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If You Were An Airline CEO!  
User currently offlinePropilot83 From United States of America, joined Jan 2001, 604 posts, RR: 0
Posted (5 years 1 month 1 week 6 days 18 hours ago) and read 7356 times:

How would you manage your airline and its profit making business if you were an airline CEO? Well I would first create a humanitarian program called "The Hope for Globe" and basically donate 30% of the airlines monthly net revenue profit to humanitarian aid around the world to help the poor and suffering like as in countries in Africa, Asia, and elsewhere. The program would be run with extreme oversight, so that means that I would have a director for the problem and trustworthy people who will NOT donate the money to that poor nation in need, however we would physically go to that country or nation and work with their local governments and other trustworthy agencies to help build schools, hospitals, homes, roads, etc. and feed the poor and provide health care for them.

12 replies: All unread, jump to last
 
User currently offlineFlyMIA From United States of America, joined Jun 2001, 7215 posts, RR: 10
Reply 1, posted (5 years 1 month 1 week 6 days 17 hours ago) and read 7344 times:

Sounds like a nice idea but how does giving away 30% of your money help you make money??
Make a good product, smart routes, good frequent flyer program. But really the best way to make money in the airline buisness is to stay out of it  Wink



"It was just four of us on the flight deck, trying to do our job" (Captain Al Haynes)
User currently offlineYYZRWY23 From Canada, joined Aug 2009, 561 posts, RR: 0
Reply 2, posted (5 years 1 month 1 week 6 days 10 hours ago) and read 7320 times:



Quoting FlyMIA (Reply 1):
But really the best way to make money in the airline buisness is to stay out of it

A quote I would like to share. I forget who said it, but none the less.

"If you want to become a millionaire invest a billion dollars in an airline, you'll be a millionaire soon enough."

Quoting Propilot83 (Thread starter):
donate 30% of the airlines monthly net revenue profit

Not that I am against this, but your company will never go public. Public companies have shareholders that want profit, and in such an industry, committing 1/3 of your net income to charity while good morally is horrible from a fiscal perspective. Shareholders wouldn't have any of it and that means tons of capital for a privately held airline. But, if this dream of your ever comes to fruition, I for one would feel good travelling on a carrier doing something for the world also.

YYZRWY23



If you don't stand behind our troops, feel free to stand in front of them.
User currently offlinePropilot83 From United States of America, joined Jan 2001, 604 posts, RR: 0
Reply 3, posted (5 years 1 month 1 week 6 days 7 hours ago) and read 7308 times:

Well you know, the thing is that if I was an airline CEO or owner, my airline would be very unique compared to others. Thats right, there would be massive oversight and strict regulations as far as frequent flyer programs, smart routes, fuel efficient cost reductions, whatever way the airline could save money to the last dime! I wouldnt really care about shareholders, they are already living a healthy life. I care about others around the world who are suffering and dont even have the basics....food, water, shelter, and health. So for example if my airline made a net revenue of about $3 million in one month, $900,000 dollars or 30% of that money would go to "The Hope for Globe" program.

User currently offlineJetplaner From Canada, joined Mar 2008, 158 posts, RR: 0
Reply 4, posted (5 years 1 month 1 week 6 days 1 hour ago) and read 7286 times:

My dream airline, which when I become a multimillionaire (yes, when  Smile ) I would like to serve medium-sized western-Canadian cities, serving popular US destinations. The way I see it, a lot of the traffic from cities like YQR, YXE, and such, going to larger cities such as YYZ, YVR, MSP and YYC, is connecting traffic. Very few people actually have MSP or YYZ as their final destination, as they are connecting to places like Orlando, New York, and other tourist destinations. So what I would like to do, is have an airline that serves tourist destinations in the US and some in the Caribean (not Mexico, though), from medium-sized cities in Canada, with the E-175. Mexico will not be served because it has enough service already. It would have better than average service to not make it worthwhile to connect, but I do believe that travellers hate connecting and would pay more to have direct service. Caribbean destinations would be seasonal, while in the summer service would be reduced slightly. But... this is just my dream for now.

-Jetplaner


User currently offlineAf773atmsp From United States of America, joined Aug 2006, 2698 posts, RR: 1
Reply 5, posted (5 years 1 month 1 week 5 days 21 hours ago) and read 7259 times:

My dream airline is serving MSP, DLH, RST with service around the U.S. and Canada. I would partner with SY to team up against DL. Then as time goes on more and more routes would start from MSP and a few in DLH and RST. This all depends on competition, oil prices, current aircraft available, and the local and global economy.


It ain't no normal MD80 its a Super 80!
User currently offlineFabo From Slovakia, joined Aug 2005, 1219 posts, RR: 1
Reply 6, posted (5 years 1 month 1 week 5 days 15 hours ago) and read 7238 times:

If it was just that easy...  Smile

@the quote: It is a variation of what Richard Branson said about Virgin Atlantic (If you want to be a Millionaire, start with a billion dollars and launch a new airline..)



The light at the end of tunnel turn out to be a lighted sing saying NO EXIT
User currently offlineBraniff747SP From United States of America, joined Oct 2008, 2999 posts, RR: 1
Reply 7, posted (5 years 1 month 1 week 3 days 11 hours ago) and read 7145 times:

I would grow my airline and then go Frank Lorenzo on it. Big grin Drain the money and assets!!  devil 


The 747 will always be the TRUE queen of the skies!
User currently offlineBurkhard From Germany, joined Nov 2006, 4402 posts, RR: 2
Reply 8, posted (5 years 1 month 1 week 1 day 17 hours ago) and read 7042 times:

I would be as popular on a.net as MOL...

User currently offlineBurkhard From Germany, joined Nov 2006, 4402 posts, RR: 2
Reply 9, posted (5 years 1 month 1 week 1 day 16 hours ago) and read 7033 times:

To survive, an airline must be tougher than Ryanair, and must beat FR with its own weapons.

First round:

I would create a bank. Costumors can pay in money, and get 2% interests on it. They can buy tickets from this without extra charge, all other ways, credit cards, etc. 10€ fee.

Since passengers prefer saving money over everything, I expect millions of potential passengers putting hundreds of € there, so I know how to finance my planes.

Second round:
I would purchase a fleet of A321-200 and market the more comfortable width compared to first generation LCC.

Third round: To have a cabin crew of 4 only, these would have exactly 200 seats, an inch more spacing than FR, but have the same CASM.

Fourth round:
Still I would have place for comfortable locking of on board luggage, and produce video clips with ambulances pulling passengers out of FR planes which have been hit by heavy luggage in the overhead bins, or have to go to a marriage with a dress dirty from some soup coming from above, or....

Fifth round: Online booking only, online checking mandatory, booking of checkin luggage expensive to fully cover the costs, but allow more than 20kg for a realistic price, with videos of an FR passenger female having to wear the same dress 3 weeks...

Sixth round:
Simple prices, and a good price management system. No added taxes, no fuel surcharges.
Extra fees for luggage, priority boarding, extra distance seats ( I have A321, so a long cabin ) .

Seventh round:
Drinks and food are sold on board. Larger cans than FR, and you see my videos of people drying out and falling to ash behing increasing piles of small cans. Cabin crew actively sells drinks and food.

Eight round:
Looking for airfileds that are A321 capable, and have no serious commercial traffic yet. Analyse where transport needs can be generated, they don't exist usually before I enter the airport. Making use of the large migration movements and the increasing distance between working place and family home with actions like "Book 10 flights between A and B and only pay 9" I'm sure there is enough sleeping market to fill the first 100 A321 my bank can finance.

Ninth round:
Purchase another 250 GTF powered A321 and push FR out off the market with them. Purchase of a number of airports, build them up for Long range traffic, mainly using tax payers money to create jobs.

Tenths round:
Build up hubs on a few middle of nothing airports I own, where connections can be warrented from many other middle of nothing places. 20 A321 fall in, meet once or twice a day, and go out again, giving a huge number of potential connections.

Eleventh round: At each of these meeting they feed two A380 making long range connections.

Twelfth round: Wake up!


User currently offlineBabybus From , joined Dec 1969, posts, RR:
Reply 10, posted (5 years 1 month 6 days 19 hours ago) and read 6941 times:



Quoting Burkhard (Reply 9):
Drinks and food are sold on board. Larger cans than FR,

I like your style Big grin

I never understand why LCCs don't give out big mugs of tea and coffee as the water is free. On FR a tea is 2.80 pounds and the cup is half full. The tea bag must cost less than a penny.

I'd really like to get hold of BD and turn it around but I think it might be past that point now. I'd probably end up taking it to that clinic in Switzerland instead.


User currently offlineDw747400 From United States of America, joined Aug 2001, 1262 posts, RR: 1
Reply 11, posted (5 years 1 month 6 days 14 hours ago) and read 6933 times:



Quoting Propilot83 (Reply 3):
So for example if my airline made a net revenue of about $3 million in one month, $900,000 dollars or 30% of that money would go to "The Hope for Globe" program.

Though a lovely thought, no airline I know of makes a 30% profit margin, meaning putting 30% of revenue into humanitarian projects puts you in the red. You can't simply say you will reduce costs and expect it to happen. Lots of airlines have tried to be low cost, few have succeeded. There are ways to become more efficient still, but none that are going to give you a 30% margin. If it were easy, someone would be doing it.

And remember, you can't forget the shareholders. Unless you own a controlling interest in the company, they can easily fire you!



CFI--Certfied Freakin Idiot
User currently offlineCamiloA380 From Sweden, joined Feb 2008, 486 posts, RR: 25
Reply 12, posted (5 years 1 week 6 hours ago) and read 6434 times:

I think one of best hub to creat an airline today is in Beijing. What others are good?

CamiloA380  Smile



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