ZKSUJ
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Posts: 6812
Joined: Tue May 18, 2004 5:15 pm

Starting An Airline! What Would You Do..

Wed Nov 16, 2005 8:03 pm

Hey,

I have a business research project to complete. Theme is start-up air operations. My group have decided we will be doing our start-up scenario based on something similar to Air Taxi's/Air Charters with a light twin aircarft. (Not a scheduled fixed route air operator).

The light twin aircraft would be likes of a Piper Chieftain, Twin Commander, etc..

What kind of different business ventures (ideas??) and services/opportunites would be advisable?? What are the pro's and con's of each type of operation.

How would one have the edge or advatage whilst competing in a competitive market? What type of market would they be aiming for (biz travellers, etc..??). How do they operate (from a management and operations point of view). How would they make operating profits??

Does any one have any better ideas other than air taxi's or air charters that would make this a feasible realistic start-up operation with a fixed budget. (light twin a/c!!!).

Any general relevant comment on the theme would be much appreciated.

Thanks in advance

SUJ
 
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NZ107
Posts: 4946
Joined: Sun Jul 10, 2005 6:51 pm

RE: Starting An Airline! What Would You Do..

Wed Nov 16, 2005 8:25 pm

Hmm... Interesting one.. Well, one thing you could do is look at www.air2there.com. This is based in WLG (I think) and does small services around there.

It would be hard to set up unless they buy a return ticket because the schedules would be all over the place. If someone wanted to fly from PPQ-WLG but at that time the plane is currently going to BHE, the customer would probably just go by normal taxi to get into Wellington.

One way of making profits would be to not use a big airport. Eg. Ardmore instead of AKL, travelling to destinations such as North Shore, Whenuapai, Hamilton, Great Barrier etc. but places where routes are needed.

Rush hour Auckland makes it a pain for commuters arriving and wanting to head over the shore so another idea would be to charge them the landing/departure fee to pick them up, saving them plenty of time in the process but keeping you in the clear. And also charge for extra luggage..

Helicopters would be much more viable. If I did that same project, I would most likely choose helicopters.

Services: chauffer driven to airport/own taxi service for transfers.
Opportunities: local jobs.

Just my 2 cents, thought up on the spot.. Might help you.. Sorry if I lead you off course..
It's all about the destination AND the journey.
 
ZKSUJ
Topic Author
Posts: 6812
Joined: Tue May 18, 2004 5:15 pm

RE: Starting An Airline! What Would You Do..

Wed Nov 16, 2005 8:36 pm

Thats great thanks. Had Ardmore in Mind anyway.

For non NZ guys. Ardmore is AKLs secondary airport.

 Smile
 
sunking737
Posts: 1117
Joined: Tue Feb 22, 2005 10:33 pm

RE: Starting An Airline! What Would You Do..

Wed Nov 16, 2005 9:25 pm

Be sure you have enough money in your budget to give your employees a raise at lest once a year.

You have to keep them happy or they may start quitting just as the busy season comes along. Not a lot but just something to keep them happy.

Also let them know that they are doing a good job too, when they bust their butt off trying to help build your company.

All your employees from Pilots, to F/A, MX, Commissary, Gate, Ramp everybody,
Keep them up to date and in the loop about what is going on with the company, but if management makes some wrong moves and the company starts loosing money do not go to them and ask for paycuts.
Just an MSPAVGEEK
 
ANother
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Joined: Thu Nov 03, 2005 2:47 am

RE: Starting An Airline! What Would You Do..

Wed Nov 16, 2005 10:55 pm

Who was it who said: "If you want to make a small fortune in the airline business, start with a large one"?
 
ilikeyyc
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Joined: Tue Dec 09, 2003 8:09 am

RE: Starting An Airline! What Would You Do..

Wed Nov 16, 2005 11:30 pm

Quoting ZKSUJ (Thread starter):
Does any one have any better ideas other than air taxi's or air charters that would make this a feasible realistic start-up operation with a fixed budget. (light twin a/c!!!).

Here are my ideas:

Quoting ZKSUJ (Thread starter):
The light twin aircraft would be likes of a Piper Chieftain, Twin Commander, etc..

Unless you absolutely must have a twin engine aircraft, (I don't know what the rules are for charters in New Zealand) I recomend a large single like the Cessna Caravan or PC-12. Having one engine means less moving parts which equals less chance of a problem. And, you only have to pay for one engine overhaul, not two.

Quoting ZKSUJ (Thread starter):
What kind of different business ventures (ideas??) and services/opportunites would be advisable??

I would suggest air cargo operations instead of passenger ops. The Caravan is a good cargo hauler. Many operators here in the States use it to haul packages for FedEx on routes that are not economical for thier jets.

If your gruop can work with a single instead of a twin and cargo instead of passengers, I can type more. For now I've got to run. BTW, when is you project due?
Fighting Absurdity with Absurdity!
 
Candid76
Posts: 552
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RE: Starting An Airline! What Would You Do..

Wed Nov 16, 2005 11:53 pm

If I had one tip for you - try to establish a regular operation with one customer, for example a customer who will commit to two or three flights a week to fund your fixed costs (aircraft standing costs, crew, accommodation etc.) leaving you to make your money on ad-hoc charters. If you find a customer who will use the aircraft full time, say every working day, then even better, as you can then add a second aircraft and use this on ad-hocs and spread your costs between the two. Be warned - ad-hoc charter can be very seasonal and unpredictable (it is here in the UK, maybe also in NZ) and you may really struggle on ad-hocs alone.

I have been running the air charter business for a growing regional airline for seven years and that would be my number one tip for a start-up carrier.
 
ZKSUJ
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RE: Starting An Airline! What Would You Do..

Thu Nov 17, 2005 8:34 am

Hey,

Assignment due Jan, but info needed by end of Dec.

Quoting Ilikeyyc (Reply 5):
I would suggest air cargo operations instead of passenger ops. The Caravan is a good cargo hauler. Many operators here in the States use it to haul packages for FedEx on routes that are not economical for thier jets.

Sounds like a great idea. Freight is certainly an interesting option. However, we've been told to stick to light piston a/c. Thats why Caravan is not exactly an option right now as its a turbo-prop. Any more ideas on a/c type or business ventures??

Quoting Candid76 (Reply 6):
try to establish a regular operation with one customer

How would one go about securing customers a.k.a. How do you advertise it?

More help would be great.

Thanks

SUJ

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