Thoughts on a start up...

[N826AW]

Aside from obtaining financing, now isn't a bad time to start an airline. By the time you are ready to begin operations the market will probably have turned around.

 

[ASpilot2be]

If I had the money I would start up a small 135 carrier here in Southeast Alaska.

 

[bidderswede]

If I had the money I would start up a small 135 carrier here in Southeast Alaska.

Buy a boat and go crab fishin!

 

[tonyw]

For reasons unknown, there never seems to be a shortage of individuals willing to dump tons of money into new airline ventures. Perhaps they think "their unique idea" is the ticket that will guarantee success. They almost all fail and the cycle just repeats itself over and over. The airline business is perhaps the biggest money losing proposition ever to investors. I can't think of another industry that will almost guarantee failure and losses. Tell your friend to invest in the auto industry or high risk mortgages - He will likely make more money there.

It always amazes me at the number of "smart" investors who are willing to lose money when you say airplane.

So, I'd say that the original poster's friend should go for it. Put together a good business plan and sell, sell, sell. Get a loan from a bank. There is money to be lent despite what all the "experts" are saying. Credit standards being tightened doesn't mean that no credit is available.

But whatever he does, he cannot put any of his assets in the game as security. No putting the house up as collateral, no taking out cash advances on the credit card, none of that crap.

Put together an LLC and go that way. And if no funding is available that way, what does that say about the business plan? And if the business plan is that shaky, then it would be the height of stupidity to put any personal assets on the line, wouldn't it?

 

[shinysideup]

It always amazes me at the number of "smart" investors who are willing to lose money when you say airplane.

So, I'd say that the original poster's friend should go for it. Put together a good business plan and sell, sell, sell. Get a loan from a bank. There is money to be lent despite what all the "experts" are saying. Credit standards being tightened doesn't mean that no credit is available.

But whatever he does, he cannot put any of his assets in the game as security. No putting the house up as collateral, no taking out cash advances on the credit card, none of that crap.

Put together an LLC and go that way. And if no funding is available that way, what does that say about the business plan? And if the business plan is that shaky, then it would be the height of stupidity to put any personal assets on the line, wouldn't it?

Good advice

 

[KraFT]

Thanks to everyone for your input! Any further advice on guidance as far as informational sources with respect to regulations and requirements? I'm sure the FAR/AIM for one... Maybe a "so you want to charge money for your airplane" 101... thx...

 

[thehobbit]

find a chief pilot, an A&P with IA head of maintenance and take them out to lunch. If you can't afford to take these people out to lunch and grill em with questions then you shouldn't be trying to start a business.

 

[sundog]

we pilots probably know as much about running an airline as the fuel truck drivers know about running an oil company.


the FAA is probably a good place to start:
http://www.faa.gov/safety/programs_initiatives/oversight/atos/air_carrier/
and
http://www.faa.gov/licenses_certificates/airline_certification/media/n135toc.pdf


the actual FARs are below, (not sure if the links will work, but search for yourself for part 121 and part 135.)

http://ecfr.gpoaccess.gov/cgi/t/tex...rgn=div5&view=text&node=14:2.0.1.4.19&idno=14

http://ecfr.gpoaccess.gov/cgi/t/tex...rgn=div5&view=text&node=14:2.0.1.4.23&idno=14

 

[SteveC]

we pilots probably know as much about running an airline as the fuel truck drivers know about running an oil company.

Now there's a true statement!




Betcha a majority of the people here won't think we're talking about them though.

 

[I_Money]

To be honest - if you are using the FAR/AIM as a point of education, you probably don't have the required experience, or proven track record to get this off the ground. If he does want to make it, go and join a small company as an intern living of Roman noodles in exchange for learning about their operation.