Info needed on starting a Part 135 Operation

[jshaff]

Hi All,
I am currently enrolled in college seeking a degree in airline management. I have had a passion to fly all my life and I recently aquired my commercial/multi rating and would love to fly for a living. However, my big "American Dream" is to create a charter air service for the local businesses of my area.
This dream is turning out to be somewhat of a nightmare do to the complexity and regulations of the enterprise. I have hardly started to look into the steps I need to take in order to accomplish my goal, and it seems as though all odds are stacked against me. I am not one to give up at the first signs of trouble though.

I will state my current plan and then I will ask anyone with any information or suggestions to help me. Here is my plan:

1. Continue my education at college
2. Find a source of capitol (that will be the easiest part! just kidding.)
3. Find someone or a company to help me with a business plan
4. And start the company.

I know my plan lacks detail. That is the problem. I don't even know whether a degree in Airline Managment is the best option or if I should go with something else. So my questions are: What would be the best degree to shoot for? What suggestions do you have on raising capitol? I am a realist, and I realize this is not going to happen in a short period of time. I am thinking that it will take several years (i.e. 5-10yrs) for this dream to materialize. Considering that, raising the capitol should be an attainable goal.
When it comes to creating a business plan, should I plan on leasing or buying an aircraft? I suppose I could "rent" the aircraft from a company and use it that way. I just don't know. How does this generally work?

And any other questions that you think I should address or ask myself would be greatly appreciated.

My next small step is go to some local Part 135 operators and see if they will show me how their operations work.

If anyone has any insight or help to offer, I would gladly accept it?

Thank you,
jshaff

 

[aeronautic1]

Certificate

There are certificates for sale on Trade-a-plane. I know our certificate is for sale for $400K. The cheapest one I have seen is $375K. Then you will need to hire people who have the times required under FAR135 (DO<CP<DM etc...) plus you will need aircraft. Lots of hoops to jump thru. Good luck!!

 

[airmedplt]

The best thing to do is contact your local FSDO. They have software you can use that will help walk you through the process of starting a 135 op. Also you can stop by a lot of the FSDO's websites and they have everything there. But before you contact the FSDO office have everything ready to go to include the plane and an office. There is a time frame that is set in place from the first time you sit down with the FEDs to get it going. It's not as hard as you think if your planning on operating one aircraft/one pilot. Now saying its not hard dosent mean its not time consuming. The hardest thing is going to be having the aircraft ready. First you have to have an aircraft and have it pass a 135 inspection.


Best of luck to ya.

http://www.faa.gov/fsdo/hou/cert135.htm

above is a link to the HOUSTON FSDO 135 cert. hope this helps

 

[Lear70]

I've helped with two startup 135 ops, and what AirMedPlt posted is pretty much right on the money with one missing element. You have to prove to your FSDO that there is a "need" for the type of service you're attempting to start in your area.

For instance, if you're trying to start up using a Lear 35 (their price has gone down by 50% in the last 5 years because of RVSM (now about $1.25 million instead of $2M + and getting one RVSM certified only runs about $400k - makes a great deal), but there are already two other Lear operators in your community, chances are the Feds are going to be less than helpful and it's all in their hands.

Also, if you're in a very rural area and there's no service, but also no businesses in need of the service (information your FBO can help provide - how often charter pickups occur, type of aircraft, etc - they WILL help because a based aircraft = fuel, hangar, and mx purchases), then the feds will also probably balk.

It's a tough, cutthroat business. Keep everything to yourself, be very cautious about who you trust, including your own employees, and never let on how profitable you are if it turns into something lucrative - you can't imagine how fast another charter operator will undercut you or even put a spy in your midst to gather information until they have enough to sink you - it happened very recently in Nashville to one of the Lear operators.

 

[$$$4nothin]

$$$

My advice. Figure out how much money you are going to need to start this up. Once you have that money go buy lotterty tickets. That way you can loose it all quickly and move on instead of getting kicked in the N#ts for 5 years and still end up broke

 

[Dr4uh60l]

The best way to make a small fortune in aviation is to start out with a big one.

 

[Jump Pilot]

Don't forget to pay your pilots well.

 

[Halfcent]

Aviation management is a good start, but sales experience is really what you need. I would recommend getting into something sales related immediately out of college that deals with high price clientle. Something in the service industry, but not necessarily in the travel industry. The most successful 135 operations I have seen own almost nothing. They don't own the planes, they don't own the hangers, they only own what little equipment they have to. You want to be a manager, then be a manager, not a capital investor. Your break will come when you can find some rich guy who owns a jet, and you can convince him that leasing the plane to you is a good deal for him because of the tax benefits and revenue percentage he will make on the charter use of the plane. Never buy a plane, use other peoples planes. Then manage those planes (assets we shall call them) in a way that results in the owner getting a check every month instead of a bill. Be an asset manager.

 

[xdashdriver]

You have to prove to your FSDO that there is a "need" for the type of service you're attempting to start in your area.

Are you talking about DOT Economic Authority? For on-demand charter using small aircraft, there is no demonstration of economic need required, purely registration with the DOT that you exist and have the required insurance minimums. We never had to prove any economic need to the FAA at all for our startup.

Ray

 

[Lear70]

Then you're lucky. Every startup in the Nashville area has to prove that their company will thrive because there is a need for their service OR a need for their pricing (i.e. they can do it significantly cheaper than the competition).

While there may not be a specific regulation that requires that, the FAA is too much like God in too many arenas, and this one is one of them - they can never let you off the ground for any reason they see fit and there is very little oversight or recourse, as even if you do sue them, win, and get to startup anyway, they still oversee your operation and they DO hold grudges - eventually they'll figure out a way to shut you down. Nobody can operate a "perfect" operation.

Are you talking about DOT Economic Authority? For on-demand charter using small aircraft, there is no demonstration of economic need required, purely registration with the DOT that you exist and have the required insurance minimums. We never had to prove any economic need to the FAA at all for our startup.

Ray