ZKSUJ
Topic Author
Posts: 6823
Joined: Tue May 18, 2004 5:15 pm

Startup Airline Costs. What Are They?

Wed Nov 16, 2005 8:12 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 are all the different costs that you can think of that would be faced?? Like airport landing costs, terminal costs, maintenance costs, a/c operations costs etc... for light twin a/c..

Also where would I find info about a/c costs like fuel burn and insurance and other relevant stuff???

Would be great if you knew any costs associated with Piper Chieftain and Twin Commander, but dont limit to these two a/c, any light twin in the same category would be very nice.

Also for a start up operations, how many aircraft would you need to make yourself competitive and feasible.

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

Thanks in advance

SUJ
 
jwenting
Posts: 9973
Joined: Mon Apr 23, 2001 10:12 pm

RE: Startup Airline Costs. What Are They?

Wed Nov 16, 2005 8:24 pm

Quoting ZKSUJ (Thread starter):
What are all the different costs that you can think of that would be faced?? Like airport landing costs, terminal costs, maintenance costs, a/c operations costs etc... for light twin a/c..

Those are running cost, not startup cost...

They differ greatly between airfields and operators (and aircraft type and age of course). You'd need to contact several airfields and aircraft dealers/manufacturers and just ask.
If you mention what it's for you may well get some benchmark figures.

Number of aircraft would depend greatly on the market you're positioning yourself in.
First order of business is to not think big. If you start out with a hundred aircraft and no customers you're in for a very fast trip to bankruptcy court.
I'd likely start out with 2 or 3 aircraft so I can always have one down for maintenance or rush jobs as they come along.
Have 1 crew more than aircraft for the same reason to take care of illness and vacation time.
So start out with 3 aircraft and 4 crews, each crewmember trained in more than one position.
Downcrews can work other jobs around the office, so they're not idle at any time.
Remember you're a small operation and don't have the money to allow yourself the overhead of having people fiddling with their thumbs waiting for business to arrive.

Now, 2 aircraft on regular use doesn't allow for very large accounts, but I'm assuming you won't hit the jackpot by being hired by a multinational to always have 10 aircraft on call (and paid for) at all times.
I wish I were flying
 
ZKSUJ
Topic Author
Posts: 6823
Joined: Tue May 18, 2004 5:15 pm

RE: Startup Airline Costs. What Are They?

Fri Nov 18, 2005 6:57 am

Thanks for that, will take it into account.

Does anybody here know the average costs of running a Piper Chieftain? i.e. fuel and taxes etc.... Juat a rough estimate/guesstimate?

Thanks

SUJ

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