Aircraft Start-Up and Development
ABA are experienced in Airline Start-Ups & Development
Experience
ABA runs its own successful and expanding airline and has been instrumental in successful start-ups of airlines as far afield as India and Africa as well as within the UK and Ireland. From an "idea around the boardroom table" to feasibility study and on to full implementation ABA can draw upon its experience and resource the necessary expertise in order to bring ideas to life. The following are examples of how ABA can help in an airline start-up or development.
FEASIBILITY STUDY
Feasibility studies can be produced to cover virtually any aspect or segment
of the industry from start-up to route development, market appraisal,
aircraft appraisal, legislation, maintenance support and so on. Fixed
price quotes are given whenever possible and the company will do its
best to tailor the package in order to meet client budget expectations.
For larger projects, interim reporting procedures are invoked in order
to allow termination if early findings suggest a negative outcome.
TAILORED REPORTS AND CHECKING
Reports can be tailored to suite individual needs. For example, a client
with most of the elements of a viability study in place except for, say,
marketing and legislation, may retain ABA in order to cover these aspects.
Another popular service is "checking" an existing feasibility
study, prospectus, or business plan in order to confirm its validity.
BUSINESS PLANS
Full business plans can be produced showing 1-5 year statistical and financial
projections. ABA has a good reputation for objective forecasting. As
a result potential funding agencies place reliance upon financial projections
and capex forecasts thus allowing them to minimise their own due diligence.
AIRLINE START-UPS
A key strength is in managing start-ups and the company and its staff have
been instrumental in covering the complete start-ups of air transport
undertakings ranging from small executive operations through to full
domestic and international airlines. From the outset, the company aims
to handle the start-up so as to relinquish operational control to the
client at the earliest possible stage.
AIRLINE STRUCTURE
ABA can advise on the ideal structure for an airline in terms of management,
staffing, aircraft, equipment, operational infrastructure and deployment.
In many cases, a new department, or division, will require short-term
foreign expertise in order to help in its establishment and for training
local staff. ABA is able to recommend, recruit and control the necessary
key personnel in order to meet such requirements.
AIRCRAFT SUPPLY
The company has a strong record in advising clients as to the optimum aircraft
type and model. Once a decision has been made, a thorough market study
identifies the best lease or purchase option(s) available. Experience
at the top level negotiating tables of major international airlines and
leasing companies ensures the keenest terms for the client. ABA can organise
and oversee contract drawing, negotiation and ratification, aircraft
work-packages, international certification, acceptance and delivery.
RESERVATIONS SYSTEMS, YIELD MANAGEMENT
At the heart of the airline is its ability to sell its seats into the public
market which is accomplished through its reservation system. Choosing
the correct system is different for virtually every airline and will
depend on size, segment, route structure and product type. The correct
choice will allow distribution of the airline inventory into the appropriate
market and help to ensure the client airline maximises its load factor
whilst optimising yields.
OPERATIONAL SUPPORT
On-going support is very important and the company remains ready to advise
and help clients in matters such as: Spares/tooling requirements and
supply, AOG specialists, base and line maintenance requirements, personnel/aircrew
relief, short or long term, aircrew training, ground infrastructure and
support equipment.
Case Study
Atlantic Bridge has a successful track record in airline start-ups and development. We have the proven in-house ability to take a company from the "ideas" stage right through to full operation. In order to best illustrate both the scope and success of our airline related services, we invite you to read the following case study which covers an actual start-up.
One of our more prominent achievements is NEPC Airlines, and Skyline NEPC of India. We first formed our association with NEPC, then a substantial Indian company quoted in both Bombay (now Mumbai) and Europe in 1992. At that stage, the NEPC board were considering entry into the recently deregulated domestic aviation sector.
FEASIBILITY STUDY
ABA undertook the initial feasibility study which included the first full-time
airline orientated macro-market study to be conducted in India. The results
showed an optimal entry path into a short-haul turbo-prop operation servicing
new, or under-served sectors in Southern India with a controlled growth
into jet operated medium haul routes selected through careful micro-market
analysis.
START-UP
ABA was retained with full responsibility for all aspects of the start-up.
This included obtaining the Air Operators Certificate (AOC), aircraft
supply, crewing, training, engineering, interline agreements, lATA membership,
CRS, sales and marketing. By mid 1995 Atlantic Bridge had located, negotiated
and supplied nine F27-500 turboprop aircraft for NEPC, two King Air executive
aircraft, a flight simulator and $8m in spares and support equipment.
YIELD MANAGEMENT AND MONITORING
The airline became profitable as a result of (inter alia) closely controlled
yield management in a low yield market. Micro-market study enabled the
company to operate on profitable sectors with mean load factors achieved
in excess of 85%. ABA set up management information systems which allowed
management to monitor, interpret and report on the key market, fiscal
and operational parameters. Such systems allowed the board to quickly
recognise trends, weaknesses and strengths within their company. Armed
with this information management were able to take early action in order
to streamline operational deficiencies, trim or enhance individual sector
capacity and control yields.
DEVELOPMENT
During 1995 ABA advised NEPC on its take-over of Damania Airways which
became a part of NEPC and subsequently changed its name to Skyline NEPC.
Skyline NEPC operated four Boeing 737s and ABA advised on all aspects
of strategic development which included plans for expansion into wide
body operations. This gave NEPC coverage in corporate, feeder, short
and medium haul high yield and trunk sectors, a combination which placed
the combined airline in prime market position with strategic growth plans.
SUCCESS
By 1996, the combined NEPC Airlines was the number one private sector carrier
in India, one of the most exciting and vibrant domestic growth markets
in the world. In 1997, ABA handed over total control of a $100m+ fully
functioning and healthy airline to the board and management. Atlantic
Bridge Aviation is proud to have been so closely associated with NEPC's
success during the 1990's.