Posts: 343
Joined: Sun Apr 16, 2000 8:01 am

Start Up Airlines

Wed Jun 19, 2002 1:25 pm

How do these new airlines find capitl to start up. Ie jet blue etc
Posts: 3467
Joined: Fri Oct 06, 2006 8:01 am

RE: Start Up Airlines

Wed Jun 19, 2002 5:01 pm

Simple. Draw up a business plan. Show that you can generate the income to pay back a loan (with interest and fees), even if the loan is tens of millions of dollars. If it's a sound plan, venture capitalists will be happy to cough up. That's their job.
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Joined: Tue Mar 20, 2001 1:32 pm

RE: Start Up Airlines

Thu Jun 20, 2002 2:04 am

Of course it don't hurt if you've had success in starting airlines up in the past either. JetBlue's founder, David Neeleman, had prior to JetBlue, been one of the founders of Morris Air, who he sold to Southwest; and of Westjet, which has been giving AC fits for some time now. His success helped to get the financing to launch JetBlue; other than George Soros, the other investors who provided the startup capital were the same ones that financed Westjet, so for Neeleman, getting the financing was the easy part.
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Joined: Thu May 30, 2002 9:30 am

RE: Start Up Airlines

Thu Jun 20, 2002 2:44 am

Usually Airlines sometimes start up with 7-20 million dollars in Capital. jetBlue started with $130,000,000 in Capital. Not even AA did that. Pretty impressive huh. I love LOW FARE AIRLINES
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Joined: Thu Apr 06, 2000 12:00 pm

RE: Start Up Airlines

Thu Jun 20, 2002 6:11 am

Didn't David Neeleman also start the reservation system Open Skies, later sold to HP?