Page 1 of 3 123 LastLast
Results 1 to 15 of 42

Thread: OneLink Airways Business Plan (running thread)

  1. #1

    Post Captial Airways Business Plan (running thread)

    I just started writing this yesterday, so its nowhere near complete, but Im going to be constantly updating this as I write more to it. As I have no idea what Im doing, any and all feedback would be appreciated. Also note, I have no plans on starting this any time soon, as Im only a sophomore in high school. My plan is to obtain a business degree, then look into starting an airline.



    Executive Summary

    Business Model
    The low-cost carrier model is currently attractive due to the current economic recession as people are less likely to spend large amounts of money on flights domestically.

    Goals/Mission
    To make air travel in America fun again by:
    • Maximizing the in flight experience through in-flight Wi-Fi, in-flight television, and friendly flight attendants.
    • Minimizing airport hassle through helpful customer service personnel, VIP lounges, and an advanced luggage sorting and tracking system
    • Minimizing delays through an efficient aircraft turnaround timetable
    • Maximizing customer-to-corporation communications through effective and constant use of social networks, such as Facebook, Twitter, and Google+, and other forms of social media
    • Minimizing fares though various fuel efficiency and energy saving methods, also keeping bag fees to a minimum, preferably to a level of non-existence.

    Aircraft
    Capital Airways prefers to lease the 737-800 over the A320 because of more attractive pricing, better fuel efficiency, and the Boeing Sky Interior, which enhances passenger experience. Boeing is also an established aircraft builder, having built and delivered over 7000 737s alone, making it the best-selling commercial jet in the world.

    Capital is also considering E190 jets for shorter range, lesser capacity flights, such as flights around the northeast, given its lower price point than 737-600.

    Routes
    Capital plans to enter into service with routes from Dulles International Airport to Charlotte/Douglas International, as indirect competition with the likes of other low cost carriers such as JetBlue and Southwest, also to capitalize on rising fares by US Airways. Capital also plans to enter other cities on the east coast like Philadelphia, New York, Boston, Tampa, and Miami. Capital also has an interest in entering smaller markets such as Jacksonville, Buffalo, Richmond, and Raleigh.

    Within 3 years of the founding of Capital Airways, we hope to establish a presence beyond the Mississippi River, in cities such as Los Angeles, San Francisco, Houston, and Seattle.

    Target Market
    While our airline hopes to have a mixed customer base, Capital Airways main target market is business travelers. To reach out and entice the target audience, Capital Airways offers in flight Wi-Fi, to allow businessmen to work, even in the air. Another business-friendly amenity Capital Airways plans to offer within several years of commencement is VIP lounges in the terminal for a quiet, relaxing pre-flight experience.

    Operations

    Marketing

    Prelaunch Marketing
    Capital Airways prelaunch marketing will primarily focus in the city of Charlotte, as Washington is one of the largest Meccas of tourism on the east coast. As most of our new “Capitals” are added out of district, especially our launch destination, Charlotte, about 80% of our launch marketing funds will go toward making sure our new destination knows we’re coming and that new non-stop flights to Washington are coming. The other 20% of the prelaunch marketing funds will go toward advertising in Washington. The actual percentages will be based on market research. Capital Airways plans to take out humorous advertisements in the form of online video and text advertisements, television commercials, and radio commercials.

    General Marketing
    Capital Airways plans to raise awareness for our brand by capturing the younger generation of America (younger as in mid-30s and younger) by establishing a large and ever active new media presence, such as active social network profiles, constantly updated blogs, and intuitive and easy to use websites and mobile apps.

    Generally, Capital Airways’ advertisements will contain elements of humor while still promoting the Capital Airways brand name. Humor is often the best way to get new customers.

    Promotional Marketing
    Capital Airways “DC Deal Days” will be run during summer months in which lower fares will be offered to and from the district to and from certain Capitals. Airfare will be reduced by up to 20% on up to five city pairs each week from Memorial Day to Labor Day. However, DC Deal Days will not begin until we have at least 15 city pairs.

    Routes

    Initial Route(s)
    As Capital Airways plans to be headquartered in Reston, in Fairfax County, Virginia, it just makes sense for our base city to be Washington. The District’s three major airports were all considered, but Washington Dulles was eventually chosen because of its proximity to our headquarters, its lack of a noise abatement policy, its planned and recent expansion developments, and its ability to handle international traffic once Capital Airways begins to establish Canadian and South American Routes.

    After investigating different cities to launch as a starting route to Capital Airways has determined that our initial destination should be Charlotte’s Douglas International Airport. Charlotte Douglas was chosen because of its low delay rates, rising fares to Washington by US Airways, and the city’s association with the financial industry, as Capital Airways targets business fliers. Another reason Charlotte was selected is because of the general scarcity of flights from Washington to Charlotte operated with mainline equipment.

    Another city Capital Airways plans to start routes to as a launch city is Tampa. Tampa’s International Airport can serve as a gateway to Latin America, and is also relatively not crowded. Tampa International is also not very prone to delays.

    Atlanta’s Hartsfield-Jackson International Airport was also considered as a launch airport, but was then decided against as a Delta’s presence there does not easily allow for new airlines to enter the market. As Hartsfield-Jackson is also the busiest airport in the world, Capital Airways predicts getting out of the airport easily will not be possible resulting in delays.

    East Coast Corridor
    While this does not include all markets on the East Coast, it does include our plans for entering major markets such as New York, Boston, Miami, Orlando, Atlanta, and other major cities.
    New York is a market Capital Airways is hesitant on entering. With Jetblue, a direct competitor based there, as well as many other airlines, all three of New York’s major airports are expected to give us trouble. But Capital Airways realizes that New York is an important market to get into, so we plan to enter the New York metro area when traffic at LaGuardia or Newark eases up or within two years of our entry into service, whichever comes first.

    Boston, as a center for the New England market, is somewhat of a neutral location to Capital Airways. While we still intend on entering Boston’s Logan International, it will not be for at least 3 years after our entry into service. However, as Boston is both an important financial city and the fourth largest “cybercity” in the US, we still have our eye on Bostonian business fliers.

    Miami, Orlando, and the rest of the Florida market is of vital importance to Capital Airways, as the “Sun State” is a very popular vacation destination for people all over the US. Capital Airways has already expressed interest in entering the Tampa market, but we also plan to enter South Florida through Palm Beach International and Miami International. Orlando, however, is a market that Capital Airways is somewhat cautious about entering, as Jetblue operates many Caribbean destinations from there, as well as “Jetblue University” where Jetblue staff are trained. Overall, unless market conditions change, Capital Airways has no intention of entering Orlando until our yearly revenues surpass $500 million and we are profiting.

    Midwest/Great Lakes Region
    Capital Airways intends to revitalize air transport in the Midwest. As other airlines have moved out of the area, Capital plans to move in, by establishing a focus city in the region.

    The Chicago metro area is a location Capital Airways does have plans on reaching. However, both Chicago’s O’Hare and Midway are overcrowded, with Midway especially dominated by a direct competitor, Southwest Airlines. So capital Airlines plans to operate its Chicago flights from the smaller Gary/Chicago International, establishing daily flights to at least 15 destinations across America within 6 years of our opening Washington-Charlotte route. The Midwest is an area Capital wishes to connect with, so we will also be serving intraregional destinations out of Gary/Chicago to airports such as Cleveland Hopkins International, Cincinnati/Northern Kentucky International, Detroit Metropolitan Wayne County Airport, and Indianapolis International using our ERJ-190 fleet. While these will not be the only flights to these cities, people traveling out of these cities will likely prefer to fly to Chicago to get to the rest of the US as it is the nearest focus city. Chicago will also serve as a gateway to the west serving destinations such as Seattle, San Francisco, and Los Angeles.

    While Chicago will operate as a focus city for the region, non-stop flights to Washington will occur in other cities such as St Louis, Kansas City, and Minneapolis, markets Capital Airways plan to bring great service to within seven, eight, and seven years of entry into service, respectively. While these markets are important to us, our primary focus in the region is our Chicago focus city.

    West Coast Corridor
    Capital Airways plans to enter the west coast region within 4 to 5 years of entering service, by establishing a west coast city hopping schedule between Seattle –Tacoma International, Portland International, Oakland International, LA/Ontario International, and San Diego International. All five cities will be served, non-stop, between each other, aside from San Diego and LA/Ontario. Additionally, a west coast hub at Oakland International will serve as a center to move east from the Pacific, to cities like Chicago, Washington, New York, and Miami.

    The San Francisco Bay area was chose to be our Pacific center of operations for both geographic and economic reasons. Geographically, the Bay area is centrally located on the west coast of the United States, minimizing distances to locations both up and down the Pacific coast, as well as eastward to other cities. Economically, San Francisco appeals to us because it is synonymous with the technology industry, as Capital Airways has already expressed interest in the business travelers market. Oakland International was chosen because it is a less crowded, secondary airport in the San Francisco Bay area. Within 5 years of our entry into service. Capital Airways intends to have Oakland International serving at least 10 destinations across the United States.

    Rocky Mountain Region
    Capital Airways sees Rocky Mountain destinations as an unneeded waypoint to transcontinental flights. Because of this, unless the airline industry in America sees drastic changes take place regarding the region, Capital Airways expresses no desire to enter any markets in any state east of California and west of Kansas for the foreseeable future. When the proper time to enter such markets presents itself, city pairs and airports will be re-evaluated.

    Fleet
    After researching the subject, Capital Airways has determined that our fleet will consist primarily of the Boeing 737 Next Generation -800 model, leasing 3 aircraft at a rate of $700 thousand per month initially, growing to 10 aircraft within 5 years win an overall goal load factor of at least 80%. We also intend to purchase Embraer E-195s within 7 years of entering service, to satisfy 100 seat market and allow for more destinations to smaller, less important markets.

    Boeing 737 Next Generation -800
    Capital Airways chose to fly the Boeing 737 as opposed to the Airbus A320 on a cost basis only. The Boeing 737 Next Generation is a newer engineered aircraft, with Boeing’s blended winglets coming standard, to help reduce fuel costs and enhance range. Boeing is also known to be a leader, rather than a follower in the commercial aviation industry, pioneering the widebody jet in the 1969 with the 747, and creating the blended wingtip helping to reduce aircraft fuel burn. Our selection of Boeing aircraft ensures a good cooperative relationship with the company as we continue to shape the future of air travel. Boeing also offers the -800 model at a purchase cost of $84.4 million, $3.9 million lower than the Airbus equivalent A320’s $88.3 million.

    As previously mentioned, Capital Airways intends to lease 3 737-800s, initially in a wet lease, converting them to dry leased aircraft after our flight crew training is completed. We also intend to obtain new aircraft on a dry lease at a rate of $700 thousand per month. We also intend to begin purchasing our aircraft, beginning by placing orders for 5 aircraft within 4 years of entering service.

    Capital Airways intends to outfit its 737 fleet with 16 “Senate” class leather seats forward of the cabin, along with 144 Economy class cloth seats laid out in the typical 6 abreast seating pattern for a Boeing 737. Additionally, call of our 737s will be outfitted with satellite Wi-Fi provided by Row 44, as well as satellite television provided by DirecTV.

    We intend to operate our 737s primarily on our flights between larger markets, inter-regional flights and transcontinental flights. During increased periods of travel, 737s may be temporarily replacing E-190s on intraregional routes such as New York to Boston and Chicago to Detroit, but this is only on an as-needed basis.

    Boeing 737-8 MAX
    Capital Airways also has an interest in Boeing’s 737 MAX program, expected to take flight in 2016, with airline introduction in 2017. Capital wants to operate a young, efficient, and clean fleet, as an outdated fleet is among the top complaints customers have in the airline industry, so the improvements Boeing has made over the already efficient 737 Next Generation are very important to us. According to Boeing, the re-designed 737 will offer a 13% reduction in fuel burn and CO2 emissions over today’s most fuel efficient narrow-bodies and 9% over the A320neo, saving up to $1 million per aircraft on fuel costs at today’s fuel prices. The 737 MAX will also be the most reliable airliner in the world, building on the 737 Next Generation’s already record breaking 99.7% reliability rate,

    Livery
    Instead of one livery for our entire fleet, Capital Airways’ planes will consist of a “Jelly tail” scheme, somewhat similar to Jetblue, but each tail representing a different Census Bureau-designated area:

    Horizontal bars of various sizes represent the large cities of the Northeast, like New York, Boston, and Philadelphia. Vertical three pronged fork-like lines represent the deciduous trees of the mid and south Atlantic. The water droplets represent the Great Lakes region. Five slanted horizontal bars represent the south and its love of racing (i.e. Kentucky Derby) , Vertical bars represent the Midwest, and its primary cash crop, corn. Two rivers represent the Texas region (Texas, Louisiana, Oklahoma, Arkansas), representing the Rio Grande and the Mississippi River. Jagged lines serve to represent the mountain states. Waves represent the Pacific states, while an arrow represents the non contiguous states of Alaska and Hawaii.

    The artwork on the tail itself features a white Capital Airways logo, a slanted line-drawn representation of the Capitol building, set on a navy blue background.
    Last edited by Runway1R; 05-30-2012 at 03:52 PM.

  2. #2
    Senior Member
    Join Date
    Mar 2012
    Location
    Houston, Texas
    Posts
    123
    Hello,

    I applaud your dream of creating an airline, and I'm impressed with what I see of your plan so far. That being said, I'm going to play devil's advocate and throw out some thoughts and some questions that will make you think. I'm a pilot for a major airline. If you count mergers and acquisitions, the airline I'm flying for is my eleventh (and hopefully last!). I've been involved in two startups, both of which failed (One called Capitol Air. If you're superstitious, changing the name would be my first suggestion... The other was called Western Pacific and flew 737's out of Colorado Springs). I've also been involved in two expansions of existing carriers that went bad.
    Now, I'm going to try to poke holes in your plan, but nothing I say is meant to discourage you. Once again, repeat after me: NOTHING I SAY IS MEANT TO DISCOURAGE YOU!. The business world in general, and the airline business in particular, is ruthless. Having a good plan is essential, and I'm going to give you some things to think about.

    My first suggestion is to study the industry in-depth. Get to know it inside and out, and I'm not just talking about the current industry. Start at the beginning. Learn what companies did right, and (more importantly) what they did wrong. My biggest criticism of the industry today is that it's run by lawyers and "bean counters" instead of "airline guys". The "airline guys" were in it because they loved the business. The lawyers and bean counters are in it to make money. You sound like an "airline guy" in the making. Here's a list of airline guys I'd suggest getting to know, their airlines, and (where applicable) books about them and their airlines:

    Juan Trippe--Pan Am
    Pat Patterson--United
    Pop Hanshue--Western Airlines (The only way to fly by Robert Serling)
    Bob Six--Continental (Maverick by Robert Serling)
    CR Smith--American (Eagle by Robert Serling)
    Eddie Rickenbacker--Eastern (From the Captain to the Colonel: An Informal History of Eastern Airlines by Robert Serling)
    "Mac" McGee--Alaska (Character and Characters, by Robert Serling)
    (Are you seeing a trend here with regard to an author?--Bob Serling put out some excellent books about several airlines. Some may be hard to find, but search for them. I think they'll provide you with good information)

    Also, what I consider to be the last of the "airline guys" (until you get there, of course!):
    Gordon Bethune--Continental (From Worst to First)
    Herb Kelleher--Southwest (Nuts)

    Study the airlines that have failed: Pan Am, Eastern, and Western Pacific (Ed Beauvais was the CEO's name--he also started America West), to name three. Figure out for yourself what went wrong and why they failed. Study airlines that have merged and learn about the smooth mergers (Western/Delta, Northwest/Delta, Air Tran/Southwest), the not-so-smooth mergers (Texas Air/Continental, People Express/Continental, United/Continental, Northwest/Republic (and all the carriers that merged and became Republic), American/TWA), and the outright disaster (USAir/America West). Study what went right, what went wrong, and why.

    Now my disclaimer: I'm a pilot with a business management degree, but I'm not in airline management. The suggestions I throw out are going to come from things I've seen-both good and bad-as a line pilot. I think the most important thing is to treat your people well. You treat your employees well, and they'll treat your customers well. They treat your customers well, and the customers will treat your shareholders well (by making your company profitable). They treat your shareholders well and they in turn will treat the board of directors well. And the board will treat you, the CEO, well.... See, it's a big circle. Oh, and you can NEVER pay your pilots TOO much...


    I'll give you some food for thought on your plan in another post...

  3. #3
    Senior Member
    Join Date
    Mar 2012
    Location
    Houston, Texas
    Posts
    123
    Quote Originally Posted by Runway1R View Post
    Business Model
    The low-cost carrier model is currently attractive due to the current economic recession as people are less likely to spend upwards of $100 on flights domestically.
    I feel you've put the cart before the horse here by setting a price. Have you established your cost per available seat mile (CASM) and your projected revenue per available seat mile (RASM)? If you've already established these numbers and you can make money by charging $100 or less, then you're OK. I do like the fact that you're being specific in your model, but make sure your specific number is a realistic one. Also, you say the LC model is attractive due to the current economic recession. The country WILL come out of the recession at some time. What happens then? Will your business model still be valid? If not, do you have a plan to adapt and ensure financial viability?

    Quote Originally Posted by Runway1R View Post
    Goals/Mission
    To make air travel in America fun again by:
    Maximizing the in flight experience through in-flight wi-fi and in-flight television
    Minimizing airport hassle through helpful customer service personnel, VIP lounges, and an advanced luggage sorting and tracking system
    Minimizing delays through an efficient aircraft turnaround timetable
    Maximizing customer-to-corporation communications through effective use of social networks, such as Facebook, Twitter, and Google+, and other forms of social media
    Minimizing fares though various fuel efficiency and energy saving methods
    Many airlines offer most, if not all, of these amenities. How do you plan to differentiate yourself?
    --By the time you get up and running, airborne wi-fi and TV will probably be an industry-standard offering. How will you make yours different?
    --Much of the airport hassle comes from frustrations with the TSA and security screening. Do you have a plan for dealing with that or making it smoother?
    --Luggage sorting and tracking are becoming industry standard. How is yours going to be different from those of United or Delta or Southwest?
    --Efficient use of aircraft and turnaround times--I like it. Keeping airplanes in the air keeps them generating revenue.
    --Use of social media. Again, becoming industry standard. Might I suggest using social media to show the customers that your company cares about them by responding quickly to questions and problems... (this is a suggestion on my part... it's an idea that definitely needs to be refined)
    --Minimizing fares through fuel efficiency and energy saving programs. Good ideas but I'd like to see them fleshed out a bit more.

    Suggestion: Find out what frustrates passengers most, then address those issues. I haven't done a poll, but I have some ideas:
    --Being nickled and dimed for every little thing. Bag fees and having to buy food, for instance.
    --Surly employees and unresponsive management when the customers have an issue. You're not going to be able to please everybody, but I think you can do it better than many airlines

    Quote Originally Posted by Runway1R View Post
    Aircraft
    Capital Airways prefers the 737 MAX over the A320neo because of more attractive pricing, better fuel efficiency, and the Boeing Sky Interior, which enhances passenger experience. Boeing is also an established aircraft builder, having built and delivered over 7000 737s alone, making it the best-selling commercial jet in the world.
    Why the 737 MAX? Have you done a cost analysis of both airplanes? I like your decision because as a pilot, I'm partial to Boeing due to some technical reasons. I think you'll do very well with either airplane financially. Also, have you considered some of the smaller jets--the 100 seat market such as the EMB-190? Would they give you better operating economics based on your stage lengths? Or are you going with the Boeing because you anticipate growth and want to keep one fleet type to minimize expenses for such things as training and parts? How do you plane to finance the airplanes?

    Quote Originally Posted by Runway1R View Post
    Routes
    Capital plans to enter into service with routes from Dulles International Airport to Hartsfield-Jackson Atlanta International, as indirect competition with the likes of other low cost carriers such as JetBlue and Southwest. Capital also plans to enter other cities on the east coast like Philadelphia, New York, Boston, Charlotte, and Miami.
    With this route structure, you're not only competing with Southwest and Jet Blue, but with Delta, American, and United as well. All five carriers have the financial resources to undercut fares to the point where it is unprofitable for you. How do you intend to combat that?

    Also, I don't see anything in your plan about your target-market. Who are the customers you're after? The "once-a-year" vacation travelers? Or the business travelers moving up and down the coast? (Here's a possible marketing point for your wi-fi...let the business people get work done from the airplane). Do you plan to offer a high-frequency, low hassle service similar to the Delta Shuttle and former USAir shuttle that ran from Boston and New York to Washington? Or are you going to offer a lower-frequency service?

    Like I said earlier--don't get frustrated over my comments. They're meant to get you thinking, not to put you or your plan down.

  4. #4
    Quote Originally Posted by snydersnapshots View Post
    --Much of the airport hassle comes from frustrations with the TSA and security screening. Do you have a plan for dealing with that or making it smoother?
    If possible, I would allow a separate checkpoint for frequent fliers that allows a less invasive, faster process.
    Quote Originally Posted by snydersnapshots View Post
    Why the 737 MAX? Have you done a cost analysis of both airplanes? I like your decision because as a pilot, I'm partial to Boeing due to some technical reasons. I think you'll do very well with either airplane financially. Also, have you considered some of the smaller jets--the 100 seat market such as the EMB-190? Would they give you better operating economics based on your stage lengths? Or are you going with the Boeing because you anticipate growth and want to keep one fleet type to minimize expenses for such things as training and parts? How do you plane to finance the airplanes?
    I actually never thought about that. The E190 might actually do me well. But as for financing, I actually havent thought that out yet.
    Quote Originally Posted by snydersnapshots View Post
    Also, I don't see anything in your plan about your target-market. Who are the customers you're after? The "once-a-year" vacation travelers? Or the business travelers moving up and down the coast? (Here's a possible marketing point for your wi-fi...let the business people get work done from the airplane). Do you plan to offer a high-frequency, low hassle service similar to the Delta Shuttle and former USAir shuttle that ran from Boston and New York to Washington? Or are you going to offer a lower-frequency service?
    The business travelers are definitely a target market. A shuttle is definitely an idea, but I decided on Washington to Atlanta as atlanta doesnt have many low cost carriers, and washington to Boston or New York is already dominated by the likes of jetblue, and several other major carriers. (Thanks for the marketing idea, by the way )

  5. #5
    Senior Member
    Join Date
    Jun 2009
    Location
    KCLT
    Posts
    552
    Quote Originally Posted by Runway1R View Post
    If possible, I would allow a separate checkpoint for frequent fliers that allows a less invasive, faster process.
    I don't understand how you could possibly do this. The TSA mandates the security checkpoints, so there really isn't much you could do there.

    Quote Originally Posted by Runway1R View Post
    I actually never thought about that. The E190 might actually do me well. But as for financing, I actually havent thought that out yet.
    I agree with snydersnapshots here. I really don't have much to add, but think about the markets you'll be serving and how much traffic you expect to get. If you serve smaller markets (HPN, GSO, CMH, etc.), is the 737 a little bit of overkill? How about spending less for an E190 or even E175 and then invest what you don't spend into your lounges.

    Quote Originally Posted by Runway1R View Post
    The business travelers are definitely a target market. A shuttle is definitely an idea, but I decided on Washington to Atlanta as atlanta doesnt have many low cost carriers, and washington to Boston or New York is already dominated by the likes of jetblue, and several other major carriers. (Thanks for the marketing idea, by the way )
    Here's my biggest problem with your model right now--delays delays delays. Dulles to Atlanta year round is asking for delays. If your model is to provide a seamless travel experience, why not start from airports that are either not as big or not as delay prone and then expand into bigger markets? Here's an article (albeit old) that points out that ATL is the most delay prone airport: http://www.travelandleisure.com/articles/flight-delays . Have you looked into the BTS database of flights that are most delayed? What airports do they originate from?

    Again, these are all meant as constructive criticism. Please do not take these as negatives!
    Adam Sheinhaus

  6. #6
    Quote Originally Posted by adscram14 View Post
    Here's my biggest problem with your model right now--delays delays delays. Dulles to Atlanta year round is asking for delays. If your model is to provide a seamless travel experience, why not start from airports that are either not as big or not as delay prone and then expand into bigger markets? Here's an article (albeit old) that points out that ATL is the most delay prone airport: http://www.travelandleisure.com/articles/flight-delays . Have you looked into the BTS database of flights that are most delayed? What airports do they originate from?
    I just did some quick research, and among cities on the east coast, it looks like CLT, TPA, and LGA are among the least delayed. Flying to LaGuardia would not be too great an idea, as I would be competing with jetblue just south of LGA, and later, delta, and Charlotte/Douglas would end up with competition with US Airways. Tampa looks like a good as there's not much competition there.

  7. #7
    Senior Member
    Join Date
    Jun 2009
    Location
    KCLT
    Posts
    552
    LGA being the least delayed?? No way! Where'd you find that info? I live near CLT, and CLT is rarely delayed. Price points are pretty high for US Airways, so an LCC that slipped in would be a good thing. TPA is also a good idea; however, you already have SWA there.
    Adam Sheinhaus

  8. #8
    Quote Originally Posted by adscram14 View Post
    LGA being the least delayed?? No way! Where'd you find that info? I live near CLT, and CLT is rarely delayed. Price points are pretty high for US Airways, so an LCC that slipped in would be a good thing. TPA is also a good idea; however, you already have SWA there.
    http://www.travelandleisure.com/arti...-for-delays/14

  9. #9
    Senior Member hiss srq's Avatar
    Join Date
    Dec 2005
    Location
    Around here and near there.
    Posts
    5,565
    Snyder hit some nails on the head. However, I think you are trying to re invent a wheel on the product side that has been repatched to about the max of its extent for what the market can accomidate in America. Virgin cannot make money by doing this. The only one who seems to make it work is JetBlue.

    100 or less a seat each way is a sure fire way to put people on the street, not asses in the seat. Not with brand new airplanes, the staff, training, overheads.. The industry has changed in even the last 10 years since I joined it. Without good yeilds, you cannot survive. You can put 150 asses in seats but if you are charging 100 dollars a seat, you have paid the fuel bill if that. Not even the pilots, fa's everyone else you need to make the airline run, oh, and all of the leases, isncurance etc etc etc etc... Flat rate air travel is not a feaseable option and will not be till the day we 100% re regulate this business. I would love to write a book here but sadly, I am in fact in my office on a Sunday. If you would however like to sit down and chat sometime, shoot me a PM.
    Southwest Airlines-"Once it pop's it's time to stop" Southwest Airlines-"Our Shamu's are almost real" Southwest Airlines -"We blow our top real easy" Southwest Airlines- "You can't top us..... really"

  10. #10
    Quote Originally Posted by hiss srq View Post
    100 or less a seat each way is a sure fire way to put people on the street, not asses in the seat. Not with brand new airplanes, the staff, training, overheads.. The industry has changed in even the last 10 years since I joined it. Without good yeilds, you cannot survive. You can put 150 asses in seats but if you are charging 100 dollars a seat, you have paid the fuel bill if that. Not even the pilots, fa's everyone else you need to make the airline run, oh, and all of the leases, isncurance etc etc etc etc... Flat rate air travel is not a feaseable option and will not be till the day we 100% re regulate this business. I would love to write a book here but sadly, I am in fact in my office on a Sunday. If you would however like to sit down and chat sometime, shoot me a PM.
    I was just using the 100 as a guess. I didnt do much research there.

  11. #11
    Updated

  12. #12
    Administrator PhilDernerJr's Avatar
    Join Date
    Apr 2005
    Location
    Queens, NY
    Posts
    12,470
    My big question pertains to your market and aircraft config. You said you want to be an LCC, but want to appeal to business travelers. How many biz seats do you plan to have versus economy? How many seats overall? That balance between the two will determine if you'll have enough passenger on a plane that paid for low cost prices to cover the overhead. I just feel that it's somewhat of an oxymoron to say "LCC that appeals to business travelers". You also would need somethign so amazing that biz flyers will leave their frequent flyer miles behind to go with you guys, and an amazing FF plan yourselves.

    Just having wifi is not enough to bring in those biz flyers. I am actually typing this from on-board a Delta MD-80 in economy comfort, by the way haha.

    You also seem to keep adding to things like your inflight service and airprot security stuff....that just raises your costs higher and higher...how can you pay for all that as a startup LCC and make a profit? Youll need to really cut back on things and only pick what is important and what you NEED to do well.

    As also said, your route structure has too much competition. In addition, tight, expensive airports like LGA and DCA are difficult to not only compete with, but also to operate in because of taxi times and general congestion.

    Those major airlines have the financial backing to undercut you guys until you're forced out of business, so I'd look for airports that are much more underserved and unrespresented by majors. Look at Allegiant. Small, secondary and tertiary city airports might be the way to go.
    Email me anytime at phil.[email protected].

  13. #13
    Quote Originally Posted by Phil D. View Post
    My big question pertains to your market and aircraft config. You said you want to be an LCC, but want to appeal to business travelers. How many biz seats do you plan to have versus economy? How many seats overall? That balance between the two will determine if you'll have enough passenger on a plane that paid for low cost prices to cover the overhead. I just feel that it's somewhat of an oxymoron to say "LCC that appeals to business travelers". You also would need somethign so amazing that biz flyers will leave their frequent flyer miles behind to go with you guys, and an amazing FF plan yourselves.
    True. I'll have to be thinking about new ways to attract business travelers over the next few days, because right now, I cant think of anything. I might end up having to shift my target market.

    Quote Originally Posted by Phil D. View Post
    As also said, your route structure has too much competition. In addition, tight, expensive airports like LGA and DCA are difficult to not only compete with, but also to operate in because of taxi times and general congestion.

    Those major airlines have the financial backing to undercut you guys until you're forced out of business, so I'd look for airports that are much more underserved and unrespresented by majors. Look at Allegiant. Small, secondary and tertiary city airports might be the way to go.
    Ok. Im trying to find secondary and tertiary airports on the east coast. All I have so far is Gary/Chicago International, Orlando Sanford, and Toledo Express, a joint military and civilian airport.

  14. #14
    Im having a lot of trouble thinking up more ways to grab business travelers. Does anybody have any ideas?

    EDIT: Im deciding against business target audience. You can still suggest ideas, but unless I get really good ones, I probably wont use them.
    Last edited by Runway1R; 05-14-2012 at 08:33 AM.

  15. #15
    Updated. Anything else I need to summarize?

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •