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Is This The Time To Build A Startup

Sat Nov 03, 2001 5:18 am

I was thinking about this today and it seems that this would be the time to build a startup. With all the majors facing huge debt and needing financial help, starting an airline now would seem to make sense because competion is much lower and you would not need to go out and buy big planes. I would think that you could find small to medium size markets that lost air travel and rebuild them once again. Financially you might be on the same playing field with other large carriers and finding financial help could be easier. I would think financial backers would rather help build something than try to bail someone out that could take years. Does this make sense or am I out in left field?
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RE: Is This The Time To Build A Startup

Sat Nov 03, 2001 5:33 am

IMO, it's not the right time for a start-up airline. Financial help would be harder to find because the government isn't interested in another "hungry mouth" to feed. Also, it would be wise to see if an airline does go out of business, because slots could open up at a hub airport, making it easier to get your foot in the door of a major market.

Also, passengers are already wary of flying. They would probably want to book their tickets on their favourite airline rather than taking a chance on an airline that is starting up in a bad economy that could be out of business the day after they buy their tickets.

Remember, this is all my opinion. You're not too far out their. In fact, I was thinking the same thing about three weeks ago.

Get your patchouli stink outta my store!

RE: Is This The Time To Build A Startup

Sat Nov 03, 2001 5:59 am

Give it six months or so, and things should have settled down. The economy will still be down, but people will be (slowly) starting to travel again. That's the time to pick up cheap aircraft, cheap crews and cheap infrastructure. The key would be to start a regional or low cost operation - forget full service/long haul as those will stay in the doldrums for years to come.
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RE: Is This The Time To Build A Startup

Sat Nov 03, 2001 7:37 am

I think you are right on some level. There will be a surplus of aircraft available. The last time there was a large surplus of cheap aircraft available there were several start ups. The early 90's brought us Carnival, Kiwi, Braniff III, Reno Air, and to some extent Valujet, I'm sure I'm missing others here, but you get my point I think.

RE: Is This The Time To Build A Startup

Sat Nov 03, 2001 8:16 am

To put it in as few words as possible, it's a terrific time for picking up bargains, but a terrible time for putting bums in seats.

Would-be financial backers are probably going to be a bit skittish about investing in the airline business right now.

Now is probably a better time to organise start-up financing in a more stable industry, such as broadcasting. Out of something like 20 radio stations in my home town, I can only think of one off-hand that went bankrupt after taking to the airwaves. If you can overcome the red tape of getting a licence, radio is almost as idiot-proof as a business can get: the startup and operating costs are much lower than an airline (you can buy some small stations for less than $1 million; DJs and announcers fresh out of school make about as much as a flight attendant), and even in a recession there are still businesses in need of clever advertising to lure those cautious consumers into their stores.

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