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Author Topic: How to expand an airline  (Read 970 times)

Offline Boeing4life

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  • Posts: 14
How to expand an airline
« on: June 07, 2011, 07:22:51 PM »
So let's just say I know a guy ;) , who's not that experienced with AWS, and based in Denpasar (WADD) for a few months now... He's got a company image of around 30 (rising), avg lf of 54 (rising), 36.5000 pax last 4 weeks, has 1,2 mln USD and a company value of >600.000 (rising), 3x DC-7C's and 8x F27's.

What should he do in the short and long term:
- nothing, save money and try to purchase new F27's (or similar) for the <1000nm routes and a small jet (what are the options?) for the 1000-3000nm routes.
- lease long range DC-8's (or similar) and fly to cities with, at best, a lf of around 80 pax.  :o
- something else, like...

I know this is a question for an alliance forum, but since this guy is not invited I'll bore you guys with his question...  ;D

Offline Dan380

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  • Posts: 389
Re: How to expand an airline
« Reply #1 on: June 07, 2011, 08:46:08 PM »
I don't know enough about this. Tell him to do a good search for demand to destinations in short/medium/long haul markets and guage where the best areas for expansion are and roughly how large they are. From that he should get a good idea of what aircraft will fit his fleet.
If there are lots of good long haul routes to airports with slots, DC-8s all the way.
Likewise if un-competed short haul routes are plenty then more fokkers (NOT though if there are a just a few high demand routes, the F27 is not best suited to this).

The only thing I will say, is don't bother buying new yet. Put all the cash you get into immediate expansion, i.e. used aircraft leases. The fokker 27 doesn't have a short production queue.


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