How to start your own airline from scratch?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

How to start your own airline from scratch? To get started, raise capital - 200-250 million rubles will be enough to start, in addition, get ready for the fact that these funds cannot always be returned. Air crashes, force majeure, adverse weather conditions prompted the Federal Air Transport Agency to reduce the number of airlines on the market. Instead, they were encouraged to strengthen existing firms. Therefore, experts do not advise opening a business in this direction, the specialists of the Tulpar group of companies join their opinion.

Private airline: what to look for when planning a business

There are a few things to consider before you open your own airline and start growing your business. These include:

1. Get ready for the fact that the catering market is a competitive environment and you will have to constantly stay afloat.
2. To start any business, you will have to attend training, which requires a considerable investment: one flying device in the form of a simulator will cost almost as much as a real aircraft.
3. Air service is a low-margin business that needs highly qualified service.
4. Before you open your own airline, you should know that the interior of the aircraft requires the creation of special conditions. Sometimes an entire production facility is opened to decorate the interiors of the boards and qualified engineers are recruited.
5. It will be difficult to replenish the list of orders with permanent or regular shipments due to the fact that there are practically no "unattached" customers on the market.

Handling Features

But there are more than just flaws in this case. Nevertheless, it is possible to find a loophole in the aviation business. Beginners can practice handling - ground handling of flights.

How does it work? You, as an intermediary, represent the interests of the airline, establishing relationships with air companies. Such workers, called supervisors, are engaged in:

• organization of flights;
• negotiate with the owners of airports the time of arrival and departure of aircraft;
• are engaged in crew escort;
• supervise the supply of food, maintenance, refueling and cleaning of the aircraft;
• provide crew with transportation and accommodation.

Duties of handlers

If you are thinking about how to open your own airline, then remember that often handlers do not deal with aircraft cleaning and maintenance in person. For this, specially trained personnel are hired. Among their duties is the organization of these processes. It is unprofitable for the company itself to maintain a large staff of employees performing these functions forseparately, it is better to hire one person who will take over the duties and do this work.

Containing a large company staff is not only unprofitable, but also inconvenient, because everyone needs to solve a number of issues regarding their work, and the owner needs to complete a team, while each of the staff has their own qualifications, experience and knowledge in a particular area.

What a beginner businessman should know

The owner of such a business should have an understanding of the principle of operation of such an industry as aviation, flight organization, and the functioning of airports. He must be aware of all technical aspects. Therefore, before you open your own airline, think about the responsibility that awaits you.

You can start organizing the work of the company without an office. Regulate processes - remotely, being at home or in a car. As the company develops, it will be necessary to rent a room at the airport base so that the supervisors working with you can easily and without difficulty get to the place (to the plane) and begin their duties.

What other challenges will you face? Know your competitor by sight! With market participants: airlines, aircraft owners, the client sector, you should also be familiar with. Lastly, they start looking for a starting client: where, how and with whom to negotiate a deal.

Investment volumes

How are youalready understood that starting a business requires start-up capital. 5-10 million rubles will be enough to fulfill the first order. Having figured it out, you will understand that you will receive all these funds back: their company will reimburse them at the end of the transaction, and as a bonus, the agent is paid a fee.

Spending on advertising in the field of aviation services is inappropriate. Sometimes they place online ads to attract customers, but such promotion is targeted.

Where can I get funds?

Experts do not recommend getting involved in lending when opening a new airline. A feature of such a business is low marginality, which is why loan interest eats up the agent’s entire income. For this reason, businessmen often go into the red. For a startup, this option is not preferable. It is more profitable to sell free real estate, and invest the funds raised in the business. Sometimes an investor is needed to open an airline. State support funds are not interested in this type of business.

Organizing a business: a step-by-step guide

To work in the aviation industry and successfully advance in business, follow a brief guide to organizing your own business:

1. Decide on an idea.
2. Set a goal for yourself.
3. Raise capital.
4. Choose a state. 2-3 people are enough to start. As the business develops and grows, more employees will need to be hired.
5. Hire a handler. Cooperate only with experienced and reliable people.
6. Build long-term relationships with counterparties. Sometimes, when agreeing on long-term cooperation in the field ofservices, it is possible to achieve discounts of up to 15% on the provided package.
7. Organize the shift work of the company. The aviation business involves round-the-clock operation.

Before you open an airline from scratch, you must understand why you need it. For example, Russian Post plans to open its own airline for the organized delivery of goods from abroad. So customers can receive their packages faster with a slight change in the cost of delivery of goods.

There are no pitfalls in this business, and force majeure rarely happens if you work with professionals and understand what you are doing. When working in the aviation industry, be prepared for irregular and sometimes even exotic orders, for example, to Algeria or Paraguay. Sometimes you have to deliver people or cargo to small unfamiliar cities, where airports work on order, and the runway is of poor quality. It is difficult to organize such a flight. That is why Russian Post wants to open an airline, the existence of which will simplify the work of the organization. Therefore, in order for your handling business to last long, you must be well versed in your business.