Monday 25 May 2020

Ales Airlines Ashima Sharma Director Training Reports

Aircraft Maintenance Business Plan

What is MRO in Aviation?
Maintenance, Repair, Overhaul (MRO) in aviation is the repair, service, or inspection of an aircraft or aircraft component. It is essentially all of the maintenance activities that take place to ensure safety and airworthiness of all aircrafts by international standards.
The MRO Forecast
As value goes up in the aviation market, supporting
operations such as the Maintenance, Repair, and Overhaul (MRO) market will stand to gain more business, while also facing greater challenges to meet relentless demands. The upsurge in travel requires more aircraft usage and that, in turn, ignites the overwhelming demand for industry services.
Key factors such as a rising demand for air travel, increase in digitalization, and upgradation of the legacy Management Information System (MIS) to digital MRO software all influence growth within the MRO software market.
Aircraft maintenance is imperative to keeping up product availability, reliability, and quality. Airline operators depend on MRO to ensure safety and compliance with Airworthiness Directives.
The MRO market became a viable business in aviation because Airframe Original Equipment Manufacturers (OEMs) would mainly focus on development and production, and not the aftermarket. This left a lot of airlines to partially or fully outsource MRO services from repair shops and system suppliers.
With the aviation industry's booming growth MRO operators and airlines require software that will optimize productivity and keep operations up with demand. MRO software manages the maintenance process and offers solutions to improve efficiency and enhance the end-user experience.
Stakeholders are finally realizing the integral role MRO plays in driving productivity and are investing big time.
Digitalization of MRO activities, Upgradation of the legacy MIS to digital MRO, and the adoption of MRO systems are all contributing to the growth in MRO Software to achieve maximum optimization.
New technology is also being leveraged to improve the air travel experience.
The Technology Propelling MRO to New Heights
IoT has become a buzzword in the technology landscape, but what we're finding is there is value beneath the buzz, especially for aviation. IoT maximizes efficiency across the industry, improving proficiency, operational efficiency, and profitability.
IoT is being utilized to augment aviation with innovative technology. Big data and IoT-enabled sensors are helping improve and streamline Condition-based Maintenance (CBM). The data analytics being collected provide insight to enhance operations and reduce maintenance delays. That insight allows for predictive maintenance techniques which identify repairs before visible indications appear.
Extensions of IoT are expected to transform MRO software in a few different ways. Below we've explored some of the other gaming-changing advancements set to roll out in the aviation industry.
- Artificial intelligence
- Wearables
- Augmented Reality
The Hidden Secret to Sustainable MRO: Custom-Build
MRO software is the brain behind the entire MRO process. It ensures the safety of passengers and streamlines compliance along with maintenance procedures. With a considerable amount of production depending on the system, many airlines are looking to upgrade or purchase MRO software for the first time.
But what should you be looking for in a reliable MRO software?
When searching for MRO software organizations should consider a system that offers configurability allowing a "permanent upgrade path" and custom features to meet your specific needs.
Scale and magnitude are also factors organizations should consider when purchasing MRO software. The software you chose should minimize time and effort so you can focus on improving services to your end user – the customer.
Lastly, your MRO software should offer end-to-end solutions, from maintenance to enhancing the customer experience while flying. Thus simplifying back-end production to sustain the rise in demand for travel in the forecasted years to come.

Features
- Provide Tracking
Detail tracking for dis-assembly and re-assembly of complex products with multiple major components and rotables.
- Project Planning
More tasks become planned over time as the experience in each unit is captured and used to improve work instructions for future units.
- Quality Review
Each service unit, and any removed subassembly, major component or skin is carefully tracked and monitored to determine if the unit is ready for reassembly. No service task ever falls through any process cracks.
Benefits
- Streamlining & Simplifying
Streamlining and simplifying complex work instructions and inspection requirements that are specified as part of work instructions, and include data collection and certification requirements.
- Systematic Process Management
More tasks become planned over time as the experience in each unit is captured and used to improve work instructions for future units.
- Inspection Measurements
Solumina for MRO provides delivery of inspection measurements and observations, giving inspectors the option of launching and completing required routine and non-routine instructions.

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

Ashima Sharma
Director Training 
Ales Airlines Inc. USA

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Disclaimer  :
Note : This is just an Aviation  Fictional Corporate Game not a Real One . As an MBA students Interns are playing different Roles Play. 
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Ales Airlines Priyanshi Maheshwari Director Fintech Report

Business Model
The new business model is leveraging
passengers to grow through ancillary businesses such as credit card partnerships.
The airlines of tomorrow will focus on growing the number of passenger seat-miles to support the new business model.
The plan for the envisaged new regional airline is an outgrowth of the market research

As with any business, the main thing to consider when looking at airline business and airline management are the most commonly used airline business models. The business model, in general, determines the way one intends to make money with the airline. ... Low cost airlines (Low Cost Carriers)
Airlines is a high cash-burn business. You spend Rs 2.5 lakh an hour to fly an Airbus A320. To fly it for 10 hours a day, you need Rs 8 crore. If you have six aircraft — airlines need to bring in six aircraft within year of starting operations — you will burn Rs 90 lakh a day or Rs 27 crore in a month.
capital is needed to start an airline?
For each aircraft, airlines have to carry initial provisioning and consumables worth $1 million and LRUs of $3.5 million for every three aircraft. the bill could be $13 million or Rs 58.50 crore a year. It costs Rs 35-40 lakh to train a pilot for A320; training an pilot would cost half.
  In starting an airline
 1: Market Analysis.
2: Operating Environment
 3: Business Planning.
 4: Airplane Selection.
 5: Airplane Sourcing. 


Cost estimation 

The airline industry is quite big and actually growing. However, the market is saturated. There are a huge number of competing airlines and little differentiation possibilities. In fact, you'll see that this kind of situation often leads to price war, lower margin and decreasing profitability. As competition became tougher, several airlines started creating alliances and partnerships
 The basic costs that usually have to be considered are:
• The cost of aircraft — bought or leased.
• Fuel — usually the single biggest per-flight expense for a trip of any reasonable distance.
• Salaries — pilots, cabin crew, ticket and reservation agents, ramp personnel.
• Maintenance — in-house or contracted out; amount of down-time required to keep each aircraft in good repair is a “cost” that has to be made up for by other means.
• Landing/gate fees — vary widely by airport.
• Air traffic control — some airspace is managed by fee-for-service air navigation service providers.
A key challenge is hiring experienced people - chief pilot, chief engineer and so on. This was extremely hard despite in my case having some extremely well known and reputable investors and being located in a pretty attractive location. There are probably about 8 roles that are very hard to fill where you really want someone who has been a head of department in an airline before. And then another 20 or so where you will still need to find experienced people (beyond pilots and engineers that is - for those you always need quite a lot of experience and only a small share of the total can be new. )
The air operators certificate, aircraft maintenance organisation certificates, and the permission to commercially fly on various routes are the main approvals you need. (The last one really depends a lot on the particular country or countries you are in.)

The major expenses that affect companies in the airline industry are labor and fuel costs. Labor costs are largely fixed in the short-term, while fuel costs can swing wildly based on the price of oil.
• Cost of Labor for Airlines
Labor accounts for approximately 35% of the total of airlines' operating expenses. Operating expenses account for roughly 75% of all non-fixed costs.
During downturns, management looks to cut labor costs by laying off workers or reducing their pay or benefits. This is a consequence of being in a competitive business where customers have little brand loyalty – airlines generally have to compete on price rather than quality. Since growing profits is difficult, companies are forced to cut costs to be more profitable. 
Some of the lesser expenses for airlines are maintenance, parts and labor, handling luggage, airport fees, taxes, marketing, promotions, travel agent commissions and passenger expenses. As a whole, these account for nearly 55% of total operating costs.

• Cost of Fuel for Airlines
Fuel costs account for 10% to 12% of operating expenses. Many companies have programs to hedge fuel costs. They buy futures contracts to lock in their costs for a set period of time, turning it into fixed expense. When fuel prices rise, this behavior is rewarded. When fuel prices decline, this is punished as the market price of fuel is less than what they are paying.
Some of the worst times for airlines have been when oil prices spiked up. Airline companies can prepare for slowly rising prices by charging more for tickets or by reducing the amount of flights, but sudden moves higher lead many airlines to lose money.


• CREW
You will employ atleast 120 people per aircraft( may vary) . You have to pay them salaries and as a new startup you would have to lure them with fancy perks which would hit you financials hard. Remember experienced pilots , engineers, would take a paycheque in lakhs. A typical jet aircraft captain would be required to pay atleast 5 lakh rupees per month. Each aircraft shall have 14 pilots (7 being captains and 7 FO’s) For a typical 5- fleet airline you would employ nearly 10 crore rupees would be spent even before your revenue flights starts.

• Infrastructure
You need to have a office and a training centre for your crew with all necessary equipments like simulators and what not. Which is again going to cost nearly 20 crore rupees

• Advertisements
Thanks to the digital marketing it costs much less but you would have to pay renowned pages on facebook, Instagram, youtube to advertise your airline

• Ticketing
To make your airline more accesible to people you have to use platforms like amadeus(google it) which would cost another 20 crores roughly

• Aircrafts
The most important let’s say will fly a ATR 42/72 or maybe a A320/B737 get to ready to pay atleast 10% of the amount of aircraft even if you lease it. A typical aircraft costs around 100 million USD. Sale and lease back method would cost even more

• Other Stuff
There are million other things which are hard to write here or maybe unknown to us which can cost upto as much as 50 crores
Also a fresh capital of 500 crores as the airline is not at all going to be profitable as soon as it is introduced.
So, around 800 crore  easily needed to start a airline.
Last but not least, the airline industry  is characterized with huge fixed costs. Therefore, in order to open an airline, significant capital requirements is must.
 
Priyanshi Maheshwari
Director FinTech
Ales Airline Inc. USA

V card
Facebook
Instagram
Twitter
Quora
LinkedIn

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









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Ales Airlines Priyanshi Maheshwari Director Fintech Report

Business Model

The new business model is leveraging passengers to grow through ancillary businesses such as credit card partnerships.
The airlines of tomorrow will focus on growing the number of passenger seat-miles to support the new business model.
The plan for the envisaged new regional airline is an outgrowth of the market research

As with any business, the main thing to consider when looking at airline business and airline management are the most commonly used airline business models. The business model, in general, determines the way one intends to make money with the airline. ... Low cost airlines (Low Cost Carriers)
Airlines is a high cash-burn business. You spend Rs 2.5 lakh an hour to fly an Airbus A320. To fly it for 10 hours a day, you need Rs 8 crore. If you have six aircraft — airlines need to bring in six aircraft within year of starting operations — you will burn Rs 90 lakh a day or Rs 27 crore in a month.
capital is needed to start an airline?
For each aircraft, airlines have to carry initial provisioning and consumables worth $1 million and LRUs of $3.5 million for every three aircraft. the bill could be $13 million or Rs 58.50 crore a year. It costs Rs 35-40 lakh to train a pilot for A320; training an pilot would cost half.
  In starting an airline
 1: Market Analysis.
2: Operating Environment
 3: Business Planning.
 4: Airplane Selection.
 5: Airplane Sourcing. 


Cost estimation 

The airline industry is quite big and actually growing. However, the market is saturated. There are a huge number of competing airlines and little differentiation possibilities. In fact, you'll see that this kind of situation often leads to price war, lower margin and decreasing profitability. As competition became tougher, several airlines started creating alliances and partnerships
 The basic costs that usually have to be considered are:
• The cost of aircraft — bought or leased.
• Fuel — usually the single biggest per-flight expense for a trip of any reasonable distance.
• Salaries — pilots, cabin crew, ticket and reservation agents, ramp personnel.
• Maintenance — in-house or contracted out; amount of down-time required to keep each aircraft in good repair is a “cost” that has to be made up for by other means.
• Landing/gate fees — vary widely by airport.
• Air traffic control — some airspace is managed by fee-for-service air navigation service providers.
A key challenge is hiring experienced people - chief pilot, chief engineer and so on. This was extremely hard despite in my case having some extremely well known and reputable investors and being located in a pretty attractive location. There are probably about 8 roles that are very hard to fill where you really want someone who has been a head of department in an airline before. And then another 20 or so where you will still need to find experienced people (beyond pilots and engineers that is - for those you always need quite a lot of experience and only a small share of the total can be new. )
The air operators certificate, aircraft maintenance organisation certificates, and the permission to commercially fly on various routes are the main approvals you need. (The last one really depends a lot on the particular country or countries you are in.)

The major expenses that affect companies in the airline industry are labor and fuel costs. Labor costs are largely fixed in the short-term, while fuel costs can swing wildly based on the price of oil.
• Cost of Labor for Airlines
Labor accounts for approximately 35% of the total of airlines' operating expenses. Operating expenses account for roughly 75% of all non-fixed costs.
During downturns, management looks to cut labor costs by laying off workers or reducing their pay or benefits. This is a consequence of being in a competitive business where customers have little brand loyalty – airlines generally have to compete on price rather than quality. Since growing profits is difficult, companies are forced to cut costs to be more profitable. 
Some of the lesser expenses for airlines are maintenance, parts and labor, handling luggage, airport fees, taxes, marketing, promotions, travel agent commissions and passenger expenses. As a whole, these account for nearly 55% of total operating costs.

• Cost of Fuel for Airlines
Fuel costs account for 10% to 12% of operating expenses. Many companies have programs to hedge fuel costs. They buy futures contracts to lock in their costs for a set period of time, turning it into fixed expense. When fuel prices rise, this behavior is rewarded. When fuel prices decline, this is punished as the market price of fuel is less than what they are paying.
Some of the worst times for airlines have been when oil prices spiked up. Airline companies can prepare for slowly rising prices by charging more for tickets or by reducing the amount of flights, but sudden moves higher lead many airlines to lose money.


• CREW
You will employ atleast 120 people per aircraft( may vary) . You have to pay them salaries and as a new startup you would have to lure them with fancy perks which would hit you financials hard. Remember experienced pilots , engineers, would take a paycheque in lakhs. A typical jet aircraft captain would be required to pay atleast 5 lakh rupees per month. Each aircraft shall have 14 pilots (7 being captains and 7 FO’s) For a typical 5- fleet airline you would employ nearly 10 crore rupees would be spent even before your revenue flights starts.

• Infrastructure
You need to have a office and a training centre for your crew with all necessary equipments like simulators and what not. Which is again going to cost nearly 20 crore rupees

• Advertisements
Thanks to the digital marketing it costs much less but you would have to pay renowned pages on facebook, Instagram, youtube to advertise your airline

• Ticketing
To make your airline more accesible to people you have to use platforms like amadeus(google it) which would cost another 20 crores roughly

• Aircrafts
The most important let’s say will fly a ATR 42/72 or maybe a A320/B737 get to ready to pay atleast 10% of the amount of aircraft even if you lease it. A typical aircraft costs around 100 million USD. Sale and lease back method would cost even more

• Other Stuff
There are million other things which are hard to write here or maybe unknown to us which can cost upto as much as 50 crores
Also a fresh capital of 500 crores as the airline is not at all going to be profitable as soon as it is introduced.
So, around 800 crore  easily needed to start a airline.
Last but not least, the airline industry  is characterized with huge fixed costs. Therefore, in order to open an airline, significant capital requirements is must.



Priyanshi Maheshwari
Director FinTech
Ales Airline Inc. USA

V card
Facebook
Instagram
Twitter
Quora
LinkedIn

 
Priyanshi Maheshwari
Director FinTech
Ales Airline Inc. USA
V card
Facebook
Instagram
Twitter
Quora
LinkedIn

Disclaimer  :
Note : This is just an Aviation  Fictional Corporate Game not a Real One . As an MBA students Interns are playing different Roles Play. 
Posted by at No comments:
Labels:

Ales Airlines Srishti Malkotia Director Cargo Report

Ales Airlines Srishti Malkotia Director Cargo Report


The Airports that we will work one are -

1. Hartsfield- Jackson Atlanta International Airport(ATL)  
2. Los Angeles International Airport (LAX) 
3. O’Hare International Airport (ORD) 
4. Dallas/ Fort Worth International Airport (DFW) 
5. Denver International Airport (DEN) 
6. John F Kennedy International Airport (JFK) 
7. San Francisco International Airport (SFO)
8. McCarran International Airport (LAS) 
9. Orlando International Airport (MCO) 
10. Miami International Airport (MIA) 
11. Phoenix sky harbour International Airport (PHX)











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

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