QuestAir From United States of America, joined Dec 2004, 366 posts, RR: 0 Posted (8 years 3 months 4 days 1 hour ago) and read 1933 times:
I know that this has been discussed before, and I've done searches here in the forum. But I can't find the answer. So how does one go about starting an airline? The more details, the better. Thanks
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary
RJ100 From Switzerland, joined Nov 2000, 4107 posts, RR: 32 Reply 2, posted (8 years 3 months 4 days 1 hour ago) and read 1899 times:
ok in short:
-write a business plan
-show your business plan to the investors (only in case you dont have the money on your own )
-contact the civil aviation authorities, they will tell you what it needs to run an airline
-if you can fulfill all requirements then they will give you the license
Notice that you need enough cash to start an airline (for instance the authorities require you to have enough money to pay the staff for a few months).
It might be better to start with just selling tickets, outsource the flying part to a company that already has a license. They will fly for you while you can concentrate on marketing your flights. Once you are in the business you can work on your own license.
I have an example of an ACMI (aircraft, maintenance and insurance) contract here. I can make a copy and send it to you if you are interested.
Jdaniel001 From , joined Dec 1969, posts, RR: Reply 6, posted (8 years 3 months 4 days ago) and read 1825 times:
It's almost as easy as RJ100 stated. The DOT website has the necessary forms to fill out. After you write your business plan, make sure that there is some experience listed as top management, i.e. former airline CEO's. The go to a capital venturist. They'll float it by banks and private investors to fund your project. Normally, you have to fork out some of your own funds to show risk taking. Then the money will be funded once certain milestones are reached. For example, once a certificate is obtain, normally, the banks will fund most of what they promised.
After you get the letters of credit and pomissary notes. Then, apply to the FAA for a certificate. You have to show all kinds of documentation, including leases for gates, headquarters, aircraft, manual and financials. And all of this needs to be done within 90 days of application. Usually, once you contact the FAA and make an initial application then they assign you to a POI at a local FSDO. They need to be your best friend, the POI is the one that either signs your certificate or tells you to start over. The best thing is to have your manuals written prior to approaching the FAA, the leases are pretty easy. The entire certification process is pretty stressful, it's like runnng a VA, only this time you have something to loose.
Sunking737 From United States of America, joined Feb 2005, 1936 posts, RR: 9 Reply 10, posted (8 years 3 months 4 days ago) and read 1788 times:
The best way to start an airline first is to put together a group of investors and start putting money together. You will need a business plan, and don't pay yourself a salary or anybody else at first.
Look for a small airline looking for investors, don't jump into starting service with a 747 or something big start small, there are a lot of used DC-9 and 737 sitting around. Start out with 1 or 2. Charters are another good way to start out, because you can sell out the whole plane to one group. Cash up front. But you must be willing to work long hours. If you want to work 9 to 5 forget it.
I know people who worked 16 hour days 7 days a week, to restart an airline out of chap 11. It must become part of your life or your life is your airline.
Motivation plays a big part of the team, everyone needs a positive attitude. The more money you have the better, everyone who you deal with will want letters of credit or cash up front. You will need at lest $ 30 to 40 million for the first year in biz alone. That is what an airline that I know of went through the first year with 4 jets.
Jdaniel001 From , joined Dec 1969, posts, RR: Reply 15, posted (8 years 3 months 3 days 23 hours ago) and read 1712 times:
QuestAir, I found a powerpoint presentation of the steps taken for airlines certification, also I think I have one that explains the CSET process which is the new certification process that the FAA adopted in 1999. Ozark, Legend, Jetblue, National, and ACA/Delta Connection were all certified with the new standards.
Jdaniel001 From , joined Dec 1969, posts, RR: Reply 17, posted (8 years 3 months 3 days 23 hours ago) and read 1688 times:
I was getting some info for a friend of mine who was doing some research several months ago. I actually downloaded off of the FAA website, but I can't find the info on the website now.
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