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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.

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• Fill in the blanks – Outline
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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:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Airline services:.

Highlight the airline services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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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:

Business Description:

Describe your business in this section by providing all the basic information:

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.

Mission Statement:

Business history:.

If you’re an established airline service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

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.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

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:

Describe your services:

Mention the airline services your business will offer. This list may include services like,

• Passenger flight
• Baggage handling
• In-flight services
• Seating options
• Loyalty programs
• Special assistance

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

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:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and your unique services. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

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:

Operational process:, equipment & software:.

Include the list of equipment and software required for the airline, such as aircraft, baggage handling systems, flight operations systems, revenue management systems, 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:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

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:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

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 .

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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

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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!

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Airline Business Plan FAQs

What is the easiest way to complete my airline business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Airline Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of airline you are operating and the status; for example, are you a startup, do you have an airline that you would like to grow, or are you operating a chain of airlines?

Other Helpful Business Plan Articles & Templates

How to Start an Airline: A Guide for Entrepreneurs

How to Start an Airline

The aviation industry is a major contributor to the global economy, generating trillions of dollars in revenue and supporting millions of jobs. For entrepreneurs with a passion for flying, starting an airline can be a dream come true. However, it’s important to be aware of the challenges involved before you take the plunge.

In this article, we’ll provide a comprehensive overview of the process of starting an airline, from securing funding to obtaining regulatory approval. We’ll also discuss the key factors to consider when choosing a business model and aircraft type.

So if you’re thinking about starting your own airline, read on for all the information you need to get started.

Starting an airline is a major undertaking that requires a significant amount of capital, expertise, and planning. However, it can also be a very rewarding venture that can provide you with the opportunity to make a real difference in the world.

This guide will provide you with the information you need to start your own airline, from researching the industry to creating a business plan. We’ll also cover the legal and financial aspects of starting an airline, as well as the challenges you’re likely to face along the way.

If you’re passionate about aviation and have a dream of starting your own airline, this guide is for you.

Research the Industry

The first step to starting an airline is to research the industry. This will help you understand the challenges and opportunities that you’re likely to face, as well as the current market trends.

Here are some things you should research:

• The history of the airline industry
• The current market trends
• The competition
• The target market for your airline

Learn about the history of the airline industry

The airline industry has a long and fascinating history. It began in the early 1900s with the first commercial flights. These flights were very short and expensive, and only a few people could afford to travel by air.

Over the years, the airline industry has grown and evolved. Today, there are thousands of airlines operating all over the world, and air travel is more affordable than ever before.

Learning about the history of the airline industry will help you understand the challenges and opportunities that you’re likely to face. It will also give you a better understanding of the current market trends.

Identify the current market trends

The airline industry is constantly changing. New technologies are emerging, new routes are being developed, and the competition is fierce.

It’s important to stay up-to-date on the latest market trends so that you can adapt your business accordingly. Here are some of the key trends to watch:

• The growth of low-cost carriers
• The increasing demand for air travel
• The development of new technologies
• The growth of the global economy

By understanding the current market trends, you can make informed decisions about your airline’s strategy and operations.

Analyze the competition

There are many different airlines operating in the world today. Each airline has its own unique strengths and weaknesses.

It’s important to analyze the competition so that you can understand their strengths and weaknesses, and identify opportunities to compete with them. Here are some things to consider when analyzing the competition:

• Their market share
• Their financial strength
• Their product offerings
• Their customer service

By understanding the competition, you can develop a strategy to compete with them and win market share.

Determine the target market for your airline

The target market for your airline is the group of people who you’re most likely to sell your tickets to.

It’s important to define your target market carefully so that you can develop a marketing plan that appeals to their needs and interests. Here are some things to consider when defining your target market:

• Their income
• Their location
• Their lifestyle
• Their interests

By defining your target market, you can develop a marketing plan that will help you reach your customers and sell your tickets.

Create a Business Plan

Once you’ve researched the industry and analyzed the competition, you’re ready to create a business plan.

A business plan is a document that outlines your business goals and objectives, as well as the strategies you’ll use to achieve them. It’s an essential tool for any entrepreneur who wants to start a business.

Here are some of the key components of a business plan for an airline:

• Executive summary
• Mission statement
• Vision statement
• Products and services
• Marketing plan
• Financial plan
• Legal structure
• Management team

A well-written business plan will help you raise capital, attract investors, and get your airline off the ground.

Define your business goals and objectives

The first step in creating a business plan is to define your business goals and objectives. What do you want your airline to achieve? What kind of impact do you want to have on the world?

Your goals and objectives should be specific, measurable, achievable, relevant, and time-bound. For example, you might set a goal to increase your market share by 10% in the next year, or to launch a new

3. Get the Financing You Need

Starting an airline is a capital-intensive business. The cost of purchasing aircraft, developing a route network, and marketing your airline to potential customers can be significant. As a result, it is important to secure the necessary financing before you launch your airline.

There are a number of potential sources of financing for airlines, including:

• Government loans and grants . Governments often offer loans and grants to airlines in an effort to promote economic development. These loans and grants can be a valuable source of financing for airlines, but they often come with strings attached. For example, the government may require the airline to provide certain services to underserved communities or to hire a certain number of local workers.
• Private equity . Private equity firms are often willing to invest in airlines that have the potential for high growth. However, private equity firms typically require a high return on their investment, which can put a strain on the airline’s finances.
• Venture capital . Venture capital firms invest in early-stage companies that have the potential for high growth. Venture capital can be a good source of financing for airlines that are just starting out, but it is important to note that venture capital firms typically take a significant equity stake in the company.
• Debt financing . Airlines can also finance their operations through debt financing. Debt financing can be a good option for airlines that have a strong track record of profitability. However, it is important to note that debt financing can increase the airline’s financial risk.

When considering different sources of financing, it is important to weigh the benefits and risks of each option. The best source of financing for your airline will depend on your specific circumstances.

3.1 Identify Potential Sources of Financing

The first step in securing financing for your airline is to identify potential sources of financing. There are a number of different sources of financing available to airlines, so it is important to do your research and compare your options.

Some of the potential sources of financing for airlines include:

• Government loans and grants
• Private equity
• Venture capital
• Debt financing

Once you have identified potential sources of financing, you can start to reach out to potential investors and lenders.

3.2 Prepare a Pitch Deck to Present to Investors

Once you have identified potential investors, you will need to prepare a pitch deck to present to them. A pitch deck is a presentation that summarizes your business plan and highlights the key points that you want investors to know about your airline.

Your pitch deck should include the following information:

• A brief overview of your airline’s business
• The market opportunity that you are targeting
• Your competitive advantages
• Your financial projections
• Your management team

Your pitch deck should be well-organized and visually appealing. It should be concise and to the point, and it should highlight the key points that you want investors to remember.

3.3 Secure the Necessary Financing

Once you have prepared your pitch deck, you can start to reach out to potential investors and lenders. The process of securing financing can be time-consuming and challenging, but it is essential if you want to start your airline.

When pitching to investors, it is important to be prepared to answer questions about your business plan, your market opportunity, your competitive advantages, and your financial projections. You should also be prepared to discuss your management team and your plans for the future.

The process of securing financing can be complex, but it is important to remember that there are a number of potential sources of financing available to airlines. With careful planning and preparation, you can secure the financing you need to start your airline.

4. Launch Your Airline

Once you have secured the necessary financing, you can start to launch your airline. The process of launching an airline can be complex, but it is essential if you want to start operating flights.

The following are some of the steps involved in launching an airline:

• Obtain the necessary licenses and permits
• Hire employees
• Purchase aircraft
• Develop a route network
• Market your airline to potential customers

4.1 Obtain the Necessary Licenses and Permits

The first step in launching an airline is to obtain the necessary licenses and permits. The specific licenses and permits that you need will vary depending on the country in which you are operating. However, some of the most common licenses and permits include:

• An air operator certificate (AOC)
• A foreign air carrier permit (FACP)
• A certificate of public convenience and necessity (CPCN)
• A security clearance

How much does it cost to start an 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 upwards of $1 billion.

What are the legal requirements for starting an airline?

The legal requirements for starting an airline vary from country to country. However, some common requirements include obtaining a license from the government, meeting safety regulations, and providing insurance.

What kind of aircraft do I need to start an airline?

The type of aircraft you need will depend on the size and scope of your operation. A small regional airline may only need a few small planes, while a major full-service airline will need a large fleet of different types of aircraft.

How do I get customers to fly my airline?

There are a number of ways to attract customers to your airline, including marketing, advertising, and public relations. You can also offer competitive fares, good service, and convenient routes.

How do I make money as an airline?

Airlines make money by selling tickets to passengers. They can also generate revenue from cargo, food and beverage sales, and ancillary services such as baggage handling and airport lounges.

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, and government regulations. However, if you are successful, you can potentially earn a significant profit.

Is it a good time to start an airline?

The airline industry is cyclical, and there are times when it is more difficult to start an airline than others. However, there are also opportunities for new airlines to enter the market, especially in emerging markets.

How can I learn more about starting an airline?

There are a number of resources available to learn more about starting an airline, including books, articles, and online courses. You can also contact the government agency responsible for regulating airlines in your country for more information.

Starting an airline is a complex and challenging undertaking, but it can also be a very rewarding one. By following the steps outlined in this article, you can increase your chances of success. However, it is important to remember that there is no guarantee of success. The airline industry is highly competitive, and there are many factors that can affect your business’s success.

If you are still determined to start an airline, you should be prepared to work hard and make sacrifices. It will take time and dedication to build your business into a success. But if you are passionate about aviation and have a strong business plan, you can achieve your dream of starting your own airline.

Here are some key takeaways from this article:

• Do your research and make sure you have a solid business plan.
• Get the necessary permits and licenses.
• Find the right aircraft and crew.
• Market your airline and attract customers.
• Manage your finances carefully.
• Be prepared to work hard and make sacrifices.

If you follow these steps, you will increase your chances of success in starting your own airline.

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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.

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• 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!

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How to Start an Airline

For those passionate about aviation, running an airline could be the perfect career choice. The only problem is that few businesses have as many variables and challenges as airlines, so starting one is incredibly difficult and making it profitable in the long run, is much harder. 

Airline start-ups are capital intensive, fiercely competitive and are at the mercy of fuel price and passenger demand volatility. Not only this, but they are human resource intensive, subject the regulatory control and their operations can also depend heavily on the weather in some parts of the world. 

If reading the above hasn’t put you off the idea, here’s how you might go about setting one up. 

Market Analysis 

Anyone considering starting any type of business should study the market in which they intend to trade. This is of course true with the airline industry, which has its own quirks and features. 

It will be important to understand traffic growth potential, regional trends, and aircraft requirements. Boeing produces a set of useful research documents each year which are highly regarded by the industry. The most prominent is its  Commercial Market Outlook , in which it analyses the future for all aspects of the commercial aviation industry for the next 20 years. 

Operational Environment 

The next step is to understand the operational environment you intend to fly in. This means getting your head around the  Freedoms of the Air  formulated during the Chicago Convention in 1944. You will also need to become familiar with the regulatory guidance and requirements associated with the particular nation you plan to be based. 

Understanding the framework of regulations, standards and guidelines will mean less headaches when you come to apply for an Air Operators Certificate etc. 

Business Plan 

Like any start-up, a well thought out business plan could be the key to success. According to Boeing, a typical airline plan 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 

Capitalisation plan 

Brand development 

Implementation strategy. 

Aircraft Selection  

Now for the fun part – picking which aircraft type(s) are going to form the basis of your fleet. You might instinctively choose your favourite examples, but a lot of thought needs to be put into selecting the right aircraft for the type of flying you’ll be doing. 

There’s no point choosing a Boeing 747 if you’re going to be operating short regional services in a low demand market – essentially the choice needs to fit your target markets and proposed frequencies. 

On a deeper level, the optimal aircraft also needs to align with the network plan, traffic estimates, economics, and performance requirements of the airline operation. 

Many airlines in the past have chosen to focus on a single type rather than a mixed fleet. The benefits of this approach are reduced overall maintenance expenses as well as lower cost crew training. The drawbacks to this are that a single type cannot do everything, so you’ll have to either limit the route network or purchase multiple variants in the same aircraft family. 

Once you’ve settled on a specific aircraft type, it’s time to think about how you’re going to pay for them. There are two main options, financing a direct purchase and an operating lease. 

The direct purchase is exactly what it says on the tin, an acquisition of an aircraft either from the manufacturer or through an agent for second-hand examples. 

The operating lease is a contract between a lessor and lessee which allows a company to operate the equipment owned by the lessor, for a period in return for a rental payment. 

The advantages of a purchase: 

Maximum control of aircraft configuration 

Equity gain 

Operational flexibility 

The disadvantages or purchase: 

Large upfront investment required 

Residual value risk 

Fleet purchase decisions tend to me more permanent 

The positives of leasing: 

Low capital investment 

Increased fleet flexibility 

Lessor holds the residual value risk 

Generally quicker delivery 

The drawbacks of leasing: 

Airline exposed to lease rate fluctuations 

No equity gains 

Lessor may restrict the use of the aircraft 

When you’ve assessed the pros and cons of leasing verses purchasing an aircraft, you’ll have to make a decision about which approach best fits your operation. 

Once you’ve ticked all the boxes on the business plan including obtaining the required approvals to operate, training crew, setting up maintenance operations and signing deals with handling agents and airports, you’re ready to launch. 

Assuming this all goes well; you’ll have to continually adapt your business to current market conditions. If you get complacent, that’s when the competition will sweep in and snatch your market share. 

This article only scratches the surface of what’s involved in the process of starting an airline, either it’s put you off the idea, or made you want to start one even more. If the latter is the case, good luck! 

• Airline Industry

Originally published in Key.Aero

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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.

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How to Write a Startup Airline Business Plan

• Small Business
• Business Planning & Strategy
• Write a Business Plan
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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.

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Airline Business Plan Sample

Published Feb.01, 2021

Updated Apr.19, 2024

By: Jakub Babkins

Average rating 4.8 / 5. Vote count: 6

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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.

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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)
• 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.

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Embarking on the Aviation Journey: Starting an Airline Seminar

Unlock the secrets to launching your own airline with our specialized seminar, drawing from the success of previous editions in London, UK, and Fort Lauderdale, FL. Dive deep into the intricacies of commencing your aviation venture and crafting a roadmap for enduring success.

Key Insights:

• Strategic Business Planning: Explore the essential components of crafting a robust and effective business plan tailored for the unique challenges and opportunities of the airline industry.
• Operational Blueprint: Gain insights into the intricacies of planning and executing future operations, ensuring a seamless and efficient trajectory for your airline.
• Global Perspectives: Leverage global perspectives as we blend insights from the dynamic business landscapes of both London and Fort Lauderdale, offering a comprehensive understanding of diverse aviation markets.
• Interactive Learning: Engage in an interactive learning environment where seasoned aviation experts share practical knowledge, experiences, and strategies specifically tailored to the complex journey of starting and operating an airline.
• Previous Success: Benefit from the success stories and lessons learned from our previous seminars, where industry professionals shared invaluable insights on the unique challenges of launching an airline.

Secure Your Spot: Don't miss this exclusive opportunity to equip yourself with the tools and knowledge necessary for the challenging yet rewarding endeavor of starting an airline. Join us for a seminar designed to guide you through each step of the process, providing actionable insights for your aviation entrepreneurial journey.

Transformative Learning Experience: Secure your spot today for a transformative learning experience that positions you at the helm of your aviation venture. We look forward to welcoming you to this insightful seminar dedicated to the art and science of starting an airline.

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Airline Start-up

​ Main Contact ​ Shakeel Adam​ ​ Click to send email

Start-up and young airlines

- Feasibility studies

- Business plans - Development program - Organisation design

- Digital strategy

New airlines start all the time, whether the economy is strong or weak. For an industry which struggles to be profitable, this suggests there is tremendous inefficiency in the sector.

Numerous airlines have started and failed over the past 10 years alone in almost every region of the world. Not all the problems are of the airline's own making. This industry is susceptible to strong influences from macroeconomic factors, government intervention (positive and negative) and, at times, illogical competitive behaviours.  However, looking at a number of startups, our team have found many had common errors. Poor understanding of demand, selection of the wrong aircraft type, lack of financing, ineffective commercial management, no digital strategy - these are just some of the most critical common factors which have led to the failure of recent startups.

Our service capability

With the right strategy, cost base and financing to tie you over until revenues reach a sustainable level, there are opportunities to build efficient airlines both full service and low cost, around the world. But doing so needs the right team, the right product, the right aircraft and the right network.  We can help you with a feasibility study, a commercial strategy, a network and fleet plan, and the right mix of digital innovation and to provide a competitive edge.  Our partners set you up for success and work together with you through the startup phase of the airline coalescing these key components into a profitable business.  

Our team of senior airline experts have extensive experience starting and managing full service and low cost airlines around the world. They have designed, developed and implemented startups, and have advised private, institutional and government stakeholders. Some have even successfully started their own airlines, which all continue to exist today. Unlike other consultants, none of the airlines started by our team members have gone bankrupt or ceased operations. For more information, please contact Shakeel Adam.

Related Services ​

•  Strategy

•  Network Planning •  Fleet Selection

Recent Experience

•  Post privatization restructuring of a national airline in Southern Europe •   Startup of the first low cost airline in Saudi Arabia including establishment of the business,

   acquiring the AOC and building up the operation.

•  Startup of the new Olympic Air, following the privatisation of Olympic Airlines •  Startup of a regional subsidiary for British Airways in Germany

•  Startup, development and commercialization of Aegean Airlines •  Startup, development and commercialization of Gold Air Handling  For further information, please contact our  airline startup consultants .

Airline Start-up

Starting an airline requires a robust business plan, deep market understanding, and professional aviation expertise.

GH Aviation Consulting offers comprehensive support from the initial concept of a new airline through to fundraising, aircraft sourcing, and obtaining your Air Operator Certificate. Our team has extensive experience in market analysis, network and fleet planning, and financial modeling, informed by numerous past projects. We're also skilled in guiding carriers through the operational and commercial aspects of the implementation phase.

We collaborate closely with your team, making informed, data-driven decisions to enhance your project's appeal and success. Our detailed analyses and evaluations build confidence among investors and stakeholders.

How we can help

Business plan due diligence, aircraft operators.

You already have an existing business plan setup by your team? GH Aviation Consulting can provide a detailed evaluation of your business plan based on a methodology proven on a multitude of past projects. The review includes proofreading, checking numbers and estimates, but also global recommendations on the project development strategy.

Business plan / Fundraising

Starting an airline requires a solid business plan to attract funds and partners like lessors and suppliers. At GH Aviation Consulting, we provide a tailored, data-driven business plan service, drawing on our experience from numerous past projects. We have a strong track record in securing funding from investment banks, which can be a game-changer for your project.

Route studies

Aircraft operators - airports.

You might only need support on the market analysis side with specific route studies, or your business plan project is about expanding your existing network. GH Aviation Consulting can assess in details the potential for new routes considering existing operations & business model.

Aircraft evaluation

Choosing the right aircraft model and the right lessor/manufacturer is a key driver of the success of your airline project. Thanks to previous experience in a major aircraft manufacturer marketing team, GH Aviation Consulting can support you through the aircraft sourcing process, from the analysis of the offers to negociating the terms and conditions of aircraft supply.

AOC support & guidance

After the business plan is done and some funding is secured, getting the Air Operator Certificate is a very challenging activity that takes 9 to 18 months to be completed. GH Aviation Consulting has experience in leading and supporting several AOC projects up to their first commercial flight. We can help you steering the AOC project and facilitate key decision making in an informed and timely manner.

Airline management interim

GH Aviation Consulting staff can step in as interim managers (CCO, CFO) and lend our expertise in several key areas. This includes building a financial model, choosing sales channels and software, negotiating for airport slots, planning your first flight schedules, and setting up your ticket pricing and products. Our team knows what it takes to start an airline, and we're ready to guide you through each step

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Airlines Get a Boost From Business Travel’s Comeback

Rashaad Jorden , Skift

May 17th, 2024 at 3:26 AM EDT

Today's podcast looks at aviation's surprise boost, Chase's new perk, and Saudi Arabia's luxury focus.

Rashaad Jorden

Skift Daily Briefing Podcast

Listen to the day’s top travel stories in under four minutes every weekday.

Good morning from Skift. It’s Friday, May 17. Here’s what you need to know about the business of travel today.

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Episode Notes

Airlines have recently gotten a big boost from a segment many airlines thought would continue to struggle — business travel, writes Airlines Reporter Meghna Maharishi. 

Delta Air Lines said corporate bookings were up 14% in the first quarter. Delta President Glen Hauenstein said 90% of the companies it surveyed said they plan to increase travel in the second quarter. United Airlines and Alaska Airlines both recorded significant increases in corporate bookings during the first quarter, with Alaska stating business travel for the carrier has fully recovered to pre-Covid levels. 

Next, Chase now offers its cardholders something its rivals and online travel agencies don’t — the opportunity to book Southwest Airlines flights through its own travel platform, reports Executive Editor Dennis Schaal. 

A Chase spokesperson said this week that cardholders are able to book Southwest flights on Chase Travel using points or cash. Cardholders who wanted to book Southwest flights in the past would’ve had to phone Chase Travel customer service. Schaal notes Southwest’s official website was the only place to book its flights for years, adding that online travel agencies that tried to offer Southwest flights received cease and desist letters. 

It’s uncertain though if other credit card companies will enable cardholders to book Southwest flights through their travel portals. 

Finally, Saudi Arabia is looking to attract 70 million international tourists annually by 2030. They can’t all stay in the luxury hotels that get so much attention, writes Middle East Reporter Josh Corder.

Fahd Hamidadin, CEO of the Saudi Tourism Authority, said that no more than 20% of visitors will be staying in four- or five-star hotels, adding that the real business of tourism is far from luxury. Indeed, an Accor executive said most people in the world are basically economy and mid-scale brand consumers. 

However, roughly 82% of the rooms in Saudi Arabia’s hotel pipeline are in the luxury and upscale categories, according to real estate consultancy firm Knight Frank.

Producer/Presenter: Jane Alexander

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Tags: aviation , business travel , chase , corporate travel , luxury , saudi arabia , skift podcast , southwest airlines

Photo credit: Business travelers entering an airport. Adobe Stock

Simple Flying

How to start an airline: part 3 - finances.

Any airline won't ever get off the ground without secure financial backing.

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'.

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Alaska Airlines begins $60M effort to boost cargo capacity, upgrade terminals and other facilities across the state

A man rolls a cart with his bags past Alaska Airlines baggage check counters at the Ted Stevens Anchorage International Airport. (Emily Mesner / ADN file)

Alaska Airlines has launched a $60 million plan to improve terminals and other facilities where it operates around Alaska over the next few years, representatives of the company said on Thursday. The airline is also expanding its cargo presence in the state, they said.

The projects include upgrades and potential expansions at some of the 13 terminals owned by the airline, in some cases for the first time in decades, Marilyn Romano, the airline’s vice president of the Alaska region, said in an interview Thursday.

“We’ll be taking a hard look at each one,” she said.

The terminals over the years became congested at airports in towns such as Bethel, Kodiak, Nome and Utqiagvik, as larger jets began hauling more passengers and as post-9/11 security measures took up more space, they said.

Passengers per flight also increased to rural areas after the airline in 2017 eliminated the unique “combi” planes. The “mullet of airplanes,” as the airline called the Boeing 737-400 jets, were part cargo and part passenger plane. They carried far fewer passengers than today’s jets carry.

[ The last Combi: Alaska Airlines retires unique jets and offers new freight options ]

“It’s all being designed around how to make this a better experience for people in these communities,” Romano said.

The airline will also make improvements at terminals it does not own, such as to employee working areas in Fairbanks International Airport.

The plan is a follow-on to the airline’s upgrades in Alaska that began around 2016, which included light remodels at some terminals, she said. In 2018, also as part of that earlier effort, the airline spent $50 million to construct its maintenance and engineering facility and hangar at Ted Stevens Anchorage International Airport. The airline’s spending for the current plan would come atop those costs.

That work stalled when the COVID-19 pandemic beginning in 2020 disrupted travel, shipping and construction, among other problems, Romano said. The effort is still being called the Great Land Investment Plan, the airline said.

The list of projects should be completed in 2027, she said.

Some work might not be noticed by travelers, such as a required ramp replacement in Utqiagvik that began last year, Romano said.

Some of it will be very obvious, she said. Design studies are underway to determine the best way to upgrade terminals in Kodiak and Bethel, she said. The work would be designed to meet terminal needs over the next decade or so, she said.

In Kodiak, the airline has already leased space where it could potentially move its cargo operations. That could allow the airline to expand its passenger terminal there, she said. Work there could begin this year and continue through 2027, she said.

In Bethel, the airline is looking to upgrade the terminal, she said. That work could begin this year and extend through 2026, she said.

The airline is the only major domestic carrier in the U.S. that owns and maintains its own terminals, Romano said. Those are all in Alaska, where the Seattle-headquartered company got its start nearly a century ago.

Cargo expansion, lounge makeover

More construction work under the plan begins in Anchorage next week.

The airline will roughly double the space and spruce up the decor at the Alaska Airlines lounge at the Ted Stevens airport. The project will expand the lounge’s seating to 135 guests from 65. It will update the furniture and flooring, and add work by Alaska artists.

That project is expected to last at least two months, said Tim Thompson, a spokesman with the airline. It won’t affect the current lounge schedule, except for a closure that will last three or four days as the opening date approaches.

Much of the work will take place on the other side of a wall that will later be removed, so it will not disrupt activities in the existing lounge, he said.

The airline has also started expanding its cargo efforts in Alaska.

Most of Alaska Air Cargo’s work happens in the state, though the airline’s cargo expansion includes new runs between Anchorage and Seattle, and Seattle and Los Angeles, Thompson said.

The cargo operations in Juneau International Airport will also be expanded, Romano said.

The Juneau airport is essentially a cargo hub for several Southeast Alaska communities, and the airline’s cargo facility there is aging, Thompson said.

“They just need more room, and they actually just need a better facility there,” he said.

The idea is to speed up cargo shipping in Juneau and elsewhere in Southeast, Romano said. The plan will also add capability to move more cargo in those areas.

“It’s not something the guests will see, but it will be very important to the people of the community,” she said.

As part of the cargo improvements, the company is adding two 737-800 freighter aircraft, converted from passenger aircraft, he said.

That will boost its cargo fleet to five jets, from the current set of three smaller 737-700 jets, Thompson said.

The first of the converted freighter jets began flying on Thursday, Thompson said. The second should be operating by the end of June. The new jets will be be employed around the state.

“That will basically double the capacity of what Alaska Air Cargo is able to do here in the state of Alaska,” he said.

Alex DeMarban

Alex DeMarban is a longtime Alaska journalist who covers business, the oil and gas industries and general assignments. Reach him at 907-257-4317 or [email protected].

United Airlines says it has regained some privileges that were suspended after problem flights

United Airlines says it can plan for growth again as federal regulators continue their review of the airline’s operations

CHICAGO — United Airlines said Thursday that federal regulators are letting it resume planning for growth after they imposed restrictions on the airline following a series of flight mishaps earlier this year, including an engine fire and a tire falling off a plane.

United said the Federal Aviation Administration “has allowed us to begin the process of restarting our certification activities, including new aircraft and routes.”

The FAA indicated, however, that it has not made any final decisions from its review of the airline, which began in March.

“The FAA has not approved any expansion of United Airlines’ routes or fleets,” an agency spokesperson said in a statement. The FAA said its review of the airline “is ongoing, and safety will determine the timeline for completing it.”

The FAA is insisting on being present when United personnel make final inspections of new planes that replace older ones.

In a memo to employees, United said the ability to resume planning for growth was “good news,” but it noted that FAA inspectors were still reviewing the airline’s work processes, manuals and facilities.

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The FAA increased its oversight of Chicago-based United after a series of flight problems.

In one, a piece of aluminum skin fell off a plane flying from San Francisco to Oregon. Another plane lost a tire after takeoff from San Francisco, and another suffered an engine fire in Houston.

Pilots reported that rudder pedals used to steer on the runway failed after landing in Newark, New Jersey, and another plane rolled off a taxiway in Houston.

The incidents led United CEO Scott Kirby to assure customers the airline was safe.

Kirby said the events were unrelated but they “have our attention and have sharpened our focus.” He said United would review each incident to see if changes were needed in safety training and procedures.

American Airlines increases flights to Mexico from Phoenix Sky Harbor

PHOENIX — American Airlines, the largest commercial airline operating at Phoenix Sky Harbor International Airport, will increase its service between Phoenix and Mexico this fall.

The Dallas-based air carrier announced May 16 that it will be adding more daily flights from Sky Harbor to Cancun and Puerto Vallarta starting Nov. 5.

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The airline already operates nonstop service between Phoenix and both those Mexican destinations, but starting in November, American will have two daily flights to Cancun — one on an Airbus A321 and another on a Boeing 737. American will also increase its nonstop operations to Puerto Vallarta with three daily flights.

Both of those destinations in Mexico have direct service from Phoenix from both American and Southwest Airlines, which is the second largest carrier at Sky Harbor and American’s biggest competitor in the market.

Read more of this story from the Business Journal.

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United Airlines says it has regained some privileges that were suspended after problem flights

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CHICAGO (AP) — United Airlines said Thursday that federal regulators are letting it resume planning for growth after they imposed restrictions on the airline following a series of flight mishaps earlier this year, including an engine fire and a tire falling off a plane.

United said the Federal Aviation Administration “has allowed us to begin the process of restarting our certification activities, including new aircraft and routes.”

The FAA indicated, however, that it has not made any final decisions from its review of the airline, which began in March.

“The FAA has not approved any expansion of United Airlines’ routes or fleets,” an agency spokesperson said in a statement. The FAA said its review of the airline “is ongoing, and safety will determine the timeline for completing it.”

The FAA is insisting on being present when United personnel make final inspections of new planes that replace older ones.

In a memo to employees, United said the ability to resume planning for growth was “good news,” but it noted that FAA inspectors were still reviewing the airline’s work processes, manuals and facilities.

The FAA increased its oversight of Chicago-based United after a series of flight problems.

In one, a piece of aluminum skin fell off a plane flying from San Francisco to Oregon. Another plane lost a tire after takeoff from San Francisco, and another suffered an engine fire in Houston.

Pilots reported that rudder pedals used to steer on the runway failed after landing in Newark, New Jersey, and another plane rolled off a taxiway in Houston.

The incidents led United CEO Scott Kirby to assure customers the airline was safe.

Kirby said the events were unrelated but they “have our attention and have sharpened our focus.” He said United would review each incident to see if changes were needed in safety training and procedures.

Airline, Taxi & Shuttle Business Plans

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Aircraft Rental Instruction Business Plan

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Aircraft Weighing Systems Business Plan

Heavy Lifting, Inc. will design and implement a new, more accurate system of weighing aircraft before take-off to meet current laws.

Airline Business Plan

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Airport Shuttle Business Plan

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Airport Taxi Business Plan

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Limousine Taxi Business Plan

San Francisco Limo, an existing limousine service serving weddings, proms, and nights-out, is expanding into student transport, sightseeing, and elderly transportation.

Regional Airline Business Plan

Puddle Jumpers Airlines, Inc. is a commuter airline organized to take advantage of a specific gap in the short-haul domestic travel market.

Sightseeing Bus Tours Business Plan

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Taxi Business Plan

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Before you write a business plan, do your homework. These sample business plans for the airline and aviation industry, including passenger air travel, pilot training, and aircraft equipment manufacturing, will give you a head start.

Running a taxi or limo service means you’re in the business of getting people where they want to go. To get your business where you want it to go, you need a business plan. Start by browsing our sample business plans for taxi, airport taxi, limousine, and shuttle businesses.

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