rossbaku
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18 Year Old Starts Airline

Tue Jul 19, 2005 4:34 pm

Taken from BBC News:

Teenage airline aims for take-off

A Merseyside teenager is set to join the ranks of no-frills travel operators with the launch of his own airline.
Daniel Reilly, of Maghull, set up Nexus Airlines in his bedroom after finding inspiration from a school project.

The 18-year-old now leases a Boeing 737 which will be flying to Tenerife, Gran Canaria, Lanzarote and Fuerteventura from Liverpool's John Lennon Airport...


By the way, the 737 is leased from Futura International Airlines.

Lucky sod!  gnasher  If anyone manages to get a photo of the new aircraft, or has the oppertunity to fly this leased 737, let us all know!
 
777ER
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 5:07 pm

An 18 year old owning his own airline.......lucky thing.
 
egmcman
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 5:07 pm

I wonder want sort of service they will offer as I would imagine it must take in the region 4 to 41/2 hours on those routes. Ray Webster said no would want EZY's service level for longer than on their services to Athens.

egmc
 
777ER
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 5:09 pm

Do Futura International Airlines fly B738s?
 
bushpilot
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 5:11 pm

Hi all I have to say is good luck. I wish the best for him. If he makes it work , lets all get a bankroll and start our own airline. What a dream for A.netters.
 
AMSMAN
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 5:13 pm

Wonder is it anyone on A.net? Would be cool if it was. Well I say well done!
Aer Lingus, Proud to be Irish.
 
VS747SPUR
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 5:19 pm

Well done to him I do hope it all works out for him !

However has he only leased one aircraft ? Because apparently reading the paper today it says they want to do twice weekly to Tenerife, and once weekly to Gran Canaria, Lanzarote and Fuerteventura. Would you say one plane is enough considering things like delays and possible tech probs etc... ?
Best of luck to him however !

VS747SPUR
Fly DL
 
rossbaku
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 6:29 pm

Yes he is only leasing a 737. It does seem a little optimistic just to run one aircraft, he should have one as a backup like a little Fokker (haha no joke meant).
 
gkirk
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 6:34 pm

Futura fly 737-400s and 737-800s. I believe that Nexus plan on using a 737-400, which will be based in the Canaries. I dont think that it will be repainted from Nexus c/s
When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
 
backfire
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 6:34 pm

Quoting 777ER (Reply 1):
An 18 year old owning his own airline.......lucky thing.

No such thing as luck - it's all about determination and hard work. I've been admittedly sceptical about Nexus Airways, because it's been about two years since I initially contacted them about their project, but I'll gladly eat my hat if it actually gets off the ground.
 
gkirk
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 6:35 pm

Quoting Backfire (Reply 9):
but I'll gladly eat my hat if it actually gets off the ground.

We want pictures if it happens and you eat your hat then  Wink
When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
 
777ER
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 6:57 pm

but I'll gladly eat my hat if it actually gets off the ground. I could say the same about two airlines that have been in the phone book for about 5 years and still have not taken to the skys. I wouldn't eat my hat thou when they finally start flying
 
maddy
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 7:38 pm

Quoting Gkirk (Reply 8):
I dont think that it will be repainted from Nexus c/s

http://www.nexusairways.com/_common/images/Nexus%20737-800W%20in-flight.jpg

They have their own colors but the picture shows a 737-800, probably a future plane will be painted like that.
 
mhodgson
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 7:46 pm

He isn't the first - there was an 18 year old who started an Oxford-Cambridge service (@lpha1). This hasn't yet got off the ground!

http://www.flyalpha1.co.uk/
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dc-10 levo
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 8:17 pm

First heard about this over at the Flightsimmer.com forums - where Danny is a member:

http://www.flightsimmer.com/forums/showthread.php?t=40275

DC-10
 
gkirk
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 8:22 pm

Look at the schedules, 737-400 showing as non LPL based. My guess is that this may be one of those virtual airlines, who only sell seats.
When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
 
Mikey711MN
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 8:32 pm

I plan on living forever. So far, so good...
 
jmc757
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 9:27 pm

Quoting Gkirk (Reply 15):
Look at the schedules, 737-400 showing as non LPL based. My guess is that this may be one of those virtual airlines, who only sell seats

Aircraft will be Canaries based, whole operation managed by Futura Airways, under FUA flight codes. Nexus Airways are just a tour operator/ticket seller. They have chartered and airline to fly routes, and are marketing the seats.

This is very different from starting an airline (getting an AOC, acquiring aircraft, crews, insurance etc...) Anyone remember Leeds based "PlanetAir" a couple of years back? Selling seats under that brand, on chartered Spanair/Iberworld flights. By saying that, I do not wish to take anything away from him, as at 18 he has still achieved a great thing. This lad obviously has a lot about him, getting financial backing for a start. Best wishes to them.
 
rwylie77
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 11:46 pm

Quoting Jmc757 (Reply 17):
Nexus Airways are just a tour operator/ticket seller. They have chartered and airline to fly routes, and are marketing the seats.

Isn't this how the guy (David Neeleman?) who set up JetBlue first started in the west coast? Can't remember the name, but the airline was bought out by SouthWest...
 
UN_B732
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 11:53 pm

Where did he get the cash to lease the 737?
What now?
 
KL808
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RE: 18 Year Old Starts Airline

Tue Jul 19, 2005 11:58 pm

Quoting UN_B732 (Reply 19):
Where did he get the cash to lease the 737?

Through investors. Dont know how he pulled that one off.

Drew
AMS-LAX-MNL
 
tockeyhockey
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 12:00 am

the good news is that since he's so young, when his airline goes into bankruptcy, he'll have a lot of life ahead of him to pay off his debts.
 
OHLHD
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 12:04 am

Quoting KL808 (Reply 20):
Quoting UN_B732 (Reply 19):
Where did he get the cash to lease the 737?

Through investors. Dont know how he pulled that one off.

Drew

We must be talking about several hundred thousend of pounds/euro/dollars?!?

Who is inversting in something like that?
 
N1120A
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 12:06 am

Quoting Rwylie77 (Reply 18):
Isn't this how the guy (David Neeleman?) who set up JetBlue first started in the west coast? Can't remember the name, but the airline was bought out by SouthWest...

No, it isn't. David Neelman was the CEO of Morris Air, which was actually owned by June Morris. They were not based on the west coast, rather out of SLC and indeed flew their own 737-300 aircraft. Southwest (not SouthWest) took Morris Air over and June got a seat on the board (which she still has today) and Neelman got a job in upper management at WN. Turns out he was not happy as number 4 or 5 in the company and he parted ways with Southwest with a fresh non-compete clause. Since he could not compete in the US, he went up to Canada and helped set up WestJet with 4 investors. He then left and created Open Skies, the ultra-low cost booking system that was bought by HP and then Navataire. Now that his non-compete was up, he came back to the US and secured over $100 million in start up capital (a large chunk from George Soros) to start New Air, which became jetBlue Airways
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
CalAir
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 12:22 am

TockeyHockey, i think you will find if the broker goes bankrupt, he may go bankrupt too, which would only mean him being personally bankrupt for 5 yrs MAX and he would have the majority of his debts written off,unless he had the assets to pay them off, which at the age of 18 is very unlikely. His main concern would be the action that his investors may take to recover funds lost through the bankruptcy, and if he was found to have been reckless in his actions and not made reasonable efforts to prevent the bankruptcy, he may be open to criminal procedings.

However, lets not forget that Stelios and Mr Branson started out with one a/c and they said they would never last. Look at them now!
Hope he's able to fly in his own right soon. Maybe he could look at someone like Astraeus operting for him in Nexus colours, like Iceland Express did.
British Caledonian...we never forget, you have a choice
 
grimey
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 1:23 am

Quoting UN_B732 (Reply 19):
Where did he get the cash to lease the 737?

He's from Merseyside so he more likely robbed it.
 
BMIFlyer
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 1:25 am

Quoting UN_B732 (Reply 19):
Where did he get the cash to lease the 737?

He received £50,000 from venture capitalists.
He is having help from his mums partner, Maybe he knows the right people.

Anyway, I wish him luck  


Lee

[Edited 2005-07-19 18:28:01]
Sometimes You Can't Make It On Your Own
 
jmc757
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 1:33 am

The financial commitement to start this operation is not as much as many of you may imagine. He hasn't leased a 737. So far he has chartered Futura Airways to fly a series of routes for him. Thats what charter airlines do, anyone can do it. Same principal as booking a taxi.

At this time he won't have had to pay for it. He would have had to pay an upfront deposit sure, but charter airlines generally won't take payment for flying until much nearer a flight or even after (depends on contract agreement). For a series of flights such as this, there will probably some sort of regular fixed payment (i.e. weekly).

Now the clever part. When people book flights, they will pay immediately. So the money goes into his account there and then. Therefore he has the capital in his account for a good while before the actual flight, so when Futura need their money, its there to give them, and hopefully some left over = profit.

Surprising how simple it is to set up. I'll say it again, I'm not taking anything away from this guy, good luck to him.

[Edited 2005-07-19 18:34:44]
 
rossbaku
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 1:39 am

Quoting Tockeyhockey (Reply 21):
the good news is that since he's so young, when his airline goes into bankruptcy, he'll have a lot of life ahead of him to pay off his debts.

Damn that'd be a bad way to start off your life after school! Paying debts...well I suppose students do this all the time...but not on a scale as big as this!

Quoting Grimey (Reply 25):
He's from Merseyside so he more likely robbed it.

No comment needed.  Big grin
 
aa757first
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 1:45 am

Quoting N1120A (Reply 23):
No, it isn't. David Neelman was the CEO of Morris Air, which was actually owned by June Morris. They were not based on the west coast, rather out of SLC and indeed flew their own 737-300 aircraft.

Actually, yes it was. Morris Air was a scheduled charter airline for quite a while. They did eventually obtain their own operating certificate.

AAndrew
 
sparkingwave
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 1:54 am

Quoting Backfire (Reply 9):
No such thing as luck - it's all about determination and hard work.

There is such a thing as luck. BAD LUCK. In the airline industry, there's tons of it. I only hope this poor kid can roll with the punches, because in this industry, they come right and left, and below the belt!

BEST of LUCK, tho.

Sparkingwave
Flights to the moon and all major space stations. At Pan Am, the sky is no longer the limit!
 
aa757first
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 2:55 am

Quoting Jmc757 (Reply 27):

Now the clever part. When people book flights, they will pay immediately. So the money goes into his account there and then. Therefore he has the capital in his account for a good while before the actual flight, so when Futura need their money, its there to give them, and hopefully some left over = profit.

In the United States at least, scheduled charter flights require the money be escrowed until after the flight is complete.

AAndrew
 
abirda
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:11 am

18 years old, huh? I guess the poor guy can't expect 1MillionFlyer's patronage.

Sorry...It was just too easy of a shot.
 
ManchesterMAN
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:17 am

What's the saying, the easiest way to become a millionnaire from the airline industry is to start off as a billionnaire ...
Flown: A300,A319,A320,A321,A330,A340.A380,717,727,737,747,757,767,777,DC9,DC10,MD11,MD80,F100,F50,ERJ,E190,CRJ,BAe146,Da
 
singel09
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:21 am

the 18 year starting a service from Oxford to Cambridge seems like the only 'solid' story so far. Where the first paying customer is Sir Richard Branson. Guess he likes people persuing their dreams !

Mause
 
AJRfromSYR
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:26 am

Quoting ManchesterMAN (Reply 33):
What's the saying, the easiest way to become a millionnaire from the airline industry is to start off as a billionnaire ...

He might be the youngest person to file bankruptcy in a few years
-AJR-
 
Orion737
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:28 am

Will the flights be no-frills? LPL to Canaries is a fair way and wont it be hard to compete when you can book a charter flight and have at least the option of booking a hot meal?
 
Indy
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:33 am

Most 18 year olds are lucky to get a department store charge card. This guy somehow gets a jet. I wonder how much money his parents gave him?
Indy = Indianapolis and not Independence Air
 
AJRfromSYR
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:39 am

How much start up capital do you think this took?
-AJR-
 
Indy
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 3:43 am

If this is a charter service is this really something that anyone in the U.S. could start up? Or would there be endless miles of government red tape to cut through?
Indy = Indianapolis and not Independence Air
 
ContnlEliteCMH
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 4:19 am

Quoting Rossbaku (Reply 28):
Damn that'd be a bad way to start off your life after school! Paying debts...well I suppose students do this all the time...but not on a scale as big as this!

I think you'd be surprised. Here in the US, it is no longer uncommon for students with a mere bachelor's degree to exit school with 50,000USD debt. Any medical doctor will easily have six figures' debt. I took much longer than four years to complete my degree, but came out with virtually no debt.

There's a lot of cynicism/skepticism about this sort of thing, even when you're over 30. When I quit my job to start my own company, I had *nothing* else lined up. I got fed up with my job, and I walked. I even turned down an immediate offer from a man who was a student in a class I taught. The offer was attractive monetarily, and it would allow me to move in more rarified air than I had previously. Declining that offer *definitely* got me some flak.

For 10 years, my dad used to ask, "So, do you own the company yet?" When I quit my job and began owning the company, the first question out of his mouth was, "Why don't you have a job?" I quit listening to *any* advice he offered right then.

That's part of what I've learned, at age 34. You don't seek financial advice from poor people. (Disclaimer: Anybody who needs to go to work to support their life is poor, in my book. That includes me. A rich person doesn't have to work, a position to which I aspire. Why would I ask financial advice from people who obviously haven't had much success?) And you don't take career or business advice from lifetime security seekers. I'm always amazed at people who have spent 10 or 15 years working for somebody else, who can only see the risk inherent in a venture like this. Often, those are the same people who pay lip sevice to risk taking and corporate ownership. But as soon as one of their family or friends do it, they can only see the bad that could happen, even though every single one of them work for somebody who took a similar risk but didn't fail. As I said, lifetime security seekers give baaaaad advice.

So let's say this guy fails. You say that's a bad way to start out if he fails and spends a few years repaying some debts. I could not disagree more. Yes, he'll owe some debts. Big deal. But think of what he'll have learned, before most people have finished college:

-- How to arrange investors. It doesn't matter if he had help. Mentorship is *the* finest and best way to learn *any* lesson. Only fools believe that mistakes are the best lesson teachers. Experience is what you want, and successful, mentored experience is always preferable to go-it-alone-and-screw-it-up experience.

-- Basic accounting and finance.

-- Sales.

-- Customer relations.

-- Employee management.

-- Growth and expansion, if this venture works.

I've had my business for nearly 1.5 years, and I'm still learning most of these lessons. 1.5 years is not a long time, and I honestly expect it to take about five years before I've covered all of the bases. The difference between me and this kid is that I'll be nearly 40; he won't even be 25! That's not being behind the 8 ball; that's all upside!
Christianity. Islam. Hinduism. Anthropogenic Global Warming. All are matters of faith!
 
flybyguy
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 4:45 am

Quoting Indy (Reply 39):
If this is a charter service is this really something that anyone in the U.S. could start up? Or would there be endless miles of government red tape to cut through?

I don't think ANYONE in their right mind would want to start a new airline in such a terrible economic climate. The U.S. is a less than ideal place to start any form of air transportation service.
"Are you a pretender... or a thoroughbred?!" - Professor Matt Miller
 
Ratypus
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 4:51 am

I wonder if there is really a market for a no-frills operator between Liverpool and the Canary Islands - the strategy most low-cost airlines have in commone (Ryanair/Easyjet etc) is that they go low-frills to undercut FULL SERVICE operators on routes to major cities eg Madrid/Athens etc...this is especially true of Easyjet. The reason this works is that when travelling to these destinations, a significant number of passengers will want to arrange their own accomodation, or have reasons for travelling that involve staying with relatives etc...the only thing they therefore require from the airline is the flight itself - so lowest price wins

What this guy is trying to do is undercut not the FULL SERVICE operators, but the CHARTERS - the problem might be that when people book to the Canaries, they will in most cases want something all-inclusive eg flight/hotel/meals in one package - very few people go to the Canaries as 'independent travellers' - apart from the second=home owners

Just my thoughts - I wonder whether there are enough people who travel to the canaries on flight only deals to make this worthwhile...I doubt it. That said, with one aircraft capacity is not going to be huge so he may fill out his planes - what do you think?
 
EnviroTO
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:03 am

Quoting Tockeyhockey (Reply 21):
the good news is that since he's so young, when his airline goes into bankruptcy, he'll have a lot of life ahead of him to pay off his debts.

I'm sure he would incorporate his business and not be liable for the debt any more than a CEO of US Airways is liable for the billions of debt incurred.
 
Luke
Posts: 169
Joined: Mon Apr 11, 2005 8:16 pm

RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:18 am

Quoting Ratypus (Reply 42):
What this guy is trying to do is undercut not the FULL SERVICE operators, but the CHARTERS - the problem might be that when people book to the Canaries, they will in most cases want something all-inclusive eg flight/hotel/meals in one package - very few people go to the Canaries as 'independent travellers' - apart from the second=home owners

True, and the charters also sell seat-only tickets anyway. This means that Nexus would have to compete with the low-cost airlines (ie. Get people pay quite a bit more for a destination slightly further than what the traditional low-costs offer) and the Charter airlines on both a charter and seat-only basis.

The charter airlines would probably be able to undercut Nexus because they are larger companies, and Nexus is running using a wet-leased aircraft which is an expensive way to run a "low-cost" airline.
 
Indy
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:33 am

I can see there being some benefits to running a charter. You don't have the staffing demands that an airline has. You get the use of a fully maintenanced jet without all the problems that come along with it. But then again you pay a premium for that right.
Indy = Indianapolis and not Independence Air
 
planesailing
Posts: 563
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:33 am

ITN reported on the story also. Apparently, £40,000 of investment had been secured for the airline. Easyjet started with £20million, and Ryanair began with $30million.

I find it hard to see how this will secure a profit as a business. I have read several books on LCC's. Their core business plans are to keep the planes flying as much as possible, with as little time as possible on the ground. Their flight cycles are shorter, so they can for instance do a return flight to Southern France in the same time as an outbound flight to the Canaries. Whilst you can charge more for the flights to the Canaries, fare structures wouldnt allow you to charge 100% extra because it is double the flight length.

For instance, on Ryanair a flight from Liverpool to Nimes costs £82.98 return in October. Nexus is advertising £50 each way from their launch in October. A return cost of £100.

A return flight takes around 4 hours to Nimes, and 8 hours to the Canaries.

£82.98 x 170 x 2 = £28,213
£100 x 170 = £17,000

So the same 737 has made a POSSIBLE revenue of £11,000 extra flying on a shorter sector for Ryanair.

From the schedule displayed on the website, the plane takes off at around 9am every morning, and finishes flying its cycle around 6pm. It then sits on the ground until the next morning. Thats only 9 hours of usage a day. If they start purchasing their own aircraft, they will be sitting idle for a long period of the day.

No flights go out on Saturday or Sunday either, so out of 168 hours in a week, the plane is only flying for 45 hours, or 26% usage.
 
toering
Posts: 147
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:41 am

He might be an A. nutter.............. be carefule of what you say, you might be posting somthing for him to read. He might also reply???
 
planesailing
Posts: 563
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RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:48 am

From the Flightsim website he announced it on:

"On one note, I'm relatively thick skinned, so you can give me all the cynical views you wish on Friday, I'll not take it to heart."
 
samair
Posts: 194
Joined: Sun Feb 27, 2005 4:23 am

RE: 18 Year Old Starts Airline

Wed Jul 20, 2005 5:49 am

Quoting Grimey (Reply 25):

nothing nice to say on this lads succsess typical!
the captain has now dimmed the lights for take off this is a routine procedure for flights during the hours of darkness!