we provide reliable and timely airline services.

While airline typically involves smaller-sized loads and more flexible scheduling, we still require a well-managed inventory strategy to ensure prompt and reliable service.

c. Payment Options for Customers

Here are the payment options that Fly Mario® Airline Company, Inc. will make available to its clients:

• Apple Pay and Google Wallet
• Gift cards and store credit
• Credit and debit cards
• Installment payments
• Cash on service delivery.

d. Return Policy, Incentives, and Guarantees

Return policy:.

At Fly Mario® Airline Company, Inc., we understand that plans may change, and unforeseen circumstances may arise. To provide our customers with flexibility and peace of mind, we offer a comprehensive and customer-friendly return policy for flight bookings. Our return policy includes the following key elements:

Depending on the fare class and the time of cancellation, customers may be eligible for a full refund, a partial refund, or the option to receive travel credits for future use.

Incentives:

Our loyalty program offers various benefits to frequent flyers, such as earning points or miles for each journey that can be redeemed for future flights or other exclusive rewards.

Members of our loyalty program receive access to exclusive discounts and promotional offers, providing them with cost-saving opportunities for their travels. As a token of appreciation, loyal customers may be eligible for complimentary upgrades to higher fare classes and access to priority services such as priority check-in and boarding.

Guarantees:

At Fly Mario® Airline Company, Inc., we take pride in our commitment to providing a reliable and satisfying travel experience for our customers.

e. Customer Support Strategy

Providing exceptional customer support is crucial for the success of our airline company. Here are some customer support strategies that we will adopt:

• Provide multiple communication channels
• Offer personalized attention
• Set clear expectations.
• Provide timely and safe delivery
• Maintain transparency.
• Offer value-added services.

Our customer service team is available 24/7 to assist customers with their return requests, ensuring prompt and efficient service.

Operational Plan

• Maintain a fleet of modern and well-maintained aircraft to ensure safety, efficiency, and passenger comfort.
• Regularly scheduled flights to various destinations, considering factors such as demand, seasonality, and connectivity.
• Optimize flight routes and capacity utilization to maximize operational efficiency and profitability.
• Comply with all aviation regulations and safety standards set by relevant authorities.
• Implement rigorous safety protocols and procedures to ensure the highest level of safety for passengers, crew, and aircraft.
• Conduct regular maintenance checks and inspections to keep the fleet in top condition.

a. What Happens During a Typical Day at an Airline Business?

A typical day at an airline business is a well-orchestrated operation involving various departments and personnel working together to ensure smooth flight operations, excellent customer service, and efficient ground handling. Specific activities can vary depending on the size and scope of the airline.

b. Production Process

There is no production process when it comes to the airline business.

c. Service Procedure

At Fly Mario® Airline Company, Inc., we are committed to providing our passengers with an exceptional travel experience from the moment they book their flights until they reach their destinations. Our service procedure encompasses various stages of the customer journey:

Booking and Pre-Flight Stage: Passengers can book their flights through our user-friendly website, mobile app, call center, or authorized travel agents.

Pre-Departure Stage: Passengers receive a booking confirmation with essential flight details and a summary of their travel itinerary.

Check-in and Boarding: Passengers can check in for their flights online, through the mobile app, or at airport self-service kiosks. At the airport, our ground staff ensures a smooth and efficient check-in process.

In-Flight Experience: Passengers can enjoy a range of in-flight entertainment options, including movies, TV shows, music, and games. Meals and beverages are served, and special dietary requirements are accommodated upon prior request.

On-Time Performance: In the event of any delays or disruptions, we provide timely updates and assistance to affected passengers.

Arrival and Baggage Claim: Upon arrival at the destination, ground handling teams assist passengers with disembarkation.

d. The Supply Chain

A supply chain is not applicable to the airline business.

e. Sources of Income

The main source of revenue for Fly Mario® Airline Company, Inc. comes from the sale of airline tickets to passengers. This includes fares for all classes of travel, such as economy, premium economy, business, and first class. Ticket sales account for a significant portion of our overall income.

Financial Plan

A. amount needed to start your airline company .

Fly Mario® Airline Company, Inc. would need an estimate of $150 million to successfully set up our airline company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the costs involved?

• Business Registration Fees – $2,500.
• Legal expenses for obtaining licenses and permits – $34,300.
• Marketing, Branding, and Promotions – $25,000.
• Business Consultant Fee – $50,500.
• Insurance – $5 million.
• Rent/Lease – $3 million
• Operational Cost (salaries of employees, payments of bills et al) – $9 million
• Equipment and Furnishing – $1 million
• Airplane (leasing agreements) – $85 million
• Website: $2,500
• Opening party: $8,000
• Miscellaneous: $2 million

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Fly Mario® Airline Company, Inc. will not build a new facility for our airline company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running an Airline Company?

• Aircraft Maintenance
• Employee Salaries and Benefits
• Airport Fees and Charges for landing, parking, and terminal usage.
• Insurance Premiums
• Marketing and Advertising
• Administrative and Overhead Costs (office rentals, utilities, office supplies, accounting, legal services, and other administrative expenses).
• Costs related to providing in-flight services, such as catering, in-flight entertainment, and amenities
• Ongoing training programs for pilots, cabin crew, and other personnel
• Navigation and Air Traffic Control Fees
• Ongoing expenses for IT infrastructure, reservation systems, and digital platforms
• Cleaning and Ground Handling
• Regulatory and Certification Fees

e. What is the Average Salary of your Staff?

• Chief Executive Officer (President) – $180,000 per year
• Logistics and Operations Manager: around $85,000 per year
• Human Resources and Admin Manager – $70,000 per year
• Pilot – $120,000 per year
• Maintenance Engineer – $70,000 per year
• Cabin Crew – $50,000 per year
• Sales and Marketing Manager – $45,000 per year
• Accountants (Cashiers) – $45,000 per year
• Customer Service Representative: $33,000 per year.

f. How Do You Get Funding to Start an Airline Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for government funds, and angel investors
• Source for soft loans from your family members and your friends.

Financial Projection

A. how much should you charge for your product/service.

For domestic flights within the United States, the average cost of an economy-class ticket can range from around $150 to $600, depending on factors such as distance, seasonality, and how far in advance the ticket is purchased.

Short-haul flights (e.g., one to two hours of flying time) typically cost less, while longer-haul or transcontinental flights can be more expensive. For international flights departing from the U.S., ticket prices can vary widely depending on the destination, the airline, and the time of travel.

Economy class tickets for international flights can range from $500 to $2,000 or more, depending on factors such as the distance, the level of competition on the route, and the time of year.

b. Sales Forecast?

• First Fiscal Year (FY1): $22 million
• Second Fiscal Year (FY2): $35 million
• Third Fiscal Year (FY3): $42 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): 2 percent
• Second Fiscal Year (FY2) (Profit After Tax): 5 percent
• Third Fiscal Year (FY3) (Profit After Tax): 10 percent

d. Profit Margin of an Airline Company Product/Service

On average, the profit margin for airlines has been in the range of 2% to 5% in recent years. However, it is important to note that profit margins can fluctuate significantly from year to year and can be influenced by various external factors such as fuel price fluctuations, changes in demand, and global events.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Fly Mario® Airline Company, Inc. will grow our airline company by opening up new local flight routes in the United States of America and international routes.

b. Where do you intend to expand to and why?

Fly Mario® Airline Company, Inc. plans to expand to;

• Atlanta, Georgia
• Los Angeles, California
• Chicago, Illinois
• Dallas/Fort Worth, Texas
• Denver, Colorado
• New York City, New York
• San Francisco, California
• Seattle, Washington
• Las Vegas, Nevada
• Orlando, Florida.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest airline market (high air traffic) in the United States.

The founder of Fly Mario® Airline Company, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international airline company that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.

The goal of combining two or more international airline companies on a global scale is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities).

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How to Create an Airline Business Plan

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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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So you have decided to start an airline. This is a big decision to take on a project that could quickly take over your life. But how do you actually go about it, and where do you begin? The process involved in starting an airline can be rewarding, enjoyable, and hopefully profitable too. But it can also be frustrating, fraught with challenges, and the next setback will always remain just around the next corner. But if you are determined to do this, let’s take a closer look at how you might go about achieving your goal.

The four key stages of planning

The first thing to do is develop a robust business plan for your airline . You should consider the four critical stages of planning, better known as what , where , how , and why . Your business plan could make all the difference between your airline becoming the next big deal or simply another casualty of the ruthless airline industry, itself littered with failures throughout its history.

Getting these first critical decisions right will improve your chances of succeeding and perhaps ensure your airline's survival chances in the future. Once you have rigorous and comprehensive answers to all four key stages, it will be time to draft your business plan.

Your airline business plan will act as the shop window for your airline that you will present to potential investors ; a document that can be peered throughout to see whether your offering is attractive enough to entice others inside and, hopefully, to part with their hard-earned dollars.

After all, unless you have bottomless pockets, you will be reliant on others to provide additional funding and investment to get your airline off the ground. We shall explore the whole issue of budget and finance in greater depth in the next part of this series.

The first stage of planning - What?

The first of the critical issues to address when you consider starting an airline is ' what '? What do you want to achieve exactly, bearing in mind that this may not be possible, cost-effective, safe, or even legal?

Focussing on developing your initial idea is all very well, but being flexible to change and ready for setbacks will be useful characteristics in your planning toolkit as you progress. You should develop an exact, detailed concept of what you want to do with your airline. What are your goals, and what do you need to achieve them.

What are your aims and ambitions? Do you want to start small and get bigger, or do you simply want to remain small and niche? Remember, many airlines survive because they stay small. Or are your aspirations to become a feeder carrier possibly, or a regional operator . Do you want to scale things up to become a short, medium, or even long-haul operator, flying the big jets to faraway destinations?

Is your airline going to be a scheduled carrier, a charter operator, or a combination of both? You might want to avoid the complications of fare-paying passengers altogether (often referred to in the airline world as ‘self-loading freight’) and specialize in the carriage of cargo only.

In principle, these are all feasible ventures, and the industry has successful examples in each sector. Honing on just one market segment initially and doing that well will be crucial before you even consider growing your business.

Once you have an established, well-developed concept of what you want your airline to be, you can progress to the next stage of the process.

The second stage of planning - Where?

Where you want to fly sits snugly alongside the ‘ what ’ question addressed above. You should be considering your proposed route structure , selecting your hub airports and your home base from the outset. You need to decide whether you wish to focus on being a point-to-point carrier or whether a hub-and-spoke operation might suit your airline better.

Remember that some airports you may wish to serve will be slot constrained, so a quick initiation into that airport's slot allocation process will be necessary. You may not be allocated a workable set of slots for your airline, so be prepared for some tough negotiating.

Recent startup airlines which appear to be making early progress with network planning are Breeze and Avelo in the US, selecting point-to-point routes to develop their business. PLAY in Iceland is aiming to build a viable hub-and-spoke network using Keflavik Airport (its home base) as its hub facility, offering decent levels of connectivity for passengers traveling over Iceland between the United States and Europe

Are you considering entering an existing market where you will compete with others, or will you target new, emerging markets, opening up regions and routes that would otherwise remain unserved by other carriers, such as Bonza , the excitable new startup in Australia?

Bearing in mind that you will require aircraft, crew, ground handling, maintenance provisions, and other services at each base you open dictates that you simply should not consider opening up a plethora of routes that are entirely unlinked to each other in any way.

Startup airlines regularly focus early operations on a single or minimal number of bases to start before they even consider expansion. An excellent current example of this is the new Flybe operation starting operations shortly. This new carrier (revived from the ashes of another carrier of the same name, which failed at the start of the pandemic) has limited its initial operation to just two small UK bases - Birmingham and Belfast City .

No doubt routes will be picked up and dropped from these bases in the early stages as Flybe refines its model. Yet, by staying small initially, the airline hopes to avoid having a dispersed network and fleet, which stretches resources and ultimately leads to operating a wide range of loss-making routes, just as its predecessor did.

While the 'what' question may have been based on intangibles, such as desire or ambition, the 'where' decisions will be primarily based on data and information.

Detailed route analysis using modeling and forecasting will be a prerequisite here. It will be imperative to have all your facts in numeric form so that forecasting and projections can be produced to act as your road map as you develop.

Route and network development consultancies can assist you in this process, as can the planning departments of airport authorities , as well as the leading commercial aircraft manufacturers.

Even a decision to fly a new 200-seat jet from point A to point B will find you with offers from all of these sources, each undoubtedly willing to provide planning assistance, particularly if there is something potentially in it for them. So don't be afraid to ask for help from those who know their industry best.

James Pearson , Simple Flying's very own in-house route and network planning expert, provides the following helpful advice for anyone considering a potential new airline's route structure -

Network planning requires solid research using multiple data sources, thinking creatively, and forecasting as accurately as possible. It also requires a strong gut instinct about what will work and why.

For low-cost and ultra-low-cost carriers especially, predicting market growth through stimulating demand is often essential. For many thin routes, this is crucial to make them viable, without which they would be too small.

Network planning isn't just a one-off process. It also requires continual market awareness to check what is happening to avail of more opportunities as they arise. No matter the work, not all routes will work or are expected to work. If they did, an airline wouldn't be experimenting enough.

The third stage of planning - How?

When considering the question of ' how' , there are various points to consider. Will you select just a single aircraft type for your operation, or does your plan call for several types? Without delving too deeply into economic theory relating to the principle of economies of scale, startup airlines have often seen success when focussing on a single type of aircraft - Southwest , Ryanair, or Wizz, all being good examples.

Selecting the correct aircraft type for your operation will be of utmost importance. Too small an aircraft, and you could be passing up the opportunity to fill more revenue-producing seats. Too large an airplane, you could risk flying around half-empty planes, burning fuel, and losing money, and lots of it.

Getting this balancing act is imperative to ensure your business plan's economics are correct. Your airline is financially viable so that your airline’s survival is assured, at least in the initial startup phase. Again, aircraft manufacturers' marketing departments will be all too eager to assist you in this process if there might be an aircraft sale or two for them!

The fourth stage of planning - Why?

Starting an airline is not easy; otherwise, everyone would be doing it, right? Going into the startup process thinking your airline will be flying before you know it would be foolhardy and misguided. You should give a great deal of consideration to why you wish to do this.

Why do you want to put yourself through months, if not years, of stress just to get to your airline's inaugural flight, let alone what may come afterward? Starting an airline simply as a vanity project has been repeatedly shown to be not enough reason to build a sustainable business.

You will need a good degree of passion, enthusiasm, resilience, and ambition to make this all come together. Starting an airline for fun is not a ‘thing’ in itself. You may have good intentions, grand designs, and enormous ambitions for your airline. Still, without established motives and deeply embedded aspirations, you may as well stop planning before you even get started.

And to address the 'elephant in the room' when it comes to airline startups, don’t expect to run a profitable business for several years at the very least . The startup costs involved in getting a new startup airline flying are far more considerable than even your forecasts will tell you. You need to make provision for this, given the multitude of setbacks that will undoubtedly come your way throughout the startup process.

As mentioned earlier in this article, If you are starting an airline simply to get rich quickly, you seriously need to rethink your whole ethos.

Failing to plan is planning to fail

Without comprehensive and credible plans in place, you are setting yourself up for a rapid fall. Any cracks in your business plan will quickly widen, be stretched to critical levels, and may simply just bring your whole project crumbling down before you even get going.

Yet, knowing what you want to do, where you intend to do it, how you intend to achieve it, and perhaps most importantly, why you are setting off on this arduous process and profoundly personal and life-changing journey will either attract investors to you or conversely confine your airline plans firmly to the drawing board.

Head in the air but feet on the ground

So, in summing up, be very clear about what you are aiming to achieve. Have big ideas and even bigger goals, but wherever your airline planning takes you, keeping your feet firmly on the ground will serve you well. Because remaining grounded throughout the planning process at all times, will hopefully ensure that your airline startup does not!

Next time, we shall look at airline funding and financing. Join us for 'How to Start An Airline: Part 3 - Finances', coming soon.

How To Start An Airline: The Complete Series

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Airline Business Plan

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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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Spirited ‘Funny Girl’ captures excitement of early musical theater

The show that made Barbra Streisand famous is playing at Maine State Music Theatre through July 13.

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Jenna Lea Rosen as Fanny Brice with the cast of “Funny Girl” at Maine State Music Theatre. Photo by MSMT/Jared Morneau Photography

Who are the luckiest people in the world? At least for theater fans, the answer is “people who need people,” a line made famous well over half a century ago by Barbra Streisand in the original production of the musical “Funny Girl.”

THEATER REVIEW

WHAT: “Funny Girl: the Musical” by Maine State Music Theatre

WHERE: Pickard Theater, Bowdoin College Campus, Brunswick

REVIEWED: June 28 (matinee); continues through July 13

TICKETS: Starting at $93

CONTACT: 207-725-8769, msmt.org

On the heels of the show’s recent Broadway revival, the Maine State Music Theatre has opened a spirited production of the classic musical on its home stage at the Pickard Theater on the campus of Bowdoin College in Brunswick.

The show primarily captures the rousing excitement of early musical theater while unavoidably making us think about how it launched the career of Streisand. At a lengthy but enjoyable two-and-one-half hours, plus intermission, it’s a show that still charms with its memorable songs, old-style comedy and bittersweet love story.

The impressive production, directed and choreographed by Kenny Ingram and with the time-honored music of Jule Styne, lyrics by Bob Merrill and book by Isobel Lennart, tells the semi-fictionalized story of Fanny Brice, a real-life figure who rose from humble origins to showbiz stardom as a give-it-everything-you’ve-got performer in the early 20th century.

At first socially awkward and vulnerable, but with a unique talent and an admirable determination to succeed, Fanny gained the attention of famed impresario Florenz Ziegfeld, Jr. and went on to star in many of his glitzy stage shows. At the same time, Fanny’s personal life was a bit of a rollercoaster ride.

Jenna Lea Rosen takes the lead role and scores comedically with her initially wide-eyed approach to Fanny’s personal and professional challenges. Armed with a feisty “New Yawk” accent, the actress easily takes charge of backstage, front stage and offstage scenes. Her vocals are compelling on both comic numbers (“Sadie, Sadie” and “Rat-Tat-Tat-Tat”) and in more intimate moments (“People” and “Don’t Rain On My Parade”). Advertisement

Douglas Raymond Williams plays Fanny’s handsome rogue of a love interest who brings her to a fuller life but fails her in the end. His opera-trained vocals alongside Rosen (“I Want to be Seen With You” and “You are Woman, I am Man”) establish both the heat and uncertainties within their relationship.

Among the many standout secondary actors and choristers, Tyler Johnson-Campion is a tap-dancing whiz. His work with Sue Cella, who plays Fanny’s mom, is a treat on “Who Taught Her Everything.” Cella also has some fun moments squabbling with a competitive friend played by Maine State favorite Charis Leos.

Tommy Betz shines as a Tenor and David Girolmo returns to the Pickard stage as the stern but supportive Mr. Ziegfeld. Jeremiah Valentino Porter gets to toot a hot horn on “Cornet Man.”

The Maine State Music Theatre Orchestra, led by Jason Wetzel, mixes up the period flavors with a newer Broadway expansiveness. The costumes designed by J. Theresa Bush and scenic design by Jeffrey D. Kmiec take the audience back to a distant era when musical theater and its early stars were on the rise.

Steve Feeney is a freelance writer who lives in Portland.

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