new airline business plan

• Sample Business Plans
• Transportation, Logistics & Travel

Airline Business Plan

Launching an airline is challenging. Even harder is running it successfully. Starting with a new airline business and progressing to established market players requires ongoing learning and adaptability.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your airline business? You’re at the right place. Our airline business plan template will help you get started.

Free Business Plan Template

Download our free airline business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An Airline Business Plan?

Writing an airline business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of airline company you run and the name of it. You may specialize in one of the following airline businesses:

• Full-service carriers
• Low-cost carriers
• Regional airlines
• Charter airlines
• Cargo airlines
• Describe the legal structure of your airline company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your airline company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Competitive Analysis: Identify and analyze your direct and indirect competitors . Identify their strengths and weaknesses, and describe what differentiates your airline services from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your airline company, such as airline deregulation, aviation security, consumer protection, competition regulation, etc.

Here are a few tips for writing the market analysis section of your airline business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Airline Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Passenger flight
• Baggage handling
• In-flight services
• Seating options
• Loyalty programs
• Special assistance
• Additional Services: Mention if your airline company offers any additional services. You may include services like pre-booking seats, extra baggage allowance, in-flight entertainment options, onboard Wi-Fi, duty-free shopping, special assistance for passengers with disabilities, etc.

In short, this section of your airline plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, targeted advertising, content marketing, etc.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include partnering with other businesses, influencer collaboration, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts & offers, personalized service, etc.

Overall, this section of your airline company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your airline business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or cabin crew needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your airline business. Your operational processes may include flight planning & scheduling, ground operations, aircraft operations, safety & security, customer service, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your airline business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your airline company, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your airline business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your airline business’s assets, liabilities, and equity.
• Financing Needs: Calculate costs associated with starting an airline business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your airline business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample airline business plan will provide an idea for writing a successful airline plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our airline business plan pdf .

Related Posts

Travel Agency Business Plan

Taxi Business Plan

Business Plan Making Guide

10 AI Tools For Small Business

Frequently asked questions, why do you need an airline business plan.

A business plan is an essential tool for anyone looking to start or run a successful airline business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your airline company.

How to get funding for your airline business?

There are several ways to get funding for your airline business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your airline business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your airline business plan and outline your vision as you have in your mind.

What is the easiest way to write your airline business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any airline business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in an airline business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan
• EB5 Business Plan
• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan

Franchise Business Planning 

• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Daycare business plan
• Mobile Application Business Plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Templates

Airline Business Plan Sample

Published Feb.01, 2021

Updated Apr.19, 2024

By: Jakub Babkins

Average rating 4.8 / 5. Vote count: 6

No votes so far! Be the first to rate this post.

Table of Content

Do you want to start an airline company?

An airline business provides air transport to passengers on a national and international level. The business is undoubtedly much more profitable than other usual businesses. However, it comes at the cost of a difficult startup.

Starting an airline business is an inevitably expensive venture. The costs of jets, the salaries of qualified and experienced pilots, salaries of the crew, charges paid to the airport, payments to government and travel agents combined make a huge cost.

Therefore, if you are exploring how to build an airline business plan, you must first make sure that you will be able to manage a large team and expenses. To start this business, the first step would be creating a business plan. In this blog, we’re providing a business plan for airlines written for the startup, Bruce Airlines.

Executive Summary

2.1 the business.

Bruce Airlines will be a registered and licensed aviation business startup headquartered in Charlotte. The business will be owned by Bruce Greg, former COO of Aer Lingus.

2.2 Management of Airline company

Managing an airline company demands a lot of experience and expertise. Because the slightest mistake of anyone can lead to huge money and even life losses. In this airline business plan executive summary pdf we’ll be providing all details about Bruce Airlines. So you would have complete knowledge of what to include in your starting up airline business plan.

To manage an airline company, you’ll be needed to employ aviation attorneys, schedule coordinators, aviation technicians, flight attendants, pilots, and administrative staff.

To ensure the smooth running of business’ operations, Bruce Airlines will offer just 45 destinations across the globe in the initial phase.

2.3 Customers of Airline company

The customers of our airline will mainly be businesspersons and officers who need to travel internationally. Moreover, the general public and tourists will also be our target customers.

2.4 Business Target

Our target is to cover the startup expenses within two years of the launch. Moreover, we also aim at earning a net profit margin of $27k per month by the end of the second year and $49k per month by the end of the third year.

Company Summary

3.1 company owner.

Bruce Greg completed his pilot training at American Airlines Cadet Academy at the age of 21. After that, he did an MBA from Harvard University and joined Aer Lingus as a company manager. He served at several managerial posts and eventually became the company’s, Chief Operating Officer. He served as COO for six years and then decided to launch his own airline.

3.2 Why the airline company is being started

Bruce has always been associated with the airline business. He decided to launch his own airline to be an entrepreneur and earn the most by utilizing his skills and experience.

3.3 How the airline company will be started

Step1: Creating A Business Plan

The first step before starting an airline company is to create a business plan for airlines company. Bruce studied several examples of business plans for airlines and developed his start an airline business plan himself. We are providing the business plan he created in this sample business plan airline company.

Step2: Acquiring Required Licenses & Permits

Step3: Establish Headquarter, Values & Services

Bruce Airlines will be headquartered in Charlotte. The company will come into contact with airports and the government to negotiate the fee for hangars and for scheduling flights and routes. Meanwhile, the company will define its services, values, and customer care policies to get recognized.

Step4: Hire The Staff

To run an airline company, you need to hire a large staff. Due to the responsible and delicate nature of work, Bruce decided to recruit staff after rigorous testing and interviewing. The list of staff he’ll hire will be given in the upcoming sections along with their job descriptions and salaries.

Step5: Promote & Market

To attract customers amid huge competition, it is essential to develop an effective marketing strategy. And to come in contact with stakeholders who can indirectly promote your company.

Step6: Establish Online Presence

In this era, it is really important to establish a strong website presence. Bruce decided to launch a website that provides electronic ticketing and flight booking system to facilitate his customers.

Like all other airlines, Bruce Airlines will also be offering four travel classes. The services and luxuries associated with each class are listed here. If you want to build your own airline you can take help from this business plan template airlines.

• Economy Travel Class: This will be our basic class consisting of normal quality seats, foods, and extras for those looking for economical travel. The leg space, seat width, and screen size will be a lot lesser than all other classes. However, it will be adequate for a short flight.
• Wider and Comfortable Seats
• Quality foods and refreshments
• 16-inch entertainment screen
• Extra things including hot towels, toothbrushes, headsets, etc.
• Extra Comfortable Seats (More width, inclination)
• High-quality foods and refreshments
• 20-inch entertaining screen
• Extra things including eye masks, headsets, towels, and others.
• High priority check-in security
• High priority baggage handling
• Mini-Suites with privacy doors and noise-dampening curtains
• Storage compartments
• 26-inch entertainment screen
• Personal wardrobe
• Comfortable seat that reclines into super-comfy bedding with temperature control
• Finest foods and drinks made by world-renowned chefs
• Amenity kit including toothbrushes, face creams, lip balms, ear-plugs, and other things.

Marketing Analysis of Airline Company

Marketing analysis is a very important part of airlines business plan template. It analyzes the target market and target customers. Moreover, it also explains how much price you should set to meet your financial goals while attracting more customers than your competitors.

In this starting an airline business plan we are providing the marketing analysis done for Bruce Airlines. Here we have analyzed the global market trends for this business and the general groups of people that can be considered as potential customers.

If you are looking for how to write a business plan for an airline you can take help from airline business models pdf.

5.1 Market Trends

According to IBISWorld, more than 22k global airline businesses are running in the United States, employing more than 2.5 million masses. According to the same source, the business holds a huge market size of $686 billion.

Despite that the industry is already quite large, still, It is expected to grow more in the coming years. The growth is forecasted based on the surge in travel activities and expansion in the middle-class population in the coming years.

5.2 Marketing Segmentation

5.2.1 Business Persons

This group of our customers comprises of businessmen and women who need to travel to several countries as part of their business. This group is expected to avail of our first class and business class travel tickets. As this category usually arrange business trips and meetings, therefore, we expect this group to avail our services in groups.

5.2.2 Foreign Officers

Our second target group comprises high officials who need to travel on regular basis to meet their job responsibilities. This group is also expected to avail of our first class and business class travel tickets.

5.2.3 Tourists

Our third target group will comprise tourists who board airplanes frequently to reach out to remote locations. This category is expected to travel mostly in economy and premium economy class.

5.2.4 General Public

Lastly, general people who have to travel far-off places on an urgent basis will also be our target customers. This group is expected to avail mostly our economy class service.

5.3 Business Target

• To earn a profit margin of $49k per month by the end of the third year
• To achieve an average rating above 4.77 by the end of the second year
• To achieve a CSAT score above 92 by the end of the first six months
• To increase our travel destinations from 45 to 55 within three years of our launch

5.4 Product Pricing

Our prices will lie within the same ranges as that of our competitors. However, we will offer several discounts in the startup phase.

Marketing Strategy

Bruce Airlines will come up with several competitive aspects to get ahead of its competitors. In this airline marketing strategy pdf we’re providing the marketing strategy of Bruce Airlines. So that you can have help in making your own airline marketing business plan.

6.1 Competitive Analysis

We expect to get popularity among our customers due to the following competitive aspects.

• Electronic booking and ticketing facility
• Additional amenities
• Discounted rates in the first two months
• Dedicated flight attendants
• Highly customer care oriented policies

6.2 Sales Strategy

To advertise our startup, we’ll

• Promote our services through travel agent companies , social media campaigns, and Google Local ads services.
• Offer a 30% discount on the economy, premium economy, and business class tickets for the first two months of our launch.
• By launching our frequent-flyer program for privileged and loyal customers.
• By making our website SEO and by investing in artificially intelligent chatbots.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

An airline company needs a lot of staff to manage operations. Therefore you should make a detailed list of required employees with their job descriptions as you write a business plan for an airline.

7.1 Company Staff

Bruce will be the CEO himself. The staff he’ll hire is listed below:

• 1 Chief Operating Officer
• 5 Pilots with ATP certifications
• 9 Flight Attendants
• 2 Airline Operations Agents
• 3 Avionics Technicians
• 3 Airline Station Agents
• 1 Aviation Attorney
• 2 Sales Executives
• 1 Social Media Manager
• 6 Security Officers
• General Cabin Crew

7.2 Average Salary of Employees

Financial plan.

The airline company is not like other usual businesses. Starting and running an airline business is extremely expensive due to the high costs involved in

• Purchasing Airplanes
• Recruiting highly qualified pilots
• The fee paid to the government and airports
• The fee paid to travel agents
• Frequent loss due to empty seats
• Salaries of a large workforce
• Maintenance costs
• Money spent on marketing and advertisement

Therefore due to the high costs involved in airline operations, you need to be very much careful in managing your finances. Your financial plan for this business must draw a trajectory to earn targeted profits despite these huge expenses.

As Bruce had all the knowledge to create a financial plan, he carried out this task himself. In the case of your startup, if you are not a professional financial analyst, you must hire the services of one. To get a rough idea of what to expect from your professional financial plan writer , we are providing the financial plan of Bruce Airlines in this starting airline company business plan.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

All tables in PDF Download Airline Business Plan Sample in pdf Professional OGS capital writers specialized also in themes such as drop shipping business plan , import and export business plan , logistics business plan , airmall business plan and helicopter business plan .

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Bowling Alley Business Plan Sample

Nightclub Business Plan (2024): A Comprehensive Guide

Rabbit Farming Business Plan

Beverages Business Plan

Private Schools Business Plan

Business Plan for a Lounge

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

How to Create an Airline Business Plan

Blog > how to create an airline business plan, table of content, introduction, executive summary, market analysis, business description, business structure and organization, marketing and sales strategy, fleet and operations, financial projections, funding and investment, risk analysis and mitigation, regulatory and legal compliance, sustainability and environmental, our other categories.

• Company Valuation
• Pitch Deck Essentials
• Raising Capital
• Startup Guide
• Uncategorized

Reading Time : 14 Min

Business plan 101.

The airline industry has experienced exponential growth and transformative changes over the years, making it an attractive sector for entrepreneurs seeking to launch their own airlines. However, navigating this competitive landscape requires a well-crafted and comprehensive airline business plan. In this guide, we will walk you through the essential steps and key components of creating an effective airline business plan that will lay the foundation for your success in the aviation industry. As a trusted startup consultant service provider, Stellar Business Plans is here to support you in turning your aviation dreams into reality.

An executive summary serves as the snapshot of your entire airline business plan . It succinctly outlines your airline’s vision, goals, financial projections, and growth strategies. This section sets the tone for the rest of the plan, capturing the attention of potential investors and stakeholders.

Example: “Skyline Airways is a visionary airline committed to redefining air travel by providing unparalleled luxury and convenience to business and leisure travelers. Our strategic expansion plans and commitment to customer satisfaction make us a strong contender in the aviation industry. This executive summary outlines the key components of our business plan, showcasing the promising potential of Skyline Airways.”

Stellar Business Tip: Keep your executive summary concise yet impactful. Highlight the unique selling points of your airline and emphasize how it addresses the pain points of customers.

Understanding the dynamics of the airline industry is crucial for making informed decisions. Conduct an in-depth market analysis, including market trends, target customer segments, and competitor landscape. Utilize relevant statistics and data to present a comprehensive overview.

Example: “The global airline industry is projected to witness substantial growth in the coming years, driven by increasing disposable incomes, growing tourism, and expanding business travel. According to the International Air Transport Association (IATA), global air passenger numbers are expected to double in the next two decades, reaching 8.2 billion by 2037.”

Stellar Business Tip: Leverage market research and industry reports to substantiate your claims. Show that your airline’s strategies are well-aligned with market opportunities.

This section delves into the core aspects of your airline, including your mission, unique selling proposition (USP), and the services you will offer. Introduce your airline’s history and highlight significant milestones that demonstrate your readiness for success.

Example: “FlyRight Airlines was founded with a vision to revolutionize the travel experience for passengers through exceptional customer service and innovative technology. Our commitment to punctuality, safety, and personalized service sets us apart from competitors. As an industry-disruptor, FlyRight Airlines has been recognized with the prestigious ‘Best Customer Service’ award for three consecutive years.”

Stellar Business Tip: Showcase your airline’s achievements and accolades to build credibility and confidence among potential investors and partners.

Outline the legal structure of your airline and discuss the management team’s roles and expertise. Provide an organizational chart to showcase the hierarchy and responsibilities of key personnel.

Example: “SkyJet Airways is registered as a private corporation in accordance with aviation regulations. Our management team comprises seasoned professionals with extensive experience in the aviation and hospitality industries. John Smith, our CEO, brings over 20 years of leadership experience in major airlines, ensuring efficient operations and strategic decision-making.”

Stellar Business Tip: Highlight the expertise of key team members and their significant contributions to the success of your airline.

Develop a robust marketing and sales strategy to attract and retain customers. Utilize data-driven insights and statistics to demonstrate the effectiveness of your marketing initiatives.

Example: “SkyGlide Airlines’ marketing strategy focuses on digital channels, social media, and influencer partnerships to reach our target audience effectively. Our market research indicates that millennial travelers heavily influence travel decisions, and thus, we invest significantly in social media marketing and user-generated content to create brand loyalty.”

Stellar Business Tip: Showcase your understanding of your target market’s preferences and how your marketing efforts align with their expectations.

Detail your fleet composition and specifications, including aircraft types and capacities. Discuss aircraft maintenance and safety procedures, emphasizing your commitment to ensuring a reliable and secure airline.

Example: “AirWings Fleet consists of modern and fuel-efficient aircraft, including Airbus A320neo and Boeing 787 Dreamliner, ensuring a comfortable and eco-friendly flying experience. Our partnership with leading maintenance providers guarantees the highest standards of safety and reliability, with regular maintenance checks and adherence to regulatory guidelines.”

Stellar Business Tip: Focus on the safety and comfort features of your fleet to instill confidence in your airline’s operations.

Create comprehensive financial projections based on market research and sound assumptions. Utilize charts and tables to present revenue forecasts, cost structures, and projected profitability.

Example: “Our financial projections anticipate steady growth, with projected revenue of $100 million in the first year, reaching $500 million by the fifth year. This growth will be supported by a robust marketing strategy, optimized operational costs, and an expanding customer base.”

Stellar Business Tip: Provide a clear breakdown of revenue streams and cost drivers to demonstrate your financial stability and growth potential.

Explain the initial investment required to launch and operate your airline. Showcase your budget for start-up costs and capital expenditures, providing clarity to potential investors about the financial requirements.

Example: “AirSprint Airways requires an initial investment of $50 million, which will cover aircraft acquisition, staff training, marketing campaigns, and administrative expenses. We are seeking strategic investors who share our vision of transforming air travel and are committed to long-term partnerships.”

Stellar Business Tip: Clearly articulate your funding needs and explain how the investment will be utilized to drive the growth of your airline.

Identify potential risks in the airline industry and outline your risk mitigation strategies. Present contingency plans to assure stakeholders of your preparedness for challenges.

Example: “SkyWings Airlines has conducted a comprehensive risk analysis, identifying potential risks such as fuel price volatility, geopolitical tensions, and regulatory changes. Our risk mitigation strategies include hedging fuel costs, diversifying routes, and maintaining strong relationships with aviation authorities to navigate regulatory changes smoothly.”

Stellar Business Tip: Address potential risks proactively and demonstrate your airline’s ability to adapt to unforeseen circumstances.

Discuss the licensing and certification requirements necessary for operating an airline. Show how your airline will comply with aviation authorities and regulations.

Example: “AviaJet is committed to maintaining the highest standards of safety and compliance with all aviation regulations. We are currently in the process of obtaining an Air Operator’s Certificate (AOC) and expect to launch operations after receiving all necessary approvals from the Civil Aviation Authority.”

Stellar Business Tip: Emphasize your commitment to adhering to all legal and regulatory requirements to gain trust from investors and passengers.

Impact Promote sustainability initiatives and demonstrate your commitment to reducing the airline industry’s environmental impact. Showcase your airline’s dedication to adopting eco-friendly practices.

Example: “EcoFlight Airlines is dedicated to minimizing our carbon footprint and preserving the environment. We are investing in modern, fuel-efficient aircraft, adopting sustainable inflight practices, and exploring alternative fuels to achieve carbon neutrality by 2030.”

Stellar Business Tip: Highlight your airline’s commitment to sustainability, as it aligns with the growing eco-consciousness of travelers.

Creating an airline business plan requires careful planning, extensive research, and a clear vision of your airline’s future. By following this comprehensive guide, you are equipped to build a solid foundation for your airline’s success. Stellar Business Plans is here to provide you with expert guidance and support in crafting an impressive business plan that will impress investors and stakeholders. Together, we can embark on a journey to make your airline a soaring success. Get ready to take flight with Stellar Business Plans!

Start Your Journey With Us

To know us more.

Updated On : September 2, 2023

Total shares:, average rating :, related posts.

How to Write a Business Plan for a Loan

How to create an effective amazon fba business plan, how to create an agricultural business plan, how to create an advertising agency business plan, how to create an accounting business plan, how to create 3d printing business plan, how to create mcdonalds restaurant business plan, how to create a bbq restaurant business plan, how to create airbnb business plan, how to create a gym business plan: complete guide, how to write a strong executive summary.

13 Reasons why you need a Solid Business Plan

How useful was this post?

Click on a star to rate it!

Average rating 4 / 5. Vote count: 34

No votes so far! Be the first to rate this post.

WhatsApp us

How to Start Your Own Airline: A Guide for Entrepreneurs

How to Start an Airline

The aviation industry is a competitive one, but it can also be incredibly rewarding. If you’re passionate about flying and have a strong business sense, starting your own airline could be the perfect way to turn your dream into a reality.

In this article, we’ll discuss the steps involved in starting an airline, from getting the necessary permits and licenses to finding investors and hiring staff. We’ll also provide tips on how to market your airline and make it a success.

So if you’re ready to take to the skies, read on for everything you need to know about starting your own airline!

• FAA Air Carrier Certification
• DOT Foreign Air Carrier Permits
• TSA Security Clearance
• Investopedia: How to Start an Airline
• The Balance SMB: How to Start an Airline Company
• Grants.gov: Search for Government Grants
• SBA: How to Write a Business Plan for Your Startup Airline
• Indeed: Airline Jobs
• Monster: Airline Jobs
• CareerBuilder: Airline Jobs

Starting an airline is a complex and challenging undertaking, but it can also be a very rewarding one. If you have a passion for aviation and a strong business acumen, starting your own airline could be the perfect way to turn your dream into a reality.

This guide will provide you with the information you need to get started, from conducting market research to obtaining the necessary credentials. By following these steps, you can increase your chances of success and bring your airline to life.

1. Conduct Market Research

The first step in starting an airline is to conduct market research to determine the demand for air travel in your target market. This will help you to identify the potential size of your customer base and the best routes to serve.

Here are some things to consider when conducting market research:

• Identify your target market. Who are you trying to reach with your airline? Are you targeting business travelers, leisure travelers, or both?
• Analyze your competition. What other airlines are operating in your target market? What are their strengths and weaknesses?
• Determine the demand for air travel. How many people are traveling in your target market? How much are they willing to pay for airfare?
• Assess the financial feasibility of your airline. How much money will it cost to start and operate your airline? How much revenue can you expect to generate?

Once you have completed your market research, you will have a better understanding of the demand for air travel in your target market and the challenges you will face in starting your own airline.

2. Get the Right Credentials

In order to operate an airline, you will need to obtain a number of different credentials, including:

• An air operator certificate (AOC). An AOC is a license issued by the government that authorizes you to operate an aircraft for commercial purposes.
• Meet safety regulations. Airlines must comply with a wide range of safety regulations, including those that govern aircraft maintenance, pilot training, and passenger safety.
• Get insurance. Airlines must have insurance to cover their liability in the event of an accident.

The specific requirements for obtaining these credentials will vary depending on the country in which you are operating your airline. However, by following these steps, you can ensure that you have the necessary credentials to operate your airline safely and legally.

Obtaining an Air Operator Certificate (AOC)

The first step in starting an airline is to obtain an air operator certificate (AOC). An AOC is a license issued by the government that authorizes you to operate an aircraft for commercial purposes.

The requirements for obtaining an AOC vary depending on the country in which you are operating your airline. However, in general, you will need to meet the following criteria:

• Have a legal entity. You must have a legal entity, such as a corporation or partnership, to own and operate your airline.
• Have the necessary financial resources. You must have enough financial resources to cover the costs of starting and operating your airline.
• Meet safety standards. Your airline must meet a wide range of safety standards, including those that govern aircraft maintenance, pilot training, and passenger safety.
• Submit an application to the government. You must submit an application to the government for an AOC. The application process can take several months or even years.

Once you have obtained an AOC, you will be authorized to operate an aircraft for commercial purposes. However, you will still need to meet a number of other requirements, such as those related to insurance and passenger safety.

Meeting Safety Regulations

In addition to obtaining an AOC, airlines must also comply with a wide range of safety regulations. These regulations are designed to ensure that airlines operate safely and that passengers are protected in the event of an accident.

Some of the key safety regulations that airlines must comply with include:

• Aircraft maintenance regulations. Airlines must ensure that their aircraft are properly maintained in accordance with the manufacturer’s specifications.
• Pilot training regulations. Airlines must ensure that their pilots are properly trained and qualified to operate their aircraft.
• Passenger safety regulations. Airlines must ensure that their passengers are safe during all phases of flight. This includes providing adequate safety equipment, training their employees on safety procedures, and responding to emergencies in a timely and efficient manner.

By complying with these safety regulations, airlines can help to ensure the safety of their passengers and crew.

Getting Insurance

Airlines must have insurance to cover their liability in the event of an accident. This insurance can protect the airline from financial losses in the event of an accident, such as lawsuits

3. Secure Funding

The most important step in starting an airline is securing funding. This can be a daunting task, but it is essential to have the financial resources in place before you can launch your airline. There are a few different ways to secure funding for an airline, including:

• Finding investors. This is the most common way to secure funding for an airline. Investors are individuals or companies that are willing to provide capital in exchange for a share of ownership in the airline.
• Applying for loans. Another option is to apply for loans from banks or other financial institutions. Loans can be a good option if you have a strong credit history and a solid business plan.
• Getting government grants. Government grants can be a great way to secure funding for an airline, especially if you are operating in a rural area or if your airline is providing a service that is not currently being offered.

Once you have secured funding, you can start to build your airline. This includes hiring staff, buying aircraft, and setting up routes.

4. Launch Your Airline

Once you have secured funding and built your airline, you can start to launch your operations. This includes hiring staff, buying aircraft, and setting up routes.

• Hiring staff. You will need to hire a team of experienced professionals to run your airline. This includes pilots, flight attendants, mechanics, and customer service representatives.
• Buying aircraft. You will need to purchase aircraft to operate your airline. The type of aircraft you need will depend on the routes you will be flying.
• Setting up routes. You will need to decide which routes you will be flying. This will depend on the demand for air travel in your area and the type of aircraft you have available.
• Marketing your airline. You will need to market your airline to potential customers. This can be done through advertising, public relations, and social media.

Once you have launched your airline, you will need to manage it on an ongoing basis. This includes ensuring that your aircraft are safe and well-maintained, that your staff are happy and productive, and that your customers are satisfied.

Starting an airline is a complex and challenging undertaking, but it can also be a very rewarding one. If you have the passion, the drive, and the financial resources, starting an airline can be a great way to make a difference in the world.

Here are some additional tips for starting an airline:

• Do your research. Before you start an airline, you need to do your research and make sure that you understand the industry. This includes understanding the regulations, the competition, and the demand for air travel.
• Get the right people on board. You need to have a team of experienced professionals who are passionate about aviation. These people will be essential to the success of your airline.

The cost of starting an airline can vary significantly, depending on the size and scope of the operation. A small regional airline with a few planes and a limited route network can be started for as little as $10 million. However, a major full-service airline with a large fleet and a global reach can cost well over $1 billion.

What are the necessary licenses and permits required to start an airline?

The specific licenses and permits required to start an airline vary from country to country. However, some of the most common requirements include:

• A certificate of airworthiness from the relevant aviation authority
• A license to operate from the relevant airport authority
• A passenger service license from the relevant government agency
• A business license from the relevant state or local government

What are the key factors to consider when choosing a location for an airline headquarters?

The key factors to consider when choosing a location for an airline headquarters include:

• Access to a major airport
• A strong pool of skilled labor
• A favorable business climate
• A good quality of life for employees

What are the different types of airlines?

There are three main types of airlines:

• Full-service airlines offer a wide range of services, including meals, checked baggage, and in-flight entertainment.
• Low-cost airlines offer basic transportation services at a low cost.
• Regional airlines operate flights between smaller cities and towns.

What are the challenges of starting an airline?

There are a number of challenges associated with starting an airline, including:

• High start-up costs
• Intense competition
• Government regulations
• Economic volatility

What are the benefits of starting an airline?

There are a number of benefits to starting an airline, including:

• The opportunity to create a new business and provide jobs
• The chance to make a positive impact on the community
• The potential for financial rewards

How can I learn more about starting an airline?

There are a number of resources available to learn more about starting an airline, including:

• Government agencies
• Trade associations
• Industry publications
• Online courses

Additional resources

• [The International Air Transport Association (IATA)](https://www.iata.org/)
• [The Airline Passenger Association (APA)](https://www.apa.net/)
• [The Air Transport Research Society (ATRS)](https://www.atrsociety.org/)
• [The Airline Business](https://www.airlinebusiness.com/)

Here are some key takeaways to remember:

• The airline industry is a competitive one, so it’s important to do your research and create a strong business plan before you get started.
• You’ll need to secure the necessary funding, permits, and licenses before you can start operating your airline.
• You’ll also need to hire a team of experienced professionals to help you run your airline.
• The most important thing is to stay focused on your goals and never give up on your dream.

Author Profile

Latest entries

• January 19, 2024 Hiking How to Lace Hiking Boots for a Perfect Fit
• January 19, 2024 Camping How to Dispose of Camping Propane Tanks the Right Way
• January 19, 2024 Traveling Information Is Buffalo Still Under Travel Ban? (Updated for 2023)
• January 19, 2024 Cruise/Cruising Which Carnival Cruise Is Best for Families?

Airline Business Plan: Writing Effective Airline Business Plans

To write a successful airline business plan , you must take several important trends in the airline industry and broader economy into account. What affect will these important trends have on the new airline?

• Continuing volatility in oil and other commodity markets
• A decline in personal disposable income as the economy slows
• Anxiety over flying and travel restrictions as a result of terrorist attacks and war
• Recent financial hardships and bankruptcies of major airline companies

Important Airline Business Plan Questions to Answer

To write a convincing aviation business plan and successfully launch your new airline, you must have confident answers to the following questions:

• What is the market demand for your new airline business?
• How will you prove the feasibility of your new airline?
• What kind of financing will you need, and how much?
• What types of investors will you seek capital from?
• What relevant past experience does your management team have, which you can leverage in your business plan?
• What strategic partnerships will you forge?
• What is your marketing plan and how will you grow your airline’s customer base?
• What are your airline’s future financial projections?
• What is your new airline’s “unfair competitive advantage” and how will you create barriers to entry?

How to Finish Your Airline Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your business plan today.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business plan consultant can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Get instant access to detailed competitive research, SWOT analysis, buyer personas, growth opportunities and more for any product or business at the push of a button, so that you can focus more on strategy and execution.

Table of contents, how to start an airline business and achieve greatness.

• 30 March, 2024

Starting an Airline Business: A Comprehensive Guide

Embarking on the journey of starting an airline business requires careful planning and a deep understanding of the key factors that contribute to success. This comprehensive guide will provide you with valuable insights into the essential steps involved in establishing your airline venture.

Understanding the Key Factors for Success

To ensure the long-term viability and profitability of your airline business, it is crucial to focus on several key factors. Industry experts emphasize the importance of keeping costs low, as this aspect is vital for both short-term financial viability and long-term success. By prioritizing cost management, you can maintain a competitive edge and maximize your profitability.

Conducting Market Analysis

Thorough market analysis is essential to understanding the dynamics of the airline industry and identifying potential opportunities and challenges. By examining market trends, customer preferences, and competitor strategies, you can develop a comprehensive understanding of the market landscape. This knowledge will enable you to make informed decisions regarding routes, pricing strategies, and service offerings. For a deeper understanding of the airline industry, you can refer to our article on airline industry analysis .

Ensuring Safety and Compliance

Safety and compliance are of paramount importance in the aviation industry. As an airline operator, you must adhere to stringent safety standards and comply with the regulations set by relevant authorities. Navigating the complex regulatory frameworks and ensuring compliance with safety, security, and operational standards is critical for establishing a reputable and sustainable airline business ( Global Market Insights ). By prioritizing safety and compliance, you can instill confidence in your customers and build a strong foundation for your airline.

By understanding the key factors for success, conducting thorough market analysis, and ensuring safety and compliance, you can set a strong foundation for your airline business. In addition to these factors, it is crucial to develop a comprehensive business plan and secure adequate funding from various sources. Furthermore, embracing technological advancements and focusing on operational efficiency can help optimize costs and improve the overall customer experience. For more detailed insights into the financial considerations and operational strategies for a successful airline, refer to the respective sections in this guide.

Starting an airline business is a complex endeavor, but with careful planning, strategic decision-making, and a customer-centric approach, you can set your airline on a path to greatness.

Obtaining an Air Operator Certificate (AOC)

Before launching an airline business, obtaining an Air Operator Certificate (AOC) is a crucial step. The AOC is a certification granted by regulatory bodies such as the Federal Aviation Administration (FAA) in the United States and the European Aviation Safety Agency (EASA) in Europe. It ensures that airlines meet stringent safety, security, and operational standards before commencing operations.

The Certification Process

The process of obtaining an AOC involves several steps, including the following:

Application : Airlines must submit a comprehensive application to the regulatory authority, providing detailed information about their business plan, operational procedures, and safety management system.

Manual Development : Airlines are required to develop various manuals covering areas such as operations, maintenance, safety, and security. These manuals outline the airline’s policies, procedures, and protocols.

Manuals Review : Regulatory authorities review the manuals to ensure compliance with all applicable regulations and standards. Any necessary revisions or updates are requested at this stage.

Application Review : The submitted application is reviewed by the regulatory authority to assess the airline’s ability to meet safety and operational requirements. This may involve interviews with key personnel and additional documentation requests.

Inspections : Inspections of the airline’s facilities, aircraft, and operational systems are conducted to verify compliance with safety and security standards. These inspections may include assessments of maintenance procedures, training programs, and emergency response capabilities.

Demonstration Flight : In some cases, airlines are required to conduct a demonstration flight to showcase their operational readiness and adherence to safety protocols. This flight is often observed and evaluated by representatives from the regulatory authority.

Certification : Upon successfully completing all the necessary steps and demonstrating compliance with regulations, the airline is granted the Air Operator Certificate (AOC), allowing it to commence operations.

Timeline and Challenges

The timeline for obtaining an AOC can vary significantly depending on factors such as the size and complexity of the airline, the jurisdiction, and the airline’s readiness to comply with regulations. Smaller airlines with simpler operations may obtain their AOC within a few months, while larger, more complex airlines may require over a year to complete the process.

Challenges in the certification process can arise due to the rigorous standards set by regulatory bodies. Airlines must meticulously demonstrate their ability to maintain safety, security, and operational efficiency. The process may involve substantial paperwork, coordination with regulatory authorities, and adherence to strict timelines.

Additionally, starting an airline requires obtaining operational approvals beyond the AOC. These approvals include certifications such as Extended-range Twin-engine Operational Performance Standards (ETOPS) for long-haul flights over water and Reduced Vertical Separation Minimum (RVSM) for flying at higher altitudes. Airlines also need to secure desired routes approvals from relevant authorities.

It’s crucial to note that obtaining an AOC and starting an airline also involves significant financial investment. Costs can vary widely depending on factors such as the size of the airline, the number of aircraft, the scope of operations, and regulatory requirements. Expenses associated with obtaining an AOC can range from hundreds of thousands to millions of dollars.

Navigating the certification process and overcoming these challenges require a thorough understanding of regulatory requirements, meticulous planning, and collaboration with experts in the aviation industry. Seeking professional advice and guidance can greatly facilitate the process of obtaining an AOC and pave the way for a successful airline launch.

Financial Considerations for Starting an Airline

Starting an airline business entails careful financial planning and consideration of various funding sources. Additionally, developing a comprehensive business plan is crucial for attracting investors and ensuring the success of the venture.

Funding Sources

Securing funding for an airline startup requires a multi-faceted approach. Some potential funding sources include:

Crowdfunding: Crowdfunding platforms provide an opportunity to raise capital from a large number of individual investors who believe in the business idea. This method can be particularly effective for generating support from aviation enthusiasts and potential customers.

Seed Funding: Seed funding represents the initial equity funding stage for a startup. It can be sourced from family groups, friends circles, government initiatives, or philanthropic societies. Presenting a solid business plan, conducting SWOT and PEST analyses, and preparing a detailed presentation are critical for attracting seed funding investors.

Private Equity Firms: Private equity firms specialize in investing in high-potential startups. These firms provide capital in exchange for equity ownership. Collaborating with a reputable private equity firm can bring not only financial support but also industry expertise and guidance.

Corporate Startup Support: Some established airlines or aviation companies have programs to support and invest in promising startups. These programs often provide mentorship, resources, and access to industry networks.

Government Startup Funding: Governments may offer funding opportunities for startups in the aviation sector. These initiatives can provide financial support, access to infrastructure, and regulatory guidance.

It is essential for airline startups to conduct thorough due diligence and verification of potential investors to avoid falling into traps or scams ( LinkedIn ).

Developing a Business Plan

A well-developed business plan is a crucial tool for attracting investors and securing funding for an airline startup. The business plan should cover the following key aspects:

Executive Summary: Provide an overview of the airline business, its mission, and its unique value proposition.

Market Analysis: Conduct a comprehensive analysis of the airline industry, including trends, competition, and potential opportunities. Assess market demand and identify target customer segments.

Business Model: Clearly define the business model, revenue streams, and pricing strategies. Outline the unique aspects of the airline’s operations and services.

Operational Plan: Detail the operational structure, including fleet management, route planning, and ground operations. Address staffing requirements and training programs.

Financial Projections: Prepare detailed financial projections for at least five years, including revenue forecasts, operating costs, and capital requirements. Consider factors such as fuel prices, maintenance expenses, and regulatory fees.

Marketing and Sales Strategy: Outline the marketing and sales approach to attract customers and build brand awareness. Include strategies for customer acquisition and retention.

Risk Assessment: Identify potential risks and challenges that the airline may face and outline mitigation strategies.

Professional consultants, fund managers, and equity consultants/brokers can assist in marketing the project plan to potential investors ( LinkedIn ). By presenting a well-researched and comprehensive business plan, airline startups can demonstrate their potential for success and attract the necessary funding to launch their operations.

Starting an airline business requires meticulous financial planning and a solid business plan. By identifying appropriate funding sources and developing a comprehensive business plan, entrepreneurs can lay a strong foundation for their airline startup and increase the likelihood of securing the necessary financial support.

Operational Strategies for a Successful Airline

To ensure the success of an airline business, it is essential to implement effective operational strategies. These strategies focus on optimizing costs and fuel efficiency, as well as embracing technological advancements.

Optimizing Costs and Fuel Efficiency

Keeping costs low is a crucial aspect for the financial viability and long-term success of an airline business, according to industry experts ( Global Market Insights ). One area where airlines can optimize costs is fuel efficiency. By using fuel-efficient aircraft and implementing effective fuel management strategies, airlines can significantly reduce their operational costs. This is vital for the sustainability and profitability of the business ( Global Market Insights ).

To achieve fuel efficiency, airlines can consider the following strategies:

• Invest in Fuel-Efficient Aircraft: Modern aircraft models are designed with advanced technologies that offer improved fuel efficiency. Investing in these aircraft can help reduce fuel consumption and lower operating costs. Conducting a thorough airline industry analysis can provide valuable insights into the most fuel-efficient aircraft options available in the market.
• Implement Effective Fuel Management: Airlines can optimize fuel consumption by implementing efficient fuel management practices. This includes monitoring fuel usage during flights, optimizing flight routes to minimize distances traveled, and employing advanced fuel-saving techniques such as continuous descent approaches and single-engine taxiing.
• Regular Aircraft Maintenance: Proper maintenance of aircraft engines and systems is crucial for ensuring optimal fuel efficiency. Regular inspections, repairs, and maintenance checks can help identify and address any issues that may affect fuel consumption.

By focusing on optimizing costs and fuel efficiency, airlines can improve their financial performance and maintain a competitive edge in the industry.

Embracing Technological Advancements

In today’s digital era, embracing technological advancements is essential for the success of an airline business. Technological innovations can enhance operational efficiency, improve decision-making processes, and elevate the overall customer experience.

Here are some key technological advancements that airlines should consider:

• Digital Solutions for Operational Efficiency: Implementing digital solutions, such as advanced airline management systems, can streamline various operational processes. These systems can help automate tasks, optimize resource allocation, and enhance overall efficiency. Additionally, leveraging data analytics tools can provide valuable insights for decision-making and performance optimization.
• Data Analytics for Decision-Making: Airlines can harness the power of data analytics to gain insights into customer behavior, market trends, and operational performance. By analyzing data, airlines can make data-driven decisions, identify areas for improvement, and develop effective strategies for growth.
• Automation for Improved Customer Experiences: Automation plays a vital role in enhancing the overall customer experience. Airlines can leverage automated systems for tasks such as online check-in, baggage handling, and self-service kiosks. These automation solutions can streamline processes, reduce waiting times, and improve customer satisfaction.

By embracing technological advancements, airlines can stay ahead of the competition, enhance operational efficiency, and provide a seamless travel experience for their customers.

Implementing operational strategies that focus on optimizing costs, fuel efficiency, and embracing technology is crucial for the success of an airline business. By prioritizing these strategies, airlines can achieve operational excellence, improve financial performance, and deliver exceptional services to their passengers.

Regulatory Requirements and Compliance

When starting an airline business, navigating the complex regulatory landscape is essential. The aviation industry is highly regulated, requiring airline startups to understand and comply with various regulations and standards to ensure the safety, security, and operational efficiency of their operations. Meeting these requirements is critical for establishing a reputable and sustainable airline business ( Global Market Insights ).

Navigating Complex Regulations

The regulatory framework for the aviation industry is extensive and involves multiple authorities and agencies. Regulatory bodies such as the Federal Aviation Administration (FAA) in the United States and the European Aviation Safety Agency (EASA) in Europe set and enforce stringent safety, security, and operational standards for airlines. These regulations cover a wide range of areas, including aircraft maintenance, crew training, operational procedures, and emergency preparedness.

To navigate these complex regulations, airline startups must thoroughly research and understand the specific requirements and regulations applicable to their operations. This involves consulting with aviation regulatory experts, legal professionals, and industry associations to ensure compliance. It is also crucial to stay updated with any changes or updates to regulatory requirements to maintain compliance.

Obtaining Operational Approvals

In addition to regulatory requirements, starting an airline also involves obtaining various operational approvals. These approvals are necessary to demonstrate the airline’s capabilities and adherence to safety standards. Some of the common operational approvals include:

Air Operator Certificate (AOC): An AOC is a crucial authorization that airlines must obtain before commencing operations. The certification process is rigorous and involves thorough evaluation by regulatory bodies to ensure compliance with safety, security, and operational standards. The specific requirements and processes for obtaining an AOC vary by jurisdiction. For example, in the United States, the FAA grants AOCs, while in Europe, the responsibility lies with EASA ( Simple Flying ).

Route Approvals: Airlines need to obtain route approvals from the relevant authorities to operate on specific routes. This ensures that airlines meet the necessary requirements and have the appropriate infrastructure, resources, and capabilities to operate on those routes. These approvals may include long-haul overwater flights (ETOPS – Extended-range Twin-engine Operational Performance Standards), flights at higher altitudes (RVSM – Reduced Vertical Separation Minimum), and desired route approvals.

Economic Authority: In the United States, air carriers must obtain economic authority from the Department of Transportation (DOT). This involves obtaining certificates for interstate or foreign passengers and/or cargo, all-cargo authority, or authorization as a commuter air carrier. The DOT’s Air Carrier Fitness Division evaluates applications to ensure that airline applicants are “fit, willing, and able” to conduct commercial airline operations ( US Department of Transportation ).

Complying with these regulatory requirements and obtaining the necessary approvals is essential for the successful launch and operation of an airline business. It ensures that the airline meets the necessary safety standards, protects passengers, and operates within the legal framework established by regulatory authorities.

To gather more information about starting an airline business, including financial considerations, operational strategies, and differentiating your airline in a competitive market, explore our other sections in this comprehensive guide.

Differentiation and Competitive Edge

In the highly competitive airline industry, establishing a strong differentiation and competitive edge is crucial for the success of a new airline business. To stand out from established carriers and attract customers, new airlines must create a strong value proposition and form strategic partnerships and alliances.

Creating a Strong Value Proposition

A strong value proposition is essential to differentiate an airline from its competitors. It involves identifying and effectively communicating the unique benefits and advantages that the airline offers to its target customers. This can include factors such as competitive pricing, exceptional customer service, innovative amenities, or specialized routes.

To create a compelling value proposition, airlines must conduct thorough airline industry analysis and understand the needs and preferences of their target market. By identifying gaps in the market and tailoring their services to meet these demands, airlines can position themselves as the preferred choice for travelers.

For example, some airlines focus on offering low-cost travel options, while others prioritize luxury services and amenities. By aligning their value proposition with the specific desires of their target customers, airlines can effectively differentiate themselves and attract a loyal customer base.

Strategic Partnerships and Alliances

Strategic partnerships and alliances are valuable tools for new airlines starting out. Collaborating with established airlines, aircraft leasing companies, and maintenance providers can provide access to additional resources, expertise, and a wider network of routes.

Forming partnerships with other airlines allows new carriers to offer expanded route options, code-sharing agreements, and seamless connections for passengers. This enhances the overall travel experience and can attract customers who value convenience and connectivity.

Airlines can also leverage partnerships with aircraft leasing companies to access modern and fuel-efficient aircraft, reducing operating costs and environmental impact. Collaborating with maintenance providers ensures that the airline’s fleet is well-maintained, enabling operational efficiency and minimizing delays.

By teaming up with well-established players in the industry, new airlines can gain credibility and tap into existing customer bases. These strategic partnerships and alliances can provide a competitive edge and contribute to the overall success of the airline.

Differentiating in the airline industry is a complex endeavor that requires a deep understanding of customer needs, market dynamics, and industry trends. By creating a strong value proposition and forming strategic partnerships and alliances, new airlines can position themselves for success and achieve a competitive edge in the market.

However, it’s important to recognize that starting an airline is a complex and challenging endeavor. The industry has high barriers to entry, and new airlines must navigate through regulatory requirements, obtain necessary operational approvals, and overcome industry challenges. It’s essential to carefully plan and execute a comprehensive airline business plan , taking into account financial considerations, operational strategies, and the realities and risks of the industry.

With the right approach, dedication, and a focus on differentiation, new airlines can carve out their space in the market and achieve greatness in the highly competitive airline industry.

Leveraging Social Media for Competitive Differentiation

In the fiercely competitive airline industry, leveraging social media has become increasingly important for airlines looking to differentiate themselves and gain a competitive edge. By utilizing social media platforms, airlines can not only engage with their customers but also gather valuable insights through market analysis and customer engagement analytics.

Utilizing Social Media for Market Analysis

Social media platforms provide a treasure trove of information that airlines can tap into for market analysis. By monitoring conversations, trends, and sentiments expressed by users, airlines can gain a better understanding of customer preferences, opinions, and needs. This data can be used to tailor products and services to meet customer demands effectively.

Through social media analytics, airlines can identify patterns, trends, and sentiments among customers, allowing for data-driven decision-making and more effective marketing strategies ( Aviation Pros ). By analyzing social media data, airlines can gain insights into customer satisfaction levels, sentiment towards the brand, service quality, market positioning, competitor analysis, and overall brand perception ( Aviation Pros ). This information can help airlines make informed business decisions and stay ahead of market trends.

Enhancing Customer Engagement through Analytics

Social media analytics can also play a significant role in enhancing customer engagement for airlines. By analyzing social media data, airlines can gain insights into customer preferences, behavior, and expectations, allowing them to personalize their marketing strategies and improve customer service. This personalized approach can lead to greater customer satisfaction and loyalty.

Through social media analytics, airlines can identify areas for improvement and address customer concerns promptly. By monitoring and responding to customer feedback and questions on social media platforms, airlines can demonstrate their commitment to customer service and build a positive brand reputation.

By leveraging social media analytics, airlines can also keep a pulse on their competitors. By monitoring competitor activities and customer sentiments towards competitors, airlines can stay informed about market dynamics and adjust their strategies accordingly.

In conclusion, airlines can effectively differentiate themselves in the industry by leveraging social media for market analysis and enhancing customer engagement through analytics. By utilizing the vast amount of data available on social media platforms, airlines can gain valuable insights, tailor their offerings to customer demands, and create personalized marketing strategies. Social media analytics can be a powerful tool in helping airlines stay competitive and meet the changing expectations of their customers. For more information on starting an airline business and achieving greatness, check out our article on airline business opportunities .

The Realities and Risks of Starting an Airline Business

Entering the airline industry and starting an airline business is a venture that comes with its own set of challenges and risks. It’s important to understand the realities of the industry to make informed decisions and mitigate potential consequences.

High Barriers to Entry

Starting an airline business requires a substantial amount of capital and resources. The cost of entry into the industry is high, with significant capital requirements. For example, a regional carrier may need a minimum of $100 million, while a national airline could require billions of dollars to get started. These capital-intensive requirements include aircraft acquisition, leasing or financing, hiring and training staff, setting up operational infrastructure, marketing, and more ( New York Times ).

Industry Challenges and Potential Consequences

The airline industry is known for its intense competition, high operating costs, and cyclical nature. Start-up airlines face numerous challenges that can impact their chances of success. Some of these challenges include:

Cyclical Industry : The airline industry is heavily influenced by economic cycles, fuel costs, and global events. Economic downturns, fuel price fluctuations, and unexpected events can significantly impact the financial stability of airlines.

High Fuel Costs : Fuel costs are a major expense for airlines. Fluctuations in fuel prices can impact profitability and financial stability, especially for start-up carriers that may not have established fuel hedging strategies.

Intense Competition : The airline industry is highly competitive, with established players dominating the market. Competing with well-established airlines can be challenging, especially for new entrants without an established customer base or brand recognition.

Regulatory Environment : Navigating through the complex regulatory environment is a significant challenge for new airline ventures. Obtaining air operating certificates, safety approvals, permits, and complying with various regulatory requirements can be a time-consuming and costly process.

Failure Rate : The success rate for start-up airlines is relatively low, with many new carriers failing within the first few years of operation. The failure of airlines can result in lost investments, layoffs, and disrupted travel plans for passengers.

Considering these challenges, it is crucial for aspiring airline entrepreneurs to conduct thorough market analysis, develop a comprehensive business plan , and secure substantial financial backing to increase their chances of success. It is also important to recognize that starting an airline business requires a long-term commitment and a deep understanding of the complexities of the industry.

While the dream of starting an airline may be enticing, it is crucial to approach the venture with realistic expectations and a thorough understanding of the industry’s complexities, risks, and potential consequences. Conducting extensive research, seeking expert advice, and carefully planning every aspect of the business are essential steps to navigate the challenges and increase the likelihood of building a successful airline business.

The Future of Airline Product Differentiation

As the airline industry continues to evolve, airlines are constantly seeking ways to differentiate themselves and meet the changing expectations of customers. In this section, we will explore two key aspects that are shaping the future of airline product differentiation: meeting changing customer expectations and advancements in airline merchandising.

Meeting Changing Customer Expectations

The airline industry has witnessed a significant shift in customer expectations over the past few decades. While the focus was previously on cost reduction and the democratization of travel, there is now a growing awareness of the environmental impact of air travel. This presents an opportunity for airlines to differentiate themselves by offering “green options” to customers, such as carbon offsetting for trips ( LinkedIn ). By providing environmentally conscious options, airlines can cater to the increasing number of travelers who prioritize sustainability.

Additionally, customers now seek personalized travel experiences that align with their individual preferences and needs. Airlines have responded by offering a wide range of products and services, from basic low-cost options to luxurious experiences. Passengers can choose from various amenities, such as comfortable beds, showers, and exclusive services like limo transportation. Airlines also provide a-la-carte services, allowing travelers to customize their journey by selecting baggage allowances, meals, and check-in options that suit their preferences ( LinkedIn ). This focus on personalization allows airlines to cater to the diverse needs and desires of their customers.

Advancements in Airline Merchandising

To differentiate themselves, airlines are continuously advancing their merchandising efforts. This involves focusing on three main dimensions: the core product, personalization of offers, and order flexibility. Technological advancements have enabled airlines to enhance the in-flight experience. For example, structural materials now allow for better cabin pressurization and humidity, ensuring a more comfortable journey. Innovative seating options and virtual reality experiences are also transforming the way passengers engage with the flight experience. Additionally, the possibility of future electric-powered aircraft presents an exciting avenue for airlines to offer sustainable and eco-friendly travel options ( LinkedIn ).

Airlines are also leveraging personalization to create tailored offers for individual customers. By understanding their preferences and travel habits, airlines can provide customized value propositions that enhance the overall travel experience. This level of personalization allows airlines to deliver offers that align with customers’ specific needs and desires, making them feel valued and satisfied. Furthermore, airlines are focusing on order flexibility, allowing customers to easily adjust their bookings and make changes without hassle. This flexibility enables travelers to have greater control over their travel plans and ensures a seamless and enjoyable journey.

To support these efforts, the International Air Transport Association (IATA) has introduced Offer and Order Management standards, such as New Distribution Capability (NDC) and ONE Order. These standards empower airlines to personalize their products and highlight their unique offerings, providing consumers with more choices. By leveraging these standards and embracing the airline retailing vision, airlines can advance their product differentiation strategies and deliver exceptional customer experiences. The ongoing discussions on product differentiation and customer benefits within the industry will be presented at the Aviation Industry Retailing Symposium (AIRS), further driving innovation and customer-centric approaches in the airline industry.

The future of airline product differentiation lies in meeting the evolving expectations of customers and leveraging advancements in airline merchandising. By understanding and catering to the changing needs and desires of travelers, airlines can differentiate themselves from the competition and provide exceptional travel experiences. Through personalized offers, environmental sustainability initiatives, and innovative in-flight amenities, airlines can shape the future of air travel and continue to exceed customer expectations.

Personalization and Customer-Centric Approach

In the ever-evolving airline industry, personalization and a customer-centric approach have become vital strategies for airlines looking to differentiate themselves from competitors and provide an enhanced travel experience. The International Air Transport Association (IATA) has introduced Offer and Order Management standards, such as NDC (New Distribution Capability) and ONE Order, which empower airlines to personalize products and highlight differences from competitors, giving consumers more choices.

IATA’s Offer and Order Management Standards

The IATA’s Offer and Order Management standards have transformed the way airlines interact with customers. These standards enable airlines to personalize offers based on customer preferences, enhancing the overall travel experience. By leveraging technologies and data, airlines can tailor their products and services to meet individual needs. The goal is to provide a high level of service and seamless availability of products across all travel partners, making the customer the center of differentiation efforts ( LinkedIn ).

Empowering Airlines to Differentiate Products

Airlines are continuously evolving their merchandising efforts to differentiate their products. They focus on three main dimensions: the core product, personalization of offers, and order flexibility. Advances in structural materials have allowed for more comfortable cabin pressurization and humidity, while innovative seating options, virtual reality experiences, and potential future electric-powered aircraft are changing the in-flight experience. By personalizing offers based on customer preferences and allowing easy adjustments to bookings, airlines aim to enhance the overall travel experience.

The evolution of airline products has led to a wide range of offerings, from low-cost options to luxury services. Airlines now provide customers with the ability to choose from basic, low-cost travel to high-quality experiences that include amenities like comfortable beds, showers, and limo services. Additionally, airlines offer various services a-la-carte, such as baggage allowances, meals, and check-in options. This allows consumers to tailor their travel experience to their needs while getting the best available price ( LinkedIn ).

Airlines also have an opportunity to differentiate themselves by offering “green options” to environmentally conscious customers. As the industry faces the challenge of reducing carbon emissions, airlines can provide carbon offsetting options for travelers who want to offset the environmental impact of their trips ( LinkedIn ).

By embracing a personalization and customer-centric approach, airlines can stand out in a competitive market. Understanding customers’ preferences, leveraging data and technology, and tailoring products and services to meet individual needs are key factors in achieving success and creating a strong value proposition. With the IATA’s Offer and Order Management standards and a continuous focus on product differentiation, airlines can enhance the overall travel experience and build lasting customer loyalty.

Perform Deep Market Research In Seconds

Automate your competitor analysis and get market insights in moments

Create Your Account To Continue!

Automate your competitor analysis and get deep market insights in moments, stay ahead of your competition. discover new ways to unlock 10x growth., just copy and paste any url to instantly access detailed industry insights, swot analysis, buyer personas, sales prospect profiles, growth opportunities, and more for any product or business..

Airlines Business Plan: the Ultimate Guide for 2024

Pro Business Plans

Last Updated: 12/17/2023

With demand for air travel on the rise, now is an excellent time to launch an airline business. However, success requires careful planning. A well-crafted business plan helps secure funding, defines strategies, and sets goals. It also serves as a roadmap for your airline’s future. This article provides a guide to writing an airline business plan in 2023. We’ll cover essential elements like financial projections, market research, and customer experience. With the right approach, you can craft a plan to launch a successful airline.

Why is an Airline Business Plan Important?

A thoughtful airline business plan is crucial for any new airline venture. It provides investors a clear overview of the company’s vision, goals, strategies, and tactics. It also offers a financial roadmap to success by detailing costs and projected revenue. Furthermore, a business plan guides the management team, ensuring everyone works towards shared goals. Without a solid plan, an airline’s chance of success diminishes greatly.

Need a Airlines Business Plan? Create a custom business plan with financial projections and market research in minutes with ProAI’s business plan generator.

How to Write an Airline Business Plan

An airline business plan in 2023 must account for current and future industry changes. As the airline industry has evolved, crafting a plan requires considering how it has shifted and the implications.

Here are the key components of an airline business plan:

Executive Summary

An executive summary overviews the proposed airline venture and its goals. It covers the primary objectives like profitability, market share, and customer satisfaction. It also includes key details about the business model, e.g., aircraft type, routes, destinations.

The executive summary addresses expected costs like startup, operating, and capital expenses. It discusses potential opportunities and challenges, e.g., competition, regulations, environmental impacts. Finally, it provides an overview of the expected return on investment, e.g., projected revenue or profits.

Company Description

This section fully introduces the airline, including its name, location, contacts, and owner details. It highlights the legal standing and short/long-term goals. A brief market study shows you understand regional airline industry trends and why the airline will succeed. Discuss the competitive advantages like pricing, flight times, and customer service. Explain how the airline will meet customer needs.

Market Analysis

The market analysis has three parts:

Industry Analysis: Overview the airline industry’s evolution and important regulations/standards. Note changes creating opportunities or threats.

Competition Analysis: Research competitors’ services, pricing, new players, etc. Understand the competitive landscape to differentiate your airline.

Marketing Analysis : Focus on marketing strategies to reach potential customers and differentiate from competitors. Explain successful past campaigns and future use.

Target Market

Decide on your target market by identifying gaps you can fill. Consider location, age range, etc. Research surveys, reports, and data to understand customers and their needs. Consider competitors’ customers and differences from you. Knowing this helps decide your target market and differentiation.

Airline Fleet Strategy

The fleet strategy is crucial, deciding which aircraft to use, how to deploy them, and maintenance. Consider efficient, cost-effective aircraft for your needs. Research different models to determine the best options.

Plan to maintain your fleet per safety standards with proper parts, resources, personnel. Project future fleet size, deployment, and types.

Route Network

Your route network is core, with routes you’ll fly and flight frequency based on expected demand and profitability. Consider competition to determine focus and worthwhile routes.

Research airports’ infrastructure and services to plan operational costs and delay possibilities accurately. Consider potential new routes and expansion to anticipate future needs and market changes.

Marketing and Advertising

Market and advertise strategically to your target audience. Research other airlines’ campaigns and strategies. Create tailored campaigns for your target customers. Use social media for younger customers; advertise on websites and in airports for business travelers.

Create a budget to track your progress and ensure effectiveness/wise spending.

Financial Analysis

Show through financial analysis that your airline generates enough revenue to profitably cover expenses. Create projected income statements with estimated year one revenue/expenses. List expenses like fuel, labor, aircraft maintenance, and calculate the costs. Estimate revenue from ticket prices, passengers, other sources. Finally, calculate estimated profit/loss.

Create cash flow statements showing cash inflows/outflows to understand liquidity and predict shortages. Include a break-even analysis showing when profitability starts. This shows investors how long until profitability.

Competitors Analysis

Understand competitors by researching their strategies, strengths, and weaknesses. Use this to determine how to differentiate your airline through services, features, customer service, loyalty programs, amenities, technology investment, etc. Staying ahead of competitors by investing in technology helps your airline stand out.

Risk Management

Anticipate and plan for risks like mechanical issues, weather, economic downturns, pandemics. Outline risks and mitigation strategies, e.g., insurance, crisis plans, restructuring. Consider financial implications, estimating potential losses. Show you’ve prepared to address risks.

Exit Strategy

Include an exit strategy, a plan to leave the business, e.g. selling, closing, transferring. Consider all scenarios: success/moving on, failure/closing. Provide timelines and profit distribution plans. This shows investors your long-term thinking and commitment.

Airlines Financial Forecasts

Startup expenses, monthly operating expenses, revenue forecast.

Written by Pro Business Plans

Text to speech

How to Write a Startup Airline Business Plan

• Small Business
• Business Planning & Strategy
• Write a Business Plan
• ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
• ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
• ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

Overhead Expenses for the Motel Industry

How to create your own shoe line's business plan, how to write a business plan for an existing business.

• How to Write a Strategic Analysis for Business Organizations
• How to Write a Business Plan for an Acquisition

With more than $20 million in collective revenue each year, the U.S. airline industry is lucrative. Though lucrative, the airline industry has seen several fluctuations over the years, such as economic downfalls and air space issues that have affected industry achievements and profit. To ensure a productive and successful startup and maintain a positive existence in this demanding industry, your airline business will require a business plan.

Create a general business description of your business. Include the address and contact information for your airline’s headquarters. List the names and contact information for each of the airline’s owners and briefly describe each owner’s professional experience. Identify the legal structure of your airline, such as partnership or corporation, and outline the short- and long-term company objectives. Explain if your airline will handle private passenger flights, commercial flights or both. List your airline’s professional business relationships, such as the company attorney, insurance agent and accountant. Include the addresses and contact information for each professional.

Complete a marketing analysis for your airline. Include forecasts for your target market’s air travel, as well as information on the market’s demographic and income statistics. Complete a competitive analysis of the airline’s strongest competitor’s. Include fare comparisons, competition by airline route and schedules. Complete a SWOT analysis to identify your airline’s strengths and weaknesses. Provide information on your airplane capacities, maintenance costs, fuel efficiency and reliability. Create a list of ticket prices for your airline and categorize them by class, such as economy and business.

Develop a list of employees that your airline will require to maintain efficient operations. Categorize the employees by department, such as airline operations, customer service, maintenance and ground crew, and develop an organizational chart for easy reference. Create a detailed job description for each position and include the costs of each position, such as costs for salaries, benefits and training costs.

Provide information on your airline’s operations and location. List the fixtures, furniture and equipment that your airline will need to operate, including planes, lobby seating, airline ramps and computers. Identify the costs that are affiliated with the airline, such as utilities, taxes, certification and licensing requirements. Determine if your airline will purchase, rent or lease its equipment and include the costs for each item.

Create a risks and mitigation plan for your airline business. List the external risks of your business and identify the strategies your airline will use to neutralize those risks. Address safety, weather, terrorism, economic fluctuations and fuel costs.

Develop your airline’s implementation schedule. Define the process that your airline will follow to launch and grow the business. Categorize the phases as 0 to 12 months, 12 to 18 months and three to five years. Include your strategies for funding, aircraft sourcing, staffing, facilities, certification and flight operations.

Complete a personal financial statement for each of the airline’s owners. Include a balance sheet, income statement and cash flow statement for the airline business. Provide accurate figures and make realistic assumptions, when necessary, that are based upon your marketing analysis.

Create an appendix for your airline business plan. Provide any documents that support and prove the information within the business plan. Include documents such as taxes, bank statements, aircraft certification, facility purchase contracts, job descriptions, organizational charts and insurance policies.

• Boeing: Major Components of a Typical Startup-Airline Business Plan
• Boeing: Flight Plan
• MasterCard International: The Plan
• Boeing: Startup Carrier Strategic Questions

Writing professionally since 2004, Charmayne Smith focuses on corporate materials such as training manuals, business plans, grant applications and technical manuals. Smith's articles have appeared in the "Houston Chronicle" and on various websites, drawing on her extensive experience in corporate management and property/casualty insurance.

Related Articles

How to create a business plan & where should the executive summary be located, how to write a farm business plan, how to write a day spa business plan, how to write a business plan for a convenience store, how to create a food service business plan, how to write a business plan for a restaurant or food business, how to write a wedding planning business plan, how to make a business plan for charter buses, steps to start a sea & air cargo company, most popular.

• 1 How to Create a Business Plan & Where Should the Executive Summary Be Located?
• 2 How to Write a Farm Business Plan
• 3 How to Write a Day Spa Business Plan
• 4 How to Write a Business Plan for a Convenience Store

Airline Company Business Plan [Sample Template]

By: Author Joy Nwokoro

Home » Business ideas » Aviation Industry » Airline

An airline company is a business that provides air transportation services for passengers and cargo. Its primary function is to use airplanes to carry people and goods between various destinations, both domestically and internationally.

The airline industry is a crucial part of the global transportation network and it plays a significant role in facilitating travel, trade, and economic growth.

Suggested for You

• Fishing Charter Business Plan [Sample Template]
• Air Cargo Business Plan [Sample Template]
• Bike Sharing Business Plan [Sample Template]
• Pedicab Business Plan [Sample Template]
• Helicopter Charter Business Plan [Sample Template]

The airline industry is highly competitive and subject to various economic, political, and environmental factors that can significantly impact its operations and financial performance. As a result, successful airline companies must be adaptive, innovative, and customer-oriented to thrive in this dynamic sector.

Steps on How to Write an Airline Company Business Plan

Executive summary.

Fly Mario® Airline Company, Inc. is a dynamic and customer-focused airline based in Dallas/Fort Worth, Texas, Texas, committed to providing safe, reliable, and convenient air transportation services. With a mission to connect people and places, we aim to be the preferred choice for both domestic and international travel, setting new standards of excellence in the airline industry.

Dallas/Fort Worth, Texas, as a major hub for business and tourism, presents significant opportunities for growth. With its diverse population and strong economic foundations, the city demands reliable air travel options, and Fly Mario® Airline Company, Inc. is poised to capture a substantial share of this market.

Fly Mario® Airline Company, Inc. was established in 2015, and since then, we have grown steadily to become one of the leading airlines in the region. Our modern fleet of state-of-the-art aircraft, combined with a highly trained and professional crew, ensures that our passengers experience unparalleled comfort and security throughout their journey.

Company Profile

A. our products and services.

Fly Mario® Airline Company, Inc. has an extensive route network, connecting major cities and popular tourist destinations in the United States and beyond. Our strategic partnerships with international carriers enable us to offer seamless travel options to our customers.

At Fly Mario®, customer satisfaction is our top priority. We are committed to providing exceptional service that exceeds expectations. From easy online booking to hassle-free check-ins and inflight amenities, we focus on every detail to make our passengers’ experience truly memorable.

b. Nature of the Business

Our airline company will operate with a business-to-consumer and business-to-business model.

c. The Industry

Fly Mario® Airline Company, Inc. will operate in the transportation industry (specifically within the aviation or airline industry).

d. Mission Statement

At Fly Mario® Airline Company, Inc., our mission is to connect people and places, providing safe, reliable, and exceptional air travel experiences. We are committed to exceeding our passengers’ expectations by delivering unparalleled service, convenience, and comfort.

With a customer-centric approach and a passion for innovation, we aim to be the preferred choice for domestic and international travelers.

e. Vision Statement

Our vision at Fly Mario® Airline Company, Inc. is to be a leading global airline, admired for our commitment to safety, excellence, and sustainability. We aspire to expand our route network, offering seamless connections to major destinations worldwide.

Through strategic alliances, cutting-edge technology, and an unwavering focus on customer satisfaction, we aim to set new industry standards while upholding our core values of integrity, responsibility, and respect.

f. Our Tagline (Slogan)

Fly Mario® Airline Company, Inc. – “Where Dreams Take Flight with Fly Mario®”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Fly Mario® Airline Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (President)
• Logistics and Operations Manager
• Human Resources and Amin Manager
• Maintenance Engineer
• Air Hostess
• Sales and Marketing Manager
• Accountants (Cashiers)
• Customer Services Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

• Solomon Stephen (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Jude Justin (Board Member) 18 Percent Shares
• Chris Fox (Board Member) 10 Percent Shares
• Merrick Baseman (Board Member) 10 Percent Shares
• Kate Hanson (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Fly Mario® has established a recognizable and trusted brand identity, known for its commitment to customer satisfaction and quality service.
• The airline has a wide range of domestic and international routes, providing passengers with numerous travel options and convenient connections.
• Fly Mario® prioritizes customer needs and consistently delivers exceptional experiences, earning customer loyalty and positive word-of-mouth.
• The airline operates a modern fleet of fuel-efficient aircraft equipped with the latest technology, ensuring safety, reliability, and environmental sustainability.
• Fly Mario® has forged strategic alliances with other airlines and travel partners, enabling access to additional destinations and offering seamless travel experiences.
• The airline employs a highly trained and motivated workforce, including experienced pilots, cabin crew, and ground staff, contributing to operational excellence.

b. Weakness

• In certain markets, Fly Mario® faces strong competition from well-established airlines, limiting its market share in specific regions.
• High operating costs, such as fuel expenses, maintenance, and airport fees, can impact profitability, especially during periods of economic downturn or rising fuel prices.
• The airline industry is influenced by various external factors, such as weather conditions, geopolitical events, and economic fluctuations, which can disrupt operations and revenue.

c. Opportunities

• Fly Mario® can explore new markets and routes to tap into emerging travel trends and growing demand in untapped regions.
• Investing in more fuel-efficient and advanced aircraft can lead to cost savings and a reduced environmental footprint, aligning with sustainability goals.
• Introducing additional ancillary services, such as in-flight entertainment, premium seat options, and travel packages, can enhance revenue generation.
• Embracing cutting-edge technology for ticketing, reservation systems, and customer interactions can streamline operations and improve the overall passenger experience.

i. How Big is the Industry?

The airline industry is indeed a big and significant sector in the transportation industry. As a matter of fact, the global airline industry generated hundreds of billions of dollars in annual revenue, making it one of the most revenue-intensive industries worldwide.

ii. Is the Industry Growing or Declining?

The airline industry is a growing industry. As a matter of fact, the demand for airline services has been steadily increasing in recent years. However, it is important to note that the airline industry is highly dynamic and can experience fluctuations based on various factors, including global economic conditions, geopolitical events, and health crises.

iii. What are the Future Trends in the Industry?

Airlines were expected to prioritize sustainability and environmental responsibility. This included investing in more fuel-efficient aircraft, exploring alternative fuels, and implementing eco-friendly practices to reduce their carbon footprint.

The industry embraced digital technologies to enhance passenger experience. This included mobile check-ins, personalized offers, in-flight Wi-Fi, and the use of artificial intelligence (AI) and data analytics to improve operations and customer service.

Post the COVID-19 pandemic, health and safety became a top priority. Airlines were anticipated to continue implementing stringent hygiene protocols, touchless check-ins, and enhanced cleaning measures to ensure passenger safety. The pandemic accelerated the adoption of remote work, leading to potential changes in business travel patterns.

The industry was exploring the use of hybrid and electric-powered aircraft to reduce emissions and fuel consumption, potentially leading to more sustainable aviation. Blockchain was gaining attention in the industry for its potential to streamline processes related to ticketing, baggage handling, and loyalty programs.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to the airline business and some of them are:

• Commercial airline (passenger airline)
• Jet charter
• Air ambulance
• Cargo airline.

v. Can You Sell a Franchise of Your Business in the Future?

Fly Mario® Airline Company, Inc. has no plans to sell franchises in the near future.

• The airline industry is fiercely competitive, with both established carriers and new entrants vying for market share, potentially leading to price wars and reduced profit margins.
• Fluctuations in fuel prices can significantly impact operational costs, affecting the airline’s profitability.
• Evolving aviation regulations and policies can impose compliance challenges and increase operating expenses.
• Unforeseen events, such as pandemics, natural disasters, or political crises, can disrupt travel demand and operations on a global scale.

i. Who are the Major Competitors?

• American Airlines
• Delta Air Lines
• United Airlines
• Southwest Airlines
• Alaska Airlines
• JetBlue Airways
• Spirit Airlines
• Frontier Airlines
• Allegiant Air
• Hawaiian Airlines
• Sun Country Airlines
• Virgin America
• SkyWest Airlines
• Mesa Airlines
• Republic Airways
• Endeavor Air
• ExpressJet Airlines
• Piedmont Airlines
• PSA Airlines

ii. Is There a Franchise for Airline Business? 

No, there are no franchise opportunities for the airline business because of the nature of the business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Airline Business?

Yes, there are various policies, regulations, and zoning laws that affect the airline business in the United States of America. These rules are put in place to ensure safety, fairness, and efficient operations within the aviation industry.

Federal Aviation Administration (FAA) is the primary regulatory body responsible for overseeing civil aviation in the United States. They establish and enforce safety standards for aircraft, pilots, and maintenance procedures. Airlines must comply with these regulations to operate legally and ensure the safety of their operations.

Airport Zoning Laws regulate land use around airports to ensure that developments near airfields do not interfere with flight operations. Zoning laws may restrict the height of buildings, noise levels, and other factors that could affect aircraft safety and efficiency.

Transportation Security Administration (TSA) Regulations is responsible for security in transportation systems, including aviation. They implement and enforce security measures at airports, such as passenger screening, baggage checks, and the screening of cargo to prevent threats to aviation security.

Airlines are subject to various environmental regulations aimed at reducing their impact on the environment, including emissions standards, noise restrictions, and fuel efficiency requirements. Federal Aviation Act provides the legal framework for aviation regulation in the U.S., defining the roles and responsibilities of various agencies and entities in the aviation industry.

The Department of Transportation (DOT) plays a significant role in regulating and overseeing various aspects of the airline industry, including consumer protection, airline competition, and enforcement of aviation-related laws.

Marketing Plan

A. who is your target audience.

i. Age Range

The target audience at Fly Mario® Airline Company, Inc. spans various age groups, with a primary focus on adults between the ages of 25 to 60. This demographic includes working professionals, business travelers, and leisure travelers seeking quality air travel experiences.

ii. Level of Education

The target audience comprises individuals with diverse educational backgrounds, ranging from high school graduates to those with advanced degrees.

iii. Income Level

Fly Mario® Airline Company, Inc. caters to a diverse income level audience. While it offers affordable and competitive ticket pricing to attract budget-conscious travelers, it also provides premium services and amenities for high-income passengers seeking luxury and convenience during their travels.

iv. Ethnicity: Fly Mario® Airline Company, Inc. aims to be inclusive and welcoming to passengers of all ethnic backgrounds.

v. Language

The airline’s services are available in multiple languages to accommodate passengers from different linguistic backgrounds.

It ensures that essential communication, including in-flight announcements and customer service interactions, is available in commonly spoken languages, making the flying experience more accessible and enjoyable for all passengers.

vi. Geographical Location

As a global airline, Fly Mario® Airline Company, Inc. operates across a wide geographical area, serving both domestic and international destinations.

vii. Lifestyle

The target audience for Fly Mario® Airline Company, Inc. encompasses a diverse range of lifestyles. It caters to business travelers seeking efficiency and convenience, families looking for a pleasant travel experience, leisure travelers desiring adventure and exploration, and individuals who value comfort and relaxation during their journeys.

b. Advertising and Promotion Strategies

• Content marketing
• Deliberately Brand All Our Trucks
• Email marketing
• Events and sponsorships
• Pay-per-click (PPC) advertising
• Referral marketing
• Search engine optimization (SEO).

i. Traditional Marketing Strategies

• Broadcast Marketing -Television & Radio Channels.
• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Affiliate Marketing
• Content Marketing.
• Email Marketing.
• Influencer Marketing.
• Mobile Marketing.
• Social Media Marketing Platforms.
• Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Create profiles on relevant social media channels.
• Gear up our profiles with a diverse content strategy.
• Start using chatbots.
• Run cross-channel campaigns.
• Use brand advocates.

c. Pricing Strategy

At Fly Mario® Airline Company, Inc., our pricing strategy is designed to offer a balance between affordability and value, ensuring that passengers have access to a range of ticket options while maintaining a high standard of service. Our approach considers various factors to remain competitive in the market and appeal to a diverse customer base. Key elements of our pricing strategy include:

• Dynamic Pricing
• Fare Classes
• Bundled Services
• Loyalty Programs
• Promotions and Special Offers
• Transparent Pricing
• Partner and Codeshare Agreements.

Sales and Distribution Plan

A. sales channels.

At Fly Mario® Airline Company, Inc., we employ a multi-channel approach to reach and engage with our customers, ensuring accessibility and convenience throughout the booking and travel process.

Our primary and most popular sales channel is our user-friendly website. Through our online booking platform, customers can easily search for flights, view available seats, compare fares, and make reservations. We offer a seamless and secure online payment system, providing customers with the convenience of booking their flights from the comfort of their homes or mobile devices.

We collaborate with travel agencies to expand our reach and cater to customers who prefer using travel agents for their bookings. By partnering with reputable agencies, we extend our sales network and offer our services to a broader audience.

b. Inventory Strategy

At Fly Mario® Airline Company, Inc., our inventory strategy ensures a well-maintained fleet, essential equipment, proactive maintenance, collaborative partnerships, supply chain visibility, a just-in-time approach, and flexibility. By optimizing resources and adapting to changing customer demands, we provide reliable and timely airline services.

While airline typically involves smaller-sized loads and more flexible scheduling, we still require a well-managed inventory strategy to ensure prompt and reliable service.

c. Payment Options for Customers

Here are the payment options that Fly Mario® Airline Company, Inc. will make available to its clients:

• Apple Pay and Google Wallet
• Gift cards and store credit
• Credit and debit cards
• Installment payments
• Cash on service delivery.

d. Return Policy, Incentives, and Guarantees

Return policy:.

At Fly Mario® Airline Company, Inc., we understand that plans may change, and unforeseen circumstances may arise. To provide our customers with flexibility and peace of mind, we offer a comprehensive and customer-friendly return policy for flight bookings. Our return policy includes the following key elements:

Depending on the fare class and the time of cancellation, customers may be eligible for a full refund, a partial refund, or the option to receive travel credits for future use.

Incentives:

Our loyalty program offers various benefits to frequent flyers, such as earning points or miles for each journey that can be redeemed for future flights or other exclusive rewards.

Members of our loyalty program receive access to exclusive discounts and promotional offers, providing them with cost-saving opportunities for their travels. As a token of appreciation, loyal customers may be eligible for complimentary upgrades to higher fare classes and access to priority services such as priority check-in and boarding.

Guarantees:

At Fly Mario® Airline Company, Inc., we take pride in our commitment to providing a reliable and satisfying travel experience for our customers.

e. Customer Support Strategy

Providing exceptional customer support is crucial for the success of our airline company. Here are some customer support strategies that we will adopt:

• Provide multiple communication channels
• Offer personalized attention
• Set clear expectations.
• Provide timely and safe delivery
• Maintain transparency.
• Offer value-added services.

Our customer service team is available 24/7 to assist customers with their return requests, ensuring prompt and efficient service.

Operational Plan

• Maintain a fleet of modern and well-maintained aircraft to ensure safety, efficiency, and passenger comfort.
• Regularly scheduled flights to various destinations, considering factors such as demand, seasonality, and connectivity.
• Optimize flight routes and capacity utilization to maximize operational efficiency and profitability.
• Comply with all aviation regulations and safety standards set by relevant authorities.
• Implement rigorous safety protocols and procedures to ensure the highest level of safety for passengers, crew, and aircraft.
• Conduct regular maintenance checks and inspections to keep the fleet in top condition.

a. What Happens During a Typical Day at an Airline Business?

A typical day at an airline business is a well-orchestrated operation involving various departments and personnel working together to ensure smooth flight operations, excellent customer service, and efficient ground handling. Specific activities can vary depending on the size and scope of the airline.

b. Production Process

There is no production process when it comes to the airline business.

c. Service Procedure

At Fly Mario® Airline Company, Inc., we are committed to providing our passengers with an exceptional travel experience from the moment they book their flights until they reach their destinations. Our service procedure encompasses various stages of the customer journey:

Booking and Pre-Flight Stage: Passengers can book their flights through our user-friendly website, mobile app, call center, or authorized travel agents.

Pre-Departure Stage: Passengers receive a booking confirmation with essential flight details and a summary of their travel itinerary.

Check-in and Boarding: Passengers can check in for their flights online, through the mobile app, or at airport self-service kiosks. At the airport, our ground staff ensures a smooth and efficient check-in process.

In-Flight Experience: Passengers can enjoy a range of in-flight entertainment options, including movies, TV shows, music, and games. Meals and beverages are served, and special dietary requirements are accommodated upon prior request.

On-Time Performance: In the event of any delays or disruptions, we provide timely updates and assistance to affected passengers.

Arrival and Baggage Claim: Upon arrival at the destination, ground handling teams assist passengers with disembarkation.

d. The Supply Chain

A supply chain is not applicable to the airline business.

e. Sources of Income

The main source of revenue for Fly Mario® Airline Company, Inc. comes from the sale of airline tickets to passengers. This includes fares for all classes of travel, such as economy, premium economy, business, and first class. Ticket sales account for a significant portion of our overall income.

Financial Plan

A. amount needed to start your airline company .

Fly Mario® Airline Company, Inc. would need an estimate of $150 million to successfully set up our airline company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the costs involved?

• Business Registration Fees – $2,500.
• Legal expenses for obtaining licenses and permits – $34,300.
• Marketing, Branding, and Promotions – $25,000.
• Business Consultant Fee – $50,500.
• Insurance – $5 million.
• Rent/Lease – $3 million
• Operational Cost (salaries of employees, payments of bills et al) – $9 million
• Equipment and Furnishing – $1 million
• Airplane (leasing agreements) – $85 million
• Website: $2,500
• Opening party: $8,000
• Miscellaneous: $2 million

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Fly Mario® Airline Company, Inc. will not build a new facility for our airline company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running an Airline Company?

• Aircraft Maintenance
• Employee Salaries and Benefits
• Airport Fees and Charges for landing, parking, and terminal usage.
• Insurance Premiums
• Marketing and Advertising
• Administrative and Overhead Costs (office rentals, utilities, office supplies, accounting, legal services, and other administrative expenses).
• Costs related to providing in-flight services, such as catering, in-flight entertainment, and amenities
• Ongoing training programs for pilots, cabin crew, and other personnel
• Navigation and Air Traffic Control Fees
• Ongoing expenses for IT infrastructure, reservation systems, and digital platforms
• Cleaning and Ground Handling
• Regulatory and Certification Fees

e. What is the Average Salary of your Staff?

• Chief Executive Officer (President) – $180,000 per year
• Logistics and Operations Manager: around $85,000 per year
• Human Resources and Admin Manager – $70,000 per year
• Pilot – $120,000 per year
• Maintenance Engineer – $70,000 per year
• Cabin Crew – $50,000 per year
• Sales and Marketing Manager – $45,000 per year
• Accountants (Cashiers) – $45,000 per year
• Customer Service Representative: $33,000 per year.

f. How Do You Get Funding to Start an Airline Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for government funds, and angel investors
• Source for soft loans from your family members and your friends.

Financial Projection

A. how much should you charge for your product/service.

For domestic flights within the United States, the average cost of an economy-class ticket can range from around $150 to $600, depending on factors such as distance, seasonality, and how far in advance the ticket is purchased.

Short-haul flights (e.g., one to two hours of flying time) typically cost less, while longer-haul or transcontinental flights can be more expensive. For international flights departing from the U.S., ticket prices can vary widely depending on the destination, the airline, and the time of travel.

Economy class tickets for international flights can range from $500 to $2,000 or more, depending on factors such as the distance, the level of competition on the route, and the time of year.

b. Sales Forecast?

• First Fiscal Year (FY1): $22 million
• Second Fiscal Year (FY2): $35 million
• Third Fiscal Year (FY3): $42 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): 2 percent
• Second Fiscal Year (FY2) (Profit After Tax): 5 percent
• Third Fiscal Year (FY3) (Profit After Tax): 10 percent

d. Profit Margin of an Airline Company Product/Service

On average, the profit margin for airlines has been in the range of 2% to 5% in recent years. However, it is important to note that profit margins can fluctuate significantly from year to year and can be influenced by various external factors such as fuel price fluctuations, changes in demand, and global events.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Fly Mario® Airline Company, Inc. will grow our airline company by opening up new local flight routes in the United States of America and international routes.

b. Where do you intend to expand to and why?

Fly Mario® Airline Company, Inc. plans to expand to;

• Atlanta, Georgia
• Los Angeles, California
• Chicago, Illinois
• Dallas/Fort Worth, Texas
• Denver, Colorado
• New York City, New York
• San Francisco, California
• Seattle, Washington
• Las Vegas, Nevada
• Orlando, Florida.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest airline market (high air traffic) in the United States.

The founder of Fly Mario® Airline Company, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international airline company that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.

The goal of combining two or more international airline companies on a global scale is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities).

StartupBoeing

Prepare for takeoff.

Starting an airline is tough. Running a profitable airline is even tougher. From startup airlines to established industry leaders, the process involves constant learning and adaptation.

Few businesses have as many variables and challenges as airlines. They are capital-intensive. Competition is fierce. Airlines are fossil fuel dependent and often at the mercy of fuel price volatility. Operations are labor intensive and subject to government control and political influence. And a lot depends on the weather.

But the intrepid entrepreneur is not alone. The StartupBoeing team assists entrepreneurs in launching new airlines. From concept through launch, StartupBoeing offers guidance, review, analysis, data, resources, contacts, and referrals to qualified startup airlines.

For further questions or dialogue, please e-mail us at [email protected] .

Market Analysis

Entrepreneurs who are considering a startup airline launch are wise to study the commercial aviation market. Three comprehensive publications are very useful in providing a detailed analysis of traffic growth, regional trends, and airplane requirements. They are produced by Boeing and highly regarded throughout the industry.

Commercial Market Outlook World Air Cargo Forecast Current Aircraft Finance Market Outlook

Operating Environment

Startup airlines must be aware of and operate within a framework of regulations, standards and guidelines. Included here is basic information on some of the primary international agreements and programs that shape the operating environment for commercial aviation.

Learn about the " Freedoms of the Air ," a set of international rights that allow a country's airlines to enter the airspace of another country or land there.

Find out more about ETOPS , or Extended Operations, a collaborative industry/government program allowing airplanes to fly routes with longer diversion times.

Business Planning

Successful startup airlines begin with a sound business plan. This detailed planning document typically includes:

• Analysis of the market and competition
• Brand positioning
• Description of the business and opportunity
• Details about the operation
• Management team biographies
• Discussion of risks and obstacles
• Pro forma financial statements/projections
• Capitalization plan
• Brand development
• Implementation strategy.

The business plan is the fundamental starting point for working effectively with theStartupBoeing consulting team. StartupBoeing provides free review services of the business plan and corresponding financials. We offer constructive suggestions, question assumptions, and challenge the entrepreneur to prove the concept just as prospective investors might. For entrepreneurs requiring assistance in preparing the plan itself, StartupBoeing can suggest advisors worldwide who specialize in such services.

The Structural Plan

The Airline Planning Roadmap (PDF) offers a conceptual sense of the necessary steps in launching an airline from idea through launch.

Business Plan Questions (PDF) provides a list of important questions to consider when writing the business plan.

Brand Foundation Overview (PDF) provides a list of steps to take to position your emerging brand based on your market analysis and a need to differentiate from existing competitors.

Structuring the Plan

The Airline Business Plan Outline (PDF) is a tool for capturing many of the important elements for successfully starting and operating an airline. While it is not a comprehensive structure for all airline concepts, it can serve as a starting framework for a business plan.

Airplane Selection

Target markets and frequencies are determined through traffic analysis and route/schedule planning. The startup airline is now positioned to select the appropriate airplane. Included here is basic airplane data a startup-airline can use to make a preliminary aircraft selection and complete a compelling business plan.

Interactive Aircraft Comparator

In-Production Airplanes

Out of production airplanes, passenger airplanes.

• 727 (727-100/-100C/-200)
• 737 (737-200/-200C)
• 737 (737-300/-400/-500)
• 737 (737-600/-700/-800/-900ER)
• 747 (747-100/-200/-300/SP)
• 747 (747-400/-400ER)
• 757 (757-200/-300)
• 767 (767-200/-200ER/-300/-300ER/-400ER)
• 777 (777-200/-200ER/-200LR/-300/-300ER)

Freighter Airplanes

• 707-320C Freighter
• 727-100/-200 Freighter
• 737-200/-300 Freighter
• 747-200F/-200SF/-100SF
• 747 Freighter (747-400/-400ER)
• 747-8F Freighter
• 757-200 Freighter
• DC-8 Freighter
• DC-9 Freighter
• DC-10 Freighter
• MD-11 Freighter

Boeing Converted Freighters

• 747-400 BCF

Airplane Support

Visit Boeing Support and Services to learn more about Boeing global customer support, including spares & logistics support, maintenance and engineering services, fleet enhancements and modifications, and flight operations support.

The Boeing Airport Compatibility Group assists the aviation community to address their airport-related issues regarding our airplanes, providing Boeing and McDonnell Douglas commercial airplane product information needed to promote the continued and timely development of the world's airports.

Boeing provides a variety of documents that provide Airplane Characteristics data for General Airport Planning . Sections within each document include airplane description, airplane performance, ground maneuvering, terminal servicing, operating conditions, and pavement data.

Learn more about the pallets and containers used to carry cargo on-board large Boeing aircraft, including specific designations, dimensions, descriptions and visuals.

View a glossary of airplane terms .

Airplane Sourcing

Selecting the optimal airplane based on market, network plan, traffic estimates, interior layout, economics, and performance requirements is a good start. But now the airline entrepreneur must source the airplane. Decisions must be made about lease-versus-buy and new-versus-used. Airplane availability may be a challenge. Such factors may drive the airplane selection or even change the business model.

An important first step in sourcing the airplane is to consider financing options . The two most common methods of financing airplanes are direct purchase and operating lease.

New Airplanes

Depending on current production line availability, financing, business plan, and desired launch date, a startup airline may consider purchasing a new production airplane.

Leasing New or Used Airplanes

Boeing works with major airplane leasing companies worldwide. StartupBoeing is able to match qualified startup airlines with Boeing's leasing partners.

Lease Rates

Boeing does not regularly track airplane market lease rates. However, a range of lease rates can be provided to qualified startup airlines.

Through Boeing Commercial Aircraft Customer Finance, qualified startup airlines can be matched with third party sellers/lessors of used airplanes.

Third Party Used Airplanes

Through Boeing's internal Trading Floor, qualified startup airlines can be matched with third party sellers/lessors of used airplanes. Other sources of used airplane availability include:

Operating Your Airline

Boeing offers startup airlines the industry’s largest portfolio of commercial aviation support and services essential for running a successful airline. Through Boeing Global Services startup operators have access to everything from training and interior modifications to aircraft maintenance and high-tech enhancements.

The following solutions are available to suit your specific startup plans and requirements.

Maintenance & Parts Solutions

Boeing’s Maintenance and Part solutions help you to manage maintenance, modification, repair, overhaul and upgrades of your fleet while simplifying your supply chain. One of the services most applicable to a new airline is Global Fleet Care.

Boeing’s Global Fleet Care gives you the most comprehensive maintenance program available.

Global Fleet Care can:

• Help a new entrant operator conserve startup maintenance program capital
• Provide a competitive hourly maintenance rate that reduces airline staffing requirements.
• Include initial parts provisioning
• Supply engineering services
• Provide 24/7 Customer Support and Airplane Health Monitoring

Flight Operations Solutions

Boeing’s Flight Operations Solutions provide full flight operations support that is scalable to grow as your airline expands and your operational complexity increases. From pilot training to start of operations and beyond, our suite of products will provide the highest quality tools for your crews to deliver an efficient flight operation.

Services most applicable to a new airline:

• Flight Planning
• Charts and Navigation
• Electronic Flight Bag (EFB)
• Pilot training and Simulator
• Performance Planning

Boeing Aviation Consultants

Boeing’s staff of experienced airline and consulting professionals can advise and assist with all activities associated with a new entrant airline.

Boeing’s Consultants can:

• Assist with securing an Air Operator Certificate (AOC) as well as other regulatory requirement filings
• Design and structure an efficient operations organization
• Advise in the development and regulatory approval of a maintenance program
• Design a parts optimization program
• Assist with route analysis and payload improvements
• Develop a fuel efficiency program
• Select Information Technology elements that are appropriate for the size of operation
• Prepare an airline for eventual transition to ‘smart’ airplanes

Once an airline is up and running, Boeing’s Aviation Consultants can also provide periodic, detailed operations analysis that can assist with optimizing your maintenance and fuel efficiency programs, as well as provide crew management solutions for best scheduling and utilization of crewmembers.

When you are ready to start your airline, Boeing is ready to help you every step of the way.

Boeing offers startup airlines a comprehensive array of tools and services for running a successful airline. Everything from training to interior design to financing to maintenance to high-tech enhancements and more. Available resources include:

• Aviation Partners Boeing : Fuel saving and performance enhancing Blended Winglets for a number of current production Boeing airplanes and out-of-production models
• Boeing Business Jets : Private, Business, and Government VIP configured Boeing production airplanes
• Boeing Support and Services : Customer Support, Material Management, Maintenance Services, Fleet Enhancement, Flight Operations
• Fuel Conservation Services : Optimizing your operations to maximize airplane fuel efficiency
• Jeppesen : Aviation Training, Charts & Navigation Services, Flight Planning and Custom Services
• Training & Flight Services : Maintenance and Flight Crew Training

Becoming a Customer

Whether you are starting a new airline with Boeing aircraft, adding your first Boeing aircraft to your existing fleet, or you are new to maintaining Boeing aircraft, we have the products, services, and information resources needed to get you off the ground and keep you flying.

Relationship

Creating a business relationship with Boeing can provide access to:

• Boeing expertise
• Support services needed for the introduction, operation and maintenance of your aircraft

What do you need?

If you are a Maintenance Repair and Overhaul (MRO) or repair station, please see the Intellectual Property Management - Licensing Questionnaire .

In order to obtain Boeing goods and services, it will be necessary to enter into an agreement with Boeing and set-up an account. To begin the account set-up process, complete and submit a Boeing Customer Questionnaire . This questionnaire must be completed and submitted electronically.

Upon receipt of the completed questionnaire and based upon the information you submit, Boeing will:

• Start the process of establishing an account so your company can do business with Boeing.
• Assign your company a Boeing customer code which will identify your company within Boeing for future business transactions.
• Identify you as the owner, operator, or lessee of the aircraft.
• Supplemental Agreement for Electronic Access (SA-EA)
• Supplemental Agreement for Electronic Enabling (SA-eE)
• Provide you with certain documents at no charge when the CSGTA and its supplements are signed and appropriate insurance is obtained.

Access to Boeing Part Page

Boeing Material Services offers the advantage of buying from the original equipment manufacturer (OEM).

Boeing also provides customers with access to the aftermarket for a wider breadth of resources to locate hard-to-find parts. From single transactions to supply chain management, Boeing provides you with the right part, at the right place, at the right time. For more access information, please contact [email protected] .

Intellectual Property Management - Licensing Questionnaire

Aircraft owner/operators and third-party service providers have particular needs for OEM products and services as they support the industry. These products and services may require the use of information that is created during the development and certification of Boeing products. Comments from the industry have helped us to establish a set of Intellectual Property licensing standards that address specific requirements and establish a fair and consistent fee structure for the use of the information developed.

Take the Intellectual Property Management - Licensing Questionnaire .

Customer Services General Terms Agreement (CSGTA)

The Customer Services General Terms Agreement (CSGTA) incorporates articles applicable to various Boeing products and services into a blanket-type agreement so that, once in place, only unique terms and conditions need to be negotiated when a customer requires a specific product or service. The benefits of this approach are:

• Faster responses to requests from customers for products and services.
• A reduction in resources and effort needed to implement and manage all Customer Support related agreements for both customer and Boeing.

Some examples of the products and services covered by the CSGTA are lease of parts and tools, purchase of spare parts and standards, retrofit kit changes, repair, modification, technical assistance/consulting, training services and technical data.

Two Supplemental Agreements are associated with the CSGTA. The Supplemental Agreement to the CSGTA for Electronic Access (SA-EA) incorporates articles specific to granting you electronic access to Boeing goods and services, specifically technical data available on MyBoeingFleet.com. The Supplemental Agreement to the CSGTA for Electronic Enabling (SA-eE) incorporates articles specific to software licensing.

Part 125 Airplane Operating Certificate (AOC)

To apply for a part 125 AOC you will need to provide certain documents to your regulatory agency such as the Maintenance Planning Document (MPD), Quick Reference Handbook (QRH), and Aircraft Flight Manual (AFM). Our business operations group will help you get access to these documents on a temporary basis to help you with your AOC application.

MyBoeingFleet (MBF)

MyBoeingFleet is Boeing's secure internet portal, providing authorized customers with access to the industry's most comprehensive range of support products and services for Boeing commercial aircraft.

Aircraft owners and operators - as well as maintenance providers, leasing companies, regulatory agencies and other third party service providers - use MyBoeingFleet to order parts, collaborate with Boeing experts, and obtain essential information such as drawings, documentation, manuals, and operational data and procedures.

Owner/operators and licensed maintenance providers can also access productivity solutions such as Maintenance Performance Toolbox and Airplane Health Management.

Frequently Asked Questions

I want to start an airline. how can the startupboeing site help.

The StartupBoeing site is filled with information that will be useful in starting an airline. In starting an airline, there are specific steps that should be followed, and they are laid out in order to help you along your journey.

• Step 1:  Market Analysis
• Step 2:  Operating Environment
• Step 3:  Business Planning
• Step 4:  Airplane Selection
• Step 5:  Airplane Sourcing

How can we obtain Boeing aircraft performance data for our planned operations?

The StartupBoeing team has found that this usually is not the first question to ask when starting an airline. The market opportunity and business plan will help shape what aircraft to fly. Once an understanding of the market opportunity and competitive environment are established, the StartupBoeing team can assist in providing suggestions for aircraft and ultimately performance data to fit the market opportunity.

Can Boeing lease me an aircraft?

Boeing generally does not lease aircraft. Aircraft leasing is usually done by third parties not associated with Boeing. To help you find these leased aircraft, Boeing has provided links to these parties found in the Airplane Sourcing section.

I want to buy a used aircraft from Boeing. How much does it cost?

Boeing generally does not sell used aircraft. Used aircraft are usually sold by third parties not associated with Boeing. To help you find these used aircraft, Boeing has provided links to these parties found in the Airplane Sourcing section.

Where can I find information on Boeing airplanes?

Information on passenger and freighter airplanes, along with information on cargo hold sizes can be found in the Airplane Selection section.

Where can I find a definition of aircraft terms?

A glossary of aircraft terms can be found here .

Where can I find airplane market data?

The Boeing Current Market Outlook (CMO) and World Air Cargo Forecast can be found in the Market Analysis section.

Where can I find information on business planning?

Information on business plans can be found in the Business Planning section.

Where can I find information about regulatory requirements?

Information about regulatory requirements can be found in the Operating Environment section.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Regional Airline Business Plan

Start your own regional airline business plan

Puddle Jumpers Airline

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Puddle Jumpers Airlines, Inc. is a new consumer airline in its formative stages. It is being organized to take advantage of a specific gap in the short-haul domestic travel market. The gap exists in low cost service out of Anytown, U.S.A. The gap in the availability of low cost service in and out of the Anytown hub coupled with the demand for passenger travel on selected routes from Anytown indicates that a new entrant airline could be expected to capture a significant portion of current air travel business at that hub.

The management of Puddle Jumpers is experienced in airline start-ups. Previously management grew Private Jet Airlines from a single Boeing 727 to a fleet of 16 MD80 series aircraft. Revenues grew to $130 million in a two year period four years ago.

Our research and projections indicate that air travel to and from Anytown is sufficient to provide a new carrier with excellent revenues in its first full year of operations, utilizing six aircraft and selected short-haul routes. These sales figures are based upon load factors of only 55% in year one. Second year revenues are expected to more than doublewith additional aircraft and expanded routes. Load factors for year two are 62%. The Puddle Jumpers plan has the potential for a more rapid ramp-up than was the case with Private Jet due to the nature of the routes and the demand for travel currently in the targeted markets served. In short, the frequency of flights needed to serve Puddle Jumpers’s target market exceeds the demand that dictated Private Jet’s growth.

These sales levels will produce respectable net profit in the first operational year and exponential growth in flight-year two. Profits in year one will be a modest percent of sales and will improve steadily with the economies gained in year two. The over-all operational long term profit target will be 16% of sales as net profit in years four and five. The company’s long term plan is part of the due diligence package. The first operational year is actually fiscal year two in this plan.

The first year of formative operations will burn cash until revenue can commence. This is due to the organizational and regulatory obligations of a new air carrier. Investment activity is needed to handle the expenses of this phase of the business.

The following chart illustrates the over-all highlights of our business plan over the first three years. Gross Margin here is quite high since the only costs included in this calculation are travel agent commissions, credit card discounts, and federal excise taxes. Travel agent commissions are calculated on 30% of sales even though management feels the actual number will not exceed 10% of sales.

NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000’s).

1.1 Objectives

The Company has the following objectives:

• To obtain required D.O.T. and F.A.A. certifications on or before month eight.
• To commence revenue service on or before the end of year one.
• To raise sufficient “seed” and “bridge” capital in a timely fashion to financially enable these objectives.
• To commence operations with two McDonnell-Douglas MD-80 series aircraft in month one, four by end of month four, and six by end of month six of flight operations.
• To add one aircraft per month during year two for a total of 18 at year two end.

1.2 Mission

Puddle Jumpers International Airlines, Inc. has a mission to provide safe, efficient, low-cost consumer air travel service. Our service will emphasize safety as its highest priority. We will operate the newest and best maintained aircraft available. We will never skimp on maintenance in any fashion whatsoever. We will strive to operate our flights on time. We will provide friendly and courteous “no frill” service.

1.3 Keys to Success

The keys to success are:

• Obtaining the required governmental approvals.
• Securing financing.
• Experienced management. (Already in place).
• Marketing; either dealing with channel problems and barriers to entry; or solving problems with major advertising and promotion budgets. Targeted market share must be achieved even amidst expected competition.
• Product quality. Always with safety foremost.
• Services delivered on time, costs controlled, marketing budgets managed. There is a temptation to fix on growth at the expense of profits. Also, rapid growth will be curtailed in order to keep maintenance standards both strict and measurable.
• Cost control. The over-all cost per ASM (available seat mile) is pegged at 7.0 cents or less in 1996 dollars. This ASM factor places Puddle Jumpers in a grouping of the lowest four in the airline industry within the short-haul market. (US Air, the dominate carrier in the Anytown market, averages 12.0 cents per ASM by comparison). The only three airlines with lower operating costs also operate older and less reliable equipment, and even then the lowest short-haul cost in the airline industry is currently Southwest at 6.43 cents per ASM.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Puddle Jumpers International Airlines is being formed in July, 1996 as a South State Corporation. Its offices will be in Anytown. The founder of Puddle Jumpers is Kenneth D. Smith. Mr. Smith has extensive experience in consumer aviation. His bio as well as the backgrounds of all the members of Puddle Jumpers’s management team are enclosed herein.*

* Confidential and Proprietary information has been removed from this sample plan .

2.1 Company Ownership

Puddle Jumpers International Airlines, Inc. will authorize 20,000,000 shares of common stock. 1,000,000 shares are to be set aside as founder’s stock to be divided among key management personnel. It is also expected that management stock options will be made available to key management personnel after operations commence. It is expected that founders stock plus option stock will not total more than 15% of authorized shares.

Initial “seed” capital is to be attracted via a convertible debenture sold by Private Placement. This round of funding will have premium conversion privileges vs. later rounds and “bridge” capital. The company has plans to proceed to a public offering prior to initiating revenue service. The expected proceeds from the Private Placement are expected to be $300,000 at “seed” stage, $3.5 million in “bridge” funding and $10 million in I.P.O. proceeds (projected at $6 per share). Management cannot assure that an I.P.O. will be available at the time desired and at the price sought.

A sample of the offering proposed for “seed” investment is included with this plan.

2.2 Start-up Summary

In the second year of operations, Puddle Jumpers will expand revenue by adding flights to the most demanded and popular routes in current operation. This will serve to make our schedule the most convenient to these destinations, improving further our competitive advantage. The routes expected to be expanded first include Chicago, New York, and Anytown. Second level expansions would included Philadelphia, Dallas, Washington DC, Orlando and Detroit.

2.3 Company Locations and Facilities

Management plans to lease a small office in suburban Anytown immediately upon closing “seed” funding.

The following sections describe the description of service, competitive comparison, technology, fulfillment, and future services.

3.1 Service Description

Puddle Jumpers is in the business of providing low-cost, “discount” air travel to selected destinations from the Anytown, U.S.A. hub. The service approach is “no frills” with emphasis on safe, courteous handling of domestic regional passenger travel.

All consumer surveys still indicate that the air travel customer’s preference is for “low fares.” However, he or she is not willing to compromise on issues of safety or on-time performance. Customers will however, settle for lower levels of in-flight service in order to reduce the cost of travel.

Puddle Jumpers provides precisely the level of service today’s air travel passenger demands.

3.2 Competitive Comparison

The primary competition in the Anytown market is US Air. US Air accounts for 86% of the air travel volume in this market. This is as high a single market dominance that exists in any US market. Also, this results in the highest fares in the nation for travel in-and-out of Anytown. 0% of air travel is at discount fares in Anytown.

Puddle Jumpers feels that we can obtain a significant portion of this business. Our costs will be lower than US Air (7 cents per ASM vs. 12 cents per ASM). US Air is already in financial difficulty due to “sins of the past.” Our costs will be significantly lower than “major” carriers such as Delta. This identifies a gap for only a “hub-based” short haul carrier in the Anytown market.

Operation of a single type of aircraft will have significant cost, maintenance, and training expense reduction.

Our aircraft will operate out of this single hub with high utilization based on price advantage. We will have an over-all competitive advantage since we don’t have aircraft or operations outside of our limited focus. Other airlines must maintain “system-wide” load factors and utilization, while Puddle Jumpers will operate profitably within our “niche” market. This will serve as a barrier to entry from other competitors once we are entrenched. It is unlikely that larger airlines will be able to compete with our low fares nor will they have the desire as they focus on more profitable “long-haul” routes with larger airplanes.

Puddle Jumpers will achieve its target of 7 cents or less per available seat mile by a combination of cost saving measures. Savings will come in the areas of labor costs and from operational economies. Puddle Jumpers will utilize its flight crews significantly more than its competition. Flight crew utilization will be 60% above industry average. Both pilots and flight attendants will be deployed an average of 85 hours per month vs. an industry average of 50-60 hours. The company will realize additional savings in the insurance and benefits areas by virtue of having fewer crew members.

Eliminating meal service in-flight will save approximately $3.00 per seat per flight. This will also increase airplane utilization due to no need for catering service while in port. It is Puddle Jumpers’s goal to utilize its fleet an average of 11 hours per day, 7 days per week.

All aircraft will be configured to a single coach seating capacity of 165 seats. This will maximize revenue on short-haul flights. MD-80 series will be the only aircraft operated by the company. We will eliminate the need to cross-train employees. We will also reduce the requirements for parts inventories.

Our state-of-the-art reservations system will save time, allow us to employ fewer reservationists, and save training costs for new reservation personnel. The reservations system is discussed further in the “Technology” section of this plan.

3.3 Sales Literature

All company literature is yet to be developed. This includes basic corporate identity material as well as advertising executions. First year projections include an expense item for this necessary development work.

3.4 Fulfillment

Aircraft will be obtained on a “dry lease” basis (without fuel) from one of several aircraft lessors at an approximate cost of $165,000 per month. Puddle Jumpers management has already been in contact with GE Capital Aviation Services. It is expected that GE Capital will have 80 MD 80 and/or MD 81 aircraft available for lease from Swiss Air over the next several years. Lease deposits, requirements and terms are as follows:

Generally, first and last month’s lease payments are required in advance. Lease is usually a five-year operating lease and most often qualifies as an expense item to the lessee. Terms of renewal are negotiable and no buy-out provision is included. There may or may not be an additional deposit required by the lessor as a maintenance reserve. Puddle Jumpers management feels that this will not be a requirement but is prepared to make such a deposit if it becomes required to obtain necessary aircraft for operations.

It is expected that up to 80 airplanes will be available over the next two years with an average of 120 days lead time required.

The advantages of utilizing McDonnell-Douglas MD 80 series aircraft, in addition to management’s knowledge and prior successful experience with the same aircraft at Private Jet, are outlined in the “Technology” section of this plan.

Our reservations system will be obtained from CMS at a cost of $200,000 for the software license and approximately $1,000 each for 50 reservation stations (including modem and monitor). The advantages of this system are outlined in the “Technology” section of this plan.

Outsourcing of services are as follows:

Maintenance:

All regular “A” and “B” maintenance will be performed by Puddle Jumpers personnel at our own leased facilities at each airport served. We will also have tools and parts inventory at each site. Puddle Jumpers management feels that it is both necessary and prudent in today’s regulatory environment to perform this regular and routine maintenance “in house”. Periodic “C” and “D” overhauls and major maintenance will be outsourced to Aero Corp. in Lake City, Florida. Labor costs are budgeted at $32 per hour. It is common for many carriers in the aviation industry (including some quite large ones) to “sub-out” “C” and “D” scheduled maintenance. Thus, it is not viewed as a competitive or regulatory disadvantage to Puddle Jumpers to do likewise.

Ground Handling:

Airplane parking services, baggage loading and unloading, and baggage and freight handling services will be outsourced at all airports other than the Anytown hub where these services will be performed by Puddle Jumpers personnel.

Food Service:

All condiments and beverages served on Puddle Jumpers flights will be purchased from in-flight food service providers.

3.5 Technology

All equipment and systems that will be utilized by Puddle Jumpers have been carefully and diligently evaluated. Management feels that it is an advantage to be starting an airline today vs. using many of the systems that burden even the largest domestic carriers with extra cost due to outmoded technology. The technological advantages to management’s choices are outlined below:

Airplane advantages:

In addition, the utilization of MD-80 series aircraft will avoid additional FAA compliance requirements mandated by the “Aging Fleet Program”. These requirements apply to aircraft 20 years older or more. Since most aircraft to be used by Puddle Jumpers were built in the 1982 to 1985 time frame they will not be subject to these mandates during the full initial five year term of their respective leases. Many Value Jet airplanes, by contrast, were built in the early 1970’s.

Since these aircraft were built in the 1980’s parts are still being manufactured and are readily available. Older aircraft often dictate that parts that are no longer manufactured are “cannibalized” from one aircraft to another or that old parts are “remanufactured” since new ones are non-existent. The safety risks are evident. Puddle Jumpers will be able to maintain an inventory of new replacement parts.

Perhaps most importantly, the MD-80 series aircraft is already “Stage 3” noise compliant. New FAA guidelines mandate that 50% of an airline’s fleet meet new noise emission standards by Dec. 31, 1996. Another 25% must qualify by Dec. 31, 1998 and the entire fleet must be in noise standards compliance by Dec. 31, 2000. Several domestic air carriers are already protesting that they can’t reasonably meet these standards but the FAA has demonstrated a past history of not bending on similar issues. Puddle Jumpers’s fleet will not be effected by these requirements since it will comply as soon as it begins flying. There will be no cost to upgrade or retro-fit required. Again, this fits Puddle Jumpers’s philosophy that the cheapest way to maintain aircraft is to adopt a “preventative” overview. All of the cost savings associated with the utilization of this superior aircraft are reflected in management’s projections.

Finally, management is well acquainted with all facets of operation of the MD-80 from prior experience at Private Jet. Such experience was completely satisfactory.

Reservations advantages:

The predominate reservations systems in the airline industry today, “Sabre” and “Apollo” are outmoded and obsolete. The major carriers are slow to change because of the huge capital requirement to “roll over” their entire reservations system at one time. Hence, they keep going with the old and outdated.

The CMS reservations system that Puddle Jumpers will use has three main advantages that all contribute to cost savings: 1) Speed, 2) Learning Curve, and 3) Integration. Since today’s PC’s operate so much faster than earlier versions Puddle Jumpers’s reservationists will be able to complete a typical reservation procedure up to 75% faster than industry averages. Most reservations will be completed in two minutes or less (as opposed to the frequent 8 to 10 minutes that almost everyone has experienced from time to time). The system simply searches and retrieves data so much faster. The result is not only higher levels of customer satisfaction but also substantial savings in communications cost to Puddle Jumpers.

Training costs are also reduced exponentially. There is characteristically high turnover among airline reservationists. “Sabre” and “Apollo” take two weeks to learn and master. Puddle Jumpers’s use of CMS will enable a basic computer literate employee to learn the system in only one day.

The CMS system also seamlessly integrates with other management information systems used by Puddle Jumpers. It is also designed to operate in a “ticketless” environment, something the other systems have difficulty accomplishing.

Operational advantages:

Over-all operations will be seamless from area-to-area of Puddle Jumpers’s management information systems as a whole. Most systems utilized by the major carriers today were put in place more than 20 years ago. Thus, there is a constant need for each operational area to “talk” or “re-transmit” essential data to one and other. Not only will Puddle Jumpers’s information systems operate “seamlessly” but they will also greatly enhance the ability to conform to all FAA compliance requirements. The biggest and toughest compliance issue facing carriers today is “record keeping.” It is not enough to comply, but one must be able to PROVE compliance as well as have full and clearly defined and documented internal accountability.

3.6 Future Services

Service will be one-class with all aircraft configured for a seating capacity of 165. Travel will be ticketless. Reservations will be handled predominately by our own reservation system (even though we’ve budgeted travel agent commissions on 30% of sales). In-flight service will be on a pay-on-demand basis. Paid service will be for alcoholic beverages only. No meals will be served on these short-haul flights. A snack of soft drinks and peanuts will be included in the fare structure. Seating will be open with no reserved seats. No frequent flyer or travel incentives will be offered.

Market Analysis Summary how to do a market analysis for your business plan.">

Anytown, U.S.A. is the best place in the continental United States to start an airline. Puddle Jumpers’s management decision to do just that is based upon extensive research compiled from The Department of Transportation O & D report data. This data provides a reliable source (based upon a compilation of actual airline arrivals and departures) of origination and destination demand by passenger, by day. The key measure of demand between any two given points in the grid is called “PDEW.” That is “passengers departed each way.” The PDEW compiles a total number of passengers on all carriers between two points, on average, each day. This total is irrespective of final destination.

The other keys factors that resulted in the choice of Anytown as a hub derive from management’s experience and knowledge in commercial aviation. Principal to the decision is an airline industry insider’s understanding of the problems that face US Air, the dominate carrier in the Anytown market. Also, the lack of availability of a true “discount” fare option to the Anytown traveler is pivotal.

Management is making the judgment that not only is the Anytown market vulnerable to a new carrier, but also that the ability of US Air to retaliate will be limited. Further, the likelihood of a major carrier to respond is unlikely. The only real threat would be another new entry. So the opportunity may best be described as one ready and waiting for the first entrant who arrives with a well conceived plan, sufficient industry experience, and with the required capitalization.

4.1 Market Segmentation

The airline industry is dominated by the major carriers. It is an industry characterized by merger, acquisition, and consolidation. Like so many other industries it has quickly evolved into an industry that has room only for major players and smaller “specialty” or “niche” participants. There are two specialty segments that have characteristically been exploited by new entrants. One is the “price” niche and the other is the “route” niche. One focuses on charging less, the other on providing either the only service between two given points (the “commuter” or “feeder” concept) or else superior or more convenient or less costly service between two heavily traveled destinations.

Short-haul carriers also may operate efficiently out of a single hub. This enables consolidation of services and economies of down-sized scale. At the same time, the revenues available from short hauls are comparatively higher than long hauls on a per-passenger-mile basis.

Short haul revenues are simultaneously high enough to build a substantial business in the hundred million dollar multiple range.

Thus Puddle Jumpers may be said to target the short-haul, single hub, discount fare market segment. This is a new segment defined by the demands of today’s traveler.

4.2 Service Business Analysis

The Federal Government de-regulated the airline industry in 1978. Prior to that time the government virtually guaranteed the profitability of the airline industry, at the expense of the consumer. Routes were restricted. Fares were fixed. Costs got out of control. Today some of the major carriers still continue to operate at less than optimum efficiency. This has spawned the success of various “discount” carriers, most notably Southwest, ValuJet, and the new U2 planned by UAL.

The low cost carriers have proven that they can operate profitably, can garner market share, and have even spawned an increase in travel by luring those who would previously have traveled by bus, rail, or automobile or who would not have traveled at all.

In 1994, ValuJet Airlines in Anytown experienced considerable success and enjoyed rapid growth. It has forced TWA to abandon its mini hub in Anytown and has grown to more than 40 aircraft in two years. Until recently, Anytown was the most expensive major city in the U.S. to fly to or from. This was due, in part, to the near monopoly condition engendered by Delta’s dominance of the Anytown market.

ValuJet remains the economic success model for start-up airlines, although Puddle Jumpers management feels that it should not be the operational model. ValuJet’s current problems are the result of unbridled growth without commensurate control.

Many major airlines today are experiencing significant losses. The management of Puddle Jumpers feels that these losses can be traced directly to the high cost of labor, operational inefficiency, and poor management. Management further believes that the major carriers cannot profitably compete against start-up carriers with limited and specific market focus and lower over-all cost structures.

In retrospect, de-regulation has succeeded in providing air travelers with better service but has not necessarily provided service at a lower price. In the recent times of financial trouble many airlines have complained of an under supply of air travelers, when in fact there is an under supply of affordable seats. It is Puddle Jumpers’s goal to provide these affordable seats while maintaining a profitable airline.

4.2.1 Distributing a Service

Sales of airline tickets have historically been either direct from the airline itself or through various travel agents. Modern computer technology and communications capability are changing the mix dramatically. Travel agents once accounted for 80% of ticket sales. This channel of distribution has been one of very high cost to the airlines. Travel agent commissions at one time became the highest individual cost item to an airline. Perks and incentives amounted to coercion and bribery. The airlines found themselves held hostage. Not until Delta boldly announced that commissions to travel agents would be held to 10% did the situation begin to change.

The physical cost of printing and distributing tickets is also substantial. Travel agents estimate that it costs them an average of $30 in total cost to originate an airline ticket. Many of them have begun to add their own service fees to the actual cost of a ticket.

Available technology has now afforded the opportunity both to sell one’s own tickets and to eliminate the physical ticket altogether. The critical element for both strategies to be successful for an airline is simply to create the demand for travel on one’s airline. If the airline makes it desirable for the consumer to want to fly it then it is just as easy to order tickets directly from the airline as it is from any other source. Puddle Jumpers will have fifty of its own reservations agents available via an 800 number (the service will be 24 hours from an available pool of 90 agents in total). In addition, we will have an Internet site where schedules are available and customers can book their own reservations and buy tickets via credit card.

Puddle Jumpers expects to sell as much as 90% of its air travel “direct” and “ticketless.” Even so, we have budgeted 30% of sales as subject to agent’s commission.

“Ticketless” travel has an additional advantage since Puddle Jumpers will not wait 30 days for collection of clearinghouse funds from other airlines on combined-carrier tickets. Also, it is not expected to be a competitive disadvantage for Puddle Jumpers’s passengers to connect to other airlines. They will want to fly Puddle Jumpers to available destinations to save money even if they need to buy a paper ticket on another airline. Puddle Jumpers flights will be listed in all available flight information systems.

4.2.2 Competition and Buying Patterns

The most critical factor for Puddle Jumpers or any new airline to overcome is the issue of brand awareness and name recognition. Customers prefer to fly with carriers they know and trust. There is little doubt that Puddle Jumpers will need to spend heavily and frequently to advertise and promote its product. The needed amounts are budgeted in this plan. The advantage is that local media can be utilized which is more cost effective on a per-impression basis. It can also be highly targeted. It has been proven in the past that market share can be achieved for a new airline.

Critical in today’s environment is safety. Consumers will switch for lower costs, but not at the expense of a perception of a safety risk, or not at the expense of expected on-time performance. Puddle Jumpers’s media executions will emphasize these two main themes.

In the Anytown market, Puddle Jumpers expects to appeal to a mix of business oriented travelers and personal travelers. One issue is whether or not “frequent flier miles” are needed to compete and sell tickets. Management feels they are not. Industry estimates show that as many as 10% of occupied seats on domestic flights are currently “no revenue” as a result of redemption of premiums earned. It is also very expensive for an airline to administer its frequent flyer program. Puddle Jumpers feels that our cost advantage in Anytown will outweigh the lack of “incentive” rewards. We expect that casual and personal travelers don’t fly often enough for “points” to be significant. At the same time Puddle Jumpers will initiate a concerted sales effort directly to all major corporations in the Anytown market. We hope to have business travel mandated by these corporations on a cost basis alone.

4.2.3 Main Competitors

The only significant competitor in the Anytown market is US Air. At one time Eastern and Piedmont dominated the market. Eastern went out and Piedmont was acquired by US Air. US Air is highly vulnerable because of its high operating costs. ASM short-haul cost of 12 cents is currently the highest in the US. US Air commands 86% of the Anytown air travel market. Delta is a distant second with 2%.

As a result, Anytown currently has the highest air travel costs in the country and 0% of air travel is at discount fares.

US Air’s problems can be traced to two main factors. The first is the fact that their growth strategy has been by acquisition. It is apparent that management paid too much for many small regional carriers and also that the consolidation of these carriers has not produced the operational cost advantages that were anticipated. Secondly, and most important, has been out-of-control labor costs. US Air’s stronghold is in the North East. The strongest labor unions are located in this part of the country and prior management has been completely ineffective in obtaining any concessions from these unions.

In spite of high costs, US Air has grown to become the nation’s sixth largest carrier. However, recent press articles indicate a large measure of uncertainty in their future path. Berkshire Hathaway has asked US Air to buy back its 10% stake in the airline. Stephen Wolf, US Air’s new chairman has stated that US Air needs to become a carrier “of choice” not merely “of convenience.” He said further that US Air must either buy another airline, be acquired itself, or form a partnership with another carrier. The question is WHO? No one in the industry wants US Air’s high cost structure. And even if a new owner could obtain concessions, who’s current routes are compatible with US Air? The management of Puddle Jumpers cannot identify a strategic suitor. TWA or Continental would be the most likely to acquire US Air from an economic standpoint but the routes don’t match well.

Puddle Jumpers concludes that the Anytown opportunity is likely to be free from imposing competition unless it comes from another start-up. If we are able to attack the market first with sufficient capitalization, we feel we will be difficult to overcome and should be able to build critical mass within two years.

4.2.4 Business Participants

The major air carriers in the U.S. are not the focus of this plan. They are not viewed as competition to a single hub, short-haul, low cost entrant. The following three airlines are worthy of study. Southwest as one to emulate. ValuJet as one to improve upon. US Air as one to learn from and avoid similar pitfalls.

Southwest Airlines is the model for operating a safe and successful discount carrier. Even though Southwest has the lowest cost per ASM in the airline industry for short-haul carriers they have never experienced a fatal crash in more than 25 years of operation.

ValuJet remains the financial model for a start-up airline. The return to initial investors and early shareholders has been outstanding. However, operations have been marginal and growth was too fast.

US Air is the model for classically mismanaged labor cost within the airline industry. This plan focuses on a deeper discussion of US Air in the “Competition” section. US Air controls an 86% market share in Anytown. Delta is second with 2%.

Puddle Jumpers management has studied extensively the history of the above three airlines. All three have grown to substantial revenue size amidst the major airlines. None of the three existed in the not-too-distant past. Puddle Jumpers has taken the best parts of each growth story, heeded the alarms and cautions, and learned from the outright mistakes. The result is the plan for Puddle Jumpers Airlines, the airline for today’s marketplace.

Strategy and Implementation Summary

Puddle Jumpers’s market presence will be achieved by relying on the strategy of identifying and serving a specialized niche market well.

• Media executions will utilize local media, which is highly targeted and cost effective on a cost-per-impression basis.
• Air operations will be centralized and cost effective.
• Reservations will be centralized and cost effective.
• Marketing will be media generated to the leisure market and combined media/direct sales generated to corporate accounts.

5.1 Marketing Strategy

Marketing is targeted locally. The advantage of a local and highly identifiable market is that media selections can be limited in scope. There is no need for a national media program to launch Puddle Jumpers. The most effective media is expected to be outdoor billboards. Private Jet relied heavily on a dozen well-placed billboards in and around its home hub to build a $100 million plus business.

Other media will be local spot TV on highly visible programs such as local news and sports. Also, local radio. Newspapers and other print will not be used.

5.1.1 Distribution Strategy

In addition to other marketing programs outlined the company will also market via the World Wide Web. We will establish our own website with reservation, purchase, and payment capability.

5.1.2 Pricing Strategy

Due to its low cost operating structure Puddle Jumpers will be able to offer service at less than 50% of the competitive airfares to our selected destinations from our Anytown hub. Projected fares are as follows:

The first column is for 14 day advance purchase. These fares are non-cancelable and non-refundable. The second column is for fares purchased inside of 14 days. The third column is current Day-of-Travel published average fare for all carriers.

5.1.3 Promotion Strategy

Promotion will be primarily outdoor advertising, radio and TV targeted at the Anytown business and leisure traveler.

In addition the company will employ a public relations firm for both consumer and financial purposes.

The combined amount budgeted for advertising, public relations, and reservations will be held under 15% of sales. Thus, the first year expenditure in these categories is expected to be $16.5 million. Past experience with Private Jet has demonstrated that this expenditure is sufficient to launch airline service in a single hub.

5.2 Sales Strategy

In order to attract the Anytown business traveler without the use of frequent flyer miles, the company will make direct sales contacts with the travel departments of Anytown based corporations and businesses. It is expected that our cost structure will be attractive to these businesses. Anytown is now the third largest banking center in the U.S. and the Anytown area economy in general is growing faster that the national average. We expect business travel to amount to at least 50% of our over-all revenue.

The sales personnel and salaries required to execute the direct sales strategy are included in these projections.

5.2.1 Sales Forecast

The company is forecasting very encouraging annual sales in year one of flight operations. Year two of flight operations sales are forecasted to more than double. Assumptions made for load factors are: 55% in year one, 62% in year two.

The year two numbers are based upon adding more flights and more airplanes to the routes already served. This will enable us to maximize profits within the market we have created without incurring the additional expense of opening new markets. It also allows for more controlled growth and eliminates the risks, early on, of the loss of control of operational procedures that can occur either with de-centralization or growth that is too rapid.

The basis of the sales projections illustrated in the table below have been outlined in the “Market Analysis” section of this plan.

The company has also prepared five-year projections that are based upon expanded service to additional market areas. This five year plan is a part of our due diligence package. Direct costs of sales are not included here but are instead reflected as a revenue discount in the projected P&L statement. These sales costs consist of travel agent commissions, credit card discounts, and federal excise taxes.

5.3 Milestones

The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

Management expects that the current regulatory climate will loosen shortly. We expect it to be a long-term advantage to well operated airlines. We feel that 1996 is the ideal time both to invest and to start an airline.

The costs of adding airplanes are figured on the basis of first and last payment in advance + one month’s lease payment.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of Puddle Jumpers is highly experienced. There is no one on the management team who has not already performed his or her function for another airline. We are not in the business of training key people. We intend to hit the ground running with a highly qualified and experienced management team. Some of the individuals profiled are currently with other airline companies. They both know and respect Ken Smith and have expressed the desire to work for him and for Puddle Jumpers.

Ken Smith is both known and respected by the F.A.A. regional officers in Anytown as well as at the Federal level in Washington. He enjoys similar status with key D.O.T. officers. The management of Puddle Jumpers is well versed in all governmental approval procedures, having traversed them in the past to a full approval and operational status. We feel that the resumes of the key people enclosed herein will only enhance our ability to obtain required approvals. It is expected to be a necessity from this point forward to have such a management team assembled in order to obtain the government charters from the D.O.T. and from the F.A.A.

The bios of the management team follow.

6.1 Organizational Structure

The company will be organized into five major operational areas:

• Flight Operations.
• Maintenance.
• Customer Service.

Many of the specific positions and job descriptions are government mandated. Puddle Jumpers will fully comply with all such mandates.

6.2 Management Team

The following are the bios and ages of the key members of Puddle Jumpers’s management team:

KENNETH D. SMITH, President & CEO, 51

Ken Smith has 28 years of aviation experience beginning with his career in the U.S. Air Force, where he ultimately attained the rank of Captain. Ken was awarded the Distinguished Flying Cross, two Commendation Medals, and six Air Medals for his contributions as a pilot in the Vietnam War. When Ken left the Air Force in 1976 he was the Director of Flight Training Programs at the U.S. Air Force Academy in Colorado Springs. He has served as Chief Flight Instructor for Flight International Training School and as a pilot for Braniff Airlines. Ken then served as Executive Vice President and General Manager for Aerostar Airlines, leading a turn-around that enabled Aerostar to be acquired by Flight International in 1984.

Ken then became General Manager of Connie Jones Services, an air cargo airline which he expanded from five to twenty aircraft. He was then recruited by Aero Corporation where he became Vice President of Marketing for Aero’s worldwide aircraft maintenance services.

Ken became President and CEO of Private Jet in January 1991. In less than two years Ken’s leadership took Private Jet from a single aircraft to a fleet of 15 and revenue of more than $130 million dollars.

Ken then helped Eagle Airlines start-up and has also served as a consultant to the start-up of Nations Air.

JAMES B. JONES, Executive Vice President, 49

Mr. Jones has thirty years of flying experience including distinguished military service. He has been chief pilot, Director of Operations, and General Manager of Air Nevada Airlines, a commuter carrier. He has also served as Director of Operations and Director of Training for Eagle Airlines.

GREER CLARK, Vice President, Operations, 56

Mr. Clark has taken early retirement from Delta Airlines. He has since served as Chief Pilot for America International Airlines, and as Vice President, Operations for Private Jet and for Eagle Airlines. Currently, he is Manager, Flight Test for ValuJet.

DON ADAMS, Vice President, Maintenance, 47

Mr. Adams is an Aeronautical Engineer from Australia. He has served as Vice President of Ansett Airlines. He was Vice President of Technical Services for Intercredit Corporation, an aircraft leasing company. Currently, he is Vice President of Avitas, one of the world’s leading aviation consulting companies. He is presently on loan to the National Transportation Safety Board investigating the American Airlines B757 crash in Columbia.

BRUCE WING, Vice President, Finance, 50

Mr. Wing is a CPA who has been a Vice President with First Chicago Bank. He has previously served as CFO of United Express, the commuter division of United Airlines as well as CFO of Private Jet.

PAUL BERRY, Director of Operations, 57

Mr. Berry is a retired Air Force Colonel. Colonel Berry served as General Swartzkoph’s Tanker Task Force Commander for Desert Storm. Mr. Berry is currently Director of Operations at America International Airlines.

TERRY MCADAMS, Chief Pilot, 57

Mr. McAdams served as a pilot with Eastern Airlines for more than 25 years. He later served as Chief Pilot for Private Jet and is the Chief Pilot for ValuJet. Mr. McAdams is typed on the B727, DC-9, and MD-80 aircraft.

SALVATORE DIANGELO, Director of Maintenance, 41

Mr. Diangelo has been in aircraft maintenance in the military, at People’s Express Airlines, and at Continental Airlines. At Continental Mr. Diangelo was responsible for preparing the maintenance budget for the entire fleet. He has also served as Director of Maintenance for ValuJet.

CALVIN COBLE, Director of Quality Assurance, 42

Mr. Coble served his apprenticeship in the military. He is qualified as a Class III Inspector, which requires both extensive training and recommendation from his peers at the FAA. Mr. Coble has served as Director of Quality Assurance at Shannon Aerospace, a large maintenance facility operated by Lufthansa and Swiss Air in Shannon, Ireland.

JIM BEND, Director of Marketing, 49

Mr. Bend has over fifteen years as Regional Sales Manager for Eastern Airlines. He received numerous awards for his sales performance while at Eastern. He has also served as Director of Sales at Private Jet.

JUDY LAND, Director of Reservations, 38

Ms. Land has more than 10 years experience as Reservations Manager at Eastern Airlines. She has also helped with design and implementation of the reservations system at Private Jet and at World Technologies. She has received numerous awards for her motivational training seminars.

MARY ANN BENNETT, Director of In-flight Services, 43

Ms. Bennett served as a flight attendant at Eastern Airlines and went on to open her own travel agency. She joined Private Jet as a supervisor of flight attendants and was later promoted to Director.

6.3 Personnel Plan

The following table illustrates personnel needs and growth plans for both key executives and category needs by group. It is expected that all key executives will participate in the company’s stock option plan as well.

Financial Plan investor-ready personnel plan .">

Adequate financing is essential for a start-up airline. Our strategy remains a “seed” to “bridge” to “IPO” progression. This has served as a successful model for airline starts in the past. Because of the amount of capital required to start an airline management feels it is restricted to this funding path. Once four to six airplanes are up and flying the company can continue to operate profitably for an indefinite period of time in the event additional capital becomes unavailable on attractive terms.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. They key underlying assumptions are:

• We assume a slow-growth economy, without major recession.
• We assume of course that there are no unforeseen changes in technology to make products immediately obsolete.
• We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.

7.2 Key Financial Indicators

In the airline business the most important measurements are cost per Available Seat Mile and the System Utilization Factor. If seat costs are kept below 7 cents and utilization is at 50% or better, the airline will operate profitably.

7.3 Break-even Analysis

When we take out all operational costs for flying aircraft and include only fixed overhead and aircraft leases the company can break even on the first six airplanes by maintaining sales just over $2 million per month or approximately $24 million in year one. This is less than 25% of our expected sales forecast but it indicates that the company could survive without adding planes and routes for an indeterminate period with load factors of less than 15%.

7.4 Projected Profit and Loss

Our profits improve from a low percent of sales in year one to a modest percent of sales in year two and are expected to peak at a respectable percentage in year three and thereafter. In gross numbers, we create healthy profit in the second operational year.

7.5 Projected Cash Flow

This business plan cash flows positively from the initial infusion of investment forward. It will continue to produce cash as long as sales targets are met. Borrowing may only be required if seasonal fluctuations occur or if expansion plans are further accelerated.

The chart below illustrates the accumulation of first year cash during formative stage.

7.6 Projected Balance Sheet

The projected balance sheet illustrates the growth of the net worth of the business and may also be utilized to estimate future stock values based upon industry multiples.

NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000’s). 

7.7 Business Ratios

The important business measurement ratios are presented here based upon projections for Puddle Jumpers. Business ratios for the years of this plan are shown below. Industry profile ratios based on the NAICS code 481111, Scheduled Passenger Air Transportation, are shown for comparison.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Are you looking to start an airline business? Preparing a business plan is an essential step in ensuring the long-term success of your venture. A business plan is a comprehensive document that outlines the goals, objectives, and strategies for launching and running your business. This document should be tailored to the specific needs of your airline business, so you can ensure that you are prepared for any potential challenges that may arise.

In this guide, we will provide you with the steps to create a business plan that will help you get off the ground and maximize your chances of success. We will discuss the necessary components of a business plan, provide tips for writing each section, and provide resources that you can use to create your own plan. By the end of this guide, you will have a comprehensive, well-thought-out plan that you can use to launch your airline business.

Airline Business Plan

When writing a business plan for an airline business, it is important to include an executive summary. This should provide a comprehensive overview of the business and its goals. It should include information about the company, its mission statement, the services to be provided, the financial goals, and the strategies to be implemented. The executive summary should be concise and to the point, while providing readers with a clear understanding of the business’s purpose. Additionally, the executive summary should be written in a way that is both informative and engaging, so that potential investors and partners are intrigued by the possibilities of the airline business.

When creating an airline business plan, it is important to provide a comprehensive executive summary. This document should outline the company, its mission statement, the services offered, financial goals, and strategies for achieving these goals. The executive summary should be concise, yet provide readers with a detailed overview of the business and its objectives. It should be written in a way that is both informative and engaging, so that potential investors and partners are intrigued by the possibilities of the airline business. Additionally, it should include key information such as company background, services to be provided, market analysis, financial projections, and any competitive advantages. This should provide a clear and concise picture of the airline business, its goals, and how it intends to achieve them.

Want a Airline Business Plan Template?

Business model.

The business model for an airline business plan should include a comprehensive overview of the type of services and products provided, an analysis of the target market, pricing, and a strategy for generating profits.

Services and Products: The airline business plan should include a comprehensive list of services and products that the airline will offer. This should include details on the type of aircraft, seating capacity, amenities, in-flight entertainment, and other services that the airline will provide.

Target Market: The target market should be clearly defined. This includes identifying the target demographic and geographic area as well as analyzing the buying behavior of the target audience. Also, include data on the competition, the industry landscape and any potential threats.

Pricing: The airline business plan should include a pricing strategy. This should include a detailed analysis of the cost of providing services, the costs associated with running the business, and the costs associated with obtaining the necessary equipment and supplies.

Strategy for Generating Profits: The airline business plan should also include a strategy for generating profits. This should include details on the marketing strategies that will be used to attract customers, an analysis of potential revenue sources, and a plan for reinvesting profits into the business. This should also include a plan for minimizing costs and optimizing the business model.

Business Summary

The Business Summary is a key element of a business plan for an airline business. It should be concise and provide an overview of the company's goals, objectives, and strategies.

The objective of this business plan is to provide a comprehensive overview of the airline business and the strategies that will be employed to ensure success. The business plan will include an analysis of the market, a description of the business, an overview of the industry, a financial plan, and an evaluation of the competition.

The airline business is an extremely competitive industry that requires a solid business plan to ensure success. The business plan should include a detailed analysis of the market, a description of the business and its objectives, an overview of the industry, a financial plan, and an evaluation of the competition.

The market analysis should include an analysis of the current state of the industry, the potential customer base, demographic information, and an analysis of the competition. The description of the business should include a detailed description of the services and products the airline will offer, the management team, the business location, and the financial goals.

The overview of the industry should include an analysis of the industry structure, the customer base, and the competitors. The financial plan should consist of an income statement, a balance sheet, and a cash flow statement. Finally, the evaluation of the competition should include an analysis of the strengths and weaknesses of the competition.

Marketing Plan

When creating a marketing plan for an airline business, there are several important components to consider.

• Identify Your Target Audience: Knowing who your target market is and what their needs and wants are will be a key factor in the success of your airline business. Consider factors such as age, gender, income level, and location when determining who your target market is.
• Set Goals: Setting goals for your airline business is essential for success. Consider what you hope to achieve in the short-term and long-term with your business, such as increasing revenue or gaining more customers.
• Develop a Brand Strategy: A strong brand strategy will help distinguish your airline from the competition. Consider how you can create a unique brand identity that resonates with your target audience.
• Create a Promotional Plan: A promotional plan can help you attract new customers and retain existing customers. Consider which promotional tactics will best reach your target audience and be most effective, such as search engine optimization, social media marketing, or email campaigns.
• Monitor Performance: Once your marketing plan is in place, it’s important to monitor its performance and adjust it as needed. Analyzing data such as website traffic, customer feedback, and sales figures will help you determine what’s working and what needs to be improved.

By following these steps, you can create an effective marketing plan for your airline business that will help you reach your goals and increase revenue.

Financial Projections

The Financial Projections section of an airline business plan is a critical component of your overall strategy. It is important to create realistic and achievable estimates of the financial performance of your business. To do so, you will need to consider all of the factors that will affect the profitability of your airline, such as the cost of aircraft, fuel, personnel, and other operating costs.

In this section of your business plan, you should include an overview of your financial projections for the first year, as well as projections for the next five years. You should also include a detailed breakdown of the revenues and expenses associated with the operation of your airline.

When creating your financial projections, it is important to consider the following factors:

• Revenue: You should consider the different sources of revenue that your airline will generate, such as ticket sales, cargo revenue, and other services. It is important to consider the seasonality of these sources of revenue and to create projections accordingly.
• Expenses: Your expenses will include the cost of aircraft, fuel, personnel, and other operating costs. You should also consider the cost of marketing, advertising, and other promotional activities.
• Cash Flow: It is important to project your cash flow for the first year and for the next five years. This will help you determine if your airline is financially viable.
• Asset Management: You should also include a detailed breakdown of the assets that your airline requires, such as aircraft and other equipment. This will help you determine the cost of maintaining and operating your airline.

By creating realistic and achievable financial projections for your airline business plan, you can determine if your business is viable and can be successful. This section of your business plan will help you secure funding and gain the confidence of potential investors.

What is Included in Our Custom Airline Business Plan?

• SWOT Analysis
• Competitive Analysis
• Profitability Analysis
• Personnel Plan
• Organizational Chart
• Company Valuation
• Executive Summary
• Company Description
• Keys to Success
• Three Year Objectives
• Product or Service Description

Market Research

• Fundraising Support
• 12 Month & 3 Year Profit & Loss
• 3 Year Balance Sheet
• 12 Month & 3 Year Sales Forecast
• 12 Month & 3 Year Cash Flows
• Break-Even Analysis
• Financial Ratio Analysis
• Management Team

The ultimate

Airline business plan template for startups.

Business Plan Templates

Retail Shop

Blank Template Sample

Custom Business Plan

A business plan built by the leading experts.

Regardless if you are opening a new business, or expanding an existing one, having a business plan can help you to make more informed decisions and manage your money. It is also required by many lenders as part of your loan application. This business plan template is updated annually to reflect the most up-to-date information on how to create a profitable operation. It was created by Chase Hughes , our CEO, and has evolved over hundreds of client engagements over the past 10+ years to become the backbone of operations and management for 1,000s of entrepreneurs.

Project future revenues using real industry data

Fully-compatible with Microsoft Excel and Word.

Critical information for operating and running the business.

Annually updated market research specific to your market.

What is a Business Plan?

A Business Plan is a description of the business, market, and expected financials. Plans may be used to increase sales and profitability, outperform competitors, and used to obtain bank loans or investor funding. For startup founders and small business owners, the Business Plan is a fundamental resource for managing the business and making educated business decisions about the company’s future. There’s no need to reinvent the wheel, though. There’s a standardized set of information and variables for most small businesses including the financial model, market research, and basic business overview that most executives are familiarized with.

Business Description

Summary of what it does, how it operates, key staffing and operations procedures, risk & success factors, and management team bios.

Third-party information on the market size, key trends, growth rates, and competition both overall and for a specified region.

Complete financial projections including Revenue, Cost of Goods Sold, and Operating Expenses to produce Profit & Loss statement, Cash Flow statement, and Balance Sheet.

Comprehensive plan including market launch, social media, promotional strategies, pricing strategy, and web presence.

Request a Quote

Get a free copy of our financial modal template.

This is a functional model you can use to create your own formulas and project your potential business growth. Instructions will be included on the front page.

What Boeing wants you to know about starting a new airline, according to its step-by-step guide

• Boeing runs a program that helps innovators launch new startup airlines — and become potential customers
• The program, StartupBoeing , offers a detailed framework  for anyone looking to get into the airline business. The company says it will work closely with serious parties to help get their airline running.
• While the COVID-19 pandemic has devastated airline industry, most experts anticipate a full recovery once treatments or vaccines are available.
• Visit Business Insider's homepage for more stories .

The airline business is notoriously fickle.

Back in 2007, Warren Buffett, chair of Berkshire Hathaway, said that "if a far-sighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down." About a decade later, he reversed his position and invested heavily in US airlines, only to dump his holdings this April as  stocks plummeted amid the COVID-19 pandemic.

Such about-faces are understandable. Despite the difficulties of the airline business — an ongoing boom-bust cycle as demand mirrors the larger economy, intensive regulation, tremendous capital expenses, exposure to volatility in fuel prices, and even financial pain caused by bad weather — airlines can be profitable. With the right business model in the right market, they can prove downright lucrative.

Even today, as the coronavirus pandemic obliterates airline budget sheets and knock carriers into bankruptcy, investors see opportunities. Take David Neeleman, founder of JetBlue and Brazilian carrier Azul, who's getting ready to start his third airline, Breeze (albeit with a launch date delayed to next year).

Boeing, of course, is all for new airlines who might want to spend a big pile of money on its planes. Which explains why, since 2006, it has run a program aimed at helping new potential customers get off the ground. 

StartupBoeing reserves its substantial support for serious enterprises, but it's not overly discriminating: It puts much of its advice on its website, for free, for anyone looking to get airborne. 

So if you see a space in the market for a new airline and you think you have the stomach for one of the world's toughest industries, here's what Boeing thinks you — perhaps its next big customer — need to know. 

Before anything else, Boeing suggests making sure you know what you're getting into.

As a first step, Boeing invites prospective airline innovators can reach out to the StartupBoeing team.

Encouraging new airline startups is certainly a self-serving example of working to create your own demand — or in this case, facilitate it — but Boeing is blunt about the challenges.

"Starting an airline is tough. Running a profitable airline is even tougher," the planemaker says on its website . "Few businesses have as many variables and challenges as airlines."

The first actual step: market analysis.

Some questions to ask yourself: Why start an airline? Is there a need for another one? What can your airline do that others aren't doing? What kind of market can it serve?

There's no point in starting a company if you don't know where it will slot in among competitors, and who its customers will be. That's why Boeing suggests studying the commercial aviation market closely before starting to invest. 

The company publishes regular, comprehensive reports on commercial market outlook, forecasted air cargo demand, and the outlook of the aircraft financing market (more on that in a bit).

Additionally, there are consultants and agencies around the world which specialize in the commercial aviation market who can help get new airlines off the ground, so to speak.

Next, you'll need to master the operating environment.

Along with the challenges that come with starting any business, new airlines have a whole set of unique hurdles. For one thing, the rules are many, and unforgiving.

"Startup airlines must be aware of and operate within a framework of regulations, standards and guidelines," Boeing says on its startup website.

You'll have to be up to speed on the Freedoms of the Air, a set of regulations dating back to 1944, which dictate where a country's airlines are allowed to fly or land. Same for ETOPS requirements, a collaborative set of standards that determine how airlines plan routes, are universal. 

Safety standards, required training and equipment, labor laws, tax rules, security requirements, fuel and supply procurement, and more, can all vary on the federal, state, or local level. Once you've decided on your market, you'll have to find a way to operate within all of these frameworks.

You have a grasp of the market, you understand the operating environment — now it's time to create your business plan.

A solid business plan is key to launching any startup. Boeing says it will provide free review services for new airline business plans and financials:

"We offer constructive suggestions, question assumptions, and challenge the entrepreneur to prove the concept just as prospective investors might."

If you need help getting the initial plan drafted, Boeing says it can recommend advisors around the world.

According to Boeing, the airline business plan should consider the following:

• Analysis of the market and competition
• Brand positioning
• Description of the business and opportunity
• Details about the operation
• Management team biographies
• Discussion of risks and obstacles
• Pro forma financial statements/projections
• Capitalization plan
• Brand development
• Implementation strategy

The business plan is a success, and you've raised the money you need to get started. Now comes the fun part: picking your aircraft.

At this point, you'll have selected your target markets and frequencies. Based on analyses of air traffic and route/schedule planning, you're now positioned to pick the airplane type to get started with.

Naturally, Boeing recommends buying Boeing. 

If your business plan calls for high capacity or long-range aircraft, Boeing or its European rival Airbus are essentially the only options. Boeing's smallest current plane, the 737 Max 7, can hold up to 172 people and fly more than 3,800 miles without stopping.

If you're looking to start with lower capacity or shorter flights, though, you may be better off looking at a planemaker that produces regional jets or propeller planes, such as Embraer, Mitsubishi Regional Jet, or ATR. 

For something in-between, you could also look at the unique Airbus A220. The plane, which was first conceived by Canada-based Bombardier before being sold to Airbus, can carry anywhere from 100 to 160 passengers, and fly nearly 3,000 to 3,300 nautical miles.

As part of the aircraft decision, you'll have to decide whether to buy or lease planes, and whether to get them new or used.

How you source your aircraft can be crucial to your fledgling airline's long-term success.

Whether to pay outright or finance, buy or lease, likely depends on your initial capital and business plan. If you're a startup airlines looking to lease, Boeing says it will help you find leasing partners.

Of course, the decision could come down to availability. Planemakers often take orders years in advance, and contractual agreements with top airline and lessor customers often dictate delivery availability for smaller players.

Similarly, a lack of the right type of plane on the used market or from a leasing company could force you to be flexible.

It's finally time to get airborne — and now the real work begins.

You've sourced your planes, secured your regulatory approvals, hired your staff, locked down your routes, gates, and landing slots, and sold your seats. It's finally time for your first flight.

Don't think you can rest, though. Keeping an airline running — and turning it profitable — is an endless endeavor.

Staying up to speed on market shifts and regulatory changes, managing disruptions to normal service, and simply keeping things running smoothly will be plenty to keep you and your team busy.

So will dealing with your aircraft.

Planes need ongoing inspections and maintenance. Pilots need to continue refreshing their skills on actual planes and in simulators. Flight attendants need their own certifications. 

Boeing has an entire division — Boeing Global Services — which brings in billions of dollars each year offering maintenance, data analytics, supply chain resources, and other services to current and former customers. (Airbus and other companies provide similar aftermarket services for aircraft owners, too.)

You've brought your imagined airline to life, a tremendous accomplishment by itself. Keeping it going and expanding will be plenty to keep you busy.

• Main content

• Phone: 1-437-900-5706
• Email: [email protected]
• Opening Time: Mon to Sun - 09:00 AM to 05:00 PM EST

How To Start An Airline Business

An in-depth overview.

No matter what time of year or state of the world and its economy. Starting an airline is going to be a considerable investment of time, money and require a large amount of capital. Just like any other startup, you’re going to need a business plan. However unlike most startups, airlines do tend to have more moving parts and obstacles to add to the equation. Having a thorough business plan that tackles important aspects such as:

• Executive summary
• Industry and target market
• Competitive analysis
• Opportunity
• Service offering
• Marketing and distribution plan
• Operations plan
• Management team
• Risks and mitigation plan
• Financial and operating projections
• Implementation schedule
• Capitalization plan

Will only assist with maneuvering through those challenges by solidifying the right contacts, certifications and approvals for helping get your airline business into service in a reasonable amount of time. Some requirements may even be needed before properly drafting up your business plan. While some areas of certification will require proof of funds or capital. However, having these markers in place will only make going through the entire process a little bit smoother.

If despite these factors, you’re still determined to learn more about how start an airline. Then the following information will be beneficial in commencing your journey and having a chance at success along the way. With the current state the world is in right now. Starting an airline may or may not be as challenging, considering the recent changes to the travel industry and added health / safety protocols.

It should be noted that this is a very complex area of discussion. It’s an industry that goes through many changes and can be adjusted or updated almost yearly or more. The country you live in can also change how this process works, so please use this as a general guide as opposed to a rule book.

What to Know About How to Start an Airline Company

1.) airline market analysis & industry overview, 2.) understanding your operating environment, 3.) aircraft sourcing & selection, 4.) commencing operations of your airline, things to also consider, additional resources.

Although it is considered a worthy component. A business plan is only one important aspect of what you will need to prepare in order to begin the process of starting an airline. Below is a brief overview of the other important components that you will require, in order to gain approval and successfully launch your airline business.

Part of analyzing the market, is understanding what niche or consumer need that your company can fulfill. When entering into such a competitive space. You’re going to want to have your ducks in a row. Competition is going to be very fierce and unless you bring something fresh or unique to the table. You are going to have a hard time surviving against other carriers of the same size or larger.

A few questions you may want to consider asking yourself or your team are:

• Do you see a need that your airline can fulfill?
• What does the competition currently look like?
• What does your airline provide to the market that is beneficial or unique?
• What services do you plan to offer? (charter, passenger service, cargo etc.)

Another thing you may want to consider when analyzing the market is the frequency of flights at the airport you wish to operate from. If you’re a well-known or full service carrier, traveling in and out of high traffic airports may not be a problem. If you are new however, that may be an issue. It might be more effective to operate out of an airport or hub that is not as busy. Not only does this give you more opportunity to handle your operations with care and at an optimal level. It also allows you that extra interaction with your customers, which in turn helps them to get to know you better as a new carrier.

They say, an aircraft on the ground is an aircraft at a loss . Which for many startup airlines seems to be a challenge, if not thought about beforehand (or discussed in their plan). Keep in mind that no matter how many hours your aircraft is in the air. There are still many fixed costs that need to be taken care of each month. Natural disasters and world economic crisis are other challenges that have made it difficult for airlines to stay afloat. Events like 9/11 have not only increased restrictions on travel, but have also imposed new security guidelines, safety protocols and operating costs.

For more on the commercial aviation market. You can visit the links below from IATA & Boeing. These sources help detail the type of information you will want to look at before starting your business plan.

Some of the information that you can find includes analysis of:

• Commercial market outlook
• Airport, country & regional data
• Air cargo forecast (worldwide)
• Domestic passenger markets
• Demographic trends
• Finance market outlook

IATA Market Analysis Reports | Boeing Market Analysis

For a broader view of what is projected to change in the coming years within the industry. See this article on the 7 trends that will reshape the airline industry by the Boston Consulting Group.

Once you’ve had a chance to look at the market and start forming ideas as to your approach and where you might fit in. You will want to start looking into your operating environment. This includes the different standards, government & federal regulations, rights or certificates etc. that you will require in order to legally open your doors and get your aircraft into the air.

Some of these certificates and regulatory requirements include:

• Economic Authority (DOT)
• Safety Authority (FAA)
• Part 135 Air Carrier & Air Operator Certification
• Part 121 Air Carrier Certification
• Airline Operator Certificate (AOC)
• Airworthiness Certification

Some other areas to consider when looking into your operating environment include; maintenance, repair, employees, training, fuel and more.

International Traffic Rights

The Freedoms of the Air was formulated in 1944 and is an international civil aviation agreement which consists of nine freedoms. This allows permission for a particular airline to enter into a country’s airspace. ETOPS (Extended-range Twin-engine Operational Performance Standards) is another program and set of standards where you will need to gain approval. ETOPS , is essentially a certification that allows Twin-engine aircraft to travel on particular flight routes that may be further than 60 min from the closet airport / hub that can accommodate an extended diversion or emergency landing.

These are just a few examples of the rights and regulations that you will need to have in order to advance your business plan and achieve the goals you have set forth in reaching. The information above should give you an idea of the regulatory standards within the environment you are looking to get involved in. Pair that with tax laws, labor laws, regularly changing safety standards etc. And it may start to sound quite overwhelming.

However, once you gain an understanding of your operating environment. The requirements needed for that environment and how to navigate seamlessly with your team. You will then be in a position to start taking more action on the steps in your business plan, to begin operating your airline as envisioned.

Once you have come to an understanding of your business’ focus and the opportunities you would like to take advantage of. Have thoroughly analyzed your market and competition. Finished planning and scheduling your route, analyzed traffic estimates etc. It should be somewhat clear as to the size and number of aircraft you wish to operate within your airline.

If you plan to serve a small capacity of passengers or travel over a short-range. You may want to look into a light jet, medium jet or a turboprop. However, if you’re looking to serve a large capacity of passengers or travel or a long-range. You might be better off looking into an Airbus or Boeing instead.

When you have figured out how many aircraft and the type you wish to contain in your fleet (new or used). At this point, you are going to need a broker or a supplier to help research and source these aircraft for you to lease or purchase outright.

Aircraft Management

Aircraft management is essentially the control and oversight of all services that are required to operate your aircraft. In many cases you’re going to have to hire more than one full-time pilot along with maintenance staff. It is also beneficial that your pilots and maintenance are already trained to operate and service similar aircraft that you will be purchasing. In addition to the above, you’re going to have to look into hiring; flight crew, avionics technicians, airline administrative support, sales management, flight dispatch, ground airport station attendants, airline ticket agents, passenger service agent, aviation attorney and more.

Besides having to decide between a large or a small management company. Determining what style of management you are looking for, is also important. For example, aircraft management can be handled from two different approaches. Charter or turnkey.

With charter aircraft management. The management company will provide chartering services, while the operator is able to maintain aircraft operations. Essentially working closely together. On the other hand, turnkey aircraft management allows the management company full control of the aircraft available. This means that they take full control of the operational and management responsibilities.

When locating a good aircraft management company. Try not to settle for any offer, but rather look for a company that has your best interest in mind and is willing to stick with you for the long haul. *Finding a team that understands your vision and supports your company direction is even better.

For more information on the buying or leasing process, be sure to click here for a fairly detailed guide . If you’re in need of a broker or supplier to assist with finding aircraft for your airline. Don’t hesitate to give us a call or send us an email .

Starting your airline, maintaining your airline and continuing your momentum as you progress through each year. Is quite challenging and a large reason why many startups do not succeed or turn much of a profit.

Once you open your doors, there is a good chance that you will cut deeply into your initial investment and capital quite quickly in the first few months. Despite what you may have forecasted in your business plan. There is a large possibility that you will need to spend more than anticipated to reach the targets that you initially set forth.

It will also be challenging to maintain a flight schedule with a full capacity of passengers on a consistent basis. Marketing, promotion and any other legitimate means that you can think of to spread the word about your business, will be essential to the growth of your airline. If and when you’re able to build a consistent customer base. You should then be able to start seeing some return on your investment. As an airline, this should be your main focus regardless of what type of airline you choose to operate.

As mentioned previously, an aircraft on the ground is an aircraft at a loss. However there are ways that you can make a profit whilst your aircraft is on the ground. Some of these methods include cargo / freight. Although keep in mind that if you choose to move cargo, there is a higher chance it will cause more wear and tear on your aircraft as opposed to passenger transport.

For assistance and to learn more information on how to start your airline and get it up and running. We recommend taking a look at what Boeing has to offer in this area. They can not only help get you to the point of approval, but can also help educate and instil confidence in your vision and plan along the way.

If you’re familiar with Startup Boeing and are looking for additional options. Contact us and we can see who we can put you in touch with.

• Fuel costs especially for startups can be quite high. In some cases, you may be looking at fuel costs taking up anywhere from 30-50% of your overall expenses.
• Many airline operators choose to lease rather than purchase their aircraft. It’s more cost effective up front to lease five aircraft than it is to buy five aircraft. Especially when you’re just starting out. Keep in mind, just like any business. The larger your order, the larger your potential for a bigger discount. *As per Boeing, leasing represents more than 40% of in-service commercial aircraft ownership.
• Both Boeing and Airbus are seeing an increase in cancellations. Thus allowing aircraft to be sold at larger than usual discounted prices to free up their backlog.
• The owner of Ryanair believes that once air travel is able to continue as normal. There will be a price battle among the already established players. Being a new airline might be difficult if you’re trying to compete in this price battle from the get go.
• As per Business Insider, Virgin America was one of the most successful startup airlines in recent history . Virgin began their operation with a single Boeing 747 airliner in 2007. They later grew and expanded their fleet as demand started to increase. Virgin was then acquired by the Alaska Air Group (Alaska Airlines) in December of 2016 and the department of transportation (DOT) issued an operating certificate for the combined airlines in January 2018.
• As a startup, it’s important to be aware of the level of competition you will be dealing with from full service carriers. It has been demonstrated, that legacy or full service carriers will try to squeeze out smaller low-cost carriers when given the opportunity. Other tactics include but aren’t limited to; reducing available seats and increasing airfares, slot sitting etc.
• 2020 is said to be the first time since the financial crisis in 2008 that the airline industry has seen such a decline. If you’re into stocks and understand the importance of buying low and selling high. Then this is not necessarily a bad time to get involved. The bigger question is, can you still make something that can sustain itself while being profitable during this time?
• An example of an actual airline business plan from a company in London, United Kingdom from Reference for Business.
• Here is another example of a business plan from Bplans . This plan was also created by another company and cannot be re-used. Right click the page to be prompted to download the document. *If you submit your email, they will provide you with explanations on how to fill out each section at a professional level.
• IATA’s Economic Performance of the Airline Industry.

For more information on the leasing process , navigate here. Or, click here to go back to the homepage .

More From Forbes

The new airline business plan: confidence.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

1964: Actress Julie Andrews performs musical number in the movie "The Sound Of Music" directed by ... [+] Robert Wise. (Photo by Michael Ochs Archives/Getty Images)

The single largest challenge facing any airline today is how to get customers comfortable with the product again. For years, airlines competed on many different factors: price, legroom, global scope, and frequent service among them. These all still matter and will matter, but the implicit assumption before the Coronavirus was that it was ok to fly.

In our current “no gatherings” climate, an airplane is a particularly difficult place to accommodate distancing. In fact, distancing as defined by the CDC is not possible on even a partially full airplane. Having an empty middle seat might make you more comfortable but won’t change the fact that you’re still close to the person sitting across the aisle as well as those in front of and behind you.

The way that customers will start booking again for both business and leisure is for the industry to instill confidence that is again ok to fly . This will include many aspects, including clear messaging, increased cleaning, PPE such as facial coverings, hand sanitizer, and disinfecting wipes onboard, and the sensitivity and common courtesy that comes with heightened awareness of risk. Airports, too, will need to rebuild fliers’ confidence in the way they queue, retrieve baggage, and eat in the airport. Airports should be piping in Julie Andrew’s wonderful song “Confidence” from the Sound of Music too!

American Airline’s CFO stated that the “sole focus” of the company is on liquidity. If they solve that and remain afloat, but then there are still no customers, what will they do? The incoming CEO at United quoted Rudy Giuliani and others by saying that “hope is not a strategy” as he testified as to why his airline needs government support. Yet neither airline has led the way to ensure that all passengers and crew wear facial coverings (that was JetBlue) or said anything publicly about how they will work to make customers more confident about flying again. No company can have a singular focus when in a crisis, but rather must prioritize well and this includes planning, not hoping, to bring confidence back to the consumer.

• Editorial Standards
• Reprints & Permissions

• Election 2024
• Entertainment
• Newsletters
• Photography
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Delegate Tracker
• AP & Elections
• College football
• Auto Racing
• Movie reviews
• Book reviews
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

NASA decides to keep 2 astronauts in space until February, nixes return on troubled Boeing capsule

FILE - In this photo provided by NASA, Boeing Crew Flight Test astronauts Butch Wilmore, left, and Suni Williams pose for a portrait inside the vestibule between the forward port on the International Space Station’s Harmony module and Boeing’s Starliner spacecraft on June 13, 2024. (NASA via AP, File)

NASA Administrator Bill Nelson takes part in news conference as NASA decided it’s too risky to bring two astronauts back to Earth in Boeing’s troubled new capsule, at Johnson Space Center in Houston, on Saturday, Aug. 24, 2024. (NASA via AP)

In this long-exposure photo provided by NASA, Boeing’s Starliner spacecraft is docked to the Harmony module of the International Space Station on July 3, 2024. (NASA via AP)

FILE - NASA astronauts Suni Williams, left, and Butch Wilmore stand together for a photo enroute to the launch pad at Space Launch Complex 41 Wednesday, June 5, 2024, in Cape Canaveral, Fla., for their liftoff on the Boeing Starliner capsule to the international space station. (AP Photo/Chris O’Meara, File)

This photo provided by NASA shows Boeing’s Starliner spacecraft which launched astronauts Butch Wilmore and Suni Williams to the International Space Station docked to the Harmony module’s forward port on July 3, 2024, seen from a window on the SpaceX Dragon Endeavour spacecraft docked to the adjacent port. (NASA via AP)

In this photo provided by NASA, astronauts Butch Wilmore, left, and Suni Williams inspect safety hardware aboard the International Space Station on Aug. 9, 2024. (NASA via AP)

In this photo provided by NASA, Boeing’s Starliner spacecraft is docked to the Harmony module of the International Space Station on July 3, 2024, seen from a window on the SpaceX Dragon Endeavour spacecraft docked to an adjacent port. (NASA via AP)

• Copy Link copied

CAPE CANAVERAL, Fla. (AP) — NASA decided Saturday it’s too risky to bring two astronauts back to Earth in Boeing’s troubled new capsule, and they’ll have to wait until next year for a ride home with SpaceX. What should have been a weeklong test flight for the pair will now last more than eight months.

The seasoned pilots have been stuck at the International Space Station since the beginning of June. A cascade of vexing thruster failures and helium leaks in the new capsule marred their trip to the space station, and they ended up in a holding pattern as engineers conducted tests and debated what to do about the trip back.

After almost three months, the decision finally came down from NASA’s highest ranks on Saturday. Butch Wilmore and Suni Williams will come back in a SpaceX spacecraft in February. Their empty Starliner capsule will undock in early September and attempt to return on autopilot and touch down in the New Mexico desert.

As Starliner’s test pilots, the pair should have overseen this critical last leg of the journey.

“A test flight by nature is neither safe nor routine,” said NASA Administrator Bill Nelson. “And so the decision ... is a commitment to safety.”

“This has not been an easy decision, but it is absolutely the right one,” added Jim Free, NASA’s associate administrator.

It was a blow to Boeing, adding to the safety concerns plaguing the company on its airplane side. Boeing had counted on Starliner’s first crew trip to revive the troubled program after years of delays and ballooning costs. The company had insisted Starliner was safe based on all the recent thruster tests both in space and on the ground.

Boeing did not participate in Saturday’s news conference by NASA but released a statement: “Boeing continues to focus, first and foremost, on the safety of the crew and spacecraft. We are executing the mission as determined by NASA, and we are preparing the spacecraft for a safe and successful uncrewed return.”

Rand Corp.’s Jan Osburg, a senior engineer who specializes in aerospace and defense, said NASA made the right choice “but the U.S. is still left with egg on its face due to the Starliner design issues that should have been caught earlier.”

Wilmore, 61, and Williams, 58, are both retired Navy captains with previous long-duration spaceflight experience. Before their June 5 launch from Cape Canaveral, Florida, Wilmore and Williams said their families bought into the uncertainty and stress of their professional careers decades ago.

During their lone orbital news conference last month, they said they had trust in the thruster testing being conducted. They had no complaints, they added, and enjoyed pitching in with space station work.

Wilmore’s wife, Deanna, was equally stoic in an interview earlier this month with WVLT-TV in Knoxville, Tennessee, their home state. She was already bracing for a delay: “You just sort of have to roll with it.”

NASA’s Norm Knight said he talked to the astronauts Saturday and they fully support the decision to postpone their return.

There were few options.

The SpaceX capsule currently parked at the space station is reserved for the four residents who have been there since March. They will return in late September, their stay extended a month by the Starliner dilemma. NASA said it would be unsafe to squeeze two more into the capsule, except in an emergency.

The docked Russian Soyuz capsule is even tighter, capable of flying only three — two of them Russians wrapping up a yearlong stint.

So Wilmore and Williams will wait for SpaceX’s next taxi flight. It’s due to launch in late September with two astronauts instead of the usual four for a routine six-month stay. NASA yanked two to make room for Wilmore and Williams on the return flight in late February.

NASA said no serious consideration was given to asking SpaceX for a quick stand-alone rescue. Last year, the Russian Space Agency had to rush up a replacement Soyuz capsule for three men whose original craft was damaged by space junk. The switch pushed their mission beyond a year, a U.S. space endurance record still held by Frank Rubio.

Starliner’s woes began long before its latest flight.

Bad software fouled the first test flight without a crew in 2019, prompting a do-over in 2022. Then parachute and other issues cropped up, including a helium leak in the capsule’s propellant system that nixed a launch attempt in May. The leak eventually was deemed to be isolated and small enough to pose no concern. But more leaks sprouted following liftoff, and five thrusters also failed.

All but one of those small thrusters restarted in flight. But engineers remain perplexed as to why some thruster seals appear to swell, obstructing the propellant lines, then revert to their normal size — conditions which showed up during recent ground testing.

These 28 thrusters are vital. Besides needed for space station rendezvous, they keep the capsule pointed in the right direction at flight’s end as bigger engines steer the craft out of orbit. Coming in crooked could result in catastrophe.

With the Columbia disaster still fresh in many minds — the shuttle broke apart during reentry in 2003, killing all seven aboard — NASA embraced open debate over Starliner’s return capability. Dissenting views were stifled during Columbia’s doomed flight, just as they were during Challenger’s in 1986.

In the end, “There was just too much risk for the crew,” said commercial crew program manager Steve Stich.

Despite Saturday’s decision, NASA isn’t giving up on Boeing. Nelson said he is “100%” certain that Starliner will fly again.

NASA went into its commercial crew program a decade ago wanting two competing U.S. companies ferrying astronauts in the post-shuttle era. Boeing won the bigger contract: more than $4 billion, compared with SpaceX’s $2.6 billion.

With station supply runs already under its belt, SpaceX aced its first of now nine astronaut flights in 2020, while Boeing got bogged down in design flaws that set the company back more than $1 billion. NASA officials still hold out hope that Starliner’s problems can be corrected in time for another crew flight in another year or so.

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

Simple Flying

How to start an airline: part 3 - finances.

Your changes have been saved

Email is sent

Email has already been sent

Please verify your email address.

You’ve reached your account maximum for followed topics.

4 Routes: Examining Finnair's US Network This September

Explained: why you can't board a flight after the gate closes, 5 reasons the boeing 777x needed to have folding wingtips, developing a business plan, planning & infrastructure.

So far in this series, we have looked at business plans, and you will have now decided what you want your airline to look like, where it will fly, and what sort of aircraft you might choose. But none of that can happen without addressing the most crucial topic of all. The one key issue that will determine whether your airline ever gets airborne at all. That subject is finance.

Money, money, money

Starting an airline is an expensive business. If you contemplate such a proposition, you will need money - and lots of it. Everything you will think about, require and plan for will need financing, and the list of everything that requires such financing is never-ending.

When starting an airline, the one item that will determine whether your airline makes it to launch day, without doubt, will be how well-financed your business plan is. A suitable warning to all when it comes to starting and financing an airline is an old joke within aviation circles that may well give any budding airline entrepreneur something to think about -

• Question - "How do you become a millionaire who owns an airline?"
• Answer - "Become a billionaire first and then start one."

However lighthearted this joke may appear, there is more truth behind its sentiment than you might first imagine. Treat this as your first warning regarding what you are getting into, as this scenario has repeatedly been seen to be accurate in the airline industry over many decades.

Initial costs

As soon as you begin working on planning your airline, you'll be running up costs . Like a taxi cab, the meter will be running as soon as you open the door and hop inside. Before you even hail that taxi, you need to ensure that your project is well funded from the outset. If it isn't, you will run out of cash before realizing that you are running short.

You will incur costs from the very start. Whether for paperclips or phone calls, the costs are immediate even before considering sourcing funding for aircraft acquisition, signing contracts for airport handling, or purchasing jet fuel . You will need ample capital reserves to cover your initial outlay costs before any 'big ticket' items come up on your shopping list.

The amount of startup capital is often underestimated when starting an airline. If you scratch beneath the surface of history, you'll find hundreds of paper airlines that never saw the light of day; airline plans that sunk beneath the waves before even approaching the point where they might actually have something that will take to the air carrying passengers or freight.

When planning your airline's startup, the adage of 'planning for the worst and hoping for the best' will serve you well. Accumulate as much cash as you can muster in the very early stages. History has shown that when it comes to starting an airline, however much money you have (or even plan to have), it probably won't be enough.

Raising finance

You will most likely consider two main finance streams to raise funding for your airline venture. The first is to raise share capital, and the second is to seek investment from institutional investors. Without delving too deeply into academic financial theory, these options involve third parties providing you with money but expecting something back in return.

Firstly, you could consider selling shares in your airline company. This will involve a considerable amount of work on your part, pitching your business plan to anyone who'll listen. This may be friends, family, or other acquaintances, but it could go all the way up to floating your airline company on the stock exchange of your chosen country.

Shareholders will buy shares in your company, that money providing funding for the costs of running your business. Stock exchanges worldwide allow smaller or startup companies to float their shares to those wishing to buy into the company. In London, for example, the Alternative Investment Market (AIM) is the vehicle that provides such a platform.

The new Icelandic airline, PLAY, listed its shares via what is known in the financial world as an 'Initial Public Offering' (IPO) on the NASDAQ First North Growth Market. Interestingly, the Reykjavik-based airline flew a special flight at 12,000ft over the glaciers and lava fields of the Icelandic Highlands to ring the famous New York stock market trading bell when the shares went on sale on July 9th, 2021. Given the interest that the airline and its directors had already generated up until that point, demand for PLAY's initial offering of shares was oversubscribed eight times over.

Shareholders will hope that their shares rise in value (appreciate) as your airline becomes successful. That way, when they decide to sell their stakes in the future, they make an instant return on their initial investment.

Shareholders will also be hoping that the airline is profitable enough to reward its shareholders with an annual bonus called a 'dividend'. Paying dividends keeps shareholders happy and more likely to retain their existing shareholding or perhaps even add to it.

The second method of funding is to approach institutional investors. These may be banks, investment houses, and other financial institutions that might be attracted to your business model. If they can be brought onboard, they might become investors in your airline business, providing much-needed startup capital in the initial stages.

You might even be fortunate to come across a serial entrepreneur who may like the concept of your airline and be willing to invest as part of their investment portfolio. However, such occurrences are rare, particularly within the airline industry, which is considered high risk.

In return, investors may require guarantees that they will get their investment back after a fixed period, a share of the profits made during that time, require a percentage of the business itself, or even may go so far as to insist on one of their senior members of staff to sit on the board of directors of your airline, retaining a degree of control from within. None of these are uncommon, and all will require you to provide something back.

The idea of someone else providing you with the financing you need to start your business may sound attractive, but it always comes at a cost. The chances of someone willing to invest in your airline without requiring some form of return are almost zero, if not actually so.

To attract investors of any kind, you will need your airline business plan to be as robust and watertight as possible. You must know it inside out so that when pitching it to potential investors, you know the contents of your plan inside and out and will be able to answer questions on it that even you might not have thought of. Being prepared is essential. No one will invest in your business if you or your plan are not 100% credible, attractive, and can offer something in return.

Should you successfully obtain an injection of capital into your prospective airline, you can move on to the following stages of development . Without it, however, you may find yourself on a fast track to losing a lot of money extremely quickly. Getting this part right now may mean that your airline succeeds to its first flight. Conversely, you may run out of money even before setting eyes on your airline's first aircraft.

You never stop incurring costs

As mentioned above, running an airline is extremely expensive. Before you witness your first flight being welcomed with by water cannot salute , or you are being presented with a cake for inaugurating your first route, there will be untold costs incurred - and these will be the ones you have planned for.

You will need staff to assist in activating your plan, and they will require wages. You are likely to need office space (which will need to be acquired through either lease or purchase) and administrative resources. You will need IT and telecommunications equipment and network connectivity - the list is endless. The business will incur other costs to get off its feet, too - travel costs when visiting prospective investors, entertaining costs as you hope to hook those investors to part with their money, etc.

No such thing as a free lunch

If your early planning is successful and you succeed to the point where you can start to consider the more exciting parts of your plan, the costs escalate in a similar trajectory. As a startup, you will be perceived to be a high-risk bet. Any of your suppliers or stakeholders will likely require additional security in any transaction they enter into with your airline.

If you intend to lease your first aircraft, lessors will likely charge a higher monthly lease rate to protect their assets and may also require a security deposit should you forfeit on lease payments. They will, of course, also retain the right to recover their aircraft should you fail to keep up with the payments under the terms of the lease agreement, potentially leaving you without an airplane to honor your passenger or freight bookings.

Suppose you are fortunate enough to have adequate capital where you can consider purchasing new aircraft outright. The airliner manufacturers will require hefty deposits to allocate production line slots to your airline. As a startup, you are also less likely to have the necessary bargaining clout to negotiate discounts with the leading manufacturers against their published list prices than other larger airlines with a proven track record.

Any of your other suppliers, whether this is fuel companies, airport handling agencies, airport authorities, or any other entity you will sign contracts with to supply your airline, may well expect deposits, very short repayment terms, and other guarantees before they sign any agreement with you. Remember, these are all costs that are being incurred and eroding your capital reserves even before you have flown your first revenue passenger or carried your first kilogram of freight.

The struggle with revenues versus costs

Even if (and that is a very big 'if') you are successful in starting to run your airline, you must never take your eye off the financial position of your company. You will presumably be running your airline to be profitable and make money. Any reserves of cash you can build up will help your airline survive if costs increase (such as fuel).

The key to running any business whose whole ethos is to be profitable will be to manage revenues (the money the business earns) while keeping costs (the money the airline pays out) as low as possible. The difference between these two amounts, in simple terms, will be your profit. But even out of your profit, you will need to pay tax, dividends to your shareholders and retain some in reserve for unexpected events.

You may wish to expand in the future, and that will be where your cash reserves come in. Although most airline costs are incurred in the startup and initial phases, adding additional aircraft, crew, bases, and all the other items required for expansion all come at a further cost to the business. And while your ability to borrow additional funding may become more accessible and less expensive as you grow, it is always worth remembering that the next major global event could be just around the next corner.

Unforeseen events can change everything

Such catastrophic events have been witnessed repeatedly in recent decades; events that have decimated the airline industry. Events such as the oil crises of the 1970s, September 11th, 2001 , the COVID-19 pandemic, global recessions, and now the invasion of Ukraine were all largely unpredictable just a few months before they happened. Yet, they have all had profound impacts on the global airline industry. Having enough in the bank to weather such storms will help your airline survive and bounce back once the worst is over.

The growth of your airline will almost certainly become an obsession. Starting an airline can be an adrenalin-fuelled journey that can induce an insatiable demand for bigger and better things. Yet many airlines have fallen foul of attempting to be too big, too quickly, and have failed as a result. Again, peruse the list of airline failures over the past few decades, and time and time again, you'll be able to pick out airlines that wanted too much, too quickly.

An example of this is Kingfisher Airlines which operated domestic and international services from India from 2005 until 2012. The airline expanded too quickly, swiftly ran out of money, and lost its acclaimed owner and Indian brewing magnate Vijay Mallya much of his personal fortune along the way (in line with the joke at the start of this article).

Financial security is everything

Without adequate financing even before your start, you are setting yourself and your airline up to fail. And while many will see watching the purse strings of your business like a hawk as a rather tedious and time-consuming affair, not doing so is likely to consign your airline to failure.

Everything and we do mean everything in the airline business costs money. From a simple air sickness bag to a drop of fuel, and from the smallest screw inside one of the engines to a whole new repaint of your aircraft, it all costs money and probably way more than expected.

Running an airline can be exciting and can bring you great rewards. Yet doing so is most certainly not for the faint-hearted. Don't go into business and start your own airline expecting to get rich quickly. As almost anyone who has done so would attest to, even the most dedicated airline entrepreneur will invest far more time, energy, passion, and of course, money than they will ever take out.

In the next part of this series, we shall be taking a look at what you will need to start your new airline, from offices to cabin crew uniforms, and from key personnel to paperclips. Starting an airline involves writing possibly the most expensive shopping lists you can imagine. See you next time for 'How To Start An Airline: Part 4 - Planning and Infrastructure'.

How To Start An Airline: The Complete Series

• Israel-Gaza War
• War in Ukraine
• US Election
• US & Canada
• UK Politics
• N. Ireland Politics
• Scotland Politics
• Wales Politics
• Latin America
• Middle East
• In Pictures
• Executive Lounge
• Technology of Business
• Women at the Helm
• Future of Business
• Science & Health
• Artificial Intelligence
• AI v the Mind
• Film & TV
• Art & Design
• Entertainment News
• Destinations
• Australia and Pacific
• Caribbean & Bermuda
• Central America
• North America
• South America
• World’s Table
• Culture & Experiences
• The SpeciaList
• Natural Wonders
• Weather & Science
• Climate Solutions
• Sustainable Business
• Green Living

Starbucks new boss under fire for 1,000-mile commute

The newly-announced boss of Starbucks, Brian Niccol, has come under fire after it was revealed he will commute almost 1,000 miles (1,600km) from his family home in Newport Beach, California, to the firm's headquarters in Seattle on a corporate jet.

Critics have noted what they see as a discrepancy between the company's public stance on green issues and the lifestyles of its top executives.

Mr Niccol is due to take up the role at the helm of the world's biggest coffee shop chain on 9 September.

A Starbucks spokesperson told the BBC Mr Niccol will have a primary office in Seattle where he will spend most of his time when he is not "visiting partners and customers" around the world.

Mr Niccol's job offer did say he would "not be required to relocate to the company’s headquarters", but added: "You agree to commute from your residence to the company’s headquarters... as is required to perform your duties and responsibilities".

The document states that he will be eligible to use the company's aircraft for "business related travel" and for "travel between [his] city of residence and the company's headquarters".

Starbucks also said it will set up a small remote office in Newport Beach for Mr Niccol to use when working from California.

Starbucks has a hybrid work policy that means employees have to be in the office at least three days a week.

“Brian’s schedule will exceed the hybrid work guidelines and workplace expectations we have for all partners," a Starbucks spokesperson said.

The coffee shop chain added that Mr Niccol will buy a home in Seattle and was not expected to travel back and forth daily.

Dan Coatsworth, an investment analyst at AJ Bell, told the BBC Mr Niccol "on paper" was being given the "same hybrid working terms as other office-based employees, as one might expect".

"However, what leaves a sour taste is the idea he can use a private jet to nip 1,000 miles between California and Seattle," he added.

Mr Coatsworth said while using a private jet was not only bad for the environment and would send a bad message to customers and staff, it was also "ultimately not a practical way to run a $105bn business with an estimated 400,000 employees".

"A leader needs to be at the heart of a business, not sitting on the beach enjoying the perks of the job," he said.

"The fact Brian Niccol was drafted in to give a new lease of life to Starbucks implies he has a big challenge ahead. This isn’t taking the reins of a business firing on all cylinders; it’s a repair job which means being in the engine room at all times."

The topic of where people work from has been debated in recent years, with companies in many industries wrestling with whether to allow the remote work practices that exploded during the coronavirus pandemic to continue.

Andrew Speke, a spokesperson for High Pay Centre, a think tank which tracks executives' pay, said it was important for business leaders that "employees can see that it’s not one rule for them and one rule for their bosses".

'One rule for them, one rule for us'

The terms of his employment also sparked a backlash on social media.

"That's nice... good convenience for top talent! But hope we don't see too many new 'sustainability' and 'environment' related ads from @starbucks? *Wink*," said one X user.

"The new Starbucks CEO is 'supercommuting' 1,000 miles to Seattle on a private jet to work, so don’t be too harsh on that waitress who gave you a plastic straw when you didn’t want one," said another .

Some sectors, such as banking, signalled early on that they would expect staff to return to the office full-time, while others, often in the tech industry, have said they will allow remote work indefinitely. Many places have opted for a mix.

Others focused on how much Mr Niccol is set to get paid in his new job.

"How come we never talk about CEO pay when we talk about rising prices?" former US Secretary of Labor Robert Reich posted .

According to the terms of his offer, Mr Niccol's annual base pay will be $1.6m (£1.2m). On top of that he could get a performance-related bonus of as much as $7.2m and up to $23m a year of Starbucks shares.

Starbucks defended the plan, saying that Mr Niccol was "one of the most effective leaders in our industry" and that his compensation was "tied directly to the company’s performance and the shared success of all our stakeholders".

A report published by the United Nations in 2021 showed that the world's wealthiest 1% of people produced double the combined carbon emissions of the poorest 50%.

Starbucks announced this month that Mr Niccol would be replacing Laxman Narasimhan as its chief executive.

The announcement came as the coffee chain looks to boost flagging sales.

Mr Niccol had led the Mexican fast food chain Chipotle since 2018, helping it to recover from a crisis after outbreaks of food poisoning.

During his time in the role the firm's sales doubled and its shares surged from less than $7 each to more than $50.

Chipotle also opened almost 1,000 new stores and new technologies were introduced to automate food preparation.

In recent months, it has been seen as a bright spot in the restaurant industry, where many businesses have reported that customers are cutting spending.

• Share full article

Advertisement

Supported by

Practice Flights and Calm Spaces: Making Room for Neurodivergent Travelers

Airlines, hotels, theme parks and others are working to ease the challenges of travel for people with autism, A.D.H.D and other “invisible disabilities.”

By Derek M. Norman Christine Chung and Christopher Kuo

After decades of caring for his autistic son, Ryan, Adam Murphy, a 51-year-old father of three from Gloucestershire, England, noticed that Ryan, 27, was becoming a bit more open to trying new things. His son, Mr. Murphy realized, might be able to take his first airplane ride.

But traveling would not be without difficulties.

“Going to our local supermarket could be a challenge,” said Mr. Murphy. “So how do you do that?”

Travel, by nature, brings with it changes in routine and environment, unpredictable situations, and oftentimes, sensory overload — all of which can be overwhelming to neurodivergent children and adults, which can include those diagnosed with disorders including attention deficit hyperactivity disorder, obsessive compulsive disorder and autism.

Some 78 percent of families with autistic members, as well as people who are themselves autistic, said they were hesitant to travel in a 2022 survey by the International Board of Credentialing and Continuing Education Standards , an organization that trains and certifies travel professionals to assist families and individuals with special needs. But 94 percent of those surveyed said they would travel more if they had access to options that are certified to recognize and understand the needs of people with autism.

Those options are increasing. In recent years, the travel industry has worked to become more inclusive of neurodivergent travelers, with airports offering sensory rooms and trained staff, hotels and resorts changing booking processes and accommodating those with special needs, and destinations becoming certified, by autism specialists specifically, to serve autistic visitors.

But travelers and families still need to choose itineraries that fit their needs, factoring in details like flights, hotel menus and floor plans, noise and crowds, and proximity to activities.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .