Airline business plan: detailed calculations

Want to start your own airline? You should not be surprised that this requires a very large capital. But just having money is not even half the success, but only the foundation on which it will be installed.

To start your own business in the field of air transportation, you need to understand in detail all the intricacies of the business. We suggest you study the indicative business plan of the airline.

But remember: it is better not to save on drawing up a development plan, but to entrust it to professionals. Every business needs an individual approach. And when it comes to such serious areas as opening an airline, it’s definitely not worth the risk.

However, our business development plan will help you get an idea of ​​the approximate cost of goods and services needed to start your own air freight company.

Functions of airlines and analysis of the demand for the sphere

Airlines are known to provide air transportation services, both passenger and cargo.

Airlines can be private or public (eg AirFrance in France, Aeroflot in the Russian Federation and ThaiAirways in Thailand).

Let’s estimate the demand for services in different regions of Russia:

MoscowSt. PetersburgIn RussiaIn the European partIn the Far East
Number of people in the village11.514 million people4.484 million people142.9 million people112.53 million people30.37 million people
Volume of services rendered by airlines in 201271.52 billion passenger-km12.47 billion passenger-km195.78 billion passenger-km154.17 billion passenger-km41.61 billion passenger-km
Number of airlines in 200972ten13310528
Number of airlines in 201286fifteen16613036
Number of operating airports:26037486380106
of which are international.3967257fifteen
Number of air passengers:20.75 million people
– international flights;1.97 million people846.72 thousand people26.17 million people5.41 million people
– domestic flights.2.09 million people898.56 thousand people27.69 million people22.01 million people5.67 million people
Growth of the industry in 2010-2011From 20% to 35%From 20% to 35%From 20% to 35%From 20% to 35%From 20% to 35%
Shortage of airlines in the transport business (rough estimate)6a129two

Who uses airline services the most?

  1. Tourists.
  2. Entrepreneurs.
  3. Regular and occasional passengers.
  4. Representatives of commercial organizations.
  5. Scientific workers (conferences, expeditions).

Charter flights and long-haul cargo routes are in high demand among passengers.

It is difficult to predict the development plan of the air transportation market. Indeed, as can be seen from the graph, in the period from 2000 to 2014 there was a steady increase in demand for air travel. But already from 2014 to 2016, demand began to fall.

This decrease in demand is explained by the fact that some of the popular tourist flights to Turkey and Egypt were canceled due to political conflicts. At the moment, the sphere demonstrates stability, which is becoming fertile ground for entrepreneurs who want to open an airline.

What should be taken care of in the first place when drawing up a business plan?

The introduction of the airline will require a lot of effort. After all, for this you, as an entrepreneur, need to take care of:

  • about finding investors who are ready to invest their money in your business;
  • draw up a detailed business plan, which will indicate all possible risks and financial penalties;
  • on the lease or purchase of a territory that will house the main office, premises for ocean liners, a hall for passengers;
  • in the selection and training of qualified personnel, as well as decent wages for employees.

Before ennobling the territory for the construction of a transport complex, the airline must be documented. You will also need to register your business with the tax office, pass a fire safety check, etc.

Next, we will dwell on the organization of activities in more detail.

How to start writing an airline business plan?

You are determined to start your own business, and you have a natural question: “Where to start?”.

Follow the guidelines to plan your next steps:

  • Stage 1: Development of a detailed business plan for the airline.First of all, in this document it is necessary to calculate as accurately as possible the amount of expenses for rent, paperwork, car maintenance and purchase of equipment.You should also indicate the expected dynamics of the airline, the strategy for the near future after opening, approximate revenue, as well as the payback period.
  • Step 2: Look for airlines that provide similar services in your area.Compare your strengths and weaknesses in order to establish effective company performance at a decent level with competitors. Make a market development plan, designate the most popular routes among passengers.
  • stage 3: business planning.First, you need to start the process of servicing passengers, organizing flights and building your reputation in the service market.No need to rush and try to squeeze the maximum in the first bars of the airline. Configured to start with 50% possible performance. And then, with the favorable work of the airline, to scale the business and gain momentum.
  • Stage 4 – collect a package of documents necessary for the official conduct of business and the launch of flights.
  • Stage 5: Finding funds to open a business.If you do not have authorized capital, contact the bank to provide you with a loan for the development of the airline. At the same time, an important component, thanks to which the bank will approve your loan application, is the same well-written business plan.Also look for an investor, because you will not be able to fully cover the costs of opening an airline on your own. Offer them a block of shares and keep part of the business.
  • Stage 6 – development of advertising.Think about how you can attract buyers to your airline, as well as the system of interaction with potential passengers: a site for booking tickets, the procedure for issuing boarding documents, etc.
  • stage 7: take care of the organization of the airline.Buy equipment, equip the territory, establish contacts with airports in other cities and countries where you plan to fly, hire and train staff.

Checkout opening. How to start selling tickets?

Step by step description of the stages.

The initial budget of the airline must be properly distributed so that the funds are enough for the first time of the commercial project, until a stable income is received.

Acquisition of additional vehicles and hiring of personnel can be done gradually, as the airline develops.

What documents are needed to register a business?

Before you start creating a business implementation plan, you need to register your business with the relevant authorities. To formalize the case at the official level, you must contact the tax office at the place of residence.

What documents are required:

  1. Request to the Treasury: you must specify your personal details and the type of activity that you intend to carry out. Request a copy and have it notarized.
  2. State fee payment receipt: must be submitted along with the application.
  3. TIN (in the form of a photocopy). If you don’t have it yet, contact the tax office at your place of residence.
  4. Original and photocopies of all pages of the passport (even blank ones).

The business registration process will take no more than 5 days. Upon receipt of the document (certificate of registration), you must have a passport with you.

Registration of IP for doing business. How to open?

IP registration on the website of the Federal Tax Service of Russia (FTS).

However, one must understand that for a large organization to have the status of an individual entrepreneur is not strong. Also, if you are planning to open an airline with partners, there is no other option but to register as an LLC (Limited Liability Company).

The list of documents required for registration of LLC:

Document’s nameNumber of copies
Application for registration of LLC (form Р11001)a
Decision of the founder (if sole)a
Minutes of the meeting of founders (if there are 2 or more founders)a
Agreement on the establishment of a company (if 2 or more founders)a
Letter from S.R.L.two
Receipt of payment of the state duty (4000 rubles)a
• Guaranteed letter of legal residence.
— or —
• Owner’s consent, proof of ownership, and resident’s consent (some documents may not be required) when registering at the residential address.
In addition, you may need:
Power of attorney to submit and / or receive documents (required if the applicant is not able to submit documents on his own or pick them up at the tax office).two

A limited liability company differs from an individual entrepreneur in its legal status. So, in the event of bankruptcy of an organization, an individual entrepreneur will have to sacrifice personal property to pay off debts. In the event of bankruptcy, the LLC is liable only with the authorized capital and property of the enterprise.

The entrepreneur can manage their income on their own, while LLC members receive a percentage of dividends, because the income received is wholly owned by the business, and not by a specific person in the business.

When registering an LLC, you already need to decide what it will be called. You can specify it in the following forms:

  • Full/incomplete company name in Russian.
  • Full/incomplete company name in a foreign language.
  • Full/incomplete name of the company in commonly used dialects on the territory of the Russian Federation.

For example:

Full company name in RussianLimited Liability Company “Romashka”
Abbreviated company name in RussianRomashka LLC

When registering an LLC, you must specify your legal address. This may be the address of a rented business premises, the address of the founder’s house (however, this option is fraught with difficulties), etc.

Let’s take a closer look at the available options:

Rented premisesQuite expensive, but one of the most preferred ways in legal and commercial terms.Some owners, for their own reasons, refuse to provide legal addresses or require the conclusion of an agreement before registering a company, which entails additional costs.Also, changing the rental address, you will have to make changes to the constituent documents of the airline, and this is an additional waste of time, nerves and money.
Address of the founder or CEO of the companyThis method completely eliminates the cost of a legal address.Keep in mind, however, that although the law does not prohibit the registration of a private address, some tax authorities may refuse to register a company, although legal precedents on this issue are on the side of entrepreneurs.
An address purchased or leased from a specialized commercial organizationA relatively inexpensive option for obtaining a legal address, but you need to be more careful when choosing such a company.If you suddenly acquire a massive address at which tens and hundreds of companies are registered, you may then have problems (for example, they will refuse to register a company if the tax office blacklists this legal address).Instead of using the services of a commercial company, it may be more reliable to acquire an address in a local business support center (for example, a business incubator).

When submitting documents for registration of a company, it is necessary to indicate OKVED codes. This is a kind of encrypted code that indicates the type of activity of your airline.

The list of current OKVED codes for business registration in 2018 can be found on the website

When searching for codes, pay attention to section 51, which contains information about the activities of airlines:

51Aerospace transport activities
This group includes:
• transportation of passengers and cargo by air or in outer space.
51.1Activities of air passenger transportation.
51.10This grouping includes:
• transportation of passengers on regular routes and according to the airline’s regular schedule;
• passenger charter transportation;
• tourist flights and flights for scientific purposes.This group also includes:
• rental of vehicles with a crew for the transport of passengers;
• general aviation activities, such as the transport of passengers by flying clubs for educational or recreational purposes.
51.10.1Transfer by passenger air transport according to the schedule of the airline.
51.10.2Transportation by air of passengers not included in the schedule of the airline.
51.10.3Lease of an aircraft with a crew for the carriage of passengers.
51.2Air travel and space travel.
51.21Air freight.This grouping includes:
• cargo transportation on regular routes and according to the schedule of the airline;
• transportation of goods outside the airline’s schedule.
51.21.1Air transfer by cargo transport according to the schedule of the airline.
51.21.2Air transportation by cargo transport is not according to the schedule of the airline.

After registering your entrepreneurial activity, you must complete several more important steps in the overall plan for organizing a business:

  • Firstly, it is necessary to draw up employment contracts for all founders and select a leader.
  • Secondly, it is necessary to obtain codes from the Federal State Statistics Service (Rosstat or Gosstat). This procedure is not mandatory, but will facilitate the process of preparing the airline’s annual accounts, opening a bank account and opening branches of the airline.
  • Third, you must obtain your own airline seal. The presence of a seal is not mandatory under the legislation of the Russian Federation, but it gives you some advantages, for example, it provides an additional degree of protection for documents from forgery.

To make an airline stamp, just contact a company that specializes in this. You will be asked to select one of the samples, which indicates the name of the airline, taxpayer identification code, business registration address and the main state registration number (OGRN).

The cost of printing, as a rule, is small – about 500 rubles.

After that, according to the plan, you need to go to the following points:

  • Open a bank account.
  • Make a list of employees and submit it by the 20th day of the month following the month after registration.
  • Buy and register a cash register with the tax office.
  • Get an airline license.

Basic needs for the operation of an airline: premises, staff, equipment, advertising

The main expense item in the business plan of opening an airline is the rent or purchase of premises.

The premises that will be required for the operation of the airline:

  1. The main office to accommodate the head, accounting department, personnel management specialists, call center operators, IT specialists. The main office may be located on the territory of the airport or located outside it. But the first option for the location of the airline’s office is still preferable.
  2. A room for accommodating passengers and controlling the passage at the exit.
  3. landing area for aircraft.
  4. Hangars for technical inspection/repair of cars.
  5. Warehouse for tools and materials.
  6. Premises for service personnel.

1. Plan for the purchase of equipment for the airline.

Passenger gangway trailer Sovam PST 9.19Airline business plan: detailed calculationsAirline business plan: detailed calculations• Maximum docking height – 5.80 m.
• Capacity – 102 people.
• Extras: spare wheel, footrest, covered hood.
Ambulatory lift Sovam HELP 15 HDCAirline business plan: detailed calculationsAirline business plan: detailed calculations• Cargo capacity of the van – 1500 kg.
• Height of docking with aircraft – 1600-5900 mm.
• Curb weight – 9,000 kg.
• Rear light for night work.
Check-in countersAirline business plan: detailed calculationsAirline business plan: detailed calculationsIt is made according to the technical plan of the airline.
Terminal seats MASTER BASIC LOWAirline business plan: detailed calculationsAirline business plan: detailed calculationsThe seats are supplied without a backrest and are upholstered in 30 mm rigid polyurethane foam.
Baggage tractor Owls K32Airline business plan: detailed calculationsAirline business plan: detailed calculations• Maximum towing load – 32 tons.
• Weight – from 3,900 to 4,100 kg.
• Maximum speed – 25 km/h.
• Diesel engine.
Baggage tractor F40T, F60TAirline business plan: detailed calculationsAirline business plan: detailed calculations• Weight — 3500 kg.
• Four-wheel drive 4WD.
• Maximum speed – 30 km/h.
• Engine: Detroit Diesel VM Tier III 754TE3 turbocharged, 4-cylinder, water-cooled.
TBL6 tape loaderAirline business plan: detailed calculationsAirline business plan: detailed calculations• Boom length: 6000 mm.
• Boom width — 600 mm.
• Hydraulic drive of the lifting mechanism of the front part of the boom.
Light Carrier CBD 16 DO2Airline business plan: detailed calculationsAirline business plan: detailed calculationsLight trolley CBD 16 D02 made by SOVAM is specially designed for handling specific loads.
Conveyor belt ZW2Airline business plan: detailed calculationsAirline business plan: detailed calculations• Working width of a tape — 1040 mm.
• Conveyor speed — 0.38 m/s.
ALSTEF baggage handling and control systemAirline business plan: detailed calculationsAirline business plan: detailed calculationsALSTEF integrates explosives and explosives detection systems (X-ray machines and tomographs).
Roller table without direct driveAirline business plan: detailed calculationsAirline business plan: detailed calculationsThe non-driven direct roller table is used on overhead lines for the accumulation and movement of oversized cargo, as well as pallets, boxes, barrels and any pieces in solid packaging manually or mechanically.
MARS-15T/25T/40T/60T Emergency Pneumatic Fabric LifterAirline business plan: detailed calculationsAirline business plan: detailed calculationsThe pneumatic tissue emergency hoist MARS-15T/25T/40T/60T is designed for lifting aircraft on sealed inflatable balloons.

2. What kind of staff is needed?

To ensure the efficient operation of the airline, be sure to hire qualified employees:

Airline employee positionSalary level, rub
Airline cashierFrom 40 000
aviation technicianFrom 75 000
Airplane pilotFrom 450 000
flight attendantFrom 150 000
Airline Human Resources SpecialistFrom 45 000
IT department managerFrom 45,000 to 55,000
Information Security SpecialistFrom 40 000
AccountantFrom 27,000 to 65,000
Recording ManagerFrom 15,000 to 40,000
luggage porterFrom 16,000 to 35,000
room cleanerFrom 18,000 to 35,000

You will need to determine the number of staff individually, depending on the size of your airline, the flow of passengers you serve, etc.

Requirements for individual airline employees

a.A person with a specialized higher aviation education, a first-class pilot qualification, permits for all types of aviation work and training, admission to instructor work and work experience in command positions of at least three years is appointed to the position of instructor Flight Director of the airline
two.The airline’s helicopter commander may be a person who has the qualification of a pilot (pilot) not lower than a civil aviation pilot of the second class, the necessary training and work experience for independent piloting and control of an aircraft of this type.
3.For airline flight attendants, there is an age limit of 18 years, and in some cases 21 years. High school diploma required, height 158-190 cm. With arm raised, minimum 212 cm to reach the top shelf. Weight is proportional to height. There should be no visible piercings or tattoos on the body. The ability to swim. High level of spoken English. Work experience from 6 months.

3. Choice of promotion methods.

Advertising is an important component of a marketing development plan. But good advertising is not enough to get passengers interested in your airline. You need to create a positive customer experience.

Airlines with a loyalty system and discounts for regular users are in great demand among passengers.

Advertising can be placed:

  • On radio and television.
  • In travel magazines and websites, in travel company brochures.
  • Billboards, bulging billboards, city lights.

The price of advertising on radio and television depends on the broadcast schedule, as well as its duration.

For example, evaluate the rates for advertising on radio “Russia” (rubles per air on air):

How to open an air ticket office: detailed final calculations

Part of the air
(per Moscow hour)
Advertising video up to 30 seconds on weekdays and weekendsAdvertising materials up to 2 minutes on weekdays/weekends
06:00 – 07:0046 730102410/26470
07:00 – 08:0067 850144 020/72 010
08:00 – 12:0091 530170500/96010
12:00 – 14:0067 850164 100/96 010
14:00 – 16:0048 490150420/72010
16:00 – 18:0046 730116 820/56 010
18:00 – 00:0029 14043 210/24 000

It should be noted that the airline’s business plan, which we provide to our readers, is only indicative. To draw up an individual development plan, you need to establish cooperation with economists and lawyers in your region, who will take into account all the features of doing business in the realities of your city.

Business plan for expenses to ensure the operation of the airline

Item of expensesCost, rub.
Quantity, pcs.Per monthIn yearOne-time purchaseTotal expenses per year
Construction of buildings, technical premises of the airlinea1 500 0001 500 000
Purchase of equipmentten467 865 200467 865 200
Purchase of computer equipmenta120 000120 000
Fixed costs for the purchase of jet fuel and other consumablesFrom 100l1 093 50013,122,0002,187,00015309000
Fixed costs of advertising a business12 months500000600000100000600000
Staff salary12 months27956503354780033547800
– taxes included12 months8406501008780033547800
Unforeseen business expenses4718980047189800
Total:2 795 65047 269 800519 082 000566 251 800

Plan for the volume of services provided during the billing period

Airline operating periodKind of transportConclusion
and sales per month, pcs.
price, rub.Airline sales revenue,
thousand rubles.
1-12 months investmentPassengerFrom 4500 passengers4,480–16,80020 160 000 –
75 600 000
1-12 months investmentTransportFrom 10 000 tonsFrom 1,120 rub/tFrom 11 200 000
13-24 months of operationPassengerFrom 5400 passengers5000-1890027,000,000 –
13-24 months of operationTransportFrom 12,000 tonsFrom 1,250 RUB/tFrom 15 000 000

Airline marketing plan. How to develop a business plan?

Detailed instructions for bringing ideas to life.

What tax payments does an airline have to make?

Airline income taxBenefitMonthtwenty%
VATAdded valueMontheighteen%
Property taxProperty valueAccording to the established payment schedule2.2%
Income taxSalary fundMonththirteen%
Social paymentsSalary fundMonththirty%

Therefore, we have analyzed in general terms what an airline’s business plan might look like. With the most conservative estimates, the amount of starting capital for opening an airline is at least 566,251,800 rubles.

As you may have noticed, creating your own airline is not an easy task. You will need not only to draw up a competent business plan and analyze the service market in your region, but also to find investors, control the stages of construction and purchase of equipment.

But if you decide on this, then the business will begin to bear fruit after 1.5-2 years of the company’s operation. In general, this is a promising and profitable line of business.