Monday 25 May 2020

Ales Airlines Priyanshi Maheshwari Reports on Starting Airlines company in Canada

Firstly since airline would be a new entrant into the
airline market the possible options are to lease a plane from a leasing company or a airline. Otherwise we can buy a old airplane from a airline who wishes to sell them.
New airline means its should be well marketed to enter a dense market. The livery to the airplanes must be good. Your social media team should be active.
You have to select primary hub, secondary hub and focus cities. The primary hub is the primary airport from where your most of the operations take place. The secondary hubs are your next most active operations airports with maintaince facilities. The metro cities have high charges so the new airline avoid such metro cities if our airline is a low cost carrier.
You will need a lot of crew to run a airline. Plilots, Flight attendants,baggage handlers,cleaners, mintainace engineers, counter staff, support staff etc
If it is a full service airline you must outsource you catering service to a catering provider at the airport.
You will have to acquire slots to the airport you are flying to.
Your airline fleets must be choosen according to the routes you fly.
You need to decide which business model you want to adapt a hub system or a point to point model.
You need to buy some kind or online ticketing system from an IT company.
All the salaries must be par to the industry standard.
Study of new possible routes should be done to discover new markets.
Airports have different landing and parking charges so you have to keep that in mind while selecting the routes.
After getting some hold in the market you should sign codeshare agreements with big airlines to widen your network.


Low-Cost airlines: 
working on the premise that most legacy carriers have un-optimized business model they work by offering similar service for low-fares than their competitors. The way they lower fares is by cutting costs around the corners. Notably by relying on the smallest possible workforce (for example by focusing their selling online).
Low-Fare airilnes: 
These airlines (mainly Ryanair and Wizz Air) work on the assumption that the lower their fares are, the higher the demand becomes. This ensures that they can fill their planes at will on almost any route by offering their products almost for free. They're not really competing with legacy carriers in so far as they fly people who wouldn't think of flying otherwise. And the way they make money is by drastically cutting costs everywhere (most of their workforce is externalized) and by getting ancillary revenues and income from internet ads and marketing agreements. If you look at Ryanair's business model, the airline makes over three quarters of its revenues on public subsidies, internet revenues, ancillary revenues .

Disclaimer  :
Note : This is just an Aviation  Fictional Corporate Game not a Real One . As an MBA students Interns are playing different Roles Play. 

Priyanshi Maheshwari
Director FinTech
Ales Airline Inc. USA

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