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GigaNu
28th Aug 2008, 22:54
Hey Guys,

So, how much do you think it costs to set up an airline?

Lets have some practical guesses, I am guessing over a million?!

Thanks

Jonathan

Out Of Trim
28th Aug 2008, 22:59
If you want to make a small fortune in the the airline business...














- Best you start with a large fortune! :}

Flypuppy
28th Aug 2008, 23:01
Too many variables to make an instant estimate. Put some parameters in such as the following:

Equipment: (jet, turboprop, piston)

Routes: (domestic, international, charter)

Cabin type: (lo-co, single-class multi-class)

Destinations (hub airports or middle of nowhere airports)

G-CPTN
29th Aug 2008, 02:15
(Almost) Ani Fule can set up an airline.
The difficult bit is to pitch your business in a sector that will attract sufficient customers prepared to pay enough to cover the operating costs (including servicing the loans) otherwise the sums don't add up (in the right direction).
This applies to all business plans if you want to survive and prosper.

You don't have to start 'full scale':- Loch Lomond Seaplanes (http://www.lochlomondseaplanes.com/)

Romeo India Xray
29th Aug 2008, 10:05
I am currently at the pointy end of starting a turbo-prop operation (as well as wearing a few other hats for a day job). Our total investment is about 5.4 and within a month or so I am going on the most expensive shopping trip of my life :}

Maybe I should start a thread on here as a running diary of setting the thing up, or would the mods kick me out on the grounds of advertising?

JennyB
29th Aug 2008, 11:03
5.40 not too bad for a start up...

Romeo India Xray
29th Aug 2008, 11:22
I left the zeros off the end as I wanted to see the reaction (and also because I get confused with any more than a decimal point and two of them)

RIX

Howard Hughes
29th Aug 2008, 11:29
I believe V Australia are starting up with a budget of around $70M AUD! (http://www.dancewithshadows.com/flights/virgin-blue-vaustralia.asp):eek:

6000PIC
29th Aug 2008, 11:37
Romeo Idia Xray , you must be kidding. Why not just stand on the street corner and hand out 5 notes ? As for your most expensive shopping trip , get over the ego and look at what you`re doing in today`s business climate. You better change that business plan , and don`t quit that day job. Take that 5.4 and invest in some hardware stores. A couple big hurricanes in the USA and those stock will climb like a rocket. There`s been plenty of guys like you in this business.

Avitor
29th Aug 2008, 11:44
Buy into Zoom. Problem solved. :ok:

Romeo India Xray
29th Aug 2008, 12:07
I agree that it is an education in total madness, to start an airline in todays climate - Alas, I just escaped from the asylum.

There are some gaping holes in the market here, and no one is in a position at this time to fill them. When the alternatives to air travel are more expensive and time consuming there will be an undeniable USP.

RIX

bar fly
29th Aug 2008, 12:35
Good luck to you RIX, I'd be interested in hearing progress updates.

:ok:

frostbite
29th Aug 2008, 13:20
" I get confused with any more than a decimal point and two of them"


Not the best qualification for running any business.

Romeo India Xray
29th Aug 2008, 14:01
I threw the rule book out when it comes to running a business - I got into the routine of adding the odd bit of humour (forgetting what a humourless place Pprune can be at times). I must be doing something right as I have been running aviation related businesses for 13 years and have not had a failure yet.

BAR FLY

Thanks for the support. I would like to hear from the mods as to how and where I could run a diary of my start-up activities. I think some people here would find it interesting.

M.Mouse
29th Aug 2008, 14:12
Maybe I should start a thread on here as a running diary of setting the thing up, or would the mods kick me out on the grounds of advertising?

It would be interesting and surely would not be advertising if you avoided obvious place names, company names, etc.

GigaNu
29th Aug 2008, 14:57
5.40? I think I am missing something, I assume you mean 5,400,000?

ChrisVJ
29th Aug 2008, 20:09
RIX

I vote with the "Keep posting" crowd. A diary would be fascinating and educational.

Very best of luck either way.

Rwy in Sight
29th Aug 2008, 20:33
Just adding my vote on the diary/blog idea. Fascinating and all the best...

Rwy in Sight

mutt
29th Aug 2008, 20:45
Try posting your "startup" diary...... it should be fun!


Mutt

Doors to Automatic
29th Aug 2008, 21:31
I believe that Eos burned their way through $180m in the 18 months they were trading.

Romeo India Xray
31st Aug 2008, 03:03
Thanks for all the positive feedback.

We have a director/investor meeting this week, will run it past the investors (daren't do it without as at least one of them is a PPL PPRuNer), and once they are in the know I will start keeping my diary on here.

GigaNu, yes indeed it is around (circa) 5,400,000 GBP (4,800,000 Latvian Lats).

RIX