How To Start An Airline: Part 2 - Developing A Business Plan
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- Опубліковано 17 лип 2022
- So you’ve decided to start an airline. This is a big decision to take on a project that will quickly take over your life! But how do you actually go about it, and where do you begin?
Well, 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 a ruthless industry, itself littered with failures throughout its history.
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If you want to become a millionaire start a airline but you will need to be a billionaire to start
But you are a millionaire already
@@SomeoneCalledAdrian username checks out
No i don't need million
I am currently starting an airline. I found your content very nice and informative. However, it lacks in-depth analysis, which i am pretty sure is done on purpose, otherwise it would be much harder for non-aviation relevant people to comprehend. I cannot disclose any information on my project but i wanted to say that your presentation was very solid because the main questions are exactly these. WHY,WHERE,WHAT&HOW ? Additionally, one must take into account the pre-AOC period where you have to introduce the airline as a legal entity and establish the infrastructure to support all the legal requirements as per EASA or FAA guidelines including Nominated Persons, Operation Manuals and Trainings. Nevertheless it is all about numbers. I wouldn't suggest focusing on statistics and forecast models as they are really volatile predictions and i think this is one of the main lessons of the COVID crisis. On the other hand, it is not bad to have a generalized overview of these statistics to pivot your own research. Thus, i would advise to go with your gut and do a primary research on the market you want to serve and get actual demand stats as this is more realistic and will give you direct information as to whether you are on the right track or not. Not to forget, calculate that the pre-AOC period could take 6 to 8 months if not more due to local CAA restrictions or requirements and your airline will not be producing any revenue flows for that period. Consequently, you must have a very in-depth financial analysis as to what your expenditures pre-AOC and after commencing operations(DIRECT OPERATING & INDIRECT OPERATING COSTS) are and what are your estimated revenues after commencing. For clarity purposes, an approximate initial investment figure at least for the European Market to commercially operate a JET for PAX or CARGO OPS would be roughly around €10-15 mln . In a nutshell, starting an airline is surely an exciting challenger, however it takes a lot of research, time, effort and manpower and is a high-risk investment that most angel investors and VCs will most probably avoid. Thanks for your content!
Good point, John. I'm an inflight director, let me know if I can assist with your project.
What airline are you starting? I want to learn more about it.
@@coloradoboy1014 … did you read the comment says I can’t disclose any information.
What type of airline are you starting? How is it called ?
Hey John, I’m working on the same. Can we discuss. What’s your email?
I'm thinking point to point with a base in Shannon (because it has USA pre clearance) to airports that aren't major hubs in the USA, while still having suitable infrastructure, initially but still close enough to easily get to major cities and tourist destinations. Maybe deals with short haul carriers to allow mainland Europeans to transfer in Shannon. Looking to expand beyond Ireland and the USA as the business grows. As I commented on the 1st episode video, an all 787 fleet. Obviously this is all fantasy on my part but it's also a great thought experiment.
It's just going to be a vanity project for me haha but it'll be nice to resume more direct Philippines-EU connections, as it was in the 1990s. The only direct flights now are PAL's Manila-London and KLM's Amsterdam-Manila(via Taipei). Most people I know transfer at Istanbul, Doha, or Dubai.
Tbh if I were to start an airline, I'd want to fly long haul with the B777 and A350 only. I love love those aircraft.
Personally I will start with the A220-100, really effective long haul narrow body plane
@@Plab1402 the A220 can fly long haul? I thought it was short and medium haul.
@@Aviator96 oops my mistake the A220-300 can fly close to long haul, but the A220-100 can still fly pretty far
@@Plab1402 maybe I'm just not a huge fan of narrowbodies. But the A220 is a bit too small.
@@Aviator96 welp everyone have there own opinions
My airline would be charter. The first planes would be two Boeing 737-800 (used - not new). I would fly on popular routes between Europe and Africa (in Africa it is Morocco, Tunisia, Egypt)
To put it simply, I want to follow what I’m doing in Airlines Manager.
In that game, I started on a Heathrow-JFK route with four Airbus A320-200s, expanded to a Heathrow-San Francisco with two Boeing 737-700ERs, and now have several more transatlantic routes with a few domestic UK routes ( handled by two Jetstream-41s but all others by EMB-120s, excluding an ERJ-145XR ) and a Heathrow-Paris route with a CRJ-900.
I could’ve started out with a Concorde if I wanted, considering how much the game gives players to start their airline. Most of the domestic routes aren’t in service though, as it turns out they were more than a bit unprofitable.
I originally wanted to be just a budget carrier across the North Atlantic, but given that demand quickly dried up, I decided to change that and now all my aircraft ( aside from one ) are all first, business or mixed, with plans to acquire several cargo planes.
All in all, DefenderSea is doing good.
Edit: Things have REALLY gotten good.
The fleet is enormous now, 98 aircraft, and I’m acquiring two more as I type this. I got another 707, and my amount of 737-700ERs is at 13.
The older aircraft are proving to be extremely profitable, and I’m actually regretting not having J.F.K as a hub, so that I could have domestic flights from there, but it would’ve cost me more money in the beginning, so I can probably do something else like that.
Now DefenderSea flies to Las Vegas, Chengdu, Bangor, Presque Isle, Munich and Hamburg as well as the previous routes.
There was one point where I was actually losing money, but I think it was because my aircraft were going unmaintained. While I can’t prove this yet, now that they HAVE been maintained, money is rolling in again, so it’s my best guess.
I really hope this isn’t my peak, because better is, well, better.
Just an edit I decided to make: If you’re making an airline, following Ryanair’s “plane plan” is a good idea. Fleet commonality is something that works for me, so I’d go for the 737-700 for regular routes and 737-700ER for places farther away. Maybe a 787 for larger routes or something. 737s are reliable to me, which is why I’ve acquired so many in AMT.
Currently I’m in the ranking of 27,091, although this may change and stuff. Not yet in an alliance.
( and I have a Discord, just saying )
I want to follow JSX's concept, using Bombardier Global 7500s, flying from Seletar Airport.
4:21 Though the seemingly random, disjointed route offerings seem to be working just fine for Contour.
I'm thinking of an airline based in La Paz, Bolivia. It's final goal will be creating a airline connecting all major cities in South America to major cities in North America and Europe. It will start off as a small domestic airline with 4 A220's. Three A220s would shuttle three routes within Bolivia with on time service while most Bolivian flights are delayed an hour or more. We will offer IFE screens and meals on all flights to win over the Bolivian market and then expand to SA, NA, and EU
I think if u want to expand later on than try A321neo it is an great aircraft espacilly for budget
@@Boldstudent Definitely with the A321 on routes within North and South America. And for routes between Europe, Asia, Africa, and Oceania we'd have 787 dreamlike and A350XLR's
@@Boldstudent Maybe try the A321XLR
@@lucaspena6827 you may A350ULR
Being the airlines manager tycoon freak I am if you would ask me Id say according to the game hubs with 24h routes are the best for efficiency but the real world is different so Id open a hub in DPS then operate direct to KNO, from CGK the number one route is to DPS then number 2 is KNO but there is no direct between them so that's what I would start off with, Id fly the A220-300's to start off
I want to start an Air line in Nigeria ..that will first fly inter states ,then sooner or later go international
I actually flew on Bonza this year.
I want to focus on "smart lynx" where I help other airlines in high demand seasons. The only missing part of my bussines plan is what to do in low demand seasons.. I work at BRU airport and see airlines like TUI Belgium struggle during the summer season.. so hard that I believe a whole company can help them out
I have a question regarding the Gulf stream the small one private jet, it has 10 seats inside.Me and my dad wants to start up with these source of income.However, my question is it possible to handle these?and how to take the first step to begin with in my country Papua New Guinea.Thankyou🙏
I have been noticing something for the past few days. I get videos from this channel on my homepage but when I click on it it says Video Unavailable. Even this video was not shown in my subscribers feed until it showed up today on my home page. is there any reason for this?
Nice
I'm interested in the business but am currently unsure routes. I am currently thinking of operating a low-cost airshuttle based in West Palm Beach or Miami that would operate mainly to Key West, Freeport, and Nassau, as they are popular for leisure travel. I would operate this on mostly Fairchild Metroliners or other aircraft of similar specs. My airline would also probably operate a route on a 737 or A320 to Newark due to it being cheaper than JFK Airport, and that the New York area has the most flights to Eastern Florida.
The airline would most likely stay at the same size, but probably upgrade aircraft if the demand is high enough. Let me know what you think!
finally
JetBlue & Breeze is staging new category
......A220-300 is perfect at any point
My airline would be regional. I would serve Atlanta, Charleston, Miami, and Savannah first operating the E190 and CRJ200/700
Those are pretty big planes for just a few routes
Can’t wait 😛 to see “Part 3: The Funding”, Long Haul!
Part 3:
Be Elon Musk or Jeff Bezos , you can't do anything else
I figured out most of the cost, and it’ll cost 7.5 to 12 million dollars as the CHEAPEST OPTION, so i think i’d suggest starting another business, and selling it for 10million THEN start you airline
Starting a airline soon international
I want to start a whole new "tiny aviation"with new safety and rules.
- Providence International
- Bombardier CRJ
I want to start a global airline base in Nairobi jkia
I’m looking investor start airline
I wanna start an airline based in New York LaGuardia flying hand-me-down refurbished A300-600s to Miami and back. Then I’ll buy new 737 MAXs to fly the same route so that the A300s can have room to fly transatlantic.
If and should I start an airline would be long haul flights. Whenever I travel no airline in long hauls are perfect. I would prefer to remain niche. Probably London to Singapore. Would only cater to business class and premium economy....and why. Coz there's always market for the value for money. Not too expensive not to cheap. 4 star price with 6 star amenities.....I see that market grow in D2C sectors. Annual of 27% growth yoy....
Is 10 million usd enough to get all the things done?
a billion euros to be safe :)
What about the hundreds of millions to buy aircrafts?
@@eamonahern7495 we talking about a startup, i think a billion pounds would do
It really depends on the airline if it’s a small regional airline then sure. If it’s a large low cost or long haul airline you’ll need to secure more.
I've always thought about starting an airline (my profile pic is really old) and I've been looking up airplane costs and you'll need way more than that if you want to own planes
Let's follow this tutorial.. oh wait I am broke
I’m thinking of starting my airline in Asia, it will be a low cost airline, if you want more information, my airline’s name is LLM Airlines
Nah I'm not dreaming to have my own airline,However if one of you airline entrepreneurs is looking for a pilot that is much more my cup of tea ;)
I imagine that startling an airline would be like having children and grandchildren--you have to feed, clothe and buy toys, gadgets and devices for them all and such likes.
What most people don't know is that Ethiopian Airlines is a coveted place to work so the employees are extremely proud to work for Ethiopian. Also nationalism plays a role.
Checkup my Airline in Airlines Manager... i have a mega airline having more than 1000 aircrafts (Maritie Airways) We can form an alliance if you join or already play airline manager
Very interesting indeed.
I'd have helicopters in my airline fleet
Well, that’s certainly a new idea.
That honestly seems like something that should’ve been done by now… huh. Kind of hard to believe it hasn’t.
A long haul airline.it will fly to Hungary.The plane is a 777-300ER