Start-Up Airline - Page 4

Manny4life · 07-06-2009, 11:11 PM

All the fees are somewhat included, in as long as its either indirect or fixed, then yes. The fixed are done on allocation basis.

You are right, the lowest the CASM is, the more chances of profitability you would be. As I posted previously, because airlines use different cost variables, they would not be accurate, also they do not contain the same components, however, they would be some what close. The greatest resource to find airlines CASM is their website. They are the only reliable source I would recommend and they are FOC (Free Of Charge) This info is listed under investor relations sections and its in their Income Statement and or Balance Sheet. You can use the top 7 to compare and that will include American, United, Continental, Delta, U.S. Airways, well I can't remember the other two.

I will try to come up with two for the most part. Remember when comparing, put all this factors; class (not type) of aircraft, what is the cost component of the CASM? How much do they vary from each airline?

ACMAir · 07-06-2009, 11:17 PM

Oh wow, I will definitely take a look at that. Thank you very much.

Manny4life · 07-06-2009, 11:32 PM

No problem. Just look into their report fillings and all you know what your looking for. I have found that of American but its in millions though.

Manny4life · 07-07-2009, 01:37 PM

Have you found anyone yet?

ACMAir · 07-07-2009, 01:58 PM

I searched both American and United. For American I found their balance sheet and income statement, but I didn't find the CASM. I'm going to assume its not under "CASM", because I didn't find that or "Cost per Available Seat Mile" anywhere. United's documentation provided even more confusion for me.

Manny4life · 07-07-2009, 03:10 PM

Its ok and it will look confusing unless you can read consolidated statements. They would say operational cost in millions (0000). That was what I was saying I found American yesterday but it was consolidated in millions which what you can do is divide the total Available Seat Miles flown/ by their operating cost.

When I get home, I will help you look through it.

ACMAir · 07-08-2009, 02:57 PM

Oh ok, I think that makes sense. I'm reading their statements again now.

Manny4life · 07-12-2009, 08:58 PM

How far have you succeeded in obtaining the information that you required?

Online Super Sale · 07-14-2009, 06:03 PM

May I suggest an airline simulation called airwaysim.com. It is extremely realistic and gives you some insight on to what its actually like. Ive started 4 airlines in it and yet have had any that haven't been bankrupt, either because of an early D-check, (over $1,000,000 every few years and takes your plane out of service for a month) or because of saturation of routes. Check it out!

bmiles · 07-14-2009, 06:10 PM

I commend your great ambition. For the fact that this is a mature industry you would really need to aim for a serious niche. There are cost strategies from other airlines, however with phenomenal service you could take over. I personally hate going to the airport because I lose my stuff, there are so many loops to get on board etc. If you could solve some of the average complaints travelers have you could do something. Im rooting for you.

ACMAir · 07-14-2009, 11:56 PM

@ Manny4Life - I've been so busy with logo designs that I haven't had a chance to keep checking.

@Online Super Sale - I've actually tried airwaysim and airlineempires. They are pretty realistic indeed. Although they help, I don't think it helps me in planning for my start-up.

@bmiles - Thank you. The niche I'm trying to fit into is one of better quality service, but I'm hoping I won't have to compromise much in terms of affordability either. Most of the things you mentioned however are airport problems, not airline problems, which even the best airline in the world doesn't have power over.

Manny4life · 07-15-2009, 07:25 PM

Hey I have some articles that would interest you anyway, this are a compilations of the informations that you are requesting. I will send the information via private message.

@bmiles, what cost strategies do you refer to?

While I agree with ACMAir acknowledging those complaints are airport problems, most of it are generated from the airlines that operate them. In as much as the airport has this facilities, the airlines are responsible for its management. Delayed, lost or stolen baggage or items are 110% airline problem and liability.

As for the hassles for boarding, that is a shared responsiblity between the passenger, airlines and airport authorities. In most cases, one would agree with me that you spend more time at the gate/ticket counter than you will spend with the TSA airport authority. In addition, the passenger plays the most important role, an unprepared passenger is more likely to experience hurdles than one who is very well prepared.

ACMAir · 07-20-2009, 11:51 PM

Sounds great. Thank you Manny.

Lost luggage is an airline problem, however the difficulty to maneuver throughout the airport is an airport design/personnel problem.

laurieming · 07-21-2009, 12:58 AM

hey, it's really a big idea of starting an airlines!

according to my experience of working in airlines, the first time you need is money and the last of thing you need is money...

ACMAir · 07-21-2009, 01:08 AM

Yeah, it is, and money is very necessary.