The issue of airline startup is                        very complicated, it is manage                        by a huge avi...
2- Boeing Approach:   Startup Boeing - RoadmapAlso Boeing started by Airline Idea, asmentioned previously, the steps are m...
4- U curve Approach:Based on my experience and published researchpapers, airline can be define by four categoriesi.e Deman...
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Airline Startup

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The issue of airline startup is very complicated, it is manage by a huge aviation consultant companies and airline manufactures such Boeing and Airbus. that customize the results to fitted to their interests and products, off course their aircraft are the best in the world but when the airlines falls to make a profits, then it become a management issue, so either to make good start for new established airlines or implement turn around program for existing one.

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Airline Startup

  1. 1. The issue of airline startup is very complicated, it is manage by a huge aviation consultant companies and airline manufactures such Boeing and Airbus. that customize the results to fitted to their interests and products, off course their aircraft are the Mohammed S. Awad best in the world but when the Research Scholar airlines falls to make a profits,then it become a management issue, so either tomake good start for new established airlines or implement turn around program for existing one.So to make a good start for an airline both manufactures lunch an outstanding teams to facilitatethe starting up phase, they do that as they care about their brand name ( Boeing or Airbus ), sothey want to ensure that the airline industry business is healthy in spite of the tight margin ofprofit. Everyone has its own way for analysis of starting up of airline, we are going to addressroad map by Boeing , start me up by Airbus, one from airline industry, and finally a newapproach that based on the airline inputs only. 1- Airbus Approach: The Start Me Up V- PlanBoth approaches ( Airbus and Boeing ) startedby Airline Idea, the first thing what type ofservice we want to deliver, is it Legacy Airline,Hybrid, or LCC (Low Cost Carriers) and whatbusiness model to follow, what are the trendsand the potential in regions/market, can wecapture the proposed share, then a businessplan should be set up, when the financial modelshows a positive signal in first year or may belater ( two years ), the business plan should beminimum for 5 years operations, this shouldinclude network structure, aircraft selection,and operating model, whence the business planin hand, then we secure the aircrafts, andinvolve in AOC process, recruit management,business capitulation, facilities staffoperational plan, departments setup, andtakeoff.
  2. 2. 2- Boeing Approach: Startup Boeing - RoadmapAlso Boeing started by Airline Idea, asmentioned previously, the steps are moreexplore by Boeing, as General Industry &Competitive Analysis, Target MarketAnalysis and Service Offering, RouteStructure Development, ScheduleDevelopment, Market Strategy and SWOTAnalysis, Aircraft Evaluation and FleetPlanning, Market Share (Revenue)Forecasting, Operating Plan (Expense),Financial Model Development,Development, Management TeamRecruitingThat most of steps mentioned by Airbus,the new thing is the Business Plan Development Iterations, the model can be adjusted to meet thedemand and get right picture of business.Whence the investors are comfortable, the process can be extended further to BusinessCapitalization, Airline Operator certification, aircraft sourcing, staff/Facilities and Inter into theService. 3- Airline Industry ApproachMost of consultancy firm follow two stagesapproach e.g : (www.eagleconsulting.aero) inthe following outline: - Planning o Concept Formulation o Feasibility Assessment o Business Plan Development - Implementation o Implementation Planning. o Funding Soured o Management Recruitment o Air Operating Certification o Aircraft Sourced o Operational Set Up
  3. 3. 4- U curve Approach:Based on my experience and published researchpapers, airline can be define by four categoriesi.e Demands, Fares, Distances, and Cost.Which developed the optimum operating curve of theproposed network of airline startup.Further my current concern is to address thefeasibility parts of Airline Startup.The approach started by Airline Idea, i.e LCC,Hybrid, Legacy, or Network airline.Another issue is market estimation – Demandforecasting either on the existing network, orestablishing new destinations.The basic analysis formula isThe model constructed by Five main parts 1- Developing Integer program 2- Implemented U curve technique, and 3- Defining Optimum operating curve 4- Setting Optimum Fare strategy 5- Improve route profitabilityThe new concept in this model is how todefine the right aircraft without the interfaceand guidance of the manufactures, and itfollows by benchmarking study to position theright cost to right the business model based onairline ( Fleet/Aircraft) input.Conclusions:No doubts about the facility that offers by manufactures, but definitely that analysis will bebiased, sure we will not get any manufacture analysis support the other competitor manufactureargument. That why a third party should be involve in process of airline startup. While for Ucurve approach, it relay on the airline side and information that reflects the optimum operatingcurve and with benchmarking study we can position the other operators cost on line to utilizetheir operating experience in our figure which gives a correct picture about the business to usethe right size of Aircrafts for proposed network.

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