I Have A Dream...... (Merged)

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Member for

18 years 6 months

Posts: 2,343

I am currently studying for a degree in Airline and Airport Operations at university; and have got a life-time goal of setting up and running my own airline, however, I do not have a lot of business knowledge as I am still in education. I was wondering if anyone who is reading this would be able provide me with some help/information/support (whatever!) in order for me to accomplish my dream.

I do not wish to disclose my plans that I have made so far over this forum, so if you want to know more, please send me a personal e-mail (jonathan_mark_davies@hotmail.com)

Any contributions will be much appreciated

Thanks,

Joanthan Davies
:cool:

Original post

Member for

18 years 11 months

Posts: 8,847

Oh NO, Alpha 2. :diablo:

Member for

18 years 11 months

Posts: 692

Hey, at least he's not telling us his plans... which is an improvement.

Member for

20 years 10 months

Posts: 9,401

Sounds like your studying the same as me and LFC, but we are studying the certificate, you are doing the degree thats a level above, hope your enjoying it.

Member for

18 years 6 months

Posts: 2,343

I am studying the Foundation Degree course at university in High Wycombe (B.C.U.C), if that means anything to you and/or LFC?

Where are you studying your course/s?

Jonathan Davies

Member for

18 years 11 months

Posts: 692

Ah yes, the Foundation Degree.
After I finish the Certificate, and hopefully pass, I hope to go onto the FD.

We are studying at Multiflight, based Southside at LBA.

:)

Member for

24 years 2 months

Posts: 4,213

LOL

Member for

19 years 9 months

Posts: 12,109

do not wish to disclose my plans that I have made so far over this forum,

why not?? :dev2: then we could all have our own airline :D

Member for

18 years 6 months

Posts: 2,343

Thanks for your support NCLRULES, I really appreciate it. The thing that has inspired me, was the 18 year old who has set up his own airline from Liverpool to Canary Islands - I thought "He can do it, so why can't I!"

Unfortunatly though, having started to think about it, it is the only thing I can think about...its like a virus - aghh!

Jonathan Davies

Member for

19 years 5 months

Posts: 1,887

Thanks for your support NCLRULES, I really appreciate it. The thing that has inspired me, was the 18 year old who has set up his own airline from Liverpool to Canary Islands - I thought "He can do it, so why can't I!"

Nexus

I too wish you good luck :)

Member for

18 years 6 months

Posts: 1,064

Starting an Airline

Well I believe there are two main routes that you can go down when starting an airline: -

- You can lease new or modern equipment (i.e Q300)

Or

- You can buy outright slightly older equipment (i.e ATP)

If you lease you will have lower maintenance costs but then again you will not own the aircraft and lease fees are not cheap but if you purchase new equipment you will own the aircraft but maintenance costs will be higher and you will have to get your own operating licences.

Just to give you an indication of leasing prices, ryanair, perhaps the best negotiatior of getting a lower cost base, pays £400,000 per quater for its B738's (as of February 05)

I would like to hear your thoughts, I'm slightly confused on whats best.

Member for

18 years 6 months

Posts: 2,343

Don't know if this is in response to my thread that I set-up, but anyway...here is my thoughts...

You are absoltley right, leasing is the best option for new airlines. That way, they manage to keep their operating costs to a minimum, so that if the market does not re-act well enough, then they can alter their operations, or just stop all together.

I think that is the case with EUJet, they discovered a market from Kent International, and then went out to expand their fleet in too much of a hurry, which ultimaly led to their downfall.

Anyone else got any opinions, I too would be interested in hearing 'em.

Jonathan Davies.

Member for

18 years 6 months

Posts: 1,064

Ticketing System

Hi,

I have an ingenious idea for a new airline :rolleyes:

You could have an aircraft fitted with a two class interior, business and economy and charge two base fares, one for each seat,

Then you give passengers the option to purchase food, headphones etc.. before the flight and issue them with a credit card ticket,

at the airport their should again be the option to add extras, then passengers can get their extras on the flight, and they get the extras swiped off the card, or indeed they can leave them on until a future flight,

would love to: -

- your opinions
- has it already been done?
- would it work?

Wozza

Member for

24 years 2 months

Posts: 1,342

Theoretically you could charge a single fare for each type of seat, but it wouldn't maximise your profits. If you distributed your costs evenly between all seats then you would automatically price some of the demand out of the market, leaving you with those passengers willing to pay the price or above. However, if you don't increase the fares and have a single fare then you may only be charging a quarter of what a busines traveller may be willing to pay, and so by practising 'Price Discrimination' you could have made 4 times as much for your seat.

HOWEVER, business demand can be intermittent, and there tend to be far less business travellers on most routes when compared to Leisure or VFR (Visiting Friends and Relatives) traffic. But by having a single fare you will have cut many of these travellers out of the market by having seat prices higher than they're willing to pay, especially if Ryanair or similar is offering an equivelant flight for £1!

The reason that the airlines offer multiple prices over time is because they would struggle to sell all of their seats to business travellers (remember also that they may not travel in 'business class' even though they're willing to pay more), and so they 'may as well get something for the seats' and cover at least some of the costs.

You would struggle to get investment for an airline with this seat pricing strategy because investors would want to know that you are maximising the return to them, and clearly without sensible price dicrimination you are not.

Member for

24 years 2 months

Posts: 1,342

Well I believe there are two main routes that you can go down when starting an airline: -

- You can lease new or modern equipment (i.e Q300)

Or

- You can buy outright slightly older equipment (i.e ATP)

If you lease you will have lower maintenance costs but then again you will not own the aircraft and lease fees are not cheap but if you purchase new equipment you will own the aircraft but maintenance costs will be higher and you will have to get your own operating licences.

Oh no, not another chornedshark (or whatever), is this a statement or a question? LOL. I know the answer is at the bottom on your at least.

Just to give you an indication of leasing prices, ryanair, perhaps the best negotiatior of getting a lower cost base, pays £400,000 per quater for its B738's (as of February 05)

I'd be VERY interested to know where you got that figure from.

Member for

18 years 6 months

Posts: 1,064

It is a statement, which is asking for peoples comments on which option would be best for a new airline.

I got this figure from a ryanair interview on skynews a while back, Michael O' Leary was complaining he was paying £400,000 on his B738's but then lessors decided to start charging him £985K which did not please him to say the least,

wozza,

btw I would like to know what your personnel opinion is on what is best

Member for

24 years 2 months

Posts: 16,832

There is no 'best' in this sort of financial calculation.

It all depends on the individual circumstances.

Moggy

Member for

18 years 6 months

Posts: 1,064

Thanks for your constructive criticism rdc1000, what I was thinking is if you were to have a base fare for a type of seat you could then charge add-ons, sort of like a low cost airline but you buy your extras before the flight and you have the option to purchase a more comfortable or more spacious seat,

Wozza

Member for

24 years 2 months

Posts: 1,342

What is the advantage to you as a business of selling food before the flight rather than during? The revenue generated by such sales would not offer the same income as price discrimination on the seat, albeit that it may increase your short term cashflow if people stock up on credit long before making a flight (but not by the same amount as selling many seats in advance at lower fares). Besides you couldn't force people to buy any extras, and I get the impression that you feel your income would come from these.

Maybe I'm confused over the concept, but I cannot understand the benefits of this business model.

Member for

24 years 2 months

Posts: 455

Likewise.

Member for

24 years 2 months

Posts: 4,213

Why laugh guys? This guy has the guts to set up his own airline. Would you attempt to do it? Good luck to you.

Ill comment on this one when at a more appropriate time next year. Mark L knows what im on about.