QuestAir
Topic Author
Posts: 344
Joined: Fri Dec 24, 2004 12:16 pm

The Process Of Starting An Airline

Fri Mar 18, 2005 6:00 am

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
 
jdaniel001
Posts: 619
Joined: Wed Mar 16, 2005 2:36 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:05 am

Your not actually thinking of starting an airline are you?
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RJ100
Posts: 3895
Joined: Wed Nov 22, 2000 1:37 am

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:16 am

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 Big grin )
-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.

Regards,
RJ100
none
 
teahan
Posts: 4987
Joined: Sun Nov 21, 1999 11:18 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:21 am

A great account of one guy’s experience doing just that:

‘Fuelled by Belief, the CityJet Story’ by Pat Byrne
http://www.amazon.com/exec/obidos/tg...-9827240?v=glance&s=books&n=507846

Jeremiah
Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
 
QuestAir
Topic Author
Posts: 344
Joined: Fri Dec 24, 2004 12:16 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:23 am

RJ100, I'd be interested in seeing the ACMI contract.
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary
 
B742
Posts: 3559
Joined: Mon Mar 14, 2005 12:48 am

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:27 am

If you are starting your own airline, please can I have a free flight!!!  Big grin


You should have a look a purchasing the game, Airline Simulation. You create your own airlines and its quite realistic! I find it very good fun!

Airline Simulation

Rob!
 
jdaniel001
Posts: 619
Joined: Wed Mar 16, 2005 2:36 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:48 am

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.
We Are UNITED!
 
RJ100
Posts: 3895
Joined: Wed Nov 22, 2000 1:37 am

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:49 am

@QuestAir: I need to send it by mail. You can send your address to me (via my e-mail in the profile) if you want.

Best regards,
RJ100
none
 
QuestAir
Topic Author
Posts: 344
Joined: Fri Dec 24, 2004 12:16 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 6:57 am

Thanks, RJ100! I've sent the email.
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 7:00 am

 bigthumbsup  I hear you can get US real cheap right now. A real fixer-upper.
One Nation Under God
 
sunking737
Posts: 1114
Joined: Tue Feb 22, 2005 10:33 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 7:09 am

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.
Just an MSPAVGEEK
 
redflyer
Posts: 3881
Joined: Thu Feb 24, 2005 3:30 am

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 7:13 am

Don't forget to reconcile your business plan against the FARs.
My other home is a Piper Cherokee 180C
 
backfire
Posts: 3467
Joined: Fri Oct 06, 2006 8:01 am

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 7:16 am

How do you start an airline?

By making sure you can get your hands on a shedload of money.

The number one reason why new airlines fail is underestimation of the capital required.

Don't believe anyone who says that you can start a carrier with a couple of million. You'll need a lot more than that.
 
JHSfan
Posts: 460
Joined: Fri Apr 02, 2004 6:22 am

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 7:53 am

QuestAir,
you said you couldn't find any answer to the question. If it meant that you couldn't find any of the previous discussions, they are some:
Starting A New Airline , Starting A New Airline? , Starting An Airline , Starting An Airline? , Starting Up An Airline! , The Joys Of Starting A New Airline

Yours in realtime
JHSfan
Look at me, I´m riding high, I´m the airbornmaster of the sky...
 
QuestAir
Topic Author
Posts: 344
Joined: Fri Dec 24, 2004 12:16 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 8:00 am

Quoting JHSfan (Reply 13):
you said you couldn't find any answer to the question.

Well, it was true. The forum archive search was taking forever, and after ten minutes I quit looking. Sorry.
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary
 
jdaniel001
Posts: 619
Joined: Wed Mar 16, 2005 2:36 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 8:03 am

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.
We Are UNITED!
 
QuestAir
Topic Author
Posts: 344
Joined: Fri Dec 24, 2004 12:16 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 8:07 am

Quoting Jdaniel001 (Reply 15):
I found a powerpoint presentation of the steps taken for airlines certification

Really? Where'd you find it?
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary
 
jdaniel001
Posts: 619
Joined: Wed Mar 16, 2005 2:36 pm

RE: The Process Of Starting An Airline

Fri Mar 18, 2005 8:16 am

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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QuestAir
Topic Author
Posts: 344
Joined: Fri Dec 24, 2004 12:16 pm

RE: The Process Of Starting An Airline

Sat Mar 19, 2005 7:13 am

How would one obtain financing? Do you just go right up to the banks and ask for it? (Not really!) But seriously, how is it done?
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary

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