Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Airline Business Plan

Airline Business Plan

|Views: 97|Likes:
Published by muhammad

More info:

Published by: muhammad on Sep 13, 2011
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less





Final term project of 
Essentials of Aviation Management
BS Aviation Management
Course Instructor:
Sir Nadeem Ansari
Submitted by:
Roll # 
Mohsin Azhar Shah (GL) 9205Saqib Mehmood 9207Saad Shoaib 9210Arslan Aslam 9234IbrahimTariq 9239
Airline Business Plan
Executive Summary
Pakistan Airline Industry is mainly confined but not limited to three maindestinations i.e. Lahore, Karachi, and Islamabad. Therefore most of the airtraffic exists between these three destinations. Currently there are only 3airline operators in Pakistan i.e. PIA, Air Blue and Shaheen. Air Blue andShaheen are operating on specific routes where as PIA holds most of themarket share and operates on all the routes in the country. Air routes betweenLahore Karachi and Karachi Islamabad can be considered as the busiest routesin terms of air traffic. Pak Air airline is a new airline in its formative stages. Itis being organized to take advantage of a specific gap that exists in thedomestic travel market. The gap exists in the form of less number of flightsbeing operated between the busiest routes i.e. Lahore Karachi and KarachiIslamabad. Therefore a low cost service coupled with the demand of passengerstravel on these routes indicates that a new entrant airline could be expected tocapture a significant share of market on these routes and also on those unserved and underserved routes in the country.Pak Air airline mission will be to provide safe, efficient, low cost consumer airtravel service. It is expected that the air travel customers
preference is for lowfares without compromising on issues of safety or on- time performance. Therefore the newest and best maintained aircrafts available will be operated toserve the purpose. The airline will also strive to operate its flight on timeand will provide friendly and courteous no frill service. Pak Air airlineexpenses can be further reduced due to only a single type of aircraft is operatedas there will be significant reduction in the cost, maintenance and trainingexpense.Available technology has now provided the opportunity to eliminate thephysical ticket altogether which means substantial amount of ticketingexpense can be further reduced, resulting in increased profits for the airline.Pak Air intends to have its own reservation agents available via a toll free orUAN number. In addition, Pak Air will also have its own website whereschedules are available and customers can book their own reservations andbuy tickets online. The most effective media of advertising will be expected tobe the outdoor billboards. Other media used will be TV, newspapers, andmagazines. In addition to these marketing programs, the company will alsomarket via World Wide Web.We will initiate our business with 3 ATR and 1 Beech craft Super King Air350ifor chartered flights, firstly we will fly on domestic routes and after five years of normal operations we will go for flying on global routes. The head quarters willbe in Lahore and initially point to point model and then hub and spoke modelwill be followed by Pak Air airline.
In the end it can be concluded that Pakistan air industry factors favorinauguration of a new airline to meet the demand for additional, low farehigher-quality passenger service.
 To establish and operate a new regional airline
 To provide passengers and cargo services in unserved and little servedareas of the region and serving under-served routes on which highdemand currently exists.
 To commence operations with 3 ATR 72-600 aircrafts and one King Air350i aircraft till three years and after three years, three more aircraftsshall be inducted to our fleet (including a Learjet), thus having a fleet of six aircrafts. After total 5 years of operations, a total of nine aircraftsshall be owned by the company.
 To implement an organizational and marketing strategy that will,beginning in the first year of flight operations, achieve average passengerload factors in the 50-65 percent range, depending on route and season,and increasing thereafter to the 75-90 percent range while expanding thebusiness, thereby maximizing revenues and return on investment whileminimizing risk.
 To achieve net operating profits in the [XYZ] percent range within thefirst 12 months of flight operations, an annualized return-on-investmentof approximately [XYZ] percent by the end of the second year of operations, and steady growth enabling rational expansion of the airlinethereafter.
 To achieve the projected results starting with three midsized regionalaircraft, growing to five aircrafts by the end of the three year of operations,
 To commence revenue service in year two.
 The vision of Pak Air
airline is to becoming a leading airline in a global contextby providing the best passengers and cargo services with economical travel andalso providing chartered service to the customers.
Pak Air airline has a mission to serve passengers and cargo clients safely andefficiently with friendly and courteous low frills service. We will serve bothunserved and little served and underserved routes of the country. We will start

Activity (2)

You've already reviewed this. Edit your review.
1 hundred reads
incrediblekashif7916 liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->