Hi,

I go to school for business, and part of final project I need to do is the creation of a business and marketing plan. I have chosen to create my own airline and charter company. I have teamed up with a friend of mine who is really starting his own airline charter broker business. We would like to do charters for GWV or TNT. My former company used to do those charters but, they were losing money flying the 727's and they did an overall bad job at it. We are also thinking football charters for colleges too. We also thought maybe Vegas too but, I know that Allegiant's territory. So were thinking of really doing something like this for real. Its quite the undertaking and takes a lot of capital. Its all about the money. However, back to my question, and that is we are trying to find suitable aircraft for the company. It would involve long haul trips from the northeast down to places like Cancun, USVI, St lucia, antigua, places like that and maybe florida or Vegas. Unkown what destinations would be scheduled service we'll probably stick with charters to start untill we can build enough capital to go to a 121 Cert. We were thinking some aircraft that are used but, still fuel efficent. We orginally thought perhaps the 737-300 with the fuel efficient CFM56-3 engines but, we cannot get the range we need. So we are now thinking the 737-800 series. It has range and fuel efficiently. Any suggestions as to which type of aircraft you might think would work. Anybody who currently flies these or other types of aircraft that could have any input.

Thanks
Chris

 

You might consider a niche market such as EAS subsidy flying or midwest flying. Requires less startup money, smaller equipment, and better chance of success. Many local governments are willing to invest or subsidize in this type of operation too.

Here's an example that is going to take advangage of the upcoming "VLJ" market share: http://www.flyp2p.com/

 

Think used. 737-200 or MD-80 series. They're not glamorous now but so frickin' cheap. (Delta shedding 73-2's; CO retiring 737-500's) Fuel prices are rough but acquisition price is so incredibly low for these types. Plan the business model around future aircraft aqcuisition to modernize the fleet; however starting with a used, gas-guzzling but cheap fleet gets you into the game with a real chance of creating enough revenue to modernize later.

It sounds like your model is very similar to Spirit, Champion, Trans Meridian, old ATA and Allegiant (Also, defunct Rich International, ExpressOne, Vangaurd, LeisureAir, Sun Country, et.al) so I would research them thoroughly; what's the good and bad of each.

Also, think of the competition and already established relationships of each of your competitors and how you can diferentiate yourself in order to make yourself attractivce to charter clients.

Oh yeah and you should absolutely pay your pilots top dollar. Pilots can make or break an operation, especially in the beginning. Find the best and pay the best; its the cost of doing business...


Something to look into would be contact with Airbus. They give airplanes away, just to insure you don't buy Boeing and there is possibly a large number coming to the market with Independence liquidating and UsAir downsizing.

PS are you an ERJ pilot?

 

You might look into MD-80 series aircraft, specifically the MD-83, MD-88, and MD-87. The MD-83 with aux tanks should take care of most of your mission needs. The MD-87 would be ideal for college football charters, especially in the western States where high and hot performance might become an issue.

I used to work for Great American Airways, which did exactly what your original idea of was with DC-9s and then MD-80s. They started with one airplane immediately post deregualtion. They had a contract with a casino in Reno, Nevada to do gambling junkets. Operating with only one airplane for 7 years they obtained a second DC-9 and started the college football and other misc. charter market. I was hired for the third DC-9, which was used for another Casino in Wendover, NV. They had a great little niche market with the gambling junkets, college football charters, and other misc. stuff for many years, always showing a profit. They eventually expanded into some leisure vacation market flying with trips from SFO to Mexico in an MD-87 and then other deals from the U.S. East Coast to the Caribbean. The thing that really did them in is when five of the senior Captains (me included) left to go overseas. We even went into the GM and asked him to pay us $75.00/hr. to stay ( we were only making $55.00/hr. at the time ). He said no, we all left. They hired some Eastern scabs to replace us and those guys ended up ratting the company out for some minor violations. The FAA eventually revoked their operating certificate. The airline was always profitable and never had an incident or accident, yet because they hired the wrong people they lost it all. So VegasBoy isn't at all wrong in saying to pay top dollar to get, and keep, good pilots.


Typhoonpilot

 

Hi,

Thanks for your suggestions. I most definitly would pay my pilots as well as other employees top dollar. Thats why I would start with charters because they seem to pay for the cost of the airplanes and crews instead of flying back and forth to FL charge people $50 and put myself out of business in six months. As a CEO or whatever I would be I would not sacrifice employee salaries to make money. I am a pilot and I know what it takes to get their. I have thought of the MD80 series. My uncle flies the MD80 for AA and says its a great plane. Also I am not an ERJ pilot except in my dreams, I just like the looks of an ERJ135. Kind of reminds me of an oversized lear 45 very sharp looking. No, I am just a CFI working my way up the food chain, interviewing and doing all kinds of stuff like that. Though I may implement this business plan if my friend can fill the seats. He is a BIZ devolpment manger so he knows the financial end of it where I know more the operations side of it. I would definitly hire experienced Capts so I could learn from them and maybe if we ever got more planes I could upgrade to Capt or Chief pilot someday. That would be great.

Thanks

Chris

 

I think its a great idea ERJ, the charter market is really flurishing right now. people with the means to go elswhere are getting tired of the TSA, commutes from hubs, and just the overall hassles of the commercial operators. I would 2nd the MD-80 idea as far as which model, make offers, take the best deal. let me know if you need any 700 hr CFI's, ha, ha.

 

Hey Chris:
While most of the information so far on this thread is viable, I would also recommend that, as you move forward with your plan, you get a copy of the Federal Aviation Regulations, specifically part 119 and part 121. Read them until you know them forward and backward. It will save you time and $$$ almost guaranteed. Another document you might be interested in reading is the FAA Operations Inspector's Handbook, 8400.10.

All of these documents can be obtained "on line." Good luck.