New airlines start all the time, whether the economy is strong or weak. For an industry which struggles to be profitable, this suggests there is tremendous inefficiency in the sector.
Numerous airlines have started and failed over the past 10 years alone in almost every region of the world. Not all the problems are of the airline's own making. This industry is susceptible to strong influences from macroeconomic factors, government intervention (positive and negative) and, at times, illogical competitive behaviours.
However, looking at a number of startups, our team have found many had common errors. Poor understanding of demand, selection of the wrong aircraft type, lack of financing, ineffective commercial management - these are just some of the most critical common factors which have led to the failure of recent startups.
- Feasibility studies
- Business plans
- Development program
- Organisation design
With the right strategy, cost base and financing to tie you over until revenues reach a sustainable level, there are opportunities to build efficient airlines both full service and low cost, around the world. But doing so needs the right team, the right product, the right aircraft and the right network.
We can help you with a feasibility study, a commercial strategy, a network and fleet plan, and with actually ramping up the startup of the airline.
Our team of senior airline experts have extensive experience starting and managing full service and low cost airlines around the world. They have designed, developed and implemented startups, and have advised private, institutional and government stakeholders. Some have even successfully started their own airlines, which all continue to exist today. Unlike other consultants, none of the airlines started by our team members have gone bankrupt or ceased operations. For more information, please contact Shakeel Adam.
• Post privatization restructuring of a national airline in Southern Europe
• Startup of the first low cost airline in Saudi Arabia including establishment of the business,
acquiring the AOC and building up the operation.
• Startup of the new Olympic Air, following the privatisation of Olympic Airlines
• Startup of a regional subsidiary for British Airways in Germany
• Startup, development and commercialization of Aegean Airlines
• Startup, development and commercialization of Gold Air Handling
For further information, please contact our airline startup consultants.
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