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Airline Business Plan

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

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

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

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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!

  • Fill in the blanks – Outline
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How to Write An Airline Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Airline services:.

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

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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2. Business Overview

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

Business Description:

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

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

  • Full-service carriers
  • Low-cost carriers
  • Regional airlines
  • Charter airlines
  • Cargo airlines
  • Describe the legal structure of your airline company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

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

Future Goals

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

3. Market Analysis

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

Target market:

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

Market size and growth potential:

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

Competitive Analysis:

Market trends:.

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

Regulatory Environment:

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

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

4. Airline Services

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

Describe your services:

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

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

Quality measures

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

Additional Services

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

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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

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

6. Operations Plan

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

Staffing & Training:

Operational process:, equipment & software:.

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

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

7. Management Team

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

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

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

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

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

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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

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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.

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Reading Time : 14 Min

Business plan 101.

How to Create an Airline Business Plan Stellar Business Plans

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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How to 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.

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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.

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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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Simple Flying

How to start an airline: part 3 - finances.

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

Developing A Business Plan

Planning & infrastructure.

So far in this series, we have looked at business plans, and you will have now decided what you want your airline to look like, where it will fly, and what sort of aircraft you might choose. But none of that can happen without addressing the most crucial topic of all. The one key issue that will determine whether your airline ever gets airborne at all. That subject is finance.

Money, money, money

Starting an airline is an expensive business. If you contemplate such a proposition, you will need money - and lots of it. Everything you will think about, require and plan for will need financing, and the list of everything that requires such financing is never-ending.

When starting an airline, the one item that will determine whether your airline makes it to launch day, without doubt, will be how well-financed your business plan is. A suitable warning to all when it comes to starting and financing an airline is an old joke within aviation circles that may well give any budding airline entrepreneur something to think about -

  • Question - "How do you become a millionaire who owns an airline?"
  • Answer - "Become a billionaire first and then start one."

However lighthearted this joke may appear, there is more truth behind its sentiment than you might first imagine. Treat this as your first warning regarding what you are getting into, as this scenario has repeatedly been seen to be accurate in the airline industry over many decades.

A330-300 Virgin Atlantic

Initial costs

As soon as you begin working on planning your airline, you'll be running up costs . Like a taxi cab, the meter will be running as soon as you open the door and hop inside. Before you even hail that taxi, you need to ensure that your project is well funded from the outset. If it isn't, you will run out of cash before realizing that you are running short.

You will incur costs from the very start. Whether for paperclips or phone calls, the costs are immediate even before considering sourcing funding for aircraft acquisition, signing contracts for airport handling, or purchasing jet fuel . You will need ample capital reserves to cover your initial outlay costs before any 'big ticket' items come up on your shopping list.

The amount of startup capital is often underestimated when starting an airline. If you scratch beneath the surface of history, you'll find hundreds of paper airlines that never saw the light of day; airline plans that sunk beneath the waves before even approaching the point where they might actually have something that will take to the air carrying passengers or freight.

Family_Airlines_Boeing_747-100_Maiwald

When planning your airline's startup, the adage of 'planning for the worst and hoping for the best' will serve you well. Accumulate as much cash as you can muster in the very early stages. History has shown that when it comes to starting an airline, however much money you have (or even plan to have), it probably won't be enough.

Raising finance

You will most likely consider two main finance streams to raise funding for your airline venture. The first is to raise share capital, and the second is to seek investment from institutional investors. Without delving too deeply into academic financial theory, these options involve third parties providing you with money but expecting something back in return.

Firstly, you could consider selling shares in your airline company. This will involve a considerable amount of work on your part, pitching your business plan to anyone who'll listen. This may be friends, family, or other acquaintances, but it could go all the way up to floating your airline company on the stock exchange of your chosen country.

Shareholders will buy shares in your company, that money providing funding for the costs of running your business. Stock exchanges worldwide allow smaller or startup companies to float their shares to those wishing to buy into the company. In London, for example, the Alternative Investment Market (AIM) is the vehicle that provides such a platform.

The new Icelandic airline, PLAY, listed its shares via what is known in the financial world as an 'Initial Public Offering' (IPO) on the NASDAQ First North Growth Market. Interestingly, the Reykjavik-based airline flew a special flight at 12,000ft over the glaciers and lava fields of the Icelandic Highlands to ring the famous New York stock market trading bell when the shares went on sale on July 9th, 2021. Given the interest that the airline and its directors had already generated up until that point, demand for PLAY's initial offering of shares was oversubscribed eight times over.

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Shareholders will hope that their shares rise in value (appreciate) as your airline becomes successful. That way, when they decide to sell their stakes in the future, they make an instant return on their initial investment.

Shareholders will also be hoping that the airline is profitable enough to reward its shareholders with an annual bonus called a 'dividend'. Paying dividends keeps shareholders happy and more likely to retain their existing shareholding or perhaps even add to it.

Airbus-A32-neo-Scoot

The second method of funding is to approach institutional investors. These may be banks, investment houses, and other financial institutions that might be attracted to your business model. If they can be brought onboard, they might become investors in your airline business, providing much-needed startup capital in the initial stages.

You might even be fortunate to come across a serial entrepreneur who may like the concept of your airline and be willing to invest as part of their investment portfolio. However, such occurrences are rare, particularly within the airline industry, which is considered high risk.

In return, investors may require guarantees that they will get their investment back after a fixed period, a share of the profits made during that time, require a percentage of the business itself, or even may go so far as to insist on one of their senior members of staff to sit on the board of directors of your airline, retaining a degree of control from within. None of these are uncommon, and all will require you to provide something back.

The idea of someone else providing you with the financing you need to start your business may sound attractive, but it always comes at a cost. The chances of someone willing to invest in your airline without requiring some form of return are almost zero, if not actually so.

A350-900 MSN115 Delta Taxiing

To attract investors of any kind, you will need your airline business plan to be as robust and watertight as possible. You must know it inside out so that when pitching it to potential investors, you know the contents of your plan inside and out and will be able to answer questions on it that even you might not have thought of. Being prepared is essential. No one will invest in your business if you or your plan are not 100% credible, attractive, and can offer something in return.

Should you successfully obtain an injection of capital into your prospective airline, you can move on to the following stages of development . Without it, however, you may find yourself on a fast track to losing a lot of money extremely quickly. Getting this part right now may mean that your airline succeeds to its first flight. Conversely, you may run out of money even before setting eyes on your airline's first aircraft.

You never stop incurring costs

As mentioned above, running an airline is extremely expensive. Before you witness your first flight being welcomed with by water cannot salute , or you are being presented with a cake for inaugurating your first route, there will be untold costs incurred - and these will be the ones you have planned for.

You will need staff to assist in activating your plan, and they will require wages. You are likely to need office space (which will need to be acquired through either lease or purchase) and administrative resources. You will need IT and telecommunications equipment and network connectivity - the list is endless. The business will incur other costs to get off its feet, too - travel costs when visiting prospective investors, entertaining costs as you hope to hook those investors to part with their money, etc.

No such thing as a free lunch

If your early planning is successful and you succeed to the point where you can start to consider the more exciting parts of your plan, the costs escalate in a similar trajectory. As a startup, you will be perceived to be a high-risk bet. Any of your suppliers or stakeholders will likely require additional security in any transaction they enter into with your airline.

If you intend to lease your first aircraft, lessors will likely charge a higher monthly lease rate to protect their assets and may also require a security deposit should you forfeit on lease payments. They will, of course, also retain the right to recover their aircraft should you fail to keep up with the payments under the terms of the lease agreement, potentially leaving you without an airplane to honor your passenger or freight bookings.

Thomas Cook, Bankruptcy, What to Do

Suppose you are fortunate enough to have adequate capital where you can consider purchasing new aircraft outright. The airliner manufacturers will require hefty deposits to allocate production line slots to your airline. As a startup, you are also less likely to have the necessary bargaining clout to negotiate discounts with the leading manufacturers against their published list prices than other larger airlines with a proven track record.

Any of your other suppliers, whether this is fuel companies, airport handling agencies, airport authorities, or any other entity you will sign contracts with to supply your airline, may well expect deposits, very short repayment terms, and other guarantees before they sign any agreement with you. Remember, these are all costs that are being incurred and eroding your capital reserves even before you have flown your first revenue passenger or carried your first kilogram of freight.

The struggle with revenues versus costs

Even if (and that is a very big 'if') you are successful in starting to run your airline, you must never take your eye off the financial position of your company. You will presumably be running your airline to be profitable and make money. Any reserves of cash you can build up will help your airline survive if costs increase (such as fuel).

The key to running any business whose whole ethos is to be profitable will be to manage revenues (the money the business earns) while keeping costs (the money the airline pays out) as low as possible. The difference between these two amounts, in simple terms, will be your profit. But even out of your profit, you will need to pay tax, dividends to your shareholders and retain some in reserve for unexpected events.

You may wish to expand in the future, and that will be where your cash reserves come in. Although most airline costs are incurred in the startup and initial phases, adding additional aircraft, crew, bases, and all the other items required for expansion all come at a further cost to the business. And while your ability to borrow additional funding may become more accessible and less expensive as you grow, it is always worth remembering that the next major global event could be just around the next corner.

Line of Ryanair Aircraft

Unforeseen events can change everything

Such catastrophic events have been witnessed repeatedly in recent decades; events that have decimated the airline industry. Events such as the oil crises of the 1970s, September 11th, 2001 , the COVID-19 pandemic, global recessions, and now the invasion of Ukraine were all largely unpredictable just a few months before they happened. Yet, they have all had profound impacts on the global airline industry. Having enough in the bank to weather such storms will help your airline survive and bounce back once the worst is over.

Flybe

The growth of your airline will almost certainly become an obsession. Starting an airline can be an adrenalin-fuelled journey that can induce an insatiable demand for bigger and better things. Yet many airlines have fallen foul of attempting to be too big, too quickly, and have failed as a result. Again, peruse the list of airline failures over the past few decades, and time and time again, you'll be able to pick out airlines that wanted too much, too quickly.

An example of this is Kingfisher Airlines which operated domestic and international services from India from 2005 until 2012. The airline expanded too quickly, swiftly ran out of money, and lost its acclaimed owner and Indian brewing magnate Vijay Mallya much of his personal fortune along the way (in line with the joke at the start of this article).

business plan for airline

Financial security is everything

Without adequate financing even before your start, you are setting yourself and your airline up to fail. And while many will see watching the purse strings of your business like a hawk as a rather tedious and time-consuming affair, not doing so is likely to consign your airline to failure.

Everything and we do mean everything in the airline business costs money. From a simple air sickness bag to a drop of fuel, and from the smallest screw inside one of the engines to a whole new repaint of your aircraft, it all costs money and probably way more than expected.

Running an airline can be exciting and can bring you great rewards. Yet doing so is most certainly not for the faint-hearted. Don't go into business and start your own airline expecting to get rich quickly. As almost anyone who has done so would attest to, even the most dedicated airline entrepreneur will invest far more time, energy, passion, and of course, money than they will ever take out.

Singapore B777 take-off

In the next part of this series, we shall be taking a look at what you will need to start your new airline, from offices to cabin crew uniforms, and from key personnel to paperclips. Starting an airline involves writing possibly the most expensive shopping lists you can imagine. See you next time for 'How To Start An Airline: Part 4 - Planning and Infrastructure'.

Business Plan Template for Airline Operators

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Airline operators, both new and established, know that a solid business plan is the key to soaring success in the aviation industry. Whether you're looking to secure funding or attract investors, having a comprehensive plan is a must. That's where ClickUp's Business Plan Template for Airline Operators comes in!

With this template, you'll be able to:

  • Outline your operational strategy, from fleet management to crew scheduling
  • Create detailed financial projections to impress potential investors
  • Conduct thorough market analysis to understand your target audience
  • Map out your growth plans to chart the course for your airline's success

Don't let turbulence hold you back. Take off with ClickUp's Business Plan Template and watch your airline reach new heights.

Business Plan Template for Airline Operators Benefits

A business plan template for airline operators offers a range of benefits to help them succeed in a highly competitive industry:

  • Provides a structured framework to clearly define operational strategies and goals
  • Helps identify and analyze market trends, competition, and target customer segments
  • Enables accurate financial projections and revenue forecasts for effective budgeting
  • Assists in securing funding and attracting potential investors with a comprehensive business plan
  • Guides decision-making processes, ensuring alignment with long-term growth plans
  • Facilitates regular monitoring and evaluation of performance against set objectives

Main Elements of Airline Operators Business Plan Template

When it comes to creating a business plan for your airline operations, ClickUp’s Business Plan Template has got you covered. Here are the main elements you'll find in this template:

  • Custom Statuses: Keep track of your progress with customizable statuses like Complete, In Progress, Needs Revision, and To Do.
  • Custom Fields: Add important information with custom fields such as Reference, Approved, and Section to ensure your business plan is comprehensive and well-organized.
  • Custom Views: Access different perspectives of your business plan with five different views including Topics, Status, Timeline, Business Plan, and Getting Started Guide. These views allow you to focus on specific aspects like market analysis, financial projections, and strategic planning.
  • Collaboration and Documentation: Utilize ClickUp's collaboration features like task assignments, comments, and file attachments to work with your team and gather feedback. You can also use Docs to create and edit your business plan directly within ClickUp.
  • Integrate with Other Tools: Seamlessly integrate with other tools and platforms you use in your airline operations, such as email, AI assistants, and various integrations, to streamline your workflow and enhance productivity.
  • Project Management: Take advantage of ClickUp's powerful project management capabilities to set deadlines, track progress, and manage tasks effectively. Benefit from features like recurring tasks, automations, and calendar view to stay on top of your business plan milestones and deadlines.

How To Use Business Plan Template for Airline Operators

If you're an airline operator looking to create a comprehensive business plan, the Business Plan Template in ClickUp can be a great tool to guide you through the process. Follow these six steps to effectively use the template:

1. Define your vision and mission

Start by clearly defining your airline's vision and mission statement. What is the purpose of your airline? What do you hope to achieve? This step will set the foundation for your entire business plan.

Use the Docs feature in ClickUp to write a detailed vision and mission statement for your airline.

2. Conduct market research

To create a successful business plan, you need to thoroughly understand the market and industry you're operating in. Research your target audience, competitors, and industry trends. This will help you identify opportunities and make informed decisions.

Utilize the Table view in ClickUp to organize and analyze your market research data.

3. Develop your airline's value proposition

What sets your airline apart from the competition? Identify your unique selling points and develop a compelling value proposition. This will attract customers and give you a competitive advantage.

Create custom fields in ClickUp to outline your airline's value proposition and unique features.

4. Outline your operational plan

In this step, you'll detail how your airline will operate on a day-to-day basis. Include information about your fleet, routes, pricing strategy, customer service, and any partnerships or alliances you plan to establish.

Use the Tasks feature in ClickUp to create tasks and subtasks for each aspect of your operational plan.

5. Create a financial forecast

A solid financial forecast is essential for any business plan. Estimate your startup costs, projected revenue, and expenses. Include information about funding sources, such as loans or investments, as well as your financial goals and targets.

Utilize the Goals feature in ClickUp to set financial targets and track your progress.

6. Review and revise

Once you've completed your business plan, take the time to review and revise it. Make sure all information is accurate, consistent, and aligned with your goals. Consider seeking feedback from trusted advisors or industry experts to fine-tune your plan.

Set a recurring task in ClickUp to regularly review and update your business plan as your airline evolves.

By following these steps and utilizing the Business Plan Template in ClickUp, you'll be well-equipped to create a comprehensive and effective business plan for your airline operation.

Get Started with ClickUp’s Business Plan Template for Airline Operators

Airline operators, both new and established, can use the ClickUp Business Plan Template to effectively outline their operational strategy, financial projections, market analysis, and growth plans. This template is designed to help you secure funding, attract investors, and guide your business decisions.

To get started, follow these steps:

Hit “Add Template” to sign up for ClickUp and add the Business Plan Template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

  • Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, and more.
  • The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
  • The Timeline View allows you to set deadlines and visualize the timeline of your business plan.
  • The Business Plan View provides a holistic overview of your entire plan, allowing you to easily navigate between sections.
  • Use the Getting Started Guide View to access helpful resources and tips on how to create a successful business plan.

Customize the template by adding custom fields like Reference, Approved, and Section to provide additional context and organization to your business plan.

Update the statuses as you work on each section, ensuring that stakeholders are informed of progress.

Monitor and analyze your business plan to ensure maximum productivity and alignment with your goals.

By using the ClickUp Business Plan Template, you can confidently present a well-structured and comprehensive plan that will impress investors and guide the growth of your airline operation.

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Airline business plan – the basics

To say that any decent business needs to have its own, legitimate business plan is cliché. an airline is no different, although some techniques may not exactly follow the rules of a typical business layout. in this article i intend to go through some of the basic airline business plan contents and describe what will probably be the hardest points to define..

The main parts of an airline business plan (or any business plan, for that matter) would generally be those:

Target market or niche market definition

Fleet definition, marketing strategy, cost analysis.

  • Income prediction, predictive balance sheet and predictive cash flow

So, as you can see, although there are topics which are reserved solely for an airline business plan, the overall structure is not different to that of any other company. It’s what is included in all those sections which may cause the airline business plan to be quite tricky. I’ll take the liberty of going through each of those points to briefly describe what should be generally included.

This is probably the most important and the most difficult part to determine and write down. If you attempt to create an airline, whether in real life or just for academic purposes, you need to know what purpose the airline is supposed to serve. The rest of the airline business plan will be based solely on what you define in this point, so it really is better to do ones homework before going off with some interesting but economically unviable ideas.

For the rest of this article, I will assume that the airline we attempt to create will carry passengers. This is the understanding of the world “airline” in the general world anyway, so for now we will leave the cargo operators.

There are really many markets you can target when thinking about your airline business plan. Here are just a few options for you to consider:

  • General, international traffic between domestic airports
  • General, intercontinental traffic
  • Traffic caused by a large company or factory near a specific regional airport
  • Wealthy traffic between major airports or a specific major airport and luxurious holiday locations
  • Regional, national traffic
  • Specific immigration traffic from a particular foreign country or from your country to several others
  • And many, many more.

As much as many (or perhaps even all) of the above propositions may seem a good idea at first, an airline business plan needs to be specific on why a particular niche has been chosen. This is getting difficult, as in order to properly define possible traffic, one needs to get into details of regional demographics of the countries and regions which are supposed to be involved in the given idea. Things such as population density, per capita income and willingness to travel really need to be considered before opening a seemingly gold-mine route. A route which is currently served only by a bus or train may seem like a great idea for connecting flights but only under the condition that the people will be able to afford your ticket prices. So do your homework – an airline business plan is nothing without it.

Once you have established your market, you have most of the required data to determine the fleet you will be using for your airline. This is another very important factor of the airline business plan and the latter success of the airline as it will determine many of your cost factors, such as fuel, maintenance and leasing rates.

What you should be able to define from your market research (which should include the routes and timetable for your flights) are the following basic requirements for your fleet:

  • Aircraft size (how many seats)
  • Aircraft range (how far do you need to fly)
  • Aircraft special requirements (such as the need for STOL – short take-off and landing – if you intend to be using airports which require such characteristics)
  • Aircraft age and general look and feel for the passenger (are they demanding, will they require a brand new, slick looking aircraft or is that of no relevance at all)

Once you have answered the questions above (based on an analysis of your market) you can start searching the aircraft market for available options. This is a very important step – a bad decision during this process may, and will, cost you a lot in the near future, when you start your operations.

Things to consider when deciding on a given aircraft type:

  • Availability on the market (if you decide on used aircraft – is anyone selling them? If you decide on new aircraft – what are the waiting times?)
  • Cost change tendency in the future (will the aircraft retain most of its value throughout the next few years or is it a vanishing model?)
  • Availability of spare parts and their cost
  • Availability of skilled personnel (pilots, mechanics, engineers)
  • Availability of skilled third party contractors nearby (for instance maintenance facilities)

You may often find that optimizing each of those points is generally impossible. So you will need to reach a compromise between certain features of the given aircraft types (for instance low purchase price and good availability, but expensive spares). The analysis you just performed should be outlined in the airline business plan for future reference just in case something (like your market definition) changes slightly and you need to redo the entire process again.

The marketing strategy is part of any business plan, and there’s probably not too much difference between an airline business plan and other branches of international business. However, this point is very important, as you will see in just a minute.

Please note that many people make the mistake of associating a marketing strategy with a pure advertising strategy. This is a big mistake – advertising is, of course, part of it but by far not the most important one. What I generally tend to associate with a proper marketing strategy is:

  • Full product definition (not just the transport of people, but also the product offered on board, prior to departure such as business lounges and during reservations like a loyalty program).
  • Complete pricing strategy – this includes the fares, which can be subject of a separate book themselves, and any other costs which you may or may not ask the passengers to pay.
  • Distribution channels – are your sales going only online or do you have a call center as well? Also, are you cooperating with tour operators or offering your tickets through sales agents?
  • Customer service – will your airline be really customer oriented and make things as easy as possible while at the same increasing overall operating costs, or would you rather go with a low cost scenario?
  • Advertising strategy – possible advertising campaigns and a budget for those.

So, as you can see, your marketing strategy is basically all you need to do to get people to buy your tickets. This is why it needs to be part of any airline business plan.

You were waiting for this one, weren’t you? The cost analysis is something every investor will want to look at, and every business owner should make sure that it is clearly outlined in the airline business plan and then carefully monitored once the airline starts operating. A glitch in those predictions can cost you a fortune, as costs in the airline business go over the roof.

If you have properly performed all the steps described above, your airline business plan should be contain all the information you need to properly define your overall, estimated costs. You will need to do a lot of research, but at least you should know what to look for.

So here are the basic cost factors for your airline business plan:

  • Fuel cost (based on the fuel consumption of the aircraft (and engine) type you have chosen and the routes which will be flown). This cost tends to be highly variable lately, so it’s a good idea to analyze the previous trends and take a good, well educated guess on how they will behave in the near future.
  • Aircraft cost – this, again, depends on the aircraft type you have chosen and the financing which is available to you. This will look differently when you purchase an aircraft from when you take one in operating lease.
  • Salaries – this is always a huge factor. Here, all the work you’ve done so far really comes in handy. How many pilots will you need to employ (based on the crew index, which is based on the number and type of routes), how many mechanics (will you be doing your maintenance in house or will it be outsourced), how many airworthiness and operations staff and how many general employees? The salary levels depend on your current economic state both locally and globally (many good pilots will not refrain from working abroad, so your salaries must be competitive).
  • Maintenance costs – difficult to define unless you know someone who has been involved in operating the particular type of aircraft before.
  • Handling fees, landing fees and the like – depending on airports you will visit
  • General business costs for your offices, etc.
  • Sales costs and advertising costs (in most plain terms – how much will it cost you to convince one person to buy one ticket?)

Again, I can’t stress too much that a proper cost analysis is probably the most important part of an airline business plan because you can actually get it right (if you do your work probably) contrary to income predictions which are just that – predictions.

Income predictions

Income predictions are best presented in three options – best case scenario, most probable scenario and worst case scenario. Be aware that the latter, despite its name, is often more probable that the “probable” scenario.

Investors and business owners what to have that in their airline business plan to know that there is a good chance of making money with the business model you have prepared. They know that these things are predictions only, but still – it shows the possibilities.

Of course, income predictions cannot be taken out of the top of one’s head. They need to be based upon proper analysis of the market and the market’s buying power as well as proper supply and demand analysis. But I’m assuming that by now all that is done, as you had to do it to finish all the previous parts of the airline business plan.

The predictions should be put into legible and correct (from an accounting perspective) tables showing the predicted balance sheet for the months and years to come as well as a cash flow analysis, which will ensure that you will not run out of cash despite the business going well.

So much for a brief overview of what an airline business plan may look like and what work is involved in actually creating one. I will eventually get to more detailed insights into each of the steps, as there’s a lot that needs to be said before we can get into creating something that will really work in real life.

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Business planning is not a one-off activity, but rather a ‘live’ process, so an airline’s planning horizon should always be current and continuously updated based on real world results, events, trends and market forces.

Our team is experienced in the specialist field of airline business planning, having created expert and detailed plans for many different operator business models. An AviaSolutions business plan provides leadership teams with reliable and robust advice to adequately plan for the airline’s future and success.

These plans outline to airline leadership teams the strategy to execute, the critical business decisions to be made, the timelines, and the business plan implementation stages along the way. They include elements such as:

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Regional Airline Business Plan

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Puddle Jumpers Airline

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

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

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

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

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

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

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

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

Regional airline business plan, executive summary chart image

1.1 Objectives

The Company has the following objectives:

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

1.2 Mission

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

1.3 Keys to Success

The keys to success are:

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

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

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

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

2.1 Company Ownership

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

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

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

2.2 Start-up Summary

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

Regional airline business plan, company summary chart image

2.3 Company Locations and Facilities

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

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

3.1 Service Description

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

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

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

3.2 Competitive Comparison

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

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

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

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

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

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

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

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

3.3 Sales Literature

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

3.4 Fulfillment

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

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

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

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

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

Outsourcing of services are as follows:

Maintenance:

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

Ground Handling:

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

Food Service:

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

3.5 Technology

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

Airplane advantages:

The MD-80 series aircraft are both newer and more reliable that the DC 9’s used by Value Jet, for example. Many of Value Jet’s problems have been caused by using aircraft that often are more than 20 years old. Such aircraft, while they may be cheaply leased, are more expensive to maintain. Or, often are “maintained” on-the-fly with resulting service delays, customer dissatisfaction, and increased associated costs. It is the position of Puddle Jumpers management that the cheapest “over-all” operational costs are achieved by optimized “in air time”. This becomes both a reliability and service standard for the operation of our airline. Puddle Jumpers’s air travel customers will both feel safe flying Puddle Jumpers and will arrive at their destination on time.

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

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

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

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

Reservations advantages:

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

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

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

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

Operational advantages:

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

3.6 Future Services

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

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

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

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

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

4.1 Market Segmentation

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

In today’s marketplace the “price” positioning, in and of itself, is no longer a sufficient concept on which to build an airline. Since de-regulation the flying public has been inundated with low fares. Low fares have become an expectation, not a promise. Thus, the true market segment opportunities today have become a COMBINATION of service mix, price, and route selection. The more critical decision has become one of deciding on service mix and price in conjunction with LENGTH of route. The specialty carrier is now relegated to either “short-haul” or “long-haul” concentration. There is room for a long-haul carrier who efficiently serves limited routes with only the equipment designed to serve those routes and, conversely, there is room for a short-haul carrier to take advantage of similar economies available with new technology and the proper equipment. Puddle Jumpers feels that the likelihood of competition from major carriers is less likely in the short-haul segment.

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

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

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

Regional airline business plan, market analysis summary chart image

4.2 Service Business Analysis

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

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

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

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

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

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

4.2.1 Distributing a Service

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

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

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

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

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

4.2.2 Competition and Buying Patterns

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

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

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

4.2.3 Main Competitors

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

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

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

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

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

4.2.4 Business Participants

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

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

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

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

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

Strategy and Implementation Summary

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

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

5.1 Marketing Strategy

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

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

5.1.1 Distribution Strategy

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

5.1.2 Pricing Strategy

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

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

5.1.3 Promotion Strategy

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

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

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

5.2 Sales Strategy

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

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

5.2.1 Sales Forecast

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

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

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

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

Regional airline business plan, strategy and implementation summary chart image

5.3 Milestones

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

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

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

Regional airline business plan, strategy and implementation summary chart image

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

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

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

The bios of the management team follow.

6.1 Organizational Structure

The company will be organized into five major operational areas:

  • Flight Operations.
  • Maintenance.
  • Customer Service.

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

6.2 Management Team

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

KENNETH D. SMITH, President & CEO, 51

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

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

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

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

JAMES B. JONES, Executive Vice President, 49

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

GREER CLARK, Vice President, Operations, 56

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

DON ADAMS, Vice President, Maintenance, 47

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

BRUCE WING, Vice President, Finance, 50

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

PAUL BERRY, Director of Operations, 57

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

TERRY MCADAMS, Chief Pilot, 57

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

SALVATORE DIANGELO, Director of Maintenance, 41

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

CALVIN COBLE, Director of Quality Assurance, 42

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

JIM BEND, Director of Marketing, 49

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

JUDY LAND, Director of Reservations, 38

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

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

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

6.3 Personnel Plan

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

Financial Plan investor-ready personnel plan .">

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

7.1 Important Assumptions

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

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

7.2 Key Financial Indicators

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

Regional airline business plan, financial plan chart image

7.3 Break-even Analysis

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

Regional airline business plan, financial plan chart image

7.4 Projected Profit and Loss

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

Regional airline business plan, financial plan chart image

7.5 Projected Cash Flow

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

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

Regional airline business plan, financial plan chart image

7.6 Projected Balance Sheet

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

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

7.7 Business Ratios

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

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How To Start An Airline Business

An in-depth overview.

Airline Startup Information & Details

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.

Market Analysis

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.

Aircraft Sourcing | Image Copyright Alan Wilson

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.

US Airline Domestic Market Share Nov 2019 - Dec 2020

  • 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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Airline Company Business Plan [Sample Template]

By: Author Joy Nwokoro

Home » Business ideas » Aviation Industry » Airline

Airline Business

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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Travel Agency Business Plan Template

Written by Dave Lavinsky

Growthink.com Travel Agency Business Plan Template

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their travel agencies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a travel agency business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your travel agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a travel agency or grow your existing travel agency you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your travel agency in order to improve your chances of success. Your travel agency business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Travel Agencies

With regards to funding, the main sources of funding for a travel agency are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a travel agency is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your travel agency business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

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

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the travel agency industry. Discuss the type of travel agency you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of travel agency you are operating.

For example, you might operate one of the following types:

  • Commercial Travel Agencies : this type of travel agency caters to business travelers. These agencies specialize in tracking down deals for business travelers to help companies manage travel costs.
  • Online Travel Agencies : this type of travel agency exists only in cyberspace. They provide clients with the convenience of online booking and discounts that are available only to professional travel agencies.
  • Niche Travel Agencies : this type of travel agency provides clients with specialized knowledge of a region.
  • Membership Associations : Memberships associations give travelers access to the organization’s travel planning services for the cost of an annual membership rather than charging per transaction. This type of agency offers the most benefit to frequent travelers.

In addition to explaining the type of travel agency you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new location openings, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the travel agency business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the travel agency industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards glamping, it would be helpful to ensure your plan calls for plenty of luxury camping packages.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your travel agency business plan:

  • How big is the travel agency business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your travel agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your travel agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: sports enthusiasts, soccer moms, baby boomers, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of travel agency you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than businesses.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most travel agencies primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other travel agencies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes customers making travel arrangements themselves at home. You need to mention such competition to show you understand that not everyone who travels uses travel agency services.

With regards to direct competition, you want to detail the other travel agencies with which you compete. Most likely, your direct competitors will be travel agencies located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What products do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide better travel packages?
  • Will you provide products or services that your competitors don’t offer?
  • Will you make it easier or faster for customers to book your offerings?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a travel agency business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of travel agency that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to regular accommodation and transportation booking, will you offer items such as tour packages and excursions?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the packages you offer and their prices.

Place : Place refers to the location of your travel agency. Document your location and mention how the location will impact your success. For example, is your travel agency located next to a heavily populated office building, or highly trafficked retail area, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your travel agency marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your travel agency’s storefront extra appealing to attract passing customers
  • Distributing travel brochures outside the travel agency
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Social media advertising
  • Local radio advertising
  • Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your travel agency such as serving customers, procuring supplies, keeping the office clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your travel agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the travel agency business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in travel agencies and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per week or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your travel agency, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a travel agency:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like computers, website/platform, and software
  • Cost of marketing materials and maintaining an adequate amount of supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Travel Agency Business Plan Summary

Putting together a business plan for your travel agency is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the travel agency business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful travel agency.

Travel Agency Business Plan FAQs

What is the easiest way to complete my travel agency business plan.

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

Where Can I Download a Travel Agent Business Plan PDF?

You can download our travel agent business plan PDF template here. This is a business plan template you can use in PDF format.

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

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Creating a Winning Air Charter Business Plan For Success in Modern Market

JUL.14, 2023

Air Charter Business Plan

1. Potential Of Air Charter Business

Air charter se­rvice is a convenient option that allows individuals and busine­sses to rent private aircraft for spe­cific trips, destinations, or purposes. It provides pe­rsonalized air transportation tailored to the ne­eds of the passenge­rs or cargo.

The air charte­r business operates within a comple­x and highly competitive industry. It encompasse­s a modern fleet of comme­rcial aircraft present worldwide. According to research from MarketWatch, charter air services’ market size was valued at USD 17260.0 million in 2021 and is expected to expand at a CAGR of 12.0% during the forecast period, reaching USD 34070.0 million by 2027.

2. Executive Summary

Why do you need a business plan for a private air transportation company.

A business plan is vital for a private­ air transportation company. It serves the purpose­ of securing financing and effective­ly communicating the company’s strategy to partners, inve­stors, and employees. The­ Airmall Business Plan exemplifie­s this approach, outlining both short-term and long-term objective­s while providing a clear roadmap for organizational growth. Additionally, it takes into account future­ risks, opportunities, and challenges that may arise­ in the industry.

How to write an executive summary for a private jet business plan

The Exe­cutive Summary in a private jet charte­r business plan should provide a comprehe­nsive introduction to the proposed e­nterprise. It should be similar to an Airline­ Business Plan , covering background information on the company, an ove­rview of the service­s it will offer, and the reasons be­hind its establishment.

The busine­ss plan should encompass several ke­y components. These include­ clearly defined obje­ctives, an in-depth analysis of the marke­t landscape, a thorough evaluation of competitors, re­liable financial projections, and any other are­as critical to the success of this ende­avor.

3. Company Overview

History of the charter flight company.

Charter Flight was founded in 2017 by two former commercial airline pilots. Their mission aime­d to deliver a heighte­ned and individualized air travel e­xperience, surpassing the­ offerings of large commercial flights. All the­ while prioritizing safety and unwavering quality at e­very step along the way. With this in mind, the founders had an idea of how to start a charter airline business and developed an air charter business plan sample that puts safety, customer service, and attention to detail as its highest priorities.

They have grown exponentially over the past seven years. In the Helicopter Business Plan , they now operate a fleet of over twenty aircraft, including both turboprop and jet charter planes.

Charter Flight’s main obje­ctive is to provide exce­ptional, tailored private air charter flights for the­ir esteeme­d clientele. The­y are committed to ensuring the­ utmost reliability, safety, and luxurious expe­rience in private aviation. Eve­ry aspect of customer service­, attention to detail, and cutting-edge­ technology adoption is meticulously prioritized to maintain the­ highest standards of safety and efficie­ncy.

4. Services and pricing

Charter Flight offer a wide variety of aircraft charter services, including:

  • Private Air Charters: They provide luxurious, comfortable, safe, and private air charter services to any destination worldwide. Like a charter bus company , the private air charter service will typically include a dedicated flight crew, any necessary auxiliary staff, plus a selection of food and beverages onboard.
  • Group Charters: Groups of up to 10 persons can travel together on the same flight at an affordable charter flight rate.
  • Aircraft Charters: They provide a full-service charter flight service tailored to individual requests.
  • Air Cargo Charters: They provide tailored air cargo charter service to meet the needs of businesses and other organizations transporting goods on tight deadlines or to remote areas.
  • Business Jet Charters: They provide access to comfortable, modern, and well-equipped business jets that provide an optimal environment for work or relaxation, whichever you choose.

The pricing for our se­rvices is determine­d by various factors. These factors include the­ type of aircraft used, the distance­ to be covered during the­ flight, the duration of the flight, and the numbe­r of passengers on board.

5. Customer Analysis

Customer segmentation.

The customer base for charter plane services can be segmented as follows:

  • Business Executives: Business executives who want a reliable and efficient method of traveling to meetings, conferences, or even vacations often choose to charter a plane for their needs.
  • Vacationers & Adventure Seekers: Those wanting a unique and memorable vacation or a thrilling adventure often rent a private plane to travel to faraway destinations for an unforgettable experience.
  • Celebrities & High Net-Worth Individuals: Celebrities, music artists, and high net-worth individuals often use air chartering to fly to and from vacation or promotional events. In the private jet business model, clients view private plane services as a luxurious and convenient way to get around.
  • Sports Teams & Equipment: Teams participating in sports tournaments and large events often rent charter planes to transport their team members, equipment, and staff to the destination.

6. SWOT Analysis

  • Strengths: Identify internal capabilities that will support the business venture. Examples of strengths might include specialized skills and capabilities possessed by staff, existing customer relationships, access to monetary resources, and competitive advantages in the industry.
  • Weaknesses: Pinpoint areas of potential vulnerability. Areas of weakness might include lacking needed resources and personnel, outdated business models, inadequate market research, and competition from rivals in the market.
  • Opportunities: Identify external factors that could benefit the air charter business.
  • Threats: External factors that have­ the potential to negative­ly affect the business should be­ identified. These­ threats may encompass abrupt shifts within the industry, e­mergence of ne­w competitors, disruptions caused by exte­rnal events, economic downturns, or change­s in customer trends within the industry.

7. Marketing Analysis

Competitors.

The private aviation business is extremely competitive, with numerous charter companies, fractional ownership companies, and even commercial airlines vying for the same customers.

Companies such as XOJet , JetSuite , NetJets , and FlexJet are some of the most notable competition in the space. These companies have deep pockets and significant market presence and constantly create innovative solutions for their customers..

Market trends

The charte­r flight industry is currently experie­ncing a period of growth. Many major competitors have launche­d new jet programs and service­s to enhance their e­xisting fleets and offerings.

In addition, the luxury charte­r market has seen significant growth in private­ sectors like the Middle­ East, Asia Pacific, and Latin America. This expansion opens up more­ promising opportunities for luxury charters. Moreove­r, with the integration of mobile te­chnology and online booking services, the­re is enhanced conve­nience and customization available to passe­ngers when rese­rving their flights.

Competitive Advantage (USPs)

The charte­r company maintains a competitive advantage through its unwave­ring commitment to enhancing customer e­xperience. By prioritizing e­xceptional service, the­ company ensures convenie­nce and tailored amenitie­s for each flight. Additionally, the company places utmost importance­ on procuring reliable and secure­ aircraft, granting customers peace of mind during the­ir air travel.

8. Marketing Plan

A charter service must act extensively when it comes to marketing. A strategic method of maximizing potential customers must be followed. The following outlines a few key areas in which to focus.

Search Engine Optimization: Keywords should be used on the home page and throughout the website to ensure that the business appears quickly in the search engine results.

Networking: A strong online presence must be created in order to make the public aware of the service. Social media must be utilized to reach potential customers and build a base of followers.

Sponsorships: As a corporate jet charter business, sponsoring events and leveraging the power of branding can be a very successful tool in exposing customers to the services offered.

Promotions Strategy

A comprehensive approach to promotions is needed to ensure maximum exposure to the services offered by the charter service. This includes a variety of methods, such as the following.

  • Advertising: Traditional and digital advertising outlets should be utilized to capture the attention of target markets.
  • Public Relations: Coverage by industry-specific publications and news outlets should be sought to build credibility and promote the business.
  • Discounts: Discounts can be offered on select charters to entice customers and build a recurring revenue stream.
  • Contests: Online and offline contests can generate interest and spread awareness.
  • Events: Hosting events such as open houses and customer appreciation days can promote the business and solidify client relationships.

9. Management Team

Organizational structure.

The organizational structure of the private air business plan is composed of the following:

CEO: This role is responsible for managing the business’s operations and ensuring it meets its objectives.

CFO: This role is responsible for the financial management and planning of the business.

VP of Operations: This role is responsible for overseeing the charter business’s operations and ensuring its objectives are achieved.

VP of IT: This role is responsible for managing the IT infrastructure of the business and providing technical support.

VP of Marketing: This role is responsible for developing and executing a marketing strategy and launching promotional campaigns.

VP of Sales: This role is responsible for developing and implementing a sales strategy to maximize revenue.

Chief Pilot: This role is responsible for the flights’ and pilots’ safety and compliance.

10. Financial Plan

Startup costs.

  • Legal Fees: $1,200
  • Aircraft Licensing & Regulatory Costs: $15,000
  • Professional Website Development: $6,000
  • Radio Frequency Applications & Certifications: $2,500
  • Airport Construction & Direct Operating Costs: $65,000
  • Insurance: $30,000
  • Company Formation & Regulatory Fees: $3,000
  • Office Equipment & Supplies: $15,000
  • Fuel & Oil Purchases: $25,000
  • Pilot Training & Aircraft Maintenance: $25,000
  • Marketing & Advertising: $10,000

TOTAL STARTUP COSTS: $186,200

Financial Projections

  • Revenue: $500,000
  • Fixed Costs: $250,000 (insurance, pilots, maintenance),
  • Variable Costs: $80,000 (fuel, oil)
  • Net Profit: $170,000
  • Revenue: $700,000
  • Fixed Costs: $250,000
  • Variable Costs: $90,000
  • Net Profit: $360,000
  • Revenue: $1,000,000
  • Variable Costs: $100,000
  • Net Profit: $650,000

Funding Ask

  • Amount Requested: $100,000
  • Equity Offered: 25%
  • Use of Funds: $50,000 will be used to purchase necessary equipment and supplies, and the other $50,000 will be used for initial marketing and advertising efforts.
  • Repayment Terms: The funds will be repaid over a four-year period with 8% interest.
  • Collateral: All associated equipment and supplies purchased with the loan will serve as collateral for the loan.

11. Unlock Proven Expertise and Strategic Insight for Successful Air Charter Business Planning with OGS Capital!

OGS Capital, with its team of e­xpertise and strategic insight, can de­velop a comprehensive­ business plan tailored specifically for your air charte­r business. We possess in-depth knowledge and understanding of the complexities in this industry, combining it with our financial acumen to create investment-re­ady plans that address both operational and regulatory aspects.

Drawing on our extensive experience in the aviation industry and our dee­p understanding of operational, regulatory, and financial aspects, we have the ability to de­sign plans that fulfill the requirements of investors, banks, and policymakers. These marketable plans are tailore­d to meet industry standards.

Our finance professionals possess the necessary skills and expertise to strate­gically structure financial models that maximize the competitive advantages within the air charter industry.

Our clients achieve successful results thanks to our pe­rsonalized business planning and in-depth marke­t analysis. With extensive experience in the aviation industry, no other team of consultants understands its comple­xities better than ours.

Contact OGS Capital to explore the potential of our professionally crafte­d air charter business plans and how they can align with your specific needs and goals.

Q. How much does it cost to start a private jet business?

Starting a private jet business can be an expensive undertaking. With the purchase of a jet, airframe, and engine maintenance, insurance, training staff, leasing hangar space, and other start-up costs, getting a private jet business up and running may cost anywhere from $3 million to $10 million or more.

Q. Where can I download the air charter business plan in PDF?

You can find an air charter business plan in PDF format online. The SBA (Small Business Administration) website has a comprehensive business plan development guide, including a customizable plan template. You could also take a look for pre-made plans on websites like Fiverr or explore various resources on OGSCapital. There are also numerous free business plan templates available to download online.

Download Air Charter Business Plan Sample in pdf

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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This All-Luxury Airline is Expanding Fast: Should the Big Carriers be Worried?

Gordon Smith , Skift

February 19th, 2024 at 8:00 AM EST

If the business plan is to be believed, Beond Airlines could be a major threat to traditional operators before the end of the decade.

Gordon Smith

With corporate traffic slow to recover after the pandemic, wealthy leisure travelers are filling first- and business-class seats. They’re also paying handsomely for the privilege . 

Now, one carrier is going a step further.

Dubai-based Beond Airlines is dedicating its entire aircraft to a super-premium leisure product. There’s no flimsy curtain here to separate the cabins; from the first row to the very back, every seat is a flamboyant lie-flat affair. 

The onboard experience includes fine dining, with Beond-branded fine china from William Edwards and cutlery from Robert Welch. The airline also offers a limousine flight transfer service for certain flights. Think big private jet, without the big price tag.

business plan for airline

The start-up launched its first revenue flights last November with its maiden service from Munich, Germany to the Maldives. Speaking at the time, Tero Taskila, the Beond CEO, said his firm sought to “redefine the skies, where luxury, comfort, and exclusivity are not just ideals, but realities experienced by every traveler.”

Taskila’s comments were admirable, but cynics questioned the long-term viability of such an operating model.

A New Plane; A Step Towards Credibility

After a modest start with just a single narrowbody plane, earlier this month the company confirmed that its second jet had arrived. 

The plan is for this aircraft to fly new routes, building on existing services from Munich, Zurich, and Riyadh. According to the airline, Milan, Dubai, and Bangkok are all in its sights for “mid-2024.”

The freshly delivered Airbus A321 is being overhauled to bring it up to Beond’s premium specifications. There will be seats for just 68 passengers – barely a quarter of the 220 capacity in a more traditional all-economy configuration.

business plan for airline

That said, the jet will still offer more space than Beond’s original Airbus A319, which can only carry 44 guests. This smaller model was once operated by British low-cost carrier easyJet – proof that even planes can have glow-ups in their later years.

Although these aircraft look slick on the inside, there’s no hiding the fact that they are still single-aisle airliners, more typically found on short-haul regional flights. As a result, Beond services from Europe to the Maldives usually require a tech stop in Dubai to refuel.

Huge Growth by 2030?

The company was founded in January 2022 and is a joint venture formed by the investment house Arabesque and SIMDI Group, a Maldivian hospitality firm. Describing itself as “the world’s first premium leisure airline,” Beond has enormous ambitions. 

The business completed an oversubscribed seed round of $17 million in August 2023. According to the airline, early backers included family offices, angel investors, and strategic partners. Beond is now looking for investors for a series A round of $25 million, and every penny will be needed to realize its vision.

The goal is to have a fleet of 32 aircraft, all kitted out in private jet style, by the end of the decade. Although the Maldives is likely to feature prominently in its future network, Beond’s bosses are aiming to serve 60 global destinations within the next five years. This will see the company expand its footprint deeper into Europe, Asia-Pacific, and possibly Africa too.

Environmental and Economic Sustainability

Go beyond the glitz and you’ll find that the Beond business model has its critics. Not least from environmentalists, who say that more planes with fewer passengers is bad news for the planet. There are also doubters within the travel sector itself, who point towards other niche ‘all-luxury airlines’ that have failed to compete with more established brands . 

business plan for airline

One notable exception is Le Compagnie , an all-business class airline that connects European cities with the U.S. East Coast. It launched in 2014 and survived the pandemic, illustrating more fiscal resilience than some big-name airlines.

More traditional private jet usage is also on the rise . This comes despite increased scrutiny from some government officials and even certain airports , that have moved to ban business jets altogether. 

Even with the arrival of its second aircraft, Beond is unlikely to be worrying the CEOs of Emirates, British Airways, or Lufthansa. It could triple in size and remain a tiny player. The real threat will come when, or perhaps if, it gains serious traction and Beond’s 60-destination business plan takes flight. The industry is watching but isn’t holding its breath just yet.

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Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.

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Tags: airbus , Beond Airlines , international luxury travel market , maldives

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Boeing max woes will slow united's roll.

John Pletz

John Pletz is a senior reporter covering technology, aviation and cannabis for Crain’s Chicago Business. He joined Crain's in 2007 and previously covered technology for the American-Statesman in Austin, Texas.

A United Airlines Boeing 737 Max jet

United Airlines will substitute Boeing Max 9s and Airbus A321s instead of the slightly larger Max 10s it had been hoping for, which will slow the airline’s growth plans but also stretch out the massive capital outlay required.

United had built a big part of its long-term growth plan on the Max 10 before problems with the Max 9 surfaced and made it clear the Max 10 will not be approved on schedule.

The Chicago-based airline remains committed to its United Next growth plan to increase revenue and profits, but it’s going be slower, Chief Financial Officer Mike Leskinen said at an investor conference hosted by Citi.

“If the Max 10 were available today, we would still have our foot firmly on the gas today. With the combination of Max 9s and 321s, it's not going to grow as fast.”

United had planned to order 200 737s from Boeing , but now it’s talking to Airbus about more planes.

“What you’re going to see now is much more Max 9 and 321 aircraft, the mix of which I don’t know yet. It depends on the prices,” Leskinen said.

Either way, United won’t get the planes quite as soon as it had expected. That’s a potential plus for investors who were anxious about the billions the airline was planning to spend over the next few years. Leskinen didn’t say exactly where that money will go.

“We have this convergence of opportunity to reallocate some of that capital,” he said. “(Capital expenditure) is coming. It’s just going to be spread out over more years.”

More in Airlines & Airports

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AAdvantage frequent-flyer members with status will continue to be able to check bags at no cost, and most AAdvantage credit-card holders can check a first bag for free on US flights.

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O'Hare to get $40 million from feds

The money is part of almost $1 billion being awarded to more than 100 airports. 

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For airlines, the DEI wars are just beginning

Major airlines, particularly United, find themselves at the center of an intensifying political debate over diversity policies that’s only likely to get louder as the presidential campaign heats up.

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Spirit's CEO says the airline has a plan to become profitable again

  • Spirit CEO Ted Christie said the airline has a plan to be profitable again.
  • Spirit hasn't been profitable since 2019 and owes more than $1 billion.
  • Christie said he expects the airline to be cashflow positive in the second quarter.

Insider Today

Spirit Airlines is still battling to keep its merger plans with Jet Blue alive, but in the meantime its CEO says it has a path to financial stability.

The airline has more than $1 billion due in 2025 and 2026, Bloomberg reported , citing unnamed sources. The company said in a financial report published Thursday that it's "assessing options" about this debt.

CEO Ted Christie said demand for air travel was rebounding and Spirit was focused on "cash flow generation and profitability" this year.

Spirit posted a net loss of $183 million in the last three months of 2023 — an improvement on the $270 million loss for the same period in 2022.

Similarly the annual net loss of $447 million was lower than the $554 million loss for 2022. Spirit last made a profit in 2019.

Spirit expects to be cashflow positive from the second quarter onwards, per the report.

Spirit's merger with JetBlue was blocked by a federal judge last month on the grounds that it would harm consumers. The two airlines appealed the ruling last Friday and the Court of Appeals is due to hear arguments in June.

Spirit plans to sell 25 aircraft and lease them back in a move that generated $419 million, per its results.

However, the airline expects to ground an average of 25 Airbus A320neos this year to deal with problems identified in Pratt & Whitney engines, the company said. It has 205 planes in its fleet.

Despite the headwinds Christie remained upbeat about Spirit's prospects.

"Liquidity is always king, and we have enhanced our levels to give us the necessary flexibility to successfully close with JetBlue or to pursue our stand-alone plans," Christie said in an earnings call on Thursday, CNBC reported.

Spirit did not immediately respond to a request for comment from Business Insider made outside normal working hours.

business plan for airline

Watch: How a top airline has responded to the surging popularity of budget airlines like Ryanair

business plan for airline

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