business plan airlines start up

Simple Flying

How to start an airline: part 2 - developing a business plan.

It's time to plan your new airline - the operations, destinations, and fleet.

Welcome Aboard

So you have decided to start an airline. This is a big decision to take on a project that could quickly take over your life. But how do you actually go about it, and where do you begin? The process involved in starting an airline can be rewarding, enjoyable, and hopefully profitable too. But it can also be frustrating, fraught with challenges, and the next setback will always remain just around the next corner. But if you are determined to do this, let’s take a closer look at how you might go about achieving your goal.

The four key stages of planning

The first thing to do is develop a robust business plan for your airline . You should consider the four critical stages of planning, better known as what , where , how , and why . Your business plan could make all the difference between your airline becoming the next big deal or simply another casualty of the ruthless airline industry, itself littered with failures throughout its history.

Getting these first critical decisions right will improve your chances of succeeding and perhaps ensure your airline's survival chances in the future. Once you have rigorous and comprehensive answers to all four key stages, it will be time to draft your business plan.

Your airline business plan will act as the shop window for your airline that you will present to potential investors ; a document that can be peered throughout to see whether your offering is attractive enough to entice others inside and, hopefully, to part with their hard-earned dollars.

After all, unless you have bottomless pockets, you will be reliant on others to provide additional funding and investment to get your airline off the ground. We shall explore the whole issue of budget and finance in greater depth in the next part of this series.

The first stage of planning - What?

The first of the critical issues to address when you consider starting an airline is ' what '? What do you want to achieve exactly, bearing in mind that this may not be possible, cost-effective, safe, or even legal?

Focussing on developing your initial idea is all very well, but being flexible to change and ready for setbacks will be useful characteristics in your planning toolkit as you progress. You should develop an exact, detailed concept of what you want to do with your airline. What are your goals, and what do you need to achieve them.

What are your aims and ambitions? Do you want to start small and get bigger, or do you simply want to remain small and niche? Remember, many airlines survive because they stay small. Or are your aspirations to become a feeder carrier possibly, or a regional operator . Do you want to scale things up to become a short, medium, or even long-haul operator, flying the big jets to faraway destinations?

Is your airline going to be a scheduled carrier, a charter operator, or a combination of both? You might want to avoid the complications of fare-paying passengers altogether (often referred to in the airline world as ‘self-loading freight’) and specialize in the carriage of cargo only.

In principle, these are all feasible ventures, and the industry has successful examples in each sector. Honing on just one market segment initially and doing that well will be crucial before you even consider growing your business.

Once you have an established, well-developed concept of what you want your airline to be, you can progress to the next stage of the process.

The second stage of planning - Where?

Where you want to fly sits snugly alongside the ‘ what ’ question addressed above. You should be considering your proposed route structure , selecting your hub airports and your home base from the outset. You need to decide whether you wish to focus on being a point-to-point carrier or whether a hub-and-spoke operation might suit your airline better.

Remember that some airports you may wish to serve will be slot constrained, so a quick initiation into that airport's slot allocation process will be necessary. You may not be allocated a workable set of slots for your airline, so be prepared for some tough negotiating.

Recent startup airlines which appear to be making early progress with network planning are Breeze and Avelo in the US, selecting point-to-point routes to develop their business. PLAY in Iceland is aiming to build a viable hub-and-spoke network using Keflavik Airport (its home base) as its hub facility, offering decent levels of connectivity for passengers traveling over Iceland between the United States and Europe

Are you considering entering an existing market where you will compete with others, or will you target new, emerging markets, opening up regions and routes that would otherwise remain unserved by other carriers, such as Bonza , the excitable new startup in Australia?

Bearing in mind that you will require aircraft, crew, ground handling, maintenance provisions, and other services at each base you open dictates that you simply should not consider opening up a plethora of routes that are entirely unlinked to each other in any way.

Startup airlines regularly focus early operations on a single or minimal number of bases to start before they even consider expansion. An excellent current example of this is the new Flybe operation starting operations shortly. This new carrier (revived from the ashes of another carrier of the same name, which failed at the start of the pandemic) has limited its initial operation to just two small UK bases - Birmingham and Belfast City .

No doubt routes will be picked up and dropped from these bases in the early stages as Flybe refines its model. Yet, by staying small initially, the airline hopes to avoid having a dispersed network and fleet, which stretches resources and ultimately leads to operating a wide range of loss-making routes, just as its predecessor did.

While the 'what' question may have been based on intangibles, such as desire or ambition, the 'where' decisions will be primarily based on data and information.

Detailed route analysis using modeling and forecasting will be a prerequisite here. It will be imperative to have all your facts in numeric form so that forecasting and projections can be produced to act as your road map as you develop.

Route and network development consultancies can assist you in this process, as can the planning departments of airport authorities , as well as the leading commercial aircraft manufacturers.

Even a decision to fly a new 200-seat jet from point A to point B will find you with offers from all of these sources, each undoubtedly willing to provide planning assistance, particularly if there is something potentially in it for them. So don't be afraid to ask for help from those who know their industry best.

James Pearson , Simple Flying's very own in-house route and network planning expert, provides the following helpful advice for anyone considering a potential new airline's route structure -

Network planning requires solid research using multiple data sources, thinking creatively, and forecasting as accurately as possible. It also requires a strong gut instinct about what will work and why.

For low-cost and ultra-low-cost carriers especially, predicting market growth through stimulating demand is often essential. For many thin routes, this is crucial to make them viable, without which they would be too small.

Network planning isn't just a one-off process. It also requires continual market awareness to check what is happening to avail of more opportunities as they arise. No matter the work, not all routes will work or are expected to work. If they did, an airline wouldn't be experimenting enough.

The third stage of planning - How?

When considering the question of ' how' , there are various points to consider. Will you select just a single aircraft type for your operation, or does your plan call for several types? Without delving too deeply into economic theory relating to the principle of economies of scale, startup airlines have often seen success when focussing on a single type of aircraft - Southwest , Ryanair, or Wizz, all being good examples.

Selecting the correct aircraft type for your operation will be of utmost importance. Too small an aircraft, and you could be passing up the opportunity to fill more revenue-producing seats. Too large an airplane, you could risk flying around half-empty planes, burning fuel, and losing money, and lots of it.

Getting this balancing act is imperative to ensure your business plan's economics are correct. Your airline is financially viable so that your airline’s survival is assured, at least in the initial startup phase. Again, aircraft manufacturers' marketing departments will be all too eager to assist you in this process if there might be an aircraft sale or two for them!

The fourth stage of planning - Why?

Starting an airline is not easy; otherwise, everyone would be doing it, right? Going into the startup process thinking your airline will be flying before you know it would be foolhardy and misguided. You should give a great deal of consideration to why you wish to do this.

Why do you want to put yourself through months, if not years, of stress just to get to your airline's inaugural flight, let alone what may come afterward? Starting an airline simply as a vanity project has been repeatedly shown to be not enough reason to build a sustainable business.

You will need a good degree of passion, enthusiasm, resilience, and ambition to make this all come together. Starting an airline for fun is not a ‘thing’ in itself. You may have good intentions, grand designs, and enormous ambitions for your airline. Still, without established motives and deeply embedded aspirations, you may as well stop planning before you even get started.

And to address the 'elephant in the room' when it comes to airline startups, don’t expect to run a profitable business for several years at the very least . The startup costs involved in getting a new startup airline flying are far more considerable than even your forecasts will tell you. You need to make provision for this, given the multitude of setbacks that will undoubtedly come your way throughout the startup process.

As mentioned earlier in this article, If you are starting an airline simply to get rich quickly, you seriously need to rethink your whole ethos.

Failing to plan is planning to fail

Without comprehensive and credible plans in place, you are setting yourself up for a rapid fall. Any cracks in your business plan will quickly widen, be stretched to critical levels, and may simply just bring your whole project crumbling down before you even get going.

Yet, knowing what you want to do, where you intend to do it, how you intend to achieve it, and perhaps most importantly, why you are setting off on this arduous process and profoundly personal and life-changing journey will either attract investors to you or conversely confine your airline plans firmly to the drawing board.

Head in the air but feet on the ground

So, in summing up, be very clear about what you are aiming to achieve. Have big ideas and even bigger goals, but wherever your airline planning takes you, keeping your feet firmly on the ground will serve you well. Because remaining grounded throughout the planning process at all times, will hopefully ensure that your airline startup does not!

Next time, we shall look at airline funding and financing. Join us for 'How to Start An Airline: Part 3 - Finances', coming soon.

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Airline Business Plan

Free Business Plan Template

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

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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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How to Create an Airline Business Plan

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

• Company Valuation
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• Raising Capital
• Startup Guide
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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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Updated On : September 2, 2023

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Airline Business Plan Sample

FEB.01, 2021

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

Click here to finish your business plan today.

OR, Let Us Develop Your Plan For You

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

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

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 Quick-Reference Guide

Are you an avid flyer with an entrepreneurial spirit? Do you obsess over the economics of aviation and wonder if you could introduce a new airline model to the market yourself? Well, if you think you have what it takes to start an airline, you have made it to the right place. In this article, we will go over all the essential steps required should you want to see new customers board your from-scratch airline. 

The Business Plan

If you are like me, every time you fly an airline you view their decisions and practices with a critical eye. Why do some airlines charge ancillary revenues, and some allow you to check bags for free? Is there any economic sense behind why you pay for checked bags but not carry-ons? Ultimately, the promotions airlines run, the fares they charge, the quality they offer, etc. are all guided by a business plan . 

A simple Google search will tell you that a business plan is a “formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.” For an airline, a business plan is meant to attract private investors to help bring the airline to fruition, meaning it must be robust and well-thought-out. The most important details a business plan must contain are the why and the how : What gaps exist in the airline industry (the premise—why—for the idea), and how will the airline fill the gap?

A well-developed business plan will contain a sophisticated analysis of competition in the industry, often localized to airports the airline will call home, focus city, or hub. This analysis typically breaks down what current airlines charge, where they fly, and how well they perform financially.   

But beyond the initial why , there needs to be a heightened focus on how exactly the airline fills the existing gaps. These gaps will look very different depending on the type of airline you want to run. A commercial airline will obviously fill price or service gaps, but a charter airline may try to offer a subscription service to target wealthier customers who don’t have many choices at present.

The business plan will also demarcate the type of service you wish to offer, and the route structure you will implement at the onset. Will you have a single hub and numerous spoke routes? Will you fly point-to-point with rock-bottom prices like Skybus attempted to do in the late 2000s?

Airports range in size and market potential and are limited by gates and slots. Choosing the right base airport will have large implications on the size and scope of your airline. Serving the “correct” destinations from your base is another important matter; justifying your routes to investors will require detailed analysis, numbers, and financial projections.

Business Plan - other considerations

One of the other key considerations in a business plan is the type of aircraft you wish to operate. For airlines like Southwest and Ryanair, the Boeing 737 family is the only aircraft they operate. This aids in the standardization of training and maintenance fleet-wide, keeping operating costs low. For legacy carriers like Delta and United, their fleet is huge and varied with aircraft from Embraer, Airbus, and Boeing all in the fleet. You may also just be considering starting a small airline—and thus only desire small aircraft. All of these options are important for consideration.

When choosing the type of aircraft to operate, it is critical to consider fuel economy and cost. The Boeing 737 MAX is arguably the most fuel-efficient aircraft on the market today but it comes at a steep price. New startup airlines such as Avelo Airlines decided to lease used 737-700 aircraft to save money, but other airlines may opt to purchase new planes directly from Airbus, Boeing, or other manufacturers.

Importantly, consultants who you may work with on a business plan will offer guidance on what aircraft would suit your plan the best. As an example, for a high school project, I worked with StartupBoeing to write a mock airline business plan for a low-cost airline based in San Bernardino. StartupBoeing obviously has expertise with Boeing aircraft, and like any group associated with an airline manufacturer, encouraged me to use Boeing aircraft and offered data on the financial performance and economics of Boeing aircraft specifically.

Business plans not only shape the present to sway investors but are helpful in informing the future. Successful airline business plans will outline growth strategies and opportunities. After all, isn’t the main goal of running an airline to turn a profit? Turning a profit may be hard to come by with such a small initial operation, but with new hubs, routes, planes, or staff, growth is possible. How will you grow your airline?  

Beyond the framework of your airline being outlined in the business plan covering strategy and service, you’ll need to highlight important financial information using modeling. How many passengers do you expect to carry, and how much revenue will that bring in?  What costs will you incur, and how much will fuel cost you? Southwest Airlines is notorious for hedging jet fuel and famously got a deal for jet fuel in the early 2000s for rock-bottom prices. If the costs are calculated correctly and the future balance sheet looks clean, you’ll secure the much-needed investment to pursue your airline further.

With a solid business plan, strong financial backing, aircraft in order, and slots obtained, one of the next logical steps is to name the airline. Many airlines, like Breeze Airways, decided on a name late in the process. Key tenets of the business plan were made public well in advance of the inaugural flight, and for years the Airline was referred to as Moxy—with the only known details being the airports served, planes acquired, and pricing scheme.  

A strong name is essential not only for marketing but visibility as well. Many of the modern names today ooze elegance—"StarLux" for example—and others reflect elements of laid-back fun: "PLAY Airlines".

Certification

With a name and plan in pocket, obtaining the necessary certification to take to the sky is the logical next step. Aviation is guided by a single large principle: safety. Flight attendants give a safety briefing every flight, and as the airlines always say, safety is our number one priority. Evidently, airlines have to verify that they are safe first before they take to the sky; certification is the way to do this.  

Ultimately, an airline must acquire an Air Operator’s Certificate (AOC). Regulations vary by country and the governing body, but the requirements typically remain the same. In the United States, the Federal Aviation Administration (FAA) is responsible for overseeing and handing out such certificates. The American Code of Federal Regulations notes that the following requirements must be met for most AOCs:

• Sufficient personnel with the required experience for the type of operations requested.
• Airworthy aircraft, suitable for the type of operations requested. At least one aircraft must be in the fleet to obtain an AOC.
• Acceptable systems for the training of crew and the operation of the aircraft (Operations Manual).
• A quality system to ensure that all applicable regulations are followed.
• The appointment of key accountable staff, who are responsible for specific safety-critical functions such as training, maintenance and operations.
• Carriers Liability Insurance (for Airlines) – Operators are to have sufficient insurance to cover the injury or death of any passenger carried.
• Proof that the operator has sufficient finances to fund the operation.
• The operator has sufficient ground infrastructure, or arrangements for the supply of sufficient infrastructure, to support its operations into the ports requested.
• The certificate is held by a legal person who resides in the country or region of application (for EASA).  

Additionally, Simple Flying notes that supplemental information is required by the airline when submitting an application for the AOC. This includes: 

• The organization of the company
• Where the operation will be based and the location of the business
• The intended AOC management structure
• The competence of the individuals who will be working for the operation
• How the AOC will be financed
• What sort of operation is required
• What aircraft will be operated
• What geographical area is operated in

Finally, following this, an airline must obtain an Operator Certification from the FAA.

Next, airlines must hire the necessary staff to conduct operations. This goes beyond just internal staff on the business side; airlines require operations staff at the airport to ensure flights can board, load baggage, check in customers, clean cabins, cater food, etc. The quality of this branch of staff can have a major impact on the image of your airline. 

Some low-cost airlines dedicate less attention to the customer-facing aspect of operations, while JetBlue famously spent significant amounts of money on flight attendant training to ensure they had the best staff possible upon launch. Ryanair follows a self-handling model, where they train their own staff in-house and don’t rely on a third-party source. Other times airlines will be forced to use external staff at large airports where they otherwise don’t have an established presence. 

Final Steps

With staff hired and the necessary certifications obtained, the airline can start working towards the final steps prior to launch. Most importantly, the airline needs to build a presence in the press and market themselves favorably. After all, customers will tend to choose airlines that have a good reputation, and often airlines begin with no reputation at all due to poor marketing. The internet and social media have made marketing significantly easier; if your airline has substantially lower fares than the competitor, this is something to market beforehand. Use bright colors and a fun name? You might attract new customers who want a more fun flying experience.

The key to good marketing is targeting the right customer base. A leisure airline will want to target leisure travelers primarily, and a legacy airline like Delta has to consistently cater to a mix of leisure and business travelers. Knowing your competition will be key since you can outmarket their weakness. Are you offering a new nonstop route that another established airline at your home base doesn’t offer? Are you offering a new class of service your competitors don’t offer?

The airline will also have to hire remaining staff positions. Beyond the customer-facing roles and business operations side, the airline will need lawyers, engineers, route planners, HR managers, and more. Make sure you leave no role unfilled! As with customer-facing roles, recruiting the right staff goes a long way. If you can use data effectively, you might be able to find the next untapped route to boost profit, or effectively advocate for slots at airports you want to serve in the future.   

At this point, the airline is ready to launch. You have the planes, staff, certifications, financial backing, customer base, and airport approval. Now it is time to market the launch date and plan an equally suitable party. Lavish is good here: airlines often give out gifts, food, drinks, and other goodies at inaugural flights. Maybe your CEO can give a speech to rile up the crowd, but ultimately, your goal here is to convince the airport and its passengers that your airline deserves its gates and slots. In other words, the market deserves your airline because it is innovative and adds something that currently is lacking. 

Your product is not first sold when a passenger sits down and judges the seat, but when they come to the gate for the flight and staff speak on behalf of the airline.

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Embarking on Your Airlines Business Journey

Starting an Airlines business can be an exhilarating yet challenging endeavor that requires meticulous planning and a deep understanding of the aviation industry. The first step involves conducting comprehensive market research to identify your niche and understanding the needs of your potential customers. Crafting a detailed business plan is paramount, outlining your vision, mission, operational strategies, and financial projections. Securing funding, either through investors or loans, is crucial for covering startup costs such as aircraft purchases and leasing agreements. Additionally, obtaining the necessary licenses and certifications from aviation authorities ensures your business operates legally and safely. Building strong relationships with suppliers and partners can also provide valuable support and resources as you embark on this exciting journey.

Understanding the Initial Challenges

When venturing into the realm of aviation, the initial hurdles can be quite daunting. Securing the necessary capital is often one of the most significant challenges. This industry demands a substantial financial investment upfront for aircraft purchase, leasing, and maintenance. Regulatory compliance presents another layer of complexity, requiring meticulous attention to safety and operational standards. Navigating these waters successfully calls for a well-thought-out plan that addresses how to start with both financial and regulatory readiness.

Navigating Regulatory Requirements

One cannot overemphasize the importance of understanding and adhering to regulatory requirements in the airline industry. The process involves securing various certifications and licenses from aviation authorities - a task that entails both time and resources. It's crucial to establish relationships with these bodies early on. This ensures smoother navigation through the red tape, making it slightly easier on how to start laying down your operational foundation. Keeping abreast of changing regulations is similarly critical to maintaining compliance and avoiding potential legal pitfalls.

Developing a Robust Business Plan

A solid business plan serves as the backbone of any successful airline venture. It should outline clear objectives, target markets, and strategies for growth and sustainability. Such a plan must also detail how you intend to tackle competition, which is fierce in this industry. Financial projections within this plan need to be both realistic and optimistic, providing a clear path towards profitability. In essence, a well-crafted business plan not only guides internal operations but also attracts potential investors.

Focusing on Customer Experience

In today's competitive environment, focusing on customer experience is what sets successful airlines apart. From online booking systems to in-flight services, every touchpoint offers an opportunity to impress your customers. Investing in technology to streamline operations and enhance customer service can yield significant returns. Moreover, training staff to deliver exceptional service ensures that passengers' experiences are positive from start to finish. Remember, happy customers are not just repeat customers; they're also your best advocates.

Selecting the Right Fleet

The choice of aircraft plays a pivotal role in defining your airline's operational efficiency and service quality. Factors such as fuel efficiency, range capabilities, passenger capacity, and maintenance costs must be carefully evaluated. Choosing the right fleet strategy--whether purchasing outright or leasing--can have significant financial implications for your business. Additionally, aligning your fleet choice with your target market's needs ensures that you're positioned to meet demand effectively. A strategic approach here not only optimizes operational costs but also enhances overall competitiveness.

Boost campaigns with 250+ editable templates. Save, reuse, and wield design tools for business growth.

Building a Strong Brand Identity

Creating a distinctive brand identity is crucial in differentiating your airline in a crowded marketplace. Your brand should communicate reliability, safety, convenience, and value -- all fundamental qualities that passengers look for when choosing an airline. Developing an effective marketing strategy that conveys this identity across various channels can significantly impact customer perception and loyalty. Social media platforms offer powerful tools for engaging directly with passengers and building brand advocates. Consistency across all touchpoints reinforces your brand message and fosters trust among your target audience.

Leveraging Technology for Operational Efficiency

Incorporating advanced technology into daily operations can vastly improve efficiency and reduce costs for an airline business. From reservation systems to flight management software, technology streamlines processes, enhancing both customer satisfaction and bottom-line results. It also plays a critical role in predictive maintenance of aircrafts, ensuring higher safety standards and minimizing downtime. Adopting cutting-edge solutions aids in staying ahead of competition by offering better services at lower costs. Moreover, data analytics enables more informed decision-making across all aspects of the business.

Utilizing Design Tools Like Desygner

In crafting an appealing brand image and marketing materials, design plays a fundamental role. This is where tools like Desygner become invaluable resources for startups looking at how to start their branding journey on the right foot without breaking the bank. Desygner offers user-friendly templates that make creating professional-looking designs accessible to everyone -- no expert design skills required! Whether it's designing logos, promotional materials or social media content, leveraging such tools can significantly elevate your airline's market presence. Ultimately, high-quality visuals speak volumes about your commitment to excellence throughout every facet of your operation.

## The Importance of a Strong Start in the Airlines BusinessStarting a business in the airlines industry is an endeavor that requires meticulous planning, an acute understanding of the market, and a robust strategy to navigate the complexities inherent in this global sector. The initiation phase sets the tone for long-term operations, influencing everything from brand perception to operational efficiency. Here's why getting off on the right foot is not just beneficial but critical for success in the competitive skies.### Laying a Solid FoundationA well-thought-out launch can serve as the bedrock upon which an airline builds its reputation. In the early stages, establishing clear brand values, superior customer service protocols, and a compelling value proposition is paramount. These initial decisions act as guiding principles that shape the company's identity, culture, and customer relationships. A solid foundation ensures that as the airline scales, it does so with integrity and consistency, becoming a reliable choice for travelers.### Gaining Competitive AdvantageIn the fiercely competitive airline industry, differentiation is key to standing out. Starting strong allows an airline to carve out its unique space in the market swiftly. Whether through innovative services, exceptional customer experiences, or sustainability initiatives, early strategic choices can position an airline as a leader rather than a follower. This proactive approach can translate into significant competitive advantages that propel long-term growth and market share acquisition.### Fostering Customer LoyaltyFirst impressions are lasting impressions. By prioritizing customer satisfaction from inception, airlines can cultivate loyalty that transcends individual journeys. A focus on creating memorable experiences, personalized services, and seamless interactions from day one can turn first-time flyers into lifelong customers. In an era where word of mouth and social media significantly influence consumer decisions, positive early feedback can be instrumental in driving organic growth and enhancing brand reputation.### Ensuring Financial StabilityA meticulous start involves prudent financial planning and strategic investments that lay the groundwork for sustainable growth. By identifying and mitigating potential risks early on, airlines can avoid common pitfalls that plague new businesses. Efficient allocation of resources towards high-impact areas such as safety measures, technology upgrades, and training programs ensures optimal operational performance. This financial prudence helps in building investor confidence and securing the capital necessary for expansion.### Accelerating InnovationFinally, starting with a clear vision encourages innovation. By being forward-thinking from the outset, airlines can lead the way in adopting new technologies, exploring untapped markets, and developing creative solutions to industry challenges. This culture of innovation not only drives improvements in service delivery but also inspires employees to contribute their best ideas towards achieving excellence.In conclusion, how you start your journey in the airlines business can profoundly impact its trajectory. A well-planned kickoff is more than just an initial step; it's an opportunity to establish a durable framework for success. It sets a precedent for quality, efficiency, and innovation that defines every subsequent move the business makes. With these positive outcomes in mind, it becomes clear why starting correctly isn't just advantageous--it's essential for any airline aspiring to soar high in today's dynamic skies.

Concluding Thoughts on Launching Your Airline Business

Starting an airline business is undeniably a complex and challenging venture, yet it remains one of the most rewarding paths for entrepreneurs with a passion for aviation. As we've explored in this guide, the journey from conception to takeoff involves meticulous planning, adherence to rigorous safety standards, and a steadfast commitment to customer satisfaction. However, with the right approach and determination, launching your airline can lead to unparalleled success in the aviation industry.

In summary, several key steps are pivotal to getting your airline off the ground. First and foremost, conducting comprehensive market research is crucial to understanding your niche and target audience. This insight will guide you in tailoring your services to meet specific demands, setting you apart from competitors. Additionally, securing financing and navigating the regulatory landscape are foundational aspects that require thorough attention and expertise.

Moreover, assembling a team of skilled professionals who share your vision will enrich your business with diversity in thought and experience. Their contributions will be instrumental in overcoming challenges and driving innovation within your company. Furthermore, crafting a solid business plan that outlines your strategy for growth and sustainability is essential. This document will serve as a roadmap for your journey ahead and a persuasive tool when seeking investment or partnerships.

Finally, reflecting on our discussion, remember the importance of:

• Conducting comprehensive market research
• Securing adequate financing
• Navigating regulatory requirements
• Assembling a dedicated team
• Crafting a detailed business plan
• Fostering partnerships and collaborations
• Utilizing technology for operational efficiency
• Leveraging tools like Desygner for branding and marketing materials

To elevate your airline's brand identity and marketing efforts from the outset, consider signing up at Desygner. Its user-friendly platform offers an array of design tools tailored to meet your business's unique needs, enabling you to create impactful visual content that resonates with your target audience.

The Art of Marketing an Airlines Business

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How to Write a Startup Airline 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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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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• How to Start an Airline Company
• Growth Hacking Blog
• Entrepreneurship

Are you interested in starting your own airline company? With the number of people flying worldwide each year and a booming global economy, there is never a better time to enter the air travel and business world. Starting an airline can be intimidating, but with some research and preparation, it doesn’t need to be overwhelming. This blog post will attempt to simplify the process by introducing steps from developing your business plan, seeking out investors, obtaining legal authorizations, and launching your first flight. Read on if you want more information about how to start an airline company!

Developing the Business Plan

The first step to starting an airline business is developing a comprehensive business plan . The business plan should include detailed information about the company, such as its mission, vision, and goals. It should also identify the target market, competitor analysis, and financial projections. The plan should include a detailed marketing strategy that identifies how the company will reach potential customers and operational strategies such as fleet size and route selection. Additionally, it is important to create an organizational structure outlining the roles and responsibilities of individuals within the company.

The business plan should also include a budget for launching the airline company and sustaining its operations for a certain period. This budget should cover all costs associated with starting the business, including aircraft acquisition, staff salaries, training, hangar rentals, ground support services, insurance premiums, fuel costs, etc.

Developing a comprehensive business plan is one of the most important steps for launching an airline business and should not be overlooked. It is essential for airline entrepreneurs to thoroughly research all aspects of the company to maximize its potential for success. As the business plan is a road map for launching the airline company, it needs to be as detailed and accurate as possible. If done correctly, it will serve as the foundation of your business. With careful planning, dedication, and perseverance, creating and launching a profitable airline business is possible.

Seeking Investors

Once the business plan has been created , the next step is to seek out investors who can provide funding for the launch of the airline company. It is important to carefully research potential investors to identify those who share your vision and goals for the whole business model. Investing in a startup airline business can be highly risky, so it is essential to find investors familiar with this type of venture and understand its potential rewards.

When approaching potential investors, preparing a detailed presentation outlining all aspects of the business plan, including financial and ticket sales projections, target market analysis, and marketing strategies is important. Additionally, it may be beneficial to create a portfolio or website showcasing any experience working in the aviation industry and successes within other businesses owned by the entrepreneur.

Once a potential investor has been identified, it is important to negotiate the terms of the investment, such as repayment timeline and interest rates. It is essential to ensure that all agreements are in writing and clearly outline the expectations for both parties. Additionally, providing incentives for investors, such as options for early redemption or profits sharing plans, may be beneficial.

Securing investments from venture capitalists or other investors can be an effective way to fund the launch of an airline business. However, it is important to thoroughly research each potential investor before entering into any financial agreement to maximize the chances of success for the startup airlines business venture.

Want to launch your own airline company and make your mark in the aviation industry?

Contact growth hackers  , gaining legal authorization.

The next step for starting an airline company is to gain legal authorization from the relevant authorities. Depending on the jurisdiction, it may be necessary for major carriers to file paperwork and obtain certificates or licenses to operate an air carrier . Additionally, some states require airline companies to provide a security bond and financial statements detailing the business’s current situation.

To ensure that all documentation is filed properly and following local laws, seeking experienced legal counsel specializing in aviation law can be beneficial. An attorney can help guide entrepreneurs through obtaining proper authorizations and advise them on any potential issues or challenges that could arise during this stage. It is also important to research any additional regulations regarding aircraft operation, safety protocols, and insurance requirements.

Finally, before launching an airline business, it is important to register the company with the Federal Aviation Administration (FAA). This step involves submitting paperwork to obtain an Air Carrier Certificate. An air operator certificate is also necessary for a business to operate and transport passengers. Additionally, it may be necessary to apply for additional permits depending on the nature of services provided by the airline, such as cargo or commuter operations.

Gaining legal authorization is a critical part of starting an airline company. Filing all necessary documents per local laws helps ensure that a business meets all safety and operational requirements while also protecting the interests of employees and customers. With careful planning and dedication, entrepreneurs can successfully navigate this process to launch their new venture.

Acquiring Aircrafts and Facilities

Once all legal documents are filed and approved, the next step for starting an airline company is to acquire aircrafts and facilities. This process involves obtaining necessary equipment such as airplanes, air traffic control systems, and even terminals or hangars if required. Additionally, it is important to consider any maintenance needs that may arise to keep the fleet of planes in working condition.

When selecting aircraft for a business, it is essential to consider the type of services being offered and customer preferences. For example, long-haul flights require larger planes with more seating capacity, while regional airlines may opt for smaller jets that require less fuel and can be operated by low-cost carriers or on shorter routes. Purchasing used airplanes from other companies or leasing companies is also possible to save money.

In addition to aircraft, entrepreneurs should also consider other facilities and resources such as flight training schools, navigation systems, and any customizations necessary for the fleet. It is also important to investigate potential partnerships with airports and other airlines in a particular market to secure more favorable rates or access to certain services. Finally, it is essential to ensure that all equipment meets safety standards set by local aviation authorities.

Usually, acquiring aircrafts and facilities is one of the most expensive steps for starting an airline company. It is important to have a clear understanding of the services being provided by major airlines to make informed decisions when selecting airplanes and other resources.

Creating an Operations Plan

Creating an operations plan is key to the success of any airline company. An operations plan should provide a detailed view of the day-to-day tasks that must be completed to achieve your overall business objectives. It will guide your staff and other stakeholders, detailing all aspects of running your airline. Here are some key points for you to consider when creating an operations plan.

1) Understand Your Scope: Define what services the company will offer and what geographic area it will cover. This helps determine the size and complexity of the business model’s operation, which will inform many decisions going forward.

2) Resources & Requirements: Identify all resources that must be acquired to run the business. This includes technology, premises, personnel, and equipment. As today’s airline industry is highly competitive, it’s important to ensure that the company meets all the requirements of the industry and any local regulations.

3) Planning & Scheduling: Establish policies and procedures for managing operations of international flights, including scheduling of flights and crew rotations. Also, consider the need for customer service initiatives such as ticketing, customer relations, and ground transportation services.

4) Cost Control & Efficiency: Develop cost controls to ensure that operational expenditures align with overall budget goals. Also, identify opportunities to increase efficiency by reducing costs or streamlining processes. Suppose you need an expert opinion. In that case, you can consult independent advisors to help you identify areas of improvement and ensure compliance with local laws and regulations.

5) Risk Management: Identify potential risks that could affect the business operations and create a plan to mitigate them should they occur. This includes insurance coverage, legal compliance requirements, and contingency plans for unexpected events like bad weather or other disruptions.

6) Quality Control: Establish standards of quality for all aspects of the operations, ranging from customer service to flight safety, fleet management and maintenance. This helps ensure that the airline’s services are of the highest standards and its customers have a positive experience. When it comes to safety, the company should ensure that all employees are adequately trained and follow the procedures laid out by local aviation authorities.

By creating an operations plan that covers all these points, you will be well-positioned to launch a successful airline company. With clear objectives, strategies, and procedures, your business will have the best chance of achieving its goals. In addition, it will help to ensure that all parties involved understand their role and what is expected of them. This leads to greater efficiency and smoother day-to-day operations for your airline. Finally, with an up-to-date operations plan, you can adapt quickly as new opportunities arise or unexpected challenges appear. This makes it easier to stay ahead of the competition and keep your business running like clockwork!

Ready to soar to new heights? Start your own airline company today!

Work with growth hackers  , launching your first flight.

Launching your first flight is an exciting time for any airline business. It can be a daunting task, however, as several factors must be considered. Before you launch your service, it’s important to ensure that you have the right permits and licenses and staff trained in aviation safety measures. Once these items are taken care of, you must advertise your airline services and purchase aircraft or charters that comply with all necessary regulations.

If you plan on purchasing a fleet of aircrafts for your airline company, ensure they meet FAA requirements and any additional local standards for airworthiness. You should also ensure the planes are equipped with the latest navigation systems and emergency backup procedures to provide your customers with a safe, reliable service.

When advertising and launching your first flight, consider all the marketing channels available. This includes print, radio, television, and digital media. Ensure you have an attractive website with all your fares, destinations, and special offers clearly stated. Social media can also be a great way to connect with potential customers to inform them about your new airline company.

Once you’re ready to start flying passengers, don’t forget to register for fares in advance and create loyalty programs or specials for returning customers. Additionally, make sure that you keep track of customer feedback so that you can continuously improve upon their experiences flying with your airline company. Suppose you just can’t seem to keep up with the demand for flights. In that case, you might consider partnering with another airline company or expanding your fleet of aircrafts.

Launching your first flight can be intimidating, but it doesn’t have to be. By following the steps outlined here, you can ensure that your airline business gets off the ground safely and begins turning a profit quickly . With careful planning and preparation, your dreams of owning an airline company will soon become a reality!

Closing Thoughts About How to Start an Airline Company

Starting an airline company is a complex, risky endeavor not for the faint of heart. However, it can be done with enough dedication and commitment to following all of the steps required to go from concept to reality. It takes careful research into customer needs and wants as well as market conditions; understanding local regulations; having sufficient capital; executing a viable business plan; acquiring the right workforce; obtaining aircraft and insurance coverage; selecting reliable partners and suppliers or vendors; developing marketing strategies that effectively reach target customers; designing customer service policies that meet expectations, etc. All these components are essential in starting a successful airline company.

At the same time, while it is important to focus on details such as those mentioned above, entrepreneurs should not forget to take a step back and assess the overall landscape. As with any business venture, timing is key, and an airline company is no different. Therefore, entrepreneurs and established airlines should also consider future trends, such as changes in customer preferences or demand for certain routes that may impact their operations.

At last, having a great business idea and passion for the airline industry is also crucial. It is important to constantly learn and adapt to changes in the market while remaining focused on the mission and vision of the airline company. Any entrepreneur can succeed in starting an airline company with persistence, hard work, dedication, and patience.

So don’t wait any longer and take the plunge! With these tips, you can be sure to have a successful airline business. Good luck and happy flying!

Growth Hackers is an award-winning aviation marketing agency helping businesses from all over the world grow. There is no fluff with Growth Hackers. We help entrepreneurs and business owners start an airline company, increase their productivity, generate qualified leads, optimize their conversion rate, gather and analyze data analytics, acquire and retain users and increase sales. We go further than brand awareness and exposure. We make sure that the strategies we implement move the needle so your business grow, strive and succeed. If you too want your business to reach new heights, contact Growth Hackers today so we can discuss about your brand and create a custom growth plan for you. You’re just one click away to skyrocket your business.

Grow your Business Now  

Neha Jadeja

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That’s a great article as we are interesting to start airline business in East Africa Community countries. Very helpful!

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Airline Company Business Plan [Sample Template]

By: Author Joy Nwokoro

Home » Business ideas » Aviation Industry » Airline

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

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

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

Steps on How to Write an Airline Company Business Plan

Executive summary.

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

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

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

Company Profile

A. our products and services.

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

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

b. Nature of the Business

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

c. The Industry

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

d. Mission Statement

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

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

e. Vision Statement

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

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

f. Our Tagline (Slogan)

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

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

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

h. Our Organizational Structure

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

i. Ownership/Shareholder Structure and Board Members

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

SWOT Analysis

A. strength.

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

b. Weakness

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

c. Opportunities

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

i. How Big is the Industry?

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

ii. Is the Industry Growing or Declining?

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

iii. What are the Future Trends in the Industry?

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

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

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

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

iv. Are There Existing Niches in the Industry?

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

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

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

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

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

i. Who are the Major Competitors?

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

ii. Is There a Franchise for Airline Business? 

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

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

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

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

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

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

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

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

Marketing Plan

A. who is your target audience.

i. Age Range

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

ii. Level of Education

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

iii. Income Level

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

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

v. Language

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

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

vi. Geographical Location

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

vii. Lifestyle

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

b. Advertising and Promotion Strategies

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

i. Traditional Marketing Strategies

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

ii. Digital Marketing Strategies

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

iii. Social Media Marketing Plan

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

c. Pricing Strategy

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

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

Sales and Distribution Plan

A. sales channels.

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

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

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

b. Inventory Strategy

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

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

c. Payment Options for Customers

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

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

d. Return Policy, Incentives, and Guarantees

Return policy:.

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

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

Incentives:

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

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

Guarantees:

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

e. Customer Support Strategy

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

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

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

Operational Plan

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

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

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

b. Production Process

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

c. Service Procedure

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

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

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

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

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

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

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

d. The Supply Chain

A supply chain is not applicable to the airline business.

e. Sources of Income

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

Financial Plan

A. amount needed to start your airline company .

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

b. What are the costs involved?

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

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

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

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

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

e. What is the Average Salary of your Staff?

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

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

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

Financial Projection

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

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

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

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

b. Sales Forecast?

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

c. Estimated Profit You Will Make a Year?

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

d. Profit Margin of an Airline Company Product/Service

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

Growth Plan

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

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

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

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

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

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

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

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

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StartupBoeing

Prepare for takeoff.

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

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

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

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

Market Analysis

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

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

Operating Environment

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

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

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

Business Planning

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

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

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

The Structural Plan

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

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

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

Structuring the Plan

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

Airplane Selection

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

Interactive Aircraft Comparator

In-Production Airplanes

Out of production airplanes, passenger airplanes.

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

Freighter Airplanes

• 707-320C Freighter
• 727-100/-200 Freighter
• 737-200/-300 Freighter
• 747-200F/-200SF/-100SF
• 747 Freighter (747-400/-400ER)
• 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.

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

Copyright © Tous droits réservés.

Airline, Taxi & Shuttle Business Plans

Aircraft equipment maker business plan.

Stretch 'r Wings, Inc. is a start-up business that will develop and market medical interiors for aircraft and helicopters.

Aircraft Rental Instruction Business Plan

Lansing Aviation, LLC is a start-up company for aircraft rental, flight instruction, and aviation consulting services.

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

Air Leo will fill a niche in the growing air-travel and cargo markets linking Western Europe, and points beyond, to Southeastern Europe and Turkey.

Airport Shuttle Business Plan

Valley Airporter provides scheduled shuttle transportation service between the regional metro airport and outlying communities.

Airport Taxi Business Plan

Premier Airport Transporation is an upscale livery service between businesses, residences and airport.

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

Double Decker Tours of Washington will offer tours of Washington DC monuments, government buildings, museums, etc. in London-style double-decker buses.

Taxi Business Plan

City Taxi is an established taxi cab company in San Francisco.

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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How To Start An Airline Business

An in-depth overview.

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

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

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

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

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

What to Know About How to Start an Airline Company

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

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

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

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

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

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

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

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

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

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

IATA Market Analysis Reports | Boeing Market Analysis

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

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

Some of these certificates and regulatory requirements include:

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

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

International Traffic Rights

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

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

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

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

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

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

Aircraft Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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United Airlines asks pilots to take time off due to shortage of new Boeing planes

Airline faces delay in receiving new planes as Boeing struggles with production due to manufacturing problems

United Airlines is asking its pilots to take time off in May because of delays in receiving new planes that the airline ordered from Boeing , which is struggling with production due to manufacturing problems.

A United spokesperson said Monday that the offer is voluntary.

“Due to the recent delays in Boeing deliveries, our forecasted (flight hours) have been reduced and we are offering our pilots voluntary programs for the month of May to reduce excess staffing,” spokesperson Leslie Scott said.

In a note to pilots obtained by The Associated Press, United said it expects to make similar requests during the summer and possibly into the fall.

The Air Line Pilots Association said United is offering short-term leaves and unpaid time off, but they are not mandatory.

Boeing declined to comment.

United doesn’t expect to get all the Boeing jetliners it ordered and was due to receive this year or next year. A month ago, United said it was contractually due 191 planes this year and 127 next year but expects to receive only 88 this year and 64 in 2025.

Almost all of the shortfall consists of Boeing 737 Max planes, including a new, larger model. United had planned to begin flying 80 Max 10 jets this year. The Federal Aviation Administration has not yet certified the Max 10, however, and FAA approval is likely to be further delayed by increased scrutiny of Boeing since a panel blew out of an Alaska Airlines Max 9 in January.

• United Airlines
• Airline industry

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The Newest Tech Start-Up Billionaire? Donald Trump.

Trump media, which went public this week, attracted a frenzy of interest on its first day of trading..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Michael Barbaro. This is “The Daily.”

[THEME MUSIC]

Over the past few years, Donald Trump’s social media company Truth Social was dismissed as a money-losing boondoggle. Today, Matthew Goldstein on how over the past few days, it somehow became a publicly traded company worth billions of dollars.

It’s Thursday, March 28.

Matthew, thank you for coming on “The Daily”-

Thank you for having me.

— your debut.

Do you go by Matt?

I go by Matt. I go by Matt.

Matt. You’re a Matthew —

Because my mother likes me using — when I first started out, my mom says, I named you Matthew. You should use Matthew for your by-line. Because I initially did use Matt, and then she —

She caught it?

This is literally the tale of the —

Yeah, right.

The Jewish mother.

Yes, yes, the way all journalism sort of starts. Why did you go into journalism to begin with, though?

Right, you could have been a doctor. Here we are. At least use my name. OK, so, Matt, I wonder if we could start by having you tell us the current market value of this new publicly traded company, Donald Trump’s social media business.

OK, so as we sit here —

11:26 AM on Wednesday.

— on Wednesday, it’s trading right now for around $65 a share. If you work that out, it’s worth about $8 billion.

That’s huge.

That is huge. I think it’s bigger than “The New York Times,” actually.

I think “The New York Times” is like around $7 billion.

It’s bigger than a lot of companies, which is crazy when you think about it.

Yeah. And what is Donald Trump’s personal stake in that, and what is that now worth?

OK, so he owns 79 million shares. So roughly doing the math, and this changes, it somewheres around $5.6 billion. It’s been going up sometimes as high as even $6 billion.

That’s extraordinary.

That is extraordinary. Because if you believe what Forbes had said last fall, he was worth about $2.6 billion. So he’s more than doubled his net worth in basically the last few days with Trump Media.

Wow. And not a moment too soon, right? Because as we’ve talked about on the show, Trump owes about every last cent of cash he has — I think it’s an estimated $500 million or so — to various courts, and this would be very auspicious timing to suddenly have an extra $5 billion in his life.

It’s a critical lifeline for him right now. There of course, are limitations to how he can tap that money, but I think also it should not be understated, it’s a huge bragging point for him, which he likes to go out and talk about being the most successful businessman on the planet.

He can say, look, I built a company that’s worth $7 billion overnight. Where have you done that, Joe Biden?

Or where have you done that pretty much almost anyone other than a very select, rarefied group of tech startups?

Absolutely.

So tell us the story of how this company, which I think a lot of people candidly dismissed from the beginning as Trump’s little kind of renegade corner of the internet somehow became this, a real financial behemoth in a way. What is that story?

So you have to go back to January 2021. Trump is kicked off of what was then Twitter after the January 6 riots at the Capitol.

And not just Twitter, right? Facebook, Instagram.

Yeah, he was kicked off everything, but Twitter was really where he had lived, as we all knew.

Right. Tens of millions of followers.

Tens of millions. So Trump is at this low point. He’s out of the White House. He’s sort of down there at Mar-a-Lago. And all of a sudden, a blast from the past.

[MUSIC PLAYING]

He gets approached by these two guys who had been contestants on his old reality show, “The Apprentice.”

and their names are Andy Litinsky and Wes Moss.

I’m no dummy.

No, I know.

They’re not particularly notable or famous people. I don’t know if the word is “star” is on the show.

To be perfectly honest, I want to see Mr. Trump as much as possible.

Litinsky was a really young guy.

I toast to the men dominating the women.

Wes Moss came out as almost like a frat boy type of character.

Andy, you’re fired. Wes, you’re fired also.

And they weren’t particularly successful, but they go to Trump.

And what exactly is their pitch to him?

Their pitch is basically, forget about Twitter. Forget about all these other platforms. Create your own platform. Create your own social media company. It will be great. You won’t be censored. You can say whatever you want. All your followers will come here. We’ll make a lot of money. We’ll be huge.

What was Trump’s response?

Well, he’s intrigued, but he never really totally commits to anything. At that point, Trump is sort of taking a back seat on it. He’s basically agreeing to lend his name if nothing else.

They sign an agreement that they’re going to go out and pitch the deal. And “The Apprentice” guys know that they’re going to need a lot of money to get this company off the ground. But they’re not going to be able to turn to traditional Wall Street sources because Trump at this point —

Is kind of toxic.

Yeah, he’s a toxic guy. So the solution for “The Apprentice” guys to raise this money was to do something called a SPAC, which is these companies that have come into vogue during the pandemic. They’re basically shell companies that go public, raise hundreds of million from investors. And essentially their sole purpose is to go out and look for another company to buy.

It’s basically money in a bank account that’s just sitting there to be transferred over to the private company that you buy. So for the private company that ends up merging, it’s a great deal because they get tons of cash where they had nothing the day before. And the other advantage of a deal with a SPAC is that beyond the cash, the private company becomes a public company, and that gives it the ability to sell stock to investors and go out and raise more money that way.

And then through that merger, eventually the two companies coming together, the company that Trump is going to be ostensibly heading, that social media company would get everything the SPAC had raised from investors. So all that cash is going to come flooding into the company “The Apprentice” guys envision.

So if I’m understanding this plan correctly, “The Apprentice” guys envision a plan where they go off, they find a SPAC that has raised a bunch of money, and eventually it will merge with the Trump social media company they envision building. And when that marriage is consummated, their work will be over and they will hopefully have a lot of money.

Basically, that’s exactly what their goal was. Yeah. So “The Apprentice” guys are out there in the market looking for a SPAC. But given the lack of really any kind of business plan, they don’t go to the top flight guys out there. They end up at the bottom of the barrel.

And so they end up with essentially a very no name sounding SPAC called Digital World Acquisition Corporation. Digital World has its IPO in September of 2021, raises $300 million. Lo and behold, like a month after, a press release comes out late at night. Donald Trump and Trump Media are merging with Digital World Acquisition Corp

I remember people pinging me, is this a joke? Because most people I’m sure had never heard of Digital World. And even more people had no idea that Trump was even doing a social media company. Because while all this is going on and they’re trying to put a deal together, the social media platform that will become Truth Social hasn’t even launched, and it won’t do so for months later.

But there’s trouble right away. The Securities Exchange Commission comes in and announces it’s opened an investigation into how this deal came together, looking into whether Digital World violated securities laws by engaging in merger talks ahead of time, which technically isn’t kosher in the way SPACs are supposed to work. But this investigation just drags on and on and on, and it’s going to delay everything.

So this is turning out to be a pretty big mess.

Very big mess. It looks like this deal’s never going to happen. And finally, when they launch Truth Social in early 2022, it’s a little bit of a joke. It’s like this sort of very early version of Twitter when it’s sort of clunky.

How clunky? You were on it?

Yeah, I actually think I was one of the first people to get in, which I thought was sort of funny because I said I was from “The New York Times.” They actually verified me.

There was very little traffic. It was almost like you’d post something and you could literally hear the crickets.

Trump never posted for three months.

Trump never posted on Truth Social the site that exists for his —

And I remember writing a story and you couldn’t get an answer from them, why is he not posting?

Perhaps because he has his own doubts.

And also wasn’t a place — no one was there. I mean, they had a few million users. There’s a few million dollars in advertising on Truth Social, a lot of them the equivalent of almost late night TV advertising that you would see. It’s losing tons of money, which is in fairness, it’s not unusual for a startup company to lose money, but it was not clear where it was ever going to make money and where the money was going to come in.

And we’re looking at this thing, is it even going to happen? Your deal is in trouble because of regulators. And also the company is in trouble because there’s just nothing there. So everyone, I think for the most part, sort of counts this thing out. For them it was a desperate situation.

And then last summer, a bunch of things started to go right all of a sudden for Trump Media. And it really started to raise the prospects that this deal actually could happen.

We’ll be right back.

So Matt, how is it that things start to turn around for this real mess of a social media company that Donald Trump has founded?

OK, so the single biggest thing was last summer, the SEC settles its investigation with Digital World, with the SPAC that it was merging with. And that basically at that point clears the gates for them to start to really move forward with the merger.

What kind of settlement was it?

They had to pay $18 million, and they had to rewrite all their disclosures to make it consistent to reveal all the early talks they had had with Trump Media.

The other thing is Elon Musk buys Twitter, now X. And one of the first things he does is he says, Trump, you can come back. Start posting again. We want you. We love you. Everyone thinks Trump’s going to do that. But then he stays.

He continues the post on Truth Social, and it’s clear he’s sticking with his own platform. And if anything, he starts ramping up his postings on Truth Social, and they become increasingly, as we with the way Trump is, bombastic, inflammatory, attacking all the judges and all the cases going on, the prosecutors, political opponents. And he’s been doing it with increasing frequency.

And this is a key ingredient of last summer’s turnaround, because it’s clear at this point Trump is sticking with Truth Social. He’s not going anywhere. He’s leaning into it, and it’s become his platform.

But we shouldn’t lose sight that may be the most important thing is the loyalty of shareholders. And I’m not talking about big hedge funds, big institutions, wealthy people. I’m talking about ordinary Trump supporters, many of them who are posters on Truth Social and happen to be stockholders of this cash-rich SPAC that’s eventually going to merge with Trump Media. And they’re the ones who have kept this thing going to some degree.

As investors.

As investors. Because there were many points where the SPAC deal itself could have just failed. But they really want to make sure this company succeeds. It’s almost like a religious kind of thing for some of them. And I can tell you, one guy has been very vocal is actually sort of a Christian minister.

Good evening, DWAC stock.

He has his own streaming video show on Rumble, which he called DWAC Live, named after the shares.

Lord we ask in the name of Jesus, that you help the executives finish this strong and that you protect them from all the forces that would try to stop the merger and —

They talk about the stock and the merger, and it’s got his own following.

Just all show up at Mar-a-Lago, knock on the door and be like, hey, President Trump, we’d like to come party with you because we all own little bits of your company and we love you. Let’s just check on the price one more time before we head out for the night.

So in some way, Trump really owes a lot to his small shareholders who made this possible. Because if it wasn’t for them, there would be no merger.

And when they talk to you about why they have bought shares in this business, in this SPAC, even when it’s at its least successful and most imperiled, how do they talk about why it’s worth their hard earned money?

First of all, they view they’re building something. And they’ve all believed that, right or wrong, whatever you may think about it, that Truth Social is free from censorship, that it allows Trump and others to say what they want. And they really believe that as the founding principles, they’re the original owners essentially going to be of this company, and they’re helping it flourish and build.

So this has become a real personal thing for a lot of them, more so than I think I’ve ever seen with any other publicly traded company before.

So the folks who are investing in this SPAC, anticipating it will eventually get together with Truth Social, and who, as you have just said, sustained this through its darkest chapter, they aren’t really there because they see this as a highly profitable business. You just said, Matt, that it was losing money.

They’re doing it as a statement and I guess a measure of their fervor for Trump, for the movement he represents. Buying the stock is a way for them to put their money where their mouth is when it comes to MAGA.

Right, right. For them, this is about supporting Trump and supporting this company, which they view as critically important n keeping its message out there alive.

So, Matt, I think that more or less brings us to this week, when this turnaround you’re describing results in this crazy takeoff of the stock price. But just walk us through the mechanics of it.

What happened was there’s the shareholder vote. And the way it works is Digital World shareholders have to vote to approve the merger with Trump Media. It was at this point it was a foregone conclusion. But it’s a vote, so you never know what’s going to happen, though. And they get the vote on Friday. It’s overwhelming. I think it was 29 million shares voted in favor, and 200,000 voted against. I mean, you just don’t see that.

A landslide.

A landslide. Yes, like an electoral landslide. So the deal goes through. On Monday, the deal is actually closed, and we have our first day of trading on Tuesday of this week.

Ticker symbol DJT.

Donald John Donald.

Donald J Trump.

Former President Donald Trump’s newly merged social media company has begun trading, and shares are soaring.

It opens for trading at around $40 something a share.

More than 6.5 million shares in Trump Media had changed hands by 9:50 this morning.

They have to actually halt trading briefly because the volume, the level of trading is off the charts in the stock.

And currently you take a look at where shares are, they’re up about 40 percent.

At one point, it reaches $70 a share.

This is the highest profile SPAC we’ve seen in quite a while.

Really, I’d say ever, Katie. I mean —

And on the end of trading on Tuesday, it closes around $60 or so. And that’s how we get this $7, $8 billion valuation for the company and the paper gain of $5.6 billion —

But for now, quote, unquote, “DJT” is the mother of all meme stocks, with the stock up 32 percent up, as much as 58 percent today, hard to disagree.

I just want to make sure I understand why this company is now valued so highly. And I guess what I’m really getting at is, is there an actual business case for it, given what folks in your calling would describe as the fundamentals of the business? Or is this just a measure of these Trump-supporting investors’ deep affinity for him? Is this basically a bubble, or is there maybe a true financial justification that can be laid out here?

OK, so if we go pure fundamentals, it’s crazy. This company is not a $7 or $8 billion company. It had $3.3 million in revenues for the first nine months of last year. It lost about $49 million.

Yeah, that is not the makings of an $8 billion valuation company.

No, no, no. I mean, the one good thing it got going, it got $300 million in cash from this merger. Not for Trump, for the company. So that’s good. They can use that cash to go out and buy something, bring in more people, hire influencers on Truth Social.

But even then, they have 10 million downloads of Truth Social. I mean, Twitter is what, like hundreds of millions of users? I’m sorry, X has hundreds millions of users. Where’s it going to go for that kind of growth to justify that?

But this is what Wall Street is. I mean, we call them our meme stocks. They’re fantasy stocks. They take on a life of their own. We had this during the pandemic with GameStop and AMC. The shares run up to ridiculous levels, driven largely by retail investors.

And just to remind people, those were stocks where retail investors were buying shares it felt like because they wanted to send a message, largely anti-establishment message, they were mad at a hedge fund that had shorted it in one case, I remember. They wanted to make a point. They wanted to stick it to the man.

Right. And also it becomes a self-fulfilling prophecy. It becomes a mania. Then others see this and get in because you feel like if you keep buying, it’s never going to fall. It’s never going to go down. And that can work for a while, but eventually gravity will always take hold at some part.

I’m not saying that Trump Media is going to collapse. But at some point, something will happen that will trigger the stock to sell off.

Right, it’s fragile.

It’s fragile, right. It’s not sustainable at this level. But when it’s happening, it’s hard for me or anyone to give you a rational reason, and that’s why there’s this old thing, irrational exuberance. It’s not necessarily unusual. It’s just that it’s unusual because you have a very loyal investor base to him personally that is driving a lot of these surges in the stock.

I’m really curious how Trump’s position in this presidential campaign factors into what you just described. Because it feels like this irrational exuberance has to be linked somewhat to the reality that he is the now lead candidate in the polls for re-election. But I’m curious what investors think about that, how they think his chances of becoming president with the financial health and future promise of this company.

It’s definitely, I think, going to be a barometer, actually, of Trump and his political fortunes. I mean just by way of example, the SPAC stock started to soar this year when Trump was on the verge of locking up the nomination. It was around the time DeSantis dropped out in New Hampshire.

The stock surged like 60 percent, 70 percent overnight. It was really because people were like, hey, Trump is going to be the nominee, and we’re going to be going forward.

But can you just explain that? What does one have to do with the other?

In theory, it doesn’t have anything to do with it. But it’s like a proxy for him.

It’s also the idea that as long as Trump is still politically viable, Trump Media is viable. Truth Social is viable.

And presumably a president 2.0 Trump is the best possible situation for this stock price.

If he wins, I think it probably will be a high watermark for the stock. And I would just think given the dynamic with the election right now, it’s hard to see the stock not continuing to rise at least until November.

OK. I want to turn now to Trump’s access to this very valuable stock at a time when, as we all know, he seems to need money. How and when could he tap into this money?

OK. So at the moment, he actually can’t.

He can’t. There’s what’s called a lockup, a restriction. It’s not just for him. It’s for any major shareholders. They can’t sell for six months. It’s actually not unusual in these kind of circumstances.

The logic is you don’t want important people to the company, important shareholders, to bolt as soon as the deal goes through.

But there are other ways you can get around that. One way is for the board. It’s a seven member board. They’re all loyalists, for the most part. They could allow him to sell shares early. I personally think that’s unlikely because it shows a lack of faith. Just like if he had jumped from Truth Social onto Twitter, this would be the same kind of message being sent.

What they could do is allow him to pledge those shares, meaning he can go out and get a loan, use it as collateral. The shares don’t get sold, but you’re giving them to some other like a bank or probably more likely a hedge fund. So that would be a way for him to monetize his stock without actually selling it.

So if Trump really wanted to, he could find a way working through this board of loyalists to tap into this money pretty quickly if he so chose to.

If he asked the board to do it, I think there’s probably a good chance the board would do it. But if he doesn’t really need the money that desperately, I think he probably won’t. And I think the board would be reluctant because it doesn’t really help anyone to have lots of stock coming out into the market. That only will probably depress the price of the shares.

And it doesn’t help to have the face of the company, the man whose initials are on the ticker, selling the stock because that suggests he doesn’t have a tremendous amount of faith in the business. And that might trigger a sell off, which would undermine the value of the rest of his stock. It’s a pretty bad cycle to start.

It’s a bad — right, that’s like the event that starts to send the sell off. And even at that point, even your most loyal shareholders may say, well, I don’t want to be left the last one holding the bag.

Right. I want to step way back for just a minute and think about the larger meaning of what has happened with Truth Social. I mean, I’ve covered a lot of Trump’s businesses through the years, investigated them when he was a candidate in 2016. And it really strikes me that of all the businesses he’s been in, real estate, casinos, Trump University, selling Trump steaks, Trump wine, whatever, those made money.

This, in some ways, feels like the least sound business of all, and yet it has made him the richest by far. That’s a little bit weird to wrap your head around. What does that tell you about the nature of Trump and these investors who believe in this?

It is weird. I’m not a politics reporter, but from a business perspective, this has given me a little bit better insight into his seemingly unending kind of popularity and support. There’s the old adage on Wall Street, never fall in love with a stock. But the reality is a lot of his shareholders here are in love with the stock. They have fallen in love with it, and they’re in love with him to a large extent.

And when you have that sort of mix there, it allows a stock to soar to unreal levels that we’re seeing now. And who knows where it goes from here? But for the moment, it’s clearly working for Mr. Trump.

Well, Matt, thank you very much.

When the stock market closed on Wednesday afternoon, shares of Trump’s new media company reached $66 a share, up 14 percent from the previous day. As of this morning, the company is worth $9.4 billion.

Here’s what else you need to know today. Authorities said that the six missing workers who were on the Francis Scott Key Bridge when it collapsed are now presumed dead. The workers were members of a construction crew who were repairing masonry and potholes when a massive container ship plowed into the bridge on Tuesday morning.

This is no ordinary bridge. This is one of the cathedrals of American infrastructure.

Experts say that rebuilding the bridge, which carried 30,000 vehicles a day, will probably take years and cost hundreds of millions of dollars, a reality acknowledged by the Secretary of Transportation Pete Buttigieg.

So the path to normalcy will not be easy. It will not be quick. It will not be inexpensive. But we will rebuild together.

And the first ever congestion pricing system in the United States crossed a major milestone on Wednesday when New York officially approved tolls for cars driving through the busiest sections of Manhattan. The system, modeled on those in London and Singapore, is designed to significantly reduce traffic and air pollution. The tolls, $15 for most passenger cars and as much as $36 for large trucks, are expected to raise $1 billion a year for mass transportation.

The new system could still be blocked by several lawsuits seeking to derail it. But if those cases fail, the tolls will begin in mid-June.

Today’s episode was produced by Will Reid, Mary Wilson, and Asthaa Chaturvedi. It was edited by Lexie Diao, contains original music by Marion Lozano and Dan Powell, and was engineered by Alyssa Moxley.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Michael Barbaro. See you tomorrow.

• April 5, 2024   •   29:11 An Engineering Experiment to Cool the Earth
• April 4, 2024   •   32:37 Israel’s Deadly Airstrike on the World Central Kitchen
• April 3, 2024   •   27:42 The Accidental Tax Cutter in Chief
• April 2, 2024   •   29:32 Kids Are Missing School at an Alarming Rate
• April 1, 2024   •   36:14 Ronna McDaniel, TV News and the Trump Problem
• March 29, 2024   •   48:42 Hamas Took Her, and Still Has Her Husband
• March 28, 2024   •   33:40 The Newest Tech Start-Up Billionaire? Donald Trump.
• March 27, 2024   •   28:06 Democrats’ Plan to Save the Republican House Speaker
• March 26, 2024   •   29:13 The United States vs. the iPhone
• March 25, 2024   •   25:59 A Terrorist Attack in Russia
• March 24, 2024   •   21:39 The Sunday Read: ‘My Goldendoodle Spent a Week at Some Luxury Dog ‘Hotels.’ I Tagged Along.’
• March 22, 2024   •   35:30 Chuck Schumer on His Campaign to Oust Israel’s Leader

Hosted by Michael Barbaro

Featuring Matthew Goldstein

Produced by Will Reid ,  Mary Wilson and Asthaa Chaturvedi

Edited by Lexie Diao

Original music by Marion Lozano and Dan Powell

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

Over the past few years, Donald Trump’s social media platform, Truth Social, has been dismissed as a money-losing boondoggle.

This week, that all changed. Matthew Goldstein, a New York Times business reporter, explains how its parent venture, Truth Media, became a publicly traded company worth billions of dollars.

On today’s episode

Matthew Goldstein , a New York Times business reporter.

Background reading

What to know about Trump Media’s high-flying stock debut .

Ethics experts say the publicly traded company could present a new way for foreign actors or others to influence Mr. Trump , if he is elected president.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Matthew Goldstein covers Wall Street and white-collar crime and housing issues. More about Matthew Goldstein

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Transportation | City proposes key change to O’Hare airport…

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Transportation | city proposes key change to o’hare airport rebuild, after months of negotiations with airlines.

After months of negotiations with airlines over the massive, delayed rebuild of O’Hare International Airport, city officials are proposing a path forward with a key change.

In a letter to airlines this week, the city proposed changing the sequencing of construction on a new Global Terminal and nearby satellite concourses, opting to “accelerate the completion of the Global Terminal,” which is set to replace aging Terminal 2, city Chief Operating Officer John Roberson told the Tribune. Initially, the plan was to build two satellite concourses first, which would have added gate space for airlines to use while Terminal 2 was torn down and replaced with the Global Terminal.

A change in the order of construction had been sought by airlines during months of contentious negotiations with the city over the rebuild, as they sought to ensure the new terminal wasn’t threatened by future budget issues. O’Hare’s two main carriers, American and United, had pushed back against rising construction costs at the airport , a key piece of the city’s economy and a hub in the nation’s air system.

The airlines signed off on an $8.5 billion overhaul of the airport in 2018. The main feature of the rebuild was the soaring, 2.2 million-square-foot Global Terminal, designed by a team led by architect Jeanne Gang, which would more than double the space of the current Terminal 2 and add additional gates, and allow travelers to move more seamlessly between domestic and international flights.

But costs, largely financed by city bonds backed by airline fees, ballooned, and the project fell significantly behind schedule.

The city would not provide a copy of the letter sent to the airlines this week, but Roberson said that under the latest proposal, the full project agreed upon in 2018, including both satellite concourses, will be built.

“It also provides the airport with the capacity for growth so that we can be competitive with our other airport peers around the world,” he said. “And it is absolutely critical that we move forward with the implementation of this so that we can remain competitive and make sure that we are positioning O’Hare to be a key driver of our economic development process locally.”

In a joint statement, United and American airlines said they were still reviewing the proposal.

“The City has indicated that they are looking at all options to get an on-budget (terminal project) moving forward, one being sequencing the project to deliver the most impactful elements the quickest. The Global Terminal has always been the centerpiece of this program and the most critical piece needed to ensure Chicago maintains its status as a global hub,” the carriers said.

Ald. Matt O’Shea, 19th, chair of the City Council’s Aviation Committee, praised the revised phasing plan as “great news.”

“This is about airlines and government collaborating, looking out for airline passengers and modernizing,” he said. “We want to make sure we get this right. That we’re keeping this under budget, we’re avoiding cost overruns, but we’re also remaining competitive.”

When asked if any parts of the project could be not built if development goes over budget, O’Shea said the Department of Aviation has committed to building all major parts of the project within its budget.

“I think we move forward,” he said. “Everyone wanted a Cadillac fully loaded. And it’s not going to be that, but we’re going to modernize it, we’re going to allow for growth and we’re going to stay competitive.”

In an op-ed in the Tribune last month, U.S. Sen. Dick Durbin called for both satellite terminals to be built along with the Global Terminal, writing that the satellites made up the bulk of the new gate capacity and accusing the airlines of wanting to “build only the part of the project that benefits them and doesn’t increase competition.”

“This means putting off the construction of both satellite terminals to focus on the Global Terminal,” he wrote. “For a price tag still in the billions of dollars, O’Hare would gain two new gates in 10 years.”

Durbin sent a letter Friday to U.S. Secretary of Transportation Pete Buttigieg urging Buttigieg to convene a meeting with the city, airlines and state Congressional delegation on the project. In the letter, shared with media after news of the city’s new proposal broke, Durbin highlighted the importance of adding the second satellite terminal to create significant new gate capacity.

“All parties urgently need the expert mediation that only the U.S. Department of Transportation can provide to ensure a deal that is both fair and beneficial to local taxpayers and all passengers who fly through O’Hare,” Durbin wrote.

O’Hare ’s cost per enplaned passenger, a metric tracked by airlines, is already among the nation’s highest, and more than twice that of airports in Detroit and Minneapolis-St. Paul, which are significant bases for Delta, Bloomberg News has reported.

High costs at the airport are a consideration for airlines, and can make the airport less appealing as a hub. They are a key factor for O’Hare, traditionally a major hub for American and United, as its recovery from the pandemic lagged in recent months.

Tribune reporter Gregory Royal Pratt contributed.

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You can now get Ozempic at Costco — but don't expect big savings

• Costco is now selling the weight loss drug Ozempic through a partnership with health startup Sesame.
• Members can pay $179 for a prescription and appointment as part of a three-month package.
• Still, that doesn't cover the cost of the GLP-1 drug, which has gained popularity but can be costly.

Silver bullion and sushi aren't the only new additions to Costco's product selection this year. Now, you can get a prescription for the weight loss drug Ozempic through the retailer, too.

Costco has started offering the prescriptions through a partnership with healthcare startup Sesame, CNN reported on Tuesday. For $179, members can get a prescription for the GLP-1 weight loss drug plus a meeting with a doctor or specialist. Members who get the drug are also able to message a doctor with questions or issues as they continue to use Ozempic.

One thing the program — which lasts three months and is renewable — does not include is the actual cost of Ozempic, which can run up to $1,600 a month without insurance, CNN reported. Getting insurance to cover the drugs is still tough for non-diabetic users, and some employers are worried that the costs could strain their finances.

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Costco did not immediately respond to requests for comment from Business Insider. Sesame Chief Marketing Officer Michael DiLorenzo told BI that the company has seen the number of participants in the startup's weight loss service increase by 50 times since it unveiled the option with Costco on Tuesday.

DiLorenzo said that Sesame is "focused on making sure that the products we have in-market now with Costco — weight loss, primary care, and mental health — are delivering the exceptional experience and results that Costco Members expect of everything they get from Costco."

Ozempic, Wegovy, and other GLP-1 drugs have gained popularity among people trying to lose weight over the last few years. First intended as a treatment for type 2 diabetes, the drug uses semaglutide, an ingredient that can moderate blood sugar. It can also reduce appetite, which is why it has gained traction for non-diabetic patients trying to shed pounds.

Sales of the drugs have been so great that they likely helped Denmark avoid a recession since the country is home to Ozempic- and Wegovy-maker Novo Nordisk.

Costco started working with Sesame last fall to offer basic health services, such as virtual check-ups. GLP-1 drugs weren't initially part of the partnership, according to Sesame cofounder and president Michael Botta.

But approximately one in five requests that Sesame got through the Costco program was about weight loss, so Sesame developed the offering to cater to those customers.

"We realized pretty quickly, just by looking at what people were curious about, that there was a clear unmet need here," he told CNN.

Watch: Ozempic explained: how a miracle diabetes drug became the center of a weight loss craze

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