November 9, 2003 at 7:40 pm
As the Acting CEO of National Air Systems i can say that the airline is going through some turbulence. It all started when Steve Doughty, Manager for leases at BAE Systems canceled me and the FMT’s visit to BAE Systems plant at Woodford, Manchester. He then contacted me personally and said that the BAE-146-300 we wanted had another higher bid for it and it is one of the last avaliable. This may result to crisis. We want 100-seater aircraft which are turbojet and able to fly using short runways and preserve more than 1,000 miles of range. Only the BAE fleet provided us with all our requirements. If we offer a higher lease then the plane will be more expensive to operate and fares will have to go up. (but i plan to add a additional FAE-LGW-FAE flight and operate FAE-ABZ or FAE-GLA on a seasional basis in-order to make the additional profit.) To make matters worse, Maresk Air wants 3% more of the stake it owns in the airline. We could take another route and partner with Atlantic Airways, but this would mean they would loose out (since they serve some of our routes at much higher rates). Our plan to buy the A318 by 2005 may be in doubt due to the Danish Goverment refusing to give funds towards the 4,000 foot runway at FAE’s extension to around 5,300. The leader of the Fleet Managment Team want to set up a base at KEF by 2007, opening up transatlantic routes at low-cost fares with a A342. The plane will be set out in an-all economy lay-out and already, we are in talks with both Icelandic, US/UK and the IFLC for the aircraft with options for two more. Although we want to serve LGW-FAE-KEF-JFK (LGW-FAE is with a BAE-146) we also want to serve the tourist market and we may be able to fly Keflavik-Bermuda-New York. The stop in Bermuda will be for about an hour turn around time, so whilst picking up the Tourist slack we will have the annoyed buissnessmen on board. The KEF-Bermuda-JFK route will also be very good for cargo. The Marketing MD Anna Jamieson has suggested prices on LGW-FAE-KEF-Bermuda-JFK-Bermuda-KEF-FAE-LGW (so Gatwick to New York via Faereoes, Keflavik and Bermuda at around $314-99 including taxes while KEF-Bermuda-JFK-Bermuda-KEF will cost around $205-00.
We will make the profit by using maximum capacity on the plane and limited frills on-board (No dinner).
This is the A342 that we wish to have by 2007.
(The flagship which features special paint scheme)

Another option was Maresk to order us a 717 from Boeing

BAE Systems wanted us to buy an ATP

We want an 318 by 2005

But this is the one we planned it for, the 143

I hope we dont have to cost cut as early as a year into operation as Maresk Air want us too. I dont want this airline in the red already.