Airline Funding Questions
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Airline Funding Questions
Seeing as this is a board which is devoted to all things about the airline industry, I'm very interested to see what sort of companies (including specific examples) that paper companies choose to try & get their airline into the skies.
I know that EasyJet started with money from Stelios' own pockets, Color Air started with money from parent company Color Line Ferries & that GO began with money from BA.
But in general, how do airlines go about getting their funding?
I know that EasyJet started with money from Stelios' own pockets, Color Air started with money from parent company Color Line Ferries & that GO began with money from BA.
But in general, how do airlines go about getting their funding?
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Some use Venture Capital companies such as 3i, others try getting bank loans or in some cases get support from an aircraft manufacturer. Others persuade other businessmen to part with their money in the hope that they will get a return on their investment and if you're Richard Branson you just move funds around your business empire.
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All the above and all your Directors at the start mortgaging their houses to the hilt...it's that simple you need 'Seed Capital' which if u can raise say £500,000 then you can approach venture capital or private finance sources or 'leverage' the money through various loans to a larger figure for the start up - and if it goes wrong believe me u lose absolutely everything...bosses dont always have it so good 
