Don't get sucked in by a wafty mission statement, it's easy to barf a dictionary onto paper and promise the sun, moon and stars. Ask to see a business plan and ask to see who wrote it. Many airline business plans get written by people who claim to know alot about businesses but turn out to know nothing about airlines and an 'out of the box' business plan does not work when setting up an airline, there are tonnes of them available online for a small fee and many are free. Are there any reputable consultants involved? There should be a very detailed and realistic analysis of the set up costs and the fixed and variable running costs thereafter. You'll be alarmed to see how you start with a big wad of cash and it rapidly diminishes before even one bum is on a seat.
Senior exec salaries should be realistic as these can fleece the kitty before the company even gets going, find out who they are too and check their credentials and the current status of airlines they claim to have worked for. If the CEO is a first timer in the airline biz then be afraid, if he has a track record of wrecked companies behind him, even one, then be very afraid. There are plenty of pretenders out there and with a weekend course in business admin most are happy to throw their bullsh1t CV and fake qualifications into the ring, especially in that part of the world. Cronyism is problem and often too many of the wrong type of people get hired due to personal connections. Your wad gets smaller.
Pilots, there are a lot out there and with some of the South Asian carriers contracting it shouldn't be too hard to find some in the region but training them will be expensive. India might be a good hunting ground but basing Indian crews in Pak is not a smart move to make due to diplo nonsense. Cabin crew, well, never hard to rummage up or train from scratch. Crews and the rostering of them is important and can waste alot of money if done by the wrong people. Your wad gets smaller still.
Questionable aircraft choice too, 737-300's are crap these days due age although some attractive lease rates out there as no one wants them. You'll spend alot of money maintaining them, lousey range too. Your wad gets even smaller.
Ask about the maintenance, unlikely they will kick off day 1 doing it themselves due costs involved so that means finding a maintenance provider. Find out who is going to maintain the aircraft and where it is to be carried out. MRO's cost money and a really good one may be too busy to handle your junk unless their portfolio of clients has shrunk.
Either way, they're unlikely to trust a new entrant with a long line of credit so some hefty deposits will be required. Your wad is almost gone.
Operating to US / UK is not as simple as proclaiming it either, alot of regulatory issues to be sorted out, bilaterals etc. It sounds nice but not easy to pull off, most likely a marketing ploy. Some smart people who know the game are essential here, they don't come cheap. Borrow more wad from the bank.
If you don't know anything about airlines then you'd certainly wanna do your homework before you invest in one.
No matter what they tell you, don't expect a return on your investment for at least several years. What Wad?
I work in the industry and if given a choice between investing my wad in an airline or a brothel in Kabul, I have to say I'd go with the Burkha babes!
Just do your homework,
Hustle On
