Aurantiaco
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If you were to start an airline, what would be your business strategy/plan?

Sun Aug 25, 2019 8:58 pm

I didn’t really know where to put this, but since I figured this was opinion based, I put this here, so I apologize if this isn’t the right place to put it.

Let’s say you start an airline, and you can choose where it will be based and where it will fly, etc. What will be your model and strategy?
To be honest, I’m not good at economics, but I would think that you could just fly from secondary airports in major cities with some cheap planes, haha.
 
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AAlaxfan
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Re: If you were to start an airline, what would be your business strategy/plan?

Sun Aug 25, 2019 10:02 pm

To not lose money!
Grumpy. Not a dwarf, not an attitude. It's a lifestyle.
 
Aurantiaco
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Re: If you were to start an airline, what would be your business strategy/plan?

Sun Aug 25, 2019 10:43 pm

AAlaxfan wrote:
To not lose money!

Well, got what I was asking for. :lol:
But for real though, what would be a profitable strategy?
 
IPFreely
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Re: If you were to start an airline, what would be your business strategy/plan?

Mon Aug 26, 2019 12:09 am

Aurantiaco wrote:
But for real though, what would be a profitable strategy?


Simple 4-step plan.
1. Find a niche.
2. Show enough potential to become a takeover target.
3. Sell to the highest bidder.
4. Invest the proceeds into a more profitable (non-airline) business.
 
DFW17L
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Re: If you were to start an airline, what would be your business strategy/plan?

Mon Aug 26, 2019 12:23 am

May plan? Identify my most profitable and best customers, and focus on them.
 
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PatrickZ80
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Re: If you were to start an airline, what would be your business strategy/plan?

Mon Aug 26, 2019 6:11 am

DFW17L wrote:
May plan? Identify my most profitable and best customers, and focus on them.


While that sounds logical, it doesn't always have to be the best plan.

The problem with the most profitable customers is that there are so little of them. That means you can never grow really big.

The market is like a pyramid, narrow at the top and wide at the bottom. You're chasing the top, where you make the most money per passenger. However since that top is really narrow, the only growth you have is down.

On the other hand there are airlines like Ryanair who chase the bottom. They make very little money per passenger, however the number of potential passengers is almost infinite. That makes all together they might make more money than that small airline that chases the top.
 
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readytotaxi
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Re: If you were to start an airline, what would be your business strategy/plan?

Mon Aug 26, 2019 7:03 pm

Use someone elses money,never you own. Find a billionaire who wants to be a millionaire.
you don't get a second chance to make a first impression!
Growing older, but not up.
 
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Seabear
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Re: If you were to start an airline, what would be your business strategy/plan?

Mon Aug 26, 2019 7:24 pm

If I had to guess, it would probably involve a dartboard.
 
klm617
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Re: If you were to start an airline, what would be your business strategy/plan?

Wed Sep 04, 2019 5:11 pm

My plan would be to start a base of operations and then fly to markets where the fares are extremely high and create my own market share. I would offer fares at 25%-50% off what the full service carriers charge. I would stay out of the major markets where competition is stiff and the legacies don't want to give up market share. My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft. Once I establish myself in these markets I would set up a European hub and then connect passengers through there to be able to fly my narrow-bodied aircraft deeper into Europe. I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America. I would then target any city that I could reach with my aircraft. The idea would be affordable international travel for all at a price threshold that would turn a profit..
the truth does matter, guys. too bad it's often quite subjective. the truth is beyond the mere facts and figures. it's beyond good and bad, right and wrong...
 
klm617
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Re: If you were to start an airline, what would be your business strategy/plan?

Wed Sep 04, 2019 5:15 pm

PatrickZ80 wrote:
DFW17L wrote:
May plan? Identify my most profitable and best customers, and focus on them.


While that sounds logical, it doesn't always have to be the best plan.

The problem with the most profitable customers is that there are so little of them. That means you can never grow really big.

The market is like a pyramid, narrow at the top and wide at the bottom. You're chasing the top, where you make the most money per passenger. However since that top is really narrow, the only growth you have is down.

On the other hand there are airlines like Ryanair who chase the bottom. They make very little money per passenger, however the number of potential passengers is almost infinite. That makes all together they might make more money than that small airline that chases the top.


Exactly consider the space one business class seat takes up in and aircraft and multiply that by the amount of cheap seats that fill up the same space and n the end you are pretty close to the same margins let alone you don't have to give away seats in the long run because of frequent flyer awards.
the truth does matter, guys. too bad it's often quite subjective. the truth is beyond the mere facts and figures. it's beyond good and bad, right and wrong...
 
cpd
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Re: If you were to start an airline, what would be your business strategy/plan?

Thu Sep 05, 2019 4:17 pm

Aurantiaco wrote:
I didn’t really know where to put this, but since I figured this was opinion based, I put this here, so I apologize if this isn’t the right place to put it.

Let’s say you start an airline, and you can choose where it will be based and where it will fly, etc. What will be your model and strategy?
To be honest, I’m not good at economics, but I would think that you could just fly from secondary airports in major cities with some cheap planes, haha.


To dismiss the advisor telling me to start an airline.

Worst idea ever. ;)
 
Nicoeddf
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Re: If you were to start an airline, what would be your business strategy/plan?

Thu Sep 05, 2019 8:50 pm

klm617 wrote:
My plan would be to start a base of operations and then fly to markets where the fares are extremely high and create my own market share. I would offer fares at 25%-50% off what the full service carriers charge. I would stay out of the major markets where competition is stiff and the legacies don't want to give up market share. My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft. Once I establish myself in these markets I would set up a European hub and then connect passengers through there to be able to fly my narrow-bodied aircraft deeper into Europe. I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America. I would then target any city that I could reach with my aircraft. The idea would be affordable international travel for all at a price threshold that would turn a profit..


The respective home carriers in those markets would crush you with low fares the instant you would manage to get more than 30 people on your plane, which is doubtful anyway.
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DesertAir
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Re: If you were to start an airline, what would be your business strategy/plan?

Fri Sep 06, 2019 1:13 pm

Target: underserved communities> Stockton, Modesto, Red Bluff, Chico, CA, Calexico, El Centro...
Goal> low cost air service and allow retired airline workers to continue to participate in the industry
Employees> retired airline pilots, FAs, ground and administrative
Everyone> minimum wage from the CEO to the baggage crew
Fares> simple structure of same fare every flight every day
Stockton to San Francisco $60
 
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qfs
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Re: If you were to start an airline, what would be your business strategy/plan?

Fri Sep 06, 2019 1:52 pm

DesertAir wrote:
Target: underserved communities> Stockton, Modesto, Red Bluff, Chico, CA, Calexico, El Centro...
Goal> low cost air service and allow retired airline workers to continue to participate in the industry
Employees> retired airline pilots, FAs, ground and administrative
Everyone> minimum wage from the CEO to the baggage crew
Fares> simple structure of same fare every flight every day
Stockton to San Francisco $60


Stockton to San Francisco isn't practical because if you want to connect somewhere United Express flies to LAX, but if you just want to go to San Francisco for the weekend driving is much more affordable when you take in to account renting cars and so on...
 
blueflyer
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Re: If you were to start an airline, what would be your business strategy/plan?

Sat Sep 07, 2019 12:24 pm

I'd try and find new markets to duplicate JSX. Maybe find sufficient funding to grow the operation larger faster and gain economies of scale.Perhaps in Europe.

klm617 wrote:
My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft.

Cue Eurowings/Level service to PIT,DTW,CLE,STL with rock-bottom fares in 3, 2, 1...

klm617 wrote:
I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America..

BRU's available if you don't mind most of your flights using hard stands and stairs.... Gates are at a premium in the morning. Can't speak to availability at HAM, but Lufty will surely find a way to make you feel welcome.
The Trump/Johnson special relationship: Special people on both sides of the Atlantic
 
PlymSpotter
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Re: If you were to start an airline, what would be your business strategy/plan?

Sat Sep 07, 2019 4:37 pm

I would focus on domestic or short haul P2P travel with <100 seats, operating those current generation aircraft offering best-in-class emissions per passenger. My marketing strategy would lead with these green credentials and the ultimate aim would be to fully carbon offset all flights and operations. Overall the airline would be more of a technology company advancing the development of hybrid or fully electric aircraft for short haul ops.

The factors driving our travel habits are being reshaped. You are already seeing this being used to influence travel choices, with sites like Skyscanner now highlighting those flight options which generate reduced emissions. Fortunately the price of fuel means aviation is reasonably effective in self regulating itself, because it's going to become increasingly important for passengers as we go on.
...love is just a camouflage for what resembles rage again...
 
seat1a
Posts: 469
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Re: If you were to start an airline, what would be your business strategy/plan?

Sat Sep 07, 2019 9:18 pm

with someone else's money, i'd create a new braniff at austin. routes would be aus-ord/dfw/lax/sea/lga/iah with 220's.
 
klm617
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Re: If you were to start an airline, what would be your business strategy/plan?

Sun Sep 08, 2019 5:01 pm

blueflyer wrote:
I'd try and find new markets to duplicate JSX. Maybe find sufficient funding to grow the operation larger faster and gain economies of scale.Perhaps in Europe.

klm617 wrote:
My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft.

Cue Eurowings/Level service to PIT,DTW,CLE,STL with rock-bottom fares in 3, 2, 1...

klm617 wrote:
I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America..

BRU's available if you don't mind most of your flights using hard stands and stairs.... Gates are at a premium in the morning. Can't speak to availability at HAM, but Lufty will surely find a way to make you feel welcome.


The key is offering affordable international travel to the masses while turning a modest profit. Eurowings and Level would never fly into DTW.PIT/CLE or STL there isn't enough premium traffic there to make it worth their while MCI has proved that.
the truth does matter, guys. too bad it's often quite subjective. the truth is beyond the mere facts and figures. it's beyond good and bad, right and wrong...

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