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Starting your own Airlines


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#1
TNT88

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So, AE is an gaming simulation for people to create their airlines. But the question is, how much or how to start Airlines in real life.

 

Let just say we started the airlines in JFK airport. With 5 millions US Dollar. The airlines start in June 2016.

 

What kind of aircraft (Probably narrowbody) you would leased, configurations, ticket prices on certain routes.

 

Give me an insight of your knowledge.



#2
dazwalsh

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it would be nigh on impossible with 5 Million, now 500 Million and you might have a chance, and even then JFK is highly far fetched.

 



#3
TNT88

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it would be nigh on impossible with 5 Million, now 500 Million and you might have a chance, and even then JFK is highly far fetched.

 

Impossible to lease 2 A320 for 6 months?



#4
Tesla

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Impossible to lease 2 A320 for 6 months?

The cost of leasing/buying 2 A320 for 6 months is a little higher IRL. Most IRL airlines start with at least 100 million dollars of capital.



#5
TNT88

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How about leasing old A320 (10+ years of age)?



#6
Starosta

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I think the problem about starting an airline is not what plane to choose (wet/dry lease/buy or whatever) or what route should it fly. It is a very difficult business in which you won't see any profit for the first years. There is a very long period in between starting the airline and starting to fly. You just can't lease a couple of planes and choose a couple airports and start flying.

The big money doesn't go in buying/leasing planes. Mainteinance, crew training, acquiring certificates/permits/licenses, every platform that the airline will use in order to sell tickets, marketing, ground crew and handling, airports fees, taxes...



#7
TNT88

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I think the problem about starting an airline is not what plane to choose (wet/dry lease/buy or whatever) or what route should it fly. It is a very difficult business in which you won't see any profit for the first years. There is a very long period in between starting the airline and starting to fly. You just can't lease a couple of planes and choose a couple airports and start flying.

The big money doesn't go in buying/leasing planes. Mainteinance, crew training, acquiring certificates/permits/licenses, every platform that the airline will use in order to sell tickets, marketing, ground crew and handling, airports fees, taxes...

So, is it better to start charter or wet leased the plane or bought up a bankrupt airlines?



#8
Starosta

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I think that if your goal is flying ASAP, the charter option would the best one.



#9
Starosta

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According to what I read every time that someone tries to set up a new airline the period between the establishment of the company and the first flight is around two years.



#10
LockheedTristar

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You'd go bust, gate lease fees at JFK are way to high for an airline with 5million usd to even think about



#11
Hake.

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Ummmm... TNT... to set up in Murica you need enough money to cover your predicted revenue for 6 months... that's quite a bit higher than 5 mill, and that's before you take aircraft leasing into the equation.

#12
Zetzr

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First of all, you need a rich dad.



#13
Hake.

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First of all, you need a rich dad.

We're not all Greeks shipping magnates :(

#14
Max Devo

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Have you ever heard of California Pacific Airlines? They've been trying to get off the ground since 2009, and they wound up returning their aircraft to the lessor and are considered "defunct". I don't think starting an airline in the 21st century is feasible.

 

https://en.wikipedia...acific_Airlines


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#15
Aviator48

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Yeah, I had some hope in it and I would see how that turned out. I wonder what happened.


AE is the best.

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#16
Zetzr

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We're not all Greeks shipping magnates :(

 

Not in these difficult times either.  :/



#17
TNT88

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Interesting. So the best bet is to come up with 50 million and bought a bankrupt airlines so you could get the license easily then.



#18
Starosta

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I think that would be a waste of money. When you buy a bankrupt company you don't acquire only its assets but its debts and all. And airlines debts' are usually larger than 50 million. As Max Devo has stated before, starting an airline in the 21st century is a tough if not almost impossible thing.



#19
Lord Letto

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If I had the money to get my pilots licence and start something, it would likely be a Air Taxi/Charter from my Local Airport (YKF) using a old GA/Bush plane, possibly flying people to YYZ for ~ the cost of a ground taxi if possible ($90+ Kitchener to YYZ, $120+ YYZ to Kitchener for ground transport), with the idea that it would be Quicker to Fly than Ground Transport and would be more scenic.



#20
AsiaPacific

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There's an old saying "The easiest way for a billionaire to become a millionaire is to start an airline"






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