Venturing Into Airline Business...

[Alif A. F. 0]

Found this website months ago...

 

http://www.boeing.com/boeing/commercial/startup/

 

'Starting an airline is tough. Running a profitable airline is even tougher. From startup airlines to established industry leaders, the process involves constant learning and adaptation. Few businesses have as many variables and challenges as airlines. They are capital-intensive. Competition is fierce. Airlines are fossil fuel dependent and often at the mercy of fuel price volatility. Operations are labor intensive and subject to government control and political influence. And a lot depends on the weather. But the intrepid entrepreneur is not alone. The StartupBoeing team assists entrepreneurs in launching new airlines. From concept through launch, StartupBoeing offers guidance, review, analysis, data, resources, contacts, and referrals to qualified startup airlines.'

 

I know it sounds rather crazy and downright impossible for many of us, but my friend and I have been thinking about this for a while now. Opinions most welcome.

[Kenneth Chong WT 0]

Back in high school...which is now ages ago...my friend and I dreamt of starting an airline...we planned routes...meals...down to the uniform...alas...a dream remained a dream...need deep pockets to run an airline...

[flee 5]

Unless you have a bottomless pit of cash, stay away!

 

If you have the aviation bug, it is better to be an employee.... at least u get paid!

Back in high school...which is now ages ago...my friend and I dreamt of starting an airline...we planned routes...meals...down to the uniform...alas...a dream remained a dream...need deep pockets to run an airline...

Yes, most aviation buffs will have that dream. But deep pockets is only the start of the prerequisites needed to have a successful airline. Among other skills (non-aviation related) required are:

 

• Treasury management - need to know your forex exposure and also possess great cashflow planning skills. Knowing what to do with all those advance booking money is an art in itself!
• Fuel purchasing management - as airlines now spend 30-40% of their Opex on fuel, there must be prudent management of this expensive energy resource
• Human resources - biggest headache, managing the people in your organisation to ensure that they are motivated and cost effecient
• IT - a very neglected part of managing businesses. Airlines are even more IT intensive as inventory management (of items like catering, aircraft spare parts, duty free and merchandise sales items, etc.)
• CRM - nowadays, it is not just enough to operate flights; you also need to manage your customers and their expectations.... Many airlines fail in this aspect and have gone bust!

[Alif A. F. 0]

Back in high school...which is now ages ago...my friend and I dreamt of starting an airline...we planned routes...meals...down to the uniform...alas...a dream remained a dream...need deep pockets to run an airline...

 

Amazing! But, yep, at the end of the day it all comes down to money... But, my friend and I are still keen to pursue it, we even have a very basic (on paper) of it.

 

 

Unless you have a bottomless pit of cash, stay away!

 

If you have the aviation bug, it is better to be an employee.... at least u get paid!

 

Employee? Ironically I found quite a number of jobless pilots, pity them. I wonder why they not pursue their dream job at one of those big Middle Eastern carriers or any other foreign carriers.

[Alif A. F. 0]

We already lay out our concept of the airline on paper. But, it is very bare, as we don't even have yet the things that Cikgu Kenneth mentioned. Just some current market condition, SWOT etc, etc and proposed initial potential routes. To have a concrete business proposal... I said to my friend, "better invite someone (or other people) that have extensive knowledge in the industry to join us". Create a company and we need investors...

[Tafe 0]

I still remember my English presentation during uni time. I made Zoom Airlines as my business proposal. Managed to get 'A' but my group members are quite puzzled with the nature of business.

 

I think you need to start networking with those orang kaya while at the same time sharpen your corporate skills by working at top leading company. Just my RM0.02

[Mulyadir Fitri 0]

I still remember my English presentation during uni time. I made Zoom Airlines as my business proposal. Managed to get 'A' but my group members are quite puzzled with the nature of business.

 

I think you need to start networking with those orang kaya while at the same time sharpen your corporate skills by working at top leading company. Just my RM0.02

I remember watching Yasmin Ahmad's video about AirAsia. In the video Tony mentioned that he partnered with Kamarudin Meranun coz "he knows how to get the money."

[Alif A. F. 0]

I still remember my English presentation during uni time. I made Zoom Airlines as my business proposal. Managed to get 'A' but my group members are quite puzzled with the nature of business.

 

I think you need to start networking with those orang kaya while at the same time sharpen your corporate skills by working at top leading company. Just my RM0.02

 

I remember watching Yasmin Ahmad's video about AirAsia. In the video Tony mentioned that he partnered with Kamarudin Meranun coz "he knows how to get the money."

 

Guess we have to start engaging with people with connections...

Edited October 21, 2014 by Alif A. F.

[KK Lee 5]

Malindo has showed it is tough to compete with AK and the gomen will protect MH at all cost but believe there is still room for a new airline. In Europe, LH, AF, KL and BA are relying on regional partners operating CRJ and ERJ to feed the main line with multiple daily frequency from secondary cities. Given MH high cost base and incompatible aircraft, it won't be feasible for them to operate these routes.

 

Like KLM city hopper, AF regional, LH regional, etc MYS regional should have night stops at their destinations e.g. KNO, HKT, HDY, PNH, PLM, PKU, BTJ so first arrival into KUL could connect to MH morning departure within 90 minutes.

 

AK LCC business model won't overnight their aircraft outstations, regional ticket is higher than AK, hence AK won't see as a serious threat. Operating regional won't be glamour but could be high yield. Again, all these need MH co-operation, which is one big question mark?

[Alif A. F. 0]

Thanks guys for your opinions... more input is most welcome!

[Radzi 2]

 

Employee? Ironically I found quite a number of jobless pilots, pity them. I wonder why they not pursue their dream job at one of those big Middle Eastern carriers or any other foreign carriers.

 

In one word, experience.

[Waiping 12]

There is also another reason, some of them wanted to be closer to home.

[S V Choong 4]

May be a new business model or idea... along the line of the impact of the LCC when it came out at first.

 

You don't wanna be just another frigging airline, if you know what I mean!