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What If You Were To Found A New Airline?

Mon Apr 18, 2005 11:35 pm

I got a project for school, for which I have to create a "virtual" airline company and make sure that it's highly profitable. Going to be graded mainly on profitability.

So What kind of clientele should the airline mainly cater for, what would be the most profitable routes, Equipment, etc etc... ?

Im confident that there aint better than my fellow A.netters to come up with a brilliant project  Wink

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RE: What If You Were To Found A New Airline?

Mon Apr 18, 2005 11:43 pm

I like the way Alegiant works. I would structure similar to that. Certain smaller city markets to places people like to go. Equipment would be Boeing.
and one type of plane for starters maybe 12 planes in the beginning. Contract out the maintains and most ground support. Sell meals. Us the net as a source to sell tickets and use travel agents by giving them free travel for bookings...say one free r. t. for every 10 ticks sold. This is more lenient then the big six, or seven now.
If two people agree on EVERYTHING, then one isn't necessary.
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RE: What If You Were To Found A New Airline?

Tue Apr 19, 2005 12:29 am

I think the proper business model would depend mostly on the available startup capital, country of origin, market conditions, etc.

In other words, if you've got a million bucks to start an american airline, the best you can hope for is a used Beech 1900 flying regional routes. If however, you have the god given talents of raising money like JetBlue, the sky's the limit. Also, if you happen to be a citizen of country A, it may be difficult to start an airline in country B (take Virgin's LCC in the US for example). Finally, you would need to research what market you plan to serve. If you want to cater to primarily business travellers, you could either focus on flexibility, high levels of service, etc., or you could focus on flexibility, efficiency, and low fares. If however you wished to cater to leisure travellers, pack them in as tightly as possible and charge them next to nothing.

However, regardless of the circumstances, I would argue that a startup's greatest chance of success is to follow the LCC model as demonstrated by Southwest, Ryanair, etc. The quickest way to sell seats is to sell 'em cheap.

One last bit of advice. Unless you're planning on serving regional markets or have serious cash limitations, avoid RJ's like the plague.
If at first you don't succeed, then skydiving is not for you.
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RE: What If You Were To Found A New Airline?

Thu Apr 21, 2005 7:49 pm

the most profitable thing flying through the sky is NOT people, it's CARGO.

Added benefits: no cabincrews, checkin desks, lower parking fees at airports, less maintenance on the aircraft, and flying at off-peak times is cheaper as well.

So buy yourself some old aircraft and haul that trash. You might want to consider 757s or 767s (or A300/A310) instead of going for the 747s in order to serve smaller (underserved) destinations and save cost on purchasing the aircraft, or you could go for express service in props or turboprops.
C-130s are also cheap what with many militaries scaling down and others replacing old E and H models with more modern Js.
I wish I were flying
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RE: What If You Were To Found A New Airline?

Thu Apr 21, 2005 10:25 pm

God, wish i had a project like that.

Certainly much more interesting than Post-1914 poetry Big grin
Hey, you want to go out for pizza and some sex? What, you don't like pizza?
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RE: What If You Were To Found A New Airline?

Fri Apr 22, 2005 11:30 am

Totally fake what i am about to say not even my freind william gates could do this but this is the airline i recently made on paper. Hubs in EWR, Lax. and Mia, a fleet of 35 777, 80 737800, 80 737500, 100 737700, 22 737900, 40 757200, 60 757300, 30 767, and 90 erj135, 180 erj145xr, Some cool extras Mia with 40 erj145xr based there for carribean service only, A mini hub in Lhr with 5 erj135 based there 5 7378 and 7 7375 based there serving Ewr times 3 with 1 777 and 2 767, 2 lax with 777. and 2 mia with 1 777 and 1 767 and also serving ORD, Bos, Sfo, Ams CDG, MAd, BCn, CPh, Fra, Moscow, Munich, stockholm, manchester, birmingham, and glasgow and shannon. Also a mini base in NRt with 14 flights daily
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RE: What If You Were To Found A New Airline?

Fri Apr 22, 2005 11:35 am

I'm assuming you are located in europe. Find a region of europe that is not being served or is being served by one airline. Then create an airilne with regional jets that are used. Probably CRJ-100s. maybe 2 or 3 airplanes. Offer cheap tickets with no service but a few drinks and comfortable leather seats and satellite radio if OK in the budget. That is the only way. NO SERVICE is key so you can have cheap ticket prices and proffitablilty. And you have to buy used regional jets. Also have un-assigned seating.
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RE: What If You Were To Found A New Airline?

Fri Apr 22, 2005 12:49 pm

How about starting a charter airline in like nice with a 757 or something like that. OR a airline in CPh with 3 or 4 emb120 or what not serving some destionations like Lhr, Ams, Cdg, Fra, hmmm....
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RE: What If You Were To Found A New Airline?

Fri Apr 22, 2005 8:08 pm

Hi there!!!

Well...as a start-up airline in Europe, I would start by flying to PMI...!!!
Thats a market where you can get a piece of the pie...IMHO.

A rather "perfect" airplane would be the Fokker 100...easy to get, rather inexpensive to procure and operate...yet big enough to haul 100+ people.

It is very easy to turn around on the ground (build-in airstair, though not in most US models.., no need for conveyor-belts and a ramp-group of 3 can load/unload it).

Just my  twocents  .....

"That's the good thing about the 707...it can do anything, but read!" Joe Patroni, Airport '70

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