L   jyair.co.uk

Your safe way to the sky

Business Plan

1. Executive Summary

1.0 Executive Summary

The new airline has to be founded in 2013/2014 as a private aviation company by a group of investors. Providing charter & regular flight services; mainly linking Egypt to European countries & schedule Airline linking Egypt with Gulf countries & Saudi Arabia.

1.0 Objectives

1.0.1 Our investors to take over the company by holding the maximum affordable percentage of shares.

1.0.2 Providing finance needed to fulfill airline's birth.

1.0.3 Executing our investors' future plan to expand airline's fleet as well as its market share.

1.1 Mission

1.1.1 Our airline mission is to provide safe, efficient charter & schedule flight service.

1.1.2 Our service emphasizes safety and on-time performance as its highest priority.

1.1.3 We operate best maintained aircrafts. We never skimp on maintenance in any fashion whatsoever.

1.1.4 We provide friendly and courteous service while adhering to safe practice and to applicable aviation regulation.

1.2 Keys to Success

1.2.1 Securing financing.

1.2.2 Experienced management. (Already in place)

1.2.3 Product quality. Always with safety foremost and on-time performance.

1.2.4 Increased demand on European city – Egyptian city charter flights.

1.2.5 Increased demand on ME & Saudi Arabia – Egyptian city Schedule low cost flights.

1.2.6 Keeping maintenance standards both strict and measurable.

2. Company Summary

2.0 Requirements to establish the airline:

2.0.1 The number of aircrafts suggested as a start is two A320-200 which are expected to operate for the next 15 years.

2.0.2 The aircrafts should be on lease purchase for the period of seven years.

2.0.3 The deposit for each aircraft  including the rental fee, insurance and maintenance reserves for three months.

2.0.4 At later stage ,ground equipment services for the company Should be in the following airports:

Cairo - Sharm el Sheikh – Hurgada - Luxor- Aswan-Abu Simbul

The required equipments in each airport should be as follows:

A- (2) Passenger buses with the capacity of 50 passengers.

                               B- (1) Ground power unit.

C- (2) Passenger stairs.

D- (8) Luggage truck.

E- (1) Water truck.

F- (1) Toilette Truck.

G- (1) Ground air starter.

H- (1) Push back.

 I- (1) High fork lift.

2.0.5 Liquid money in the bank ,as a reserve to secure the operation for the first three month of operations.

2.0.6 Deposit advance payment for the fuel companies inside &outside Egypt .

2.0.7 Spare parts

2.0.8 Expenses for training of crews (pilots – engineers - flight attendants - operation group) .

2.0.9 Location in Cairo for main offices which should be fully equipped

2.0.10 Expenses for establishing the company and registering it in the Egyptian civil aviation.

3 Market Analysis Summary

3.0 Market Analysis Summary

3.0.1 Considering that Egypt is famous for a nice geographic location near from Europe countries, good climate and very good beach resorts, the number of European and Arabian tourists rises in the year 2009 to twelve million tourists, that gives Egypt an advantage to be a candidate to reach a higher numbers of tourists as Turkey that succeeded to approach 19 million tourists in the coming year.

3.0.2 Analysing the numbers of tourists in 2009 that reached twelve millions and the aircrafts available in the foreign countries and the Egyptian market, supposing that the foreign countries airlines and charter companies take a segment of 60% from the total numbers, and Egypt Air takes another segment of 20%, then the remaining segment of 20% are being carried out by Egyptian charter companies, and can be calculated as follows:

12,000,000*20 =2,400,000 tourists

    100

3.0.3 Number of the charter aircraft available in the Egyptian charter companies approximately 12 aircraft only , and most of it turns to fly on schedule flights to ME.

3.1 Market Segmentation

Our airline targets from the International charter market, the regional market segment that is created from the European passenger demand to visit Egypt.

Where as the capacity of the aircraft between 170, 189 passengers and the mean flight capacity are approximately 170 passengers, so we can calculate the number of the flights required to transport the ratio of 20% of the tourists as follows:

2,400,000   =14,118 flights per year  

    170

The number of flights performed by the Egyptian charter is 8600 flight in the year 2009, while the remaining 5517 flights have been performed by the Foreign charter companies .

Accordingly,  the Egyptian charter fleet can accommodate extra 32 aircraft , to take the advantage of performing the remaining 5750 flights that have been wasted by wet leasing foreign aircrafts.

3.2 Service Business analysis

3.2.1 Business Participants

3.2.1.1 The major air carriers in Egypt are not the focus of this plan. They are not viewed as competitors.

3.2.1.2 The following three companies are worthy of study:

Air Cairo , Nile Air, Al Masria Air Lines and Nesma Air Lines are the  companies to improve upon.

3.2.2 Distributing a Service

Our airline basically shall depend upon travel agencies worldwide in selling its flight services which is the best way to maintain operations' stability and long term flight schedule.

3.2.3 Competition and Buyers Pattern

3.2.3.1 The most critical factor for any airliner company to overcome is the issue of brand awareness and name recognition.

 

3.2.3.2 Customers prefer to fly with carriers they know and trust.

 

3.2.3.3 Our airline has the advantage to be recognized and trustful to the European traveller as a result of well reputed management in the market ,very hard working

Maintaining high standard of safety and on-time performance.

3.2.4 Main Competitors

3.2.4.1 There is no significant competitor especially after determining that the Egyptian market still in need for extra 32 aircrafts to take advantage of its segment.

3.2.4.2 Our airline concludes that the European city opportunity is likely to be free from imposing competition unless it comes from another start-up.

3.2.4.3 If we are able to attack the market first with sufficient capitalization, we feel we will be difficult to overcome and should be able to build critical mass within two years.

4 Management Summary

4.0 Management

The management of our airline is highly experienced. There is no one on the management team who has not already performed his function previously for so many years . We are not in the business of training key people. We hit the ground running with a highly qualified and experienced management team.

4.1 Organizational Structure

The company is organized into six major departments:

1. Flight Operations Department.

2. Technical Department.

3. Financial Department.

4. Commercial Department.

5. In-flight Service Department.

6. Ground Service Department.

All of the above specific positions and job descriptions are government mandated. Our airline shall be fully complying with all such mandates.

5 Financial Plan

5.0 Financial Plan

Adequate financing is essential for our airline's birth and taking over management to implement more professional management ideas and utilize the regional charter market growth.

5.1 Long-term Plan

Our long-term plan is based primarily on the short-term future of the business. From the data presented above, it is clearly seen that our aircrafts are able to support their expenses, then the future of our airline and our long-term goal plan can be successfully accomplished.

Our long-term plan contains the following elements:

5.1.1 Paying off the entire aircrafts' lease payments from their operations' revenues.

5.1.2 Acquiring ownership of both aircrafts and expanding the fleet according to the market needs.

5.1.3 Avoiding accident, incident, and lawsuit through our entire longevity.

5.1.4 Providing present and future market with a superlative aircrafts to fulfil its needs.