This might help...
You can forget going down the bank route. Banks don't lend vast sums to start ups, especially in the current climate, so you'll need large equity based investors, or a pre-launch IPO.
Right now it is an excellent time to do this, provided you can convince your backers that it is an excellent time!
You won't even get to know how much money the authority will need you to have in place (before they grant you a licence) until you prepare a business plan that shows, over a two year period, how you intend to run the airline. You'll have to show proof of lease costs, fuel costs, salary estimates, passenger forecasts, yield forecasts, fuel burn and route charges - and and and and and....
And after you have completed your plan, the CAA will take a very hard and objective look and tell you how much money they will want to see in your bank - and I have never seen them put your estimate down! Remember, their cash requirement, based on their assumptions not yours, will be drawn on the basis of looking at the lowest cash position on your forecast, and making that equivalent to roughly three months worth of costs, assuming no revenue... so not a small amount!
I would propose the following:
1. Work out your USPs;
2. Produce a two year plan, with cash flows, P&L and balance sheet projections;
3. Gather all the proof (not supposition) you can about your plan;
4. Get all your postholders in place (and pay them), making sure that they are all acceptable to the CAA, then apply for your AOC;
5. Start producing your manuals for CAA approval;
6. Apply for your operating licence (another cheque, btw);
7. Work with the CAA to reach a concensus about your cash needs;
8. In the meantime, set up your reservation systems, ground and airport contracts, fuel contracts, payment engines, aircraft leases, emergency comms plan, base and line maintenance providers, quality systems, safety management systems, and talk nicely to IATA in Canada about getting your two letter code;
9. Go and raise the money that the CAA tell you you need, and get your forex and fuel hedging policies in place;
10. Pay your deposit to the credit card companies, so they will give you your merchant numbers;
11. Build your website, and test it. Then test it again, and again, and again - stress test it, security test it etc etc;
12. Sign agreements with all your ancillary revenue providers; car hire, hotels, insurance; dynamic currency converters, car parking, lounges etc etc;
13. Design and purchase uniforms and a corporate identity;
14. Develop all your flight and cabin crew training programmes, and start recruiting your team;
15. Recruit your marketing, commercial, and revenue management/protection teams;
16. Get engineering reviews on your new fleet, and get the leases signed;
17. Get asked by the CAA to test fly - do that successfully and then get your AOC issued;
18. Get your operating licence issued;
19. Start your marketing and
PR efforts, and go on sale;
20. Do something else for three months whilst you presell your flights - do some ACMI for someone else, or some charters;
21. Get your magazine produced;
22. Get your caterers signed up;
23. First flight..... and then the hard work starts....
Still want to do it?
TA