Thursday, April 23, 2009

So you are planning to start a new airline?


Before we start let's take a look at why new airlines fail. There are obviously many reasons why an airline fails but the two main reasons, and perhaps the ones that you have the greatest influence over, at least at the start, are your airline management team and capitalisation. These two elements are essential ingredients to get right if your airline is to succeed, if either item is lacking your are destined to failure! So now we've got over the gloom & doom, what do you need to get going on this exciting and rewarding adventure? • an idea / dream / vision / niche market • solid aviation business plan • experienced management team • more than adequate funding • certification • aircraft selection • suppliers Business Plan Unless you have unlimited resources, this document will be the most important element of your start-up. No business plan or a poorly written one will result in no focus, no investment and no airline! A well written and presented business plan will attract interest from potential members of your management team, investors and suppliers (Aircraft Lessors, CAA/FAA, Airports etc.). Management Team Depending on your current experience and situation, you will need to gather an experienced management team, some you will bring on board straight away, others will join along the way. You will need to bring someone in who will have the necessary experience to take your airline from an idea to take-off. Also, any potential investor may well want to impose their own personnel on you in exchange for their cash! Funding Unless you have unlimited funds you will need to find investors, which is a challenging undertaking. This is particularly true in today's market, where investors view the airline industry as a long-term high risk venture. Once your business plan is ready, you have a only a small window of opportunity to raise the initial investment, especially if your target market is seasonal and operations need to start by a certain date. Otherwise, it could be another season before you start and by then another airline may have filled your market! Where to find the money? this can be raised through different sources, such as investment houses, banks, government & local grants and individuals (wealthy ones of course!). An Initial Public Offering (IPO) should not be considered by a start-up. Try to keep the number of investors to a small group. A.O.C. Certification Aviation certification - Air Operator's Certificate (AOC) - primarily exists to ensure that the methods and procedures undertaken by all operators of commercial aircraft meet minimum safety standards, as defined by each government Aviation Authority (CAA or FAA etc.). You will need to contact your countries regulatory body to see what is required for your airline. Most countries require that a minimum safety, financial and ownership rules are met and adhered to. Certification can take between 9-18 months to achieve, from initial application to receiving certification. Aircraft Selection A major step in your aircraft selection process is identifying the needs of your intended routes (airfield characteristics, ETOPS etc.). Issues such as capacity (passenger & cargo), utilisation and range are all factors in your selection. In addition, engine type may also play a role in your airframe selection. Another issues to take into consideration is regulatory, such as noise, airframe age and let's face it... certain types are just not welcome anymore! This could go on forever but I will leave you with this for now.

Michael J Batchelor Business Visions Group 9675 NW 39th Court Coral Springs, FL 33065 954-323-3081

MBatchelor@Busvis.com www.Busvis.com

Cell: 561-929-1319

Wednesday, March 11, 2009

Tips on Selling or Buying Aircraft in Today's Economy

A friend of mine sent this to us the other day and it makes absolute sense out of the current economic conditions and thought we would pass it along. If it helps I will take all the credit but if not I don't know how it got sent out! IF YOU ARE SELLING: We are often finding now that the first offer that we receive, is the best offer that will be seen for the subject aircraft, regardless of how much lipstick is smeared on. IF YOU ARE SELLING OR BUYING: There is no such thing as a Wholesale figure. This should be eliminated from everyone's vocabulary, as it is an invalid concept, now. IF YOU ARE BUYING OR SELLING: Asking prices are irrelevant. Any prices listed at Globalair.com and other sites, that are noticeably higher than similar aircraft that appear to be realistically price, I can promise you that the higher priced aircraft cannot be bought and are not actually available for purchase. The people that are spending the money to continue advertising them at such ridiculous prices, are either doing it for egotistical reasons or they are appeasing a spouse/CFO/shareholders, or whatever.. IF YOU ARE WANTING TO SELL: Don't. You will probably have to sell at a price that is below the figure range that is burned into your comprehension. IF YOU ARE WANTING TO BUY: What are you waiting for? The water is lovely, and there are pretty of nice things to see down here, so get your kit off and dive in!

Tuesday, March 10, 2009

Guide to Making the Most of Corporate Aircraft

Guide to Making the Most of Corporate Aircraft
More than 14,000 American companies have a business aircraft. Critics see corporate jets as a symbol of waste and excess, but private business jets can have huge benefits. Corporate private aircrafts can help executives, employees and clients quickly travel to and from hard-to-reach rural locations that are not served by frequent commercial airline service. Purchasing a company jet is a major investment and not a decision to be taken lightly. So you will want to be sure you are making the most of corporate jets by:1. Figuring out if now is the right time to buy a business airplane.2. Finding ways to save money on your corporate private jet.3. Understanding the benefits and risks of buying a used corporate private aircraft.
Action Steps The best contacts and resources to help you get it done
Decide if you should buy a corporate jet A basic eight-seat corporate jet can easily start at $5 million. So before you go looking for corporate jets for sale, make sure your company will get a return on that investment. Figure out who would use the jet, where they would go and how often they would fly. Compare that cost to the annual costs of charter flights, and decide if the jet would pay for itself. I recommend: BNET has an excellent in-depth article that can help you decide if your company is ready for a corporate jet. Check out eHow to learn about many of the other expenses that go along with purchasing a private jet, such as renting a hanger and hiring a pilot and crew.
Shop for used private business jets You can save you a great deal of money by purchasing a used company jet। However, finding a used corporate jet can be difficult, and you will need to find someone to give it a complete inspection and test flight before the purchase.

Wednesday, March 4, 2009

General Aviation’s place in today’s economy - A force for good?

Patricia Micheletti
Vice President ~ Corporate Aircraft charters
Well, there is no doubt about it, general aviation has been in the news and we can say that it has not been pretty. The big banks being under scrutiny during the bail-out hearings, have put a lot of negative attention on the industry. An Op-Ed in the New York Times published on January 31, 2009 (click here for the full story), works on de-mystifying general aviation, with the opening line reading: “BUSINESS jets are a force for good. Really.” I was really glad to see this story, because no one was looking at why these jets are being used. Don’t get me wrong, I am not for big executives running amuck with your money. No, what I am saying is that it is not as cut and dry an issue as presented thus far. From the inner walls of the industry, I watch and listen to what the media, politicians and citizens have to say about the use of business jets. I challenge those thoughts, and ask you to look further, to the beginning of this great industry. Why do we have general aviation? Is there a real purpose for it, and why would companies charter a private aircraft? Well, there are a multitude of answers to that question. As per the New York Times article, “The business jet is merely a tool - one that, employed correctly, could help those same struggling institutions soar again and start paying back the money owed”. It is a tool because there are over “5,000 or so public-use airports” across the US, that are only being used by general aviation, compared to the approximately 500 airports open to commercial aviation. This means direct access to remote locations, suburbs, and small towns. As the NY Times Op-Ed states: “If two companies are competing for business, the one using a business aircraft can fly directly to one of those smaller airports and get to lunch with the client before the other guys taking the commercial flights show up.” Not only are they there first, but those on the private aircraft can prepare in utter confidentiality for their meeting, making them not only first to arrive, but much better prepared. The fact of the matter is that these aircraft are “offices that move”. As an aircraft charter broker, I can tell you that there are instances when the cost of hotels, big salaries and per diems added to the cost of commercial flights make chartering more economical. This is because in certain instances (depending on distance) we can get in and out of a location the same day; and since these general aviation airports do not have curfews, this means that even if your meeting runs late, you can even leave in the wee hours of the morning, saving on the hotel and per diems, which allows for added efficiency by not having your employees loose a full day of work the day before and day after the meeting just for travel.
I do encourage you to read the NY times piece (click here for the full story), as they go on to explain how the aircraft manufacturing sector is affected and what that truly means to the economy.
As William Garvey the writer, and editor and chief of the magazine Business and Commercial Aviation, states in this op-ed: “ If you truly need to be there and there and there and back by seven, business aircraft may provide the only way. This is an industry that helps further the country’s commerce and interests – and it deserves a bright future, not a public drubbing”

Friday, February 27, 2009

Business Aircraft Solutions Buyer

America’s corporate jet industry is facing lean times as its aircraft are lambasted as symbols of Wall Street excess. Confronted with economic weakness and public scrutiny, companies have put thousands of corporate jets up for sale.
“The struggling bank Citigroup this week cancelled a $50m executive jet after being attacked for the purchase by the White House and by the US treasury.” (AP)
In Congress, the House financial services committee recently threatened to go further by forcing all banks receiving government assistance to offload their entire fleets of corporate jets – a measure which would affect more than 250 institutions.
IAS along with Airbatch Consulting LLC. are boutique aviation consulting firms for the demanding client who desires personalized service.IAS and Airbatch Consulting LLC. believe that there is a solution to the problem being faced by corporations today.Being in business as well and understanding that a Corporate Jet can be a valuable and essential tool that justifies the initial cost ten times over. For the government and the general public that believes everything the media feeds them, the issue is the cost…..

The solution is this, the recent airline recession has placed a large number of airliners on the market. These Boeing, Airbus, Bombardier CRJ, and Embraer ERJ airframes can be cost effectively converted to corporate service at the fraction of the price of buying a new corporate aircraft. This allows for a very acceptable cost cutting alternative without skimping on quality and functionability.There are other aspects of this solution that are very attractive, for example:

IAS and Airbatch Consulting LLC. can help to divest of the current asset or future delivery position.
The conversion of the aircraft will take place in the US, helping a US company, putting US workers to work(become a contributor to the solution instead of a focus point of the problem).
Finally, arrangements can be made to assist with obtaining or placing the aircraft on an existing 135 certificate to operate under thus creating a consistant revenue flow when not being used for company business.
IAS with Airbatch Consulting LLC. has access to all new and pre-owned aircraft on the market and can arrange new aircraft delivery positions without waiting years. By not being aircraft brokers or a manufacturer’s salesperson IAS and Airbatch Consulting LLC. are not limited to an individual brand or individual listings. Aviation consultants that pass along all the favorable terms and get them directly to the client.
Before contacting a manufacturer, jet sales firm or an aircraft broker, contact IAS and Airbatch Consulting LLC. Have an aviation consultant on your side. If the desire is for a large cabin “Head of State” level aircraft and there isn’t a need to go into a few of the smaller corporate airports then a corporate airliner may fit the specific need. Boeing, Airbus, Bombardier CRJ, and Embraer ERJ are luxurious, reliable and safe aircraft. There are a few ways to acquire a corporate airliner: purchase a new one from the manufacturer, buy a pre owned one or the most cost effective manner is to acquire an airliner and convert it for corporate service for a fraction of the cost of a new one. IAS and Airbatch Consulting LLC. can be of assistance regardless of the path choosen
Michael J.Batchelor http://www.airbatchconsulting.com/index.html
Ivan Klugman http://www.headofstateaircraft.com/

Saturday, February 7, 2009

Integral Aviation Solutions and Airbath Consulting form global alliance

Integral Aviation Solutions is pleased to announce a marketing agreement with Airbatch Consulting. Due to a downturn in the airline industry there are many former airliners available for sale. Corporations and private individuals can now have an aircraft without waiting years for a new one. Boeing, Airbus and Bombardier CRJ are luxurious, reliable and safe aircraft. They can be acquired in a cost effective manner and converted for corporate or personal service for a fraction of the cost of a new aircraft. Integral Aviation Solutions will manage the acquisition and conversion process of aircraft marketed by Airbatch Consulting.
About:
Integral Aviation Solutions IncA Florida based company has over a100 years of combined aviation experience। Our unique combination of airline and corporate aviation expertise provides our clients with the ultimate in safety, security and privacy. IAS has maintenance as well as operational experience and can help newcomer to the industry establish their own flight operations.

Airbatch Consulting LLCSpecializing in the global marketplace with extensive international contacts in the Americas, Europe and the Middle East to match just the right Business Aircraft Commercial aircraft or Helicopter that fits our client’s requirement