Airline Business Plan Example

Airline Business Plan

Economic growth, redevelopment, and the impending entry into the European Union of several countries in the region are increasing the demand for air services between Western Europe and Southeast Europe and Turkey. This growing market requires a higher quality of air service than is currently available.

The market consists of various elements that demand a higher level of air service:

1. Business travelers need convenience, reliability, speed, and schedules that suit their needs.

2. Government and international organization travelers have similar requirements as business travelers.

3. Personal and leisure travelers from Southeast Europe/Turkey demand a higher level of service and convenience at an economical cost.

4. The "Diaspora," which includes personal and leisure travelers from Southeast Europe/Turkey who live and work in Western Europe, also have these demands.

5. Western European personal and leisure travelers primarily travel on the airline’s routes between Western European points.

6. Seasonal holiday travelers primarily go to Greece, Turkey, and the Mediterranean islands. Cost, reliability, convenience, and destination are their concerns.

The proposed new airline aims to appeal to all these distinct groups by offering better quality service, higher safety standards, more comfort and convenience, and reasonable fares. The airline will focus on niche markets to better serve and become the preferred carrier for those markets.

Competition

The airline industry operating between Western Europe and Southeastern Europe and Turkey consists of four primary segments:

1. Established mainline European carriers such as Swiss International, Austrian, Lufthansa, Alitalia, Malev, and Turkish.

2. Smaller, well-established regional airlines primarily from Western Europe or Upper Eastern European states, such as Swiss International, Tyrolean, and Adria.

3. Home-based Southeastern European carriers that often operate older aircraft and offer a lower level of service, such as ADA Air, Albanian Airlines, Avioimpex, and JAT.

4. The charter market, which includes flights between Pristina and destinations in Switzerland and Germany, as well as summer charters from Southeast Europe to North America and vacation charters from Western Europe to Southeastern Europe.

The proposed new airline will fit into the second segment and compete effectively with all four segments by focusing on safety, service, carefully selected routes, niche-market service, convenient schedules, competitive fares, and modern aircraft. It will also provide service on underserved and unserved routes.

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Why Us?

Air Leo will fill a niche in the growing air travel and cargo markets between Western Europe and Southeastern Europe and Turkey. The airline aims to achieve high load factors by identifying and serving key routes and city pairs that are currently unserved, underserved, or poorly served. Air Leo aims to set a new standard for air service and professionalism within the target market region and beyond.

Expectations

Financial Highlights by Year

Opportunity

Competition

Current alternatives

The new airline’s main competitors will vary depending on the market, route served, and passenger category. The competition can be expected as follows:

1. Business and Government/IO segments to and from Southeastern Europe.

2. SE European Regional and Diaspora Personal and Leisure Travelers.

3. Western European Personal and Leisure Travelers, as well as Business and Government/IO Travelers between Western European destinations.

– Air France/Air Inter,

– Deutsche Air BA,

– Turkish,

– JATKLM/KLM Cityhopper/KLM UK.

4. Seasonal Holiday Travelers to Southeastern Europe and Turkey.

The larger established carriers often suffer from inflexibility and a focus on feeding their main routes. Smaller regional carriers are focused on their core regional service. Southeastern European carriers often have poor service and reputation. Charter operators are focused on the holiday charter and package market.

To stand out from the competition, the new airline will offer a higher level of service and convenience, utilize technology, and have a customer-oriented staff.

Our advantages

In comparing the proposed new airline to its competitors, there are two levels of comparison to consider: Southeastern European carriers and Western European carriers.

Competition with Southeastern European carriers:

– Many of these carriers operate older Soviet-built equipment, which is perceived as less comfortable, safe, and reliable.

– By utilizing modern Western-built regional jet aircraft, the new airline will offer a more attractive alternative with lower fuel and maintenance costs.

Competition with Western European carriers:

– The new airline will compete with carriers operating similar aircraft and will need to differentiate itself through superior management, marketing, and technological advancements.

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– The new airline will employ advanced electronic and informational technologies to reduce costs, enhance convenience, and stand out from the competition.

– The new airline will be a unique player in the aviation industry and will set a new standard for professionalism and service.

Keys to Success

In order to succeed, the proposed new regional airline must focus on the following:

1. Employing an experienced, professional management team that understands the aviation business, utilizes the latest technologies, and is committed to the airline’s mission and goals.

2. Implementing an intelligent, progressive, and aggressive marketing strategy that emphasizes safety, advanced technology, comfort, convenience, and competitive pricing.

3. Identifying unserved or underserved routes and city pairs through market research and offering high-quality service on those routes.

4. Utilizing an all-jet fleet of modern, Western-built aircraft that offer comfort, safety, fuel efficiency, and flexibility.

5. Leveraging advanced electronic and information technology to reduce costs, simplify operations, and enhance customer satisfaction.

Additional keys to success include establishing beneficial partnerships with larger carriers, maintaining a high level of quality control, avoiding unnecessary competition, responding adaptably to market changes, identifying new market opportunities, and combining aviation business with ancillary marketing activities.

Execution

Marketing & Sales

Marketing Plan

The proposed new airline aims to enter new territory and be known as a Western airline at the forefront of the aviation business in Europe. The airline will emphasize the latest technology, comfort, convenience, safety, and customer service. These elements will form the core of the marketing strategy, highlighting the airline’s unique positioning in the market.

The airline will use various methods to achieve recognition. A large advertising budget is planned to reach potential customers. The airline will also utilize public relations to supplement its advertising.

The airline has unique qualities that can attract media attention. It is opening new markets and using advanced technology. It aims to serve customers better than competitors.

To set itself apart, the airline will have a distinctive name, colors, and branding. It is important to allocate a sufficient budget and have a management team focused on attracting attention.

The sales strategy will involve mass marketing with a personal touch. The airline will encourage customers to use its own reservation and ticketing services to minimize commission expenses.

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E-reservations and e-ticketing will be offered for customers who prefer online services. However, alternative methods of access must still be available for customers who do not have internet access or prefer a personal touch.

Regional and specialized sales managers will target specific clients for corporate or group travel. The airline aims to attract individual travelers through its mass marketing methods and the internet.

The optimal basing location for the airline is being evaluated based on tax and business regulations, as well as other factors like maintenance and storage space.

The airline will utilize advanced technology to enhance efficiency and convenience for customers. It will offer internet marketing, online reservations, e-ticketing, e-check-in, and e-baggage tracking. These features will save costs and improve customer experience.

The acquisition of aircraft is still being evaluated. Dry leasing and outright purchase options are being considered. Financing options and costs for acquiring new Avro RJ100 aircraft are being calculated.

The organizational plan for the airline emphasizes flexibility, personal accountability, and shared responsibilities. The management team will cover administration, aviation, and finance.

The financial plan assumes conservative assumptions and shows profitability even with lower revenues. Peak-demand special flights are considered as additional sources of revenue.

Please note that the above review has removed redundant words and phrases, simplified sentences, and maintained the original meaning and tone of the text.

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