That Question Again

Having done this in anger, I can assure you that you can forget going down the bank route. Banks don’t lend vast sums to start ups, especially in the current climate, so you’ll need large equity based investors, or a pre-launch IPO.

Right now it is an excellent time to do this, provided you can convince your backers that it is an excellent time!

FYI – tenthije’s order of things is all over the place. You won’t even get to know how much money the authority will need you to have in place (before they grant you a licence) until you prepare a business plan that shows, over a two year period, how you intend to run the airline. You’ll have to show proof of lease costs, fuel costs, salary estimates, passenger forecasts, yield forecasts, fuel burn and route charges – and and and and and….

And after you have completed your plan, the CAA will take a very hard and objective look and tell you how much money they will want to see in your bank – and I have never seen them put your estimate down! Remember, their cash requirement, based on their assumptions not yours, will be drawn on the basis of looking at the lowest cash position on your forecast, and making that equivalent to roughly three months worth of costs, assuming no revenue… so not a small amount!

I would propose the following:

1. Work out your USPs;
2. Produce a two year plan, with cash flows, P&L and balance sheet projections;
3. Gather all the proof (not supposition) you can about your plan;
4. Get all your postholders in place (and pay them), making sure that they are all acceptable to the CAA, then apply for your AOC;
5. Start producing your manuals for CAA approval;
6. Apply for your operating licence (another cheque, btw);
7. Work with the CAA to reach a concensus about your cash needs;
8. In the meantime, set up your reservation systems, ground and airport contracts, fuel contracts, payment engines, aircraft leases, emergency comms plan, base and line maintenance providers, quality systems, safety management systems, and talk nicely to IATA in Canada about getting your two letter code;
9. Go and raise the money that the CAA tell you you need, and get your forex and fuel hedging policies in place;
10. Pay your deposit to the credit card companies, so they will give you your merchant numbers;
11. Build your website, and test it. Then test it again, and again, and again – stress test it, security test it etc etc;
12. Sign agreements with all your ancillary revenue providers; car hire, hotels, insurance; dynamic currency converters, car parking, lounges etc etc;
13. Design and purchase uniforms and a corporate identity;
14. Develop all your flight and cabin crew training programmes, and start recruiting your team;
15. Recruit your marketing, commercial, and revenue management/protection teams;
16. Get engineering reviews on your new fleet, and get the leases signed;
17. Get asked by the CAA to test fly – do that successfully and then get your AOC issued;
18. Get your operating licence issued;
19. Start your marketing and PR efforts, and go on sale;
20. Do something else for three months whilst you presell your flights – do some ACMI for someone else, or some charters;
21. Get your magazine produced;
22. Get your caterers signed up;
23. First flight….. and then the hard work starts….

Still want to do it?

TA

Edited

7) Turn around to those who helped you and basically look down on them.

I think what you meant to say here was ‘Turn around to those who criticised/doubted/judged/sniggered and generally poked-fun at you and basically look down on them.’…certainly not the people who helped you!:confused:

Best piece of advice I can give you is trust no one. Don’t hang your entire plan on one single investor. I know someone who did and it ended his plans rather abruptly when the investor pulled out.

Second bit of advice… if you get anywhere close to actually going ahead with it, don’t post about it on here or any other forum. There are very cynical and jealous people out there who will do their utmost to stop you. I’ve seen it happen. It isn’t pretty.

Thanks, I’ll keep that in mind..

6) Fly Make millions and become powerfull
7) Turn around to those who helped you and basically look down on them.

Hmmmmmm… :rolleyes:

Paul

Well these are the basics, I would imagine it could possible take upto a year before you have eventually deicded to operate the aircraft

1) Make sure you have a good few million in the bank (£5 and above is good below well in this day and age not soo good)
2) Decide your ‘home’ aiprort
3) Decide your first few routes
4) Employ staff ranging from the trolly dollies to your Sales and Marketing Team
5) Decide an aircraft and how your going to config your plane, and the type of service you will have onboard
6) Fly Make millions and become powerfull
7) Turn around to those who doubted you and basically look down on them.

That is well the basics to starting up your airline.

[*]Assuming you got the money, and the planes, you will need to decide on a route (-network). So now you will have to get in contact with airports and (if international) more aviation autorities.

And before this stage you will need to do some route/market proving studies to be sure where people/cargo in your market area actually want to go to/from.

Hey,

I’m assuming this question has been asked countless times, but I’d really appreciate all the details I can get from anyone who knows about it. My question is how does one go about starting their own airline? What’s involved exactly? Answers are very much appreciated, thanks

Best piece of advice I can give you is trust no one. Don’t hang your entire plan on one single investor. I know someone who did and it ended his plans rather abruptly when the investor pulled out.

Second bit of advice… if you get anywhere close to actually going ahead with it, don’t post about it on here or any other forum. There are very cynical and jealous people out there who will do their utmost to stop you. I’ve seen it happen. It isn’t pretty.

Why did the webmaster decide this topic was to sensative anyway? This particular airline is (was) far from the only one to have heated discussions.

because the comments got very personal and libellous. Or so I imagine.

I think the first thing you do is become the owner of several Arabian oil fields…;)

Or if your not that lucky rely on a very rich relative or a good freind which favorites you and gives you all there inheritance. :p;)

wrong time to even think about how to open an airline. 😎

Not necessarily.

If you have the capital to hold you can negotiate cheaper deals on everything.

Large companies always use slow downs to expand ready for the turn around.

wrong time to even think about how to open an airline. 😎

Let me be the first to get this back onto subject. From top of my mind below are some of the agencies and businesses you will need to contact. Obviously since I never started an airline I am no doubt leaving out more then a few companies.

• Request permission from the national aviation autority.
• Obtain money from bank (I’ll assume here you don’t happen to have a few million behind the couch)
• Decide which plane to use. This can be done with the assistance of a leasing company should you find it hard to choose. Alternatively, make up your own mind and buy a plane from a manufacturer. You will need to be well funded for Airbus, Boeing etc to even answer your voicemail.
• Assuming you got the money, and the planes, you will need to decide on a route (-network). So now you will have to get in contact with airports and (if international) more aviation autorities.
• Get a contract with ground handling, kerosene companies, caterers (should you wish to offer beverages on board, even if for sale), maintenance company (latter possibly via leasing company).
• Get yourself a load of personnel. Pilots, F/As, office people, depending on your ambitions a maintenance crew capable of handling at least line maintenance all the way up to mayor overhauls.
• These people will need to be equiped with tools. Small stuff will have to be bought. Big stuff (tow trucks, specialist maintenance equipment) might be available for rent.
• Get your business plan approved by the aviation autorities as well as chamber of commerce.
• Get yourself a PR company to design your livery, advertising strategy etc.
• Set yourself up with the mandatory website offering online bookings etc. You’ll have to get a contract with Amadeus or similar booking engines.

Thank you for that, very informative indeed. I read somewhere (can’t remember where) that there’s a way to get planes free somehow(no seriously). Really wish I could remember where I read that..

On another note, I was browsing a site earlier on, and was very pleasantly surprised at how cheap you can obtain a second-hand plane

Hey,

I’m assuming this question has been asked countless times, but I’d really appreciate all the details I can get from anyone who knows about it. My question is how does one go about starting their own airline? What’s involved exactly? Answers are very much appreciated, thanks

Let me be the first to get this back onto subject. From top of my mind below are some of the agencies and businesses you will need to contact. Obviously since I never started an airline I am no doubt leaving out more then a few companies.

Moderator Message

Chaps.

The subject of AlphaOne and it’s founder is off-topic for this forum. This is not up for discussion.

Anyone who feels strongly about this is perfectly welcome to contact the Webmaster and make their feelings known to him.

Can we return to the original subject of the thread now, please?

GA

Thank you all for your… helpful….. answers…

Why did the webmaster decide this topic was to sensative anyway? This particular airline is (was) far from the only one to have heated discussions.

Lance.

Not pushed, just explored…..

Regards,

kev35

So it was ok to mention the rise and fall of AlphaOne all along then? I did get the name right didn’t I? AlphaOne?

Regards,

kev35

The flashbacks! They’ve started again………..! 😮

You may consider the envelope to be adequately pushed, Kev.

No more, thank you.

GA

So it was ok to mention the rise and fall of AlphaOne all along then? I did get the name right didn’t I? AlphaOne?

Regards,

kev35