Starting an Airline.
Was talking to an old aviation expert this morning, and we were commenting on how hard it is now to start an airline for any entrepreneur in the UK now. Apparently the CAA are requiring a minimum of 6 months financials in the bank plus £5/6 million in reserve and then on top of this they are asking for other bonds. I dont know if this is true or not, but he seems sure this is the case.
On top of all the AOC stuff I have to say that it is hardly surprising that so many airlines fail and so many staff are in trouble because it seems to be stupid over regulation yet again by a bunch of civil servants.
I know they have single handed destroyed the small charter operator and tour operators with bonding regulations under the Tour Operator act of 1992 where they are very evil to new operators with excess bond quota requirements.
In an era of electronic banking is this really necessary, surely an agreement with the Merchant Account holder for the new business or perhaps a trust account facility would be far more appropriate it strikes me that the CAA are actually a waste of space that are simply justifying there jobs by creating a nightmare for any business trying to start.
In reality the starting of an airline should be realitively an easy process, enough planes about so why on earth are the restrictions holding so many from stopping this. Its crazy in my opinion.
Interesting conversation this, but I thought I would field it, just for anyones views on it?