Table of Contents
How hard is it to start your own airline?
Setting up and running an airline is no easy task. Even harder is to set up and run a profitable airline. Only those with business acumen, industry knowledge, and long-term vision will stand a chance of surviving in this incredibly competitive environment.
How profitable is an airline?
Net profit of commercial airlines worldwide from 2006 to 2022 (in billion U.S. dollars)
| Characteristic | Net profit in billion U.S. dollars |
|---|---|
| 2019 | 26.4 |
| 2018 | 27.3 |
| 2017 | 37.6 |
| 2016 | 34.2 |
How much does fuel for a plane cost?
On average, aircraft fill up with an estimated 3,500 gallons of jet fuel, costing an estimated $7,070. However, price can vary from $4,040 on the low end to $14,140 on the high end.
How much does an airplane cost?
Single-Engine Planes: These planes, which hold two or more people and are more economical to operate and maintain than multi-engine planes, typically cost between $15,000 and $100,000. Multi-engine Planes: If you consider a plane like this, it will cost you between $75,000 and $300,000.
What do you need to start an airline?
Funding Required Starting an airline requires a sizable investment for completing the certification process, leasing or purchasing planes, recruiting, training and paying personnel and paying for gate space at various airports. You also need to promote flights and set up a reservation system.
How much does it cost to run an airline?
Running an airline is unavoidably expensive. One of the most basic costs is the price of buying the airplanes themselves. For instance, a Boeing 737, a relatively small passenger jet, costs around $50 million or more. Larger jets can approach $300 million in price [source: Boeing]. Hiring qualified pilots to fly the planes is another major cost.
What are the rules for owning an American airline?
Also, all American carriers must be owned and controlled by U.S. citizens, with no more than 25\% foreign investment (a loophole that almost grounded Virgin America due to Richard Branson’s role).
What do I need to start my own business?
They’ll need to decide how to form the company legally. It could be a partnership, a limited liability company, a corporation… the way it is owned, funded and operated will inform this decision process. It will also need to secure the right insurance, contracts, policies, and legal documents to begin operation.