How do i start my own airline company

[acfe]

go to united states of america
and go to the world bank
and loan im sure they will give low interest and big money

surely trust me

ps can i be part of that airline thing idea of yours?

[rstairline]

well i wouldnt mind if u were part of it but i dont noe u at all and i am not sure if u can be trusted....ppl may take advantage one day and steal stuff like company money all that ya know...what do u want to do anyway??...a steward?...hahaha....well,i know i can get a loan but u see,what if the company fails and you dont have a single cent to pay the bank back...its millions you know...and i dont want to become bankrupt ever....

[rstairline]

Don't you think 50million would be a bit too much?..i was thinking of getting a loan of about 3million and instead of buying an airplane,i would get it on lease.That would be much better and money can be saved.Only extremely rich people like bill gates and others can afford to pay 50million back.Some actors and singers dont even have that much and i dont even have 20,000.....hahaha...I have already designed the logo and the name of the airline...hehe...I am still thinking where i want it to be based in..germany,austria or USA.Well,you can be part of it if you would like to but what to do want to be part of?...

[acfe]

can you send me the logo and the name of the company to my email address

angelo_edades@yahoo.co.uk
i just wanna be the chairman of the company who takes care of everything and you just have to relaxed and watch the money roll in while i work my but off!

send me he name of the airline and the logo to my email adress ok?

[JaFu]

If you're going to start an airline, you need to do it right. If you try lowering your prices in order to compete for new customers, the airlines will feel threatened and they will undercut you and send you right out of the market. If you charge too much, nobody will buy your tickets, especially in the days of online ticket purchases where customers can tell pretty quickly what the cheapest ticket is. If you fly too many routes in and out of a city, they will feel threatened and undercut you (Southwest avoided this by knowing that Delta would not "flag" and airline unless they flew more than two routes per day, so they simply flew two routes to all their locations until they were big enough to compete head on with Delta). You will need to price your tickets right along where the major airlines price theirs, which creates another problem. Most of these airlines are BIG, and they have economies of scale working for them, which means that for them putting their plane in the air it takes less money and resources than a smaller company. Furthermore, these airline companies are STILL losing money. It is going to be very difficult to find a logistical solution whereby you can become more efficient than these big airline companies, which is the only way you have any chance of survival (Southwest did this by flying only one airframe which cut down on maintenance and keeping their average plane in the air 17 hours per day...all maintenance was done at night). And as for the 3 million startup, there is absolutely no way that is going to be enough. 50 million will probably not be enough. You will need to pay employees, maintain aircraft, pay airports to land and park planes, etc. If I were you, I would wait until the airline market is less volatile and then consider starting a company. Also, it's going to take a lot more than a $20,000 down payment to get even a $3 million loan, let alone a $50 million. A general rule-of-thumb is that the down payment is 10% of the total loan. Therefore, if you want even a $3M loan, you will need to have $300,000 for the down payment. There are other common ways for a company to raise capital. You can do a public offering (sell stocks) or offer bonds. The only problem with those methods is that you will likely not be able to set a high price on your stocks until you are an established company, so raising enough capital in your first public offering could be difficult. As for bonds, if you are a new company you are generally considered risky, therefore your rate is generally much higher. Therefore, when you pay back your bonds you are going to be paying out-the-a$$ for interest. You really need to hire a company to put together a business plan if you want to have any chance of success, and then hire people that have generations of experience working for other airlines so they can bring knowledge of all the little neuances it takes to survive to the table.

[Edited by JaFu on 26th May 2004 at 06:23]

[rstairline]

Thanks so much JaFu for your very generous reply.This has been the answer i have been looking and waiting for.Not that the others are useless.I like seeing the viewpoints of others.Anyway,I know for certain i want to start it.I am jus having this urge to have a small chat with Nicky Lauda who founded Lauda-air in Austria.There are thousands of solutions into this company start up.Everyone is different and there will certainly be one way to start it without going through the hassle of getting a huge loan which is going to be extremely hard or impossible to pay back if the company fails.I just dont want my life to be moneyless and becoming bankrupt is certainly something i want to avoid.I know at first attempt,it will fail,but thats what happens to many companies.i am not going to let stuff like that stop me from achieving my goal.To become big doesnt necessarily mean you have to start big with international flights.I was thinking of starting maybe a twice a day flight from maybe vienna or germany to places like Paris,Rome,norway,sweden or finland etc....This is just a small idea.I know i wont start with a huge jet like a B757 or 767 or 777 or 747 or A340 etc..I would most probably start with a small plane like the A320,737 or propellered airplanes but of course i would attract customers in a different way.Since it would be a new airline,the best way is to make it more affordable but i dont want to be a budget airline of course.Maybe services,comfort,liabilty and care for the passengers would attract them.Or maybe the colour and design of the airline logo and colour of the airplane would make people question about it etc...That was what i was thinkign since i am attracted to colourful logos etc...If the name sounds cool,i will fly it.what do you think?

[Stephen_Gurule]

Let me give ya an idea you know those "low cost no frills" airlines they take small airports that arent busy and fly from p-A to p-B and all low cost for the passengers say you fly from a nation competing in the World Cup and headed say Portugal? then you could offer low prices say $100 per passenger flying frankfurt to lisbon then return via barcalona to frankfurt land for maintenance and crew switch then head to say athens then return to frankfurt via rome and so on so forth look for the open gaps placed for you such as major events nearby hey and lemmi give you a 3 times a day service a day such as sunday friday wednesday from brussels and geneva im tellin you it works maybe include strasbourg in there and other EU nation capitols . Any way i tell you Europe is a great place if you want a thriving economy since the EU has so many new members you could soon have an aircraft flyin in from most capitols of da EU maybe you could be the EU's official airline you know someday id like ta work for you and ya know i spend my free time jus thinkin of new routes and thinkin like my airline is growin quick ya know with the help of my dad i programed a "simulator" that would go where i wanted the plane to go from a main base (mine is charleroi in belguim) and would do that till i programed it to go else whre on the time schedule currently i own on the simulator 5 A320s and 2 A340s with 85.2million Euros and rising fast! hope ta hear from u soon!