“Aviation Startup is a set of important components in the entrepreneurship sector. Aviation Business & Aviation Consultation plays a vital role for citizens, companies and communities across the world.”
What Is Business Aviation?
General aviation is often described as general aviation used for business purposes. Business aviation is a subset of general aviation. Besides the commercial airlines, general aviation constitutes the bulk of all civil aviation activity. As a result, general aviation is at the core of the world’s business jet management system. In addition to helicopters and turboprops and turbojets, business aircraft also include piston-powered propeller aircraft and turbine-powered turboprops. Businesses of every type and size, regardless of their size, depend on business aviation to be competitive in a market that demands speed, flexibility, efficiency, and productivity. Business aviation is a service that is used by many different organizations, but they all share one attribute: a need to access destinations worldwide quickly, efficiently, safely, securely, and at a low cost.
- Business aircraft are widely used by companies for the transportation of personnel and priority cargo to a variety of remote company or customer locations, including overseas destinations.
- Sales presentations, product demonstrations, and factory tours are often conducted by business aircraft.
- Individuals and companies use business aircraft to travel within hundreds of miles of their starting point.
The International Council of Aircraft Owner and Pilot Associations (IAOPA) define the general aviation as per below:
- Corporate aviation.
- Fractional ownership operations.
- Business aviation (or travel).
- Personal/private travel.
- Air tourism.
- Recreational flying.
- Air sports.
General aviation thus includes both commercial and non-commercial activities
It is important for a company to consider various factors when deciding whether to start a business aviation project or no, including whether commercial airline service is available at the headquarters and travel destinations; the number of locations to be visited in a single day; the need to discuss proprietary matters en route; the need to relocate large or specialized equipment; and other factors. You also need to study your target audience needs and know how your business aviation company can help and reduce their Air transportation challenges:
- Enabling business travelers to improve productivity, safety, and security while traveling: Even changing itineraries while traveling can be a valuable asset as a result of the near-total scheduling flexibility inherent in business aircraft. In the ordinary course of business, business aircraft arrive and depart according to the passengers’ schedules. In this way, you can move meetings ahead or back in time without penalty, risk, or additional schedule pressure. A business must be nimble in today’s business climate. For businesses that need their employees to be able to react quickly to changing demands and circumstances, business aviation provides flexibility.
- Reducing non-business hours away from home: Flexible scheduling and access to meeting locations are made possible by business aircraft, thereby reducing working hours away from the office.
- Returning value to shareholders: Businesses with business aviation as a solution to solve their transportation challenges return more money to shareholders than similar businesses without business aviation.
- Business aviation has provided a lifeline to corporations and individuals During covid-19 : Business aviation kept going when commercial airlines ground to a halt; it made mission impossible, possible. As international travel became more and more challenging, the awareness of business aviation as a viable alternative grew. While hygiene and travel health concerns reached a peak, business aviation enquiries soared. Utilizing private aviation reduces “touchpoints” by over 80% when compared with commercial airlines, and therefore it became a justifiable option for new users.
What you need to consider when starting an Airline & Aviation Business
We will examine these factors more closely based on iJET’s experience, by discussing the problems that have occurred or are expected to occur in Aviation Business, and what measures will be taken to deal with them.
1. Market Analysis & Industry Overview of the Airline Industry
Before starting any new business, you need to do your research. If you intend to invest time, money, or both, you will want to examine the market and gain a thorough understanding of the industry. In order to get a better idea of the aviation business and auditing, market analysis can make a big difference. By collecting this information, you will be able to make better decisions about your business plan, aircraft selection, route planning, and capacity planning.
As part of analyzing the market, you must determine how your company can fill a niche or consumer need. Here are a few questions to consider:
- What niche or consumer need is your airline filling?
- Which of your competitors do you currently face?
- Are you uniquely beneficial to the market?
- What services will you offer? Such as charters, passenger service, cargo service, etc.
If you are planning to operate from an airport, then you may want to take into account the frequency of flights at that airport when analyzing the market. It may not be a problem for you to travel in and out of high traffic airports if you are a well-known or full-service carrier. For new carriers, however, this may prove problematic. In some cases, it may make more sense to fly out of a less crowded airport or hub. This way, not only will you be able to handle your operations more carefully and with greater efficiency. This additional interaction allows you to become more familiar with your new customers, which will in turn help you become a more valuable partner.
2. The Environment in Which You Operate
It is imperative you gain a comprehensive understanding of the market and begin to form ideas as to where you will fit in. Take some time to examine your operating environment. To legally open or get your aircraft into the air, you need to meet all the different standards, federal and state laws, rights, permits, etc
A partial list of the certificate and regulation requirements includes:
- Airline Operator Certificate (AOC)
- Airworthiness Certification
- Economic Authority (DOT)
- Part 121 Air Carrier Certification
- Part 135 Air Carrier & Air Operator Certification
- Safety Authority (FAA)
Additionally, you should consider the requirements for your Airline aircraft Operations like maintenance, repairs, employees, training, fuel, Flight Permits, Ground Handling, and more when determining your operating environment.
4. Aircraft Choice
You need to plan for the number of passengers you’ll carry the destination where you want to fly. According to your plan, you might want to consider a light jet, medium jet, or turboprop… Among these are the most commonly used Learjet, Embraer, or Dassault Falcon models.
When you have figured out how many aircraft you want in your fleet, you should then decide what types you wish to include. To lease or purchase these aircraft, you will need a broker or a supplier to help with research and sourcing.
5. Aviation Compliance
Starting an airline effectively begins with this step. Once you understand what your business is all about and what opportunities you want to take advantage, plan your route and estimate traffic to complete your planning and of course you should make sure you comply with all regulations, and you will need Aviation Compliance Monitoring Software to assist you in this
6. Business Jet Management & Airline Financial Planning
All of the services necessary to operate a business jet are controlled and supervised by a business jet manager. A full-time pilot and maintenance personnel will often have to be hired. Having pilots and maintenance personnel who are trained to operate and service aircraft similar to those you will purchase is another advantage. Among the many people you’ll need to hire are flight crew, engineer technicians, airline administrators, sales managers, flight dispatchers, ground airport station attendants, airline ticket agents, passenger service agents and aviation attorneys.
It’s also necessary to choose between large and small management companies. It is also important for you to determine the style of management you are seeking. An aircraft can be managed two different ways, for instance. It can be charter or turnkey.
- In chartered aircraft management: services will be offered by the management company, while aircraft operations will be managed by the operator. In essence, they will work closely together.
- A turnkey aircraft management package, on the other hand, allows the management company full control of the aircraft. Management companies are responsible for operating and managing the aircraft.
Note: Look for an aircraft management company that is well regarded. Consider more than one offer, but rather try to find a company that will stick with you over the long haul and has your best interests in mind.
“It is even more rewarding to work with an organization that shares your vision and supports your company’s goals.”
7. Business Aviation Insurance
The private aviation industry provides a unique market sector of owners, users, and travelers with a travel experience that often exceeds that of simply flying first class on a commercial passenger jet. Whether it is the departure time, in-flight service, or arrival time, Flying Private Aviation gives travelers complete control over their journey. The jet industry operates at the highest level of professionalism.
Arranging insurance for a business aviation aircraft is broadly similar to that for an airline or general aviation risk. Insurances for Standard Aviation Risks:
- Liability Insurance: Third parties are covered by liability insurance for loss, damage, or injury including passengers, cargo, mail, and baggage. There may be slight differences in policy limits and definitions among insurers, but plans generally do not cover the pilot in command of an aircraft or the aircraft itself.
- Hull Insurance: The hull of your aircraft is insured in case of loss or damage. An aircraft’s value is typically agreed upon in advance when hull insurance is arranged. The insurance company will pay out the agreed value instead of the current market value in the event of a total loss.
- Additional Insurance: Owners and operators of Private Aviation may also need to consider other insurance types in addition to the standard aviation risks. Specifically:
- War Insurance for Aviation Hull: In addition to the basic hull policy, this policy includes coverage for loss of an aircraft as a result of war, hijacking, confiscation, malicious damage, etc.
- Crew Insurance: Employee benefits packages that include loss of license coverage, personal accident coverage, and travel insurance are common among pilots and crew flying corporate jets.
8. Start Up Your Aviation Business
You want to start, maintain, and continue to grow your airline as you progress from year to year. A major reason for most startups not succeeding or not turning a profit is the high level of challenge involved.
A full schedule of flights will also pose a challenge in order to remain consistent. You’ll need to market, promote, and utilize any other legitimate means to promote your airline if you want the business to grow. Whenever you are able to establish a consistent customer base. That will allow you to start seeing some return on your investment. No matter what type of airline you operate, this should be your primary goal.
If you need assistance or more information about how to start your airline, you may contact us. Consider the many services iJET offers in this area. In addition to helping you reach the point of approval, they can also offer education and bolster confidence in the plan and vision you have outlined.
Aviation Startups Consulting
Developing a successful Aviation Business requires the right blend of start-up expertise, regulatory knowledge, business acumen, and project management experience. Our expert team at iJET can deliver your start-up business with a wide range of expertise.
- Airline Business Planning & Aviation Consultation
- Airline Setup Planning
- Aviation Services for your flight operations:
- Flight Permits (Overflight & Landing Permits)
- Ground handling & Ramp Operations
- International Trip Planning
- Flight Plan
- Fuel Supply
- Hotel Accommodation
- Inflight Catering
- Navigation Fees Administration
- Flight Diversion
- Line maintenance