Opportunities in Aviation Business
Understanding how business work is of key importance, while utilization of sufficient capital to multiply profitability is a factor that leads business to success.
Private jet investment might be the next big thing in the World; some countries have decided to open their borders for special occasions such as medical evacuation, business execution and to citizens returning back home. Affordability of an aircraft has helped business executives maneuver their international activities, getting clearance to fly is an added and a rare opportunity. Don’t join the bandwagon in saying “I need millions of dollars to start aviation business”
The question is how much exactly do you need to start an aviation business?
How profitable is your identified niche?
Who are your target customers?
Not to bore you with so much analysis, it is essential to seek a professional business developer to model your business blueprint and create a business plan for you.
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There are varieties of ways to start an aviation business, outright purchase and leasing are two common options. Leasing can be classified into dry leasing and wet leasing.
Wet Leasing: A type of leasing agreement where the lessor provides the crew for the aircraft and also maintains operational control of all flights.
Dry Leasing: In this agreement the lessee provides his own crew and also exercises operational control of its flight.
Using delta private jets as a case study, this company has established itself in the commercial and private aviation industry.
Delta private jets is an example of an airline that offers chartered flights to its customers. Owning the company Card gives a customer the ability to fly anytime, and all the customer needs to do is make a phone call for travel arrangements. This might sound like luxury to some of us, forgetting that convenience is the function of the right state of mind.
This a unique model for profit maximization in the aviation industry, by ensuring proper utilization of your aircraft for specific purposes. For each aircraft you need a Captain & Co-pilot, at least one air hostess, an aircraft maintenance engineer, and flight operation crew. This is the minimum human resource required to manage an aircraft.
Note: depending on the size of the aircraft and purpose of the aircraft.
Even if you don’t have the required capital to start an airline, you can provide services that are related to the private or commercial aviation industry, all you need is to carve out a niche for yourself. Example includes: Marketing, Catering, Logistics, Goods & Items supplying, & training services.
Marketing: For airlines to generate profit they need passengers to fly their aircraft, this is an avenue for you as a marketer to acquire potential clients for the airline. Generating leads for the company will help you earn a reasonable amount of money per flight completion. For this to occur there must be an agreement between you and the company.
Catering: One important service needed by an airline is catering, passengers and the flight crew need food on board to quench hunger when airborne. Most airlines outsource this service to competent individuals. All you need to know as a caterer is the menu and method of packaging food for flight purpose, then reach out to a potential airline to offer this service.
Logistics: This entails the movement of people and goods from one location to another. For chartered flights, premium services are usually requested; this includes pickup and drop-off. You can offer the service of transporting clients to private hangers or dropping them off from chartered flights.
Goods & Items Supplying: There are some essential items needed on an aircraft per flight completion, this include toiletries and first aid kits. Suppliers of these items are usually requested by airlines.
Training Services: In aviation one thing is certain, and that is training. As part of safety measures there are certain training crew members must undergo as directed by the authority. Having the knowledge and license to conduct this training is a goldmine.
The above listed services are ways through which any individual with interest in the aviation industry can use as entry strategy.
Checkout our aviation business blueprint for comprehensive knowledge and done for you business plan to start either a private or commercial airline business.
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