This critical step involves Eagle Aviation Consulting providing the client with an independent and objective assessment of their concept, and importantly its feasibility.
Based on our extensive real world airline experience Eagle Aviation Consulting will assess at a high level the potential of the business concept , in doing so consideration will be given to the unique environmental context within which the opportunity exists. Environmental factors to be considered will include market dynamics, growth expectations and the competitive landscape.
At the conclusion of this step the client will be presented with Eagle Aviation Consulting's full assessment of the concept’s feasibility.
Step 3. Client Decision Point
After considering the feasibility study
recommendations a client will be in a position to make a fully informed decision on whether or not the concept has potential. On the basis that the concept is feasible then typically the process would move to the next phase involving the development of a detailed airline business plan. Should the client consider the concept to be unfeasible they may request that alternative concepts be developed, or decide not to progress further.
Step 4. Business Plan Development
A business plan is a road map or blue print which outlines how a concept or strategic objective will be realised. An airline business plan has two primary audiences, internally it provides an organisation with a blueprint from which the airline will be set up, launched, and managed. Internal business plan users may include management and the Board of Directors.
The business plan is also an important sales tool, presented to external parties including investors, lenders and aircraft lessors who will use the business plan as a means of understanding the business proposition, organisational capability and so assess the likelihood of the business plan’s success.
An airline business plan will typically outline the proposed business strategy and why it is a sustainable strategy, it will identify target markets, and also outline the proposed service offering. The plan will also outline the organisational structure and capabilities. Financial information will include revenue and cost projections, profitability and funding requirements.
Eagle Aviation Consulting has developed a Ten-Point Business Plan template which has been applied to multiple airline engagements including airline start ups.
At the conclusion of the planning phase the proposed business plan will be presented to the client.
Step 5. Client Decision Point
After considering the business plan and recommendations the client will typically progress to the airline start up implementation and launch phase. In making this decision the client will take into consideration factors including the business plan's projected levels of airline profitability, the downside risks and mitigations, and the level of investment required.
The client may elect not to approve the business plan, and instead request further refinement of the business proposal, or the client may elect to end the process at this point.
On the basis that the client approves the business plan then implementation of the business plan commences.
Phase 2: Airline Start Up Implementation and Launch
This phase involves operational set up, air operating certification and the ultimate launch of air services. An airline start up business plan may fail if implementation is poorly executed. It is therefore as important as the development of the airline start up business plan.
The Eagle Aviation Consulting team of partners and associates have vast experience in project managing airline implementation projects. We can also assist with all critical tasks within the implementation process including the sourcing of start up funding, fleet acquisition, executive placements, and the air operating certification process.
The Eagle Aviation Consulting approach to airline start up implementation and launch typically involves the following process;
Step 1. Project Implementation Plan
This initial step involves the Eagle Aviation Consulting team developing a detailed implementation plan. This plan will capture project tasks, interdependencies, responsibilities, and timelines, and guide the implementation process. It will draw on the objectives and timelines outlined within the airline start up business plan including the high level implementation schedule.
Step 2. Funding Sourced
Access to capital is a critical enabler of implementation, and therefore must be in place before Implementation may progress further. The capitalisation plan, drawn from the airline start up business plan provides guidance in terms of the quantum of funds required, the timing of funding, and the sources of those funds.
Step 3. Airline Management Recruitment
The most important resource within any organisation is its people, their knowledge, skills, capability and know how. It is therefore critical that the right management and team members are recruited to the airline. In this step the core management and other critical roles are recruited to assist with the implementation process. The air operating certification process is a primary driver of this recruitment process. Other management positions and the wider team will be recruited during the ongoing implementation phase.
Members of the Eagle Aviation Consulting team may also be available to fill positions on a temporary basis until a suitable permanent placement is found.
Step 4. Air Operating Certification
An air operating certificate (AOC) is mandatory for all airlines, without it the airline will not be permitted to operate air services. The air operating certification process involves the start up airline, its key personnel and its airline start up business plan being closely scrutinised by the regulatory authority charged with overseeing the airline’s operations.
A typical AOC application process includes the following activities, and these activities largely drive the remaining implementation process:
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Identify the aircraft type(s) to be operated.
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Select key personnel: For example Chief Executive, Chief Pilot, Chief Training Captain, Engineering Manger, Quality Assurance /Investigations Manager. These people need to have suitable experience and qualifications. An AOC application project manager is also needed who could be one of the above team although each will have a lot to do themselves.
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Define the organisational structure, location of offices, tasks to be outsourced, key suppliers (especially aircraft maintenance).
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Submit application to the regulator for the AOC and for “senior person” approvals, including “fit and proper” application. Meet with the regulator to discuss the proposal and set timelines.
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Prepare or obtain the “exposition” (the set of policy and procedure manuals) that define how the operation will function in accordance with the regulators rules.
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Submit proposals for ETOPS requirements / and other approvals for regulator agreement.
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Submit exposition to the regulator. Monitor its approval progress, deal with regulator questions/issues, redraft as necessary.
Step 5. Aircraft Sourced
In this step aircraft which meet the aircraft type /” fit for mission” criteria identified within the airline start up business plan are sourced. Aircraft may be purchased or leased. This step will also involve a review of the aircraft configuration (seating type, other onboard equipment) against requirements, and the organising of a spares support package.
Step 6. Air Operating Certificate Issued and Operational Set Up
The final step prior to launch involves the submission of the airline’s exposition to the regulator, and the management of any questions / issues the regulator may have prior to approvals and issuance of the AOC.
In tandem with the AOC process the airline’s operational model will be set up guided by the recommendations made within the airline start up business plan, and any regulator imposed requirements outlined in the AOC process.
Operational set up will include ensuring all physical facilities are in place including flight operations, training, maintenance, sales, and management offices.
The recruitment of all remaining personnel will now occur, including pilots, cabin crew, other operational personnel, and management personnel.
Training and induction programs will then follow for pilots, cabin crew and other operations personnel.
All third party contracts for operational and other services will have been negotiated and should now be activated.
The airline start up will now have received all necessary regulatory approvals, an AOC will have been issued and the operating model will be fully functional. Air services may now be launched.
A well managed and successful implementation will not end at airline launch. Operations will be monitored for an agreed time period to ensure performance is in line with commercial, operational and regulatory objectives.
Click to download EAC's Airline Start Up Planning, Implementation & Launch Process®
