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Old 13th Oct 2001, 13:38
  #20 (permalink)  
The Guvnor
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Cool

SeaSunSandFly - those figures are a breakdown of salary costs only and do not, as far as I am aware, include any other expenses.

Why do people start up airlines? To paraphrase Roger Bacon, you're either a Total Aviation Person or you're not. Or to put it another way, it's like malaria (or Africa) - once it's in your blood it's there for life.

Airlines are regarded as 'sexy' - that's why the only other businesses with more flakes and scam artists in it are the gold and oil industries (and previously the dot com sector, of course!).

Interestingly, the niche carriers tend to do very well, averaging a nett 10 - 15% return per annum, which isn't brilliant but it isn't too shabby, either. It's those 'all things to all people' flag carriers that lose the money big time - which drags down the overall average.

And another thing - bear in mind that an airline isn't a 'normal' business; it's effectively a bank - a money machine. You have a phenomenal cashflow going in at one end and if you can hang onto a few percent of that you're looking at pretty serious money. That's what kept Eastern, Pan Am I and TWA aloft for so long.