Publishers
Well-known member
- Joined
- Sep 20, 2002
- Posts
- 1,736
Start Up Costs
One thing you ahve to do is put together a budget of start up costs for the airline. This amount will be capitalized with the gain of certification.
When I used to do it, we could get a certificate for about $500k and it took about 6 months. That was doing it the really cheap but effective was. After ValuJet crash, that number changed to about $1.1m and over a year for final certification.
The question is what amount of money do you want to spend on all these other things prior to certification.
The spreadsheet that I have goes over the startup costs and increases as you go. It also looks at the various aircraft and figures how many crews you need for the flying projected. It has been some time since I messed with it but it was a good starting place.
We need to look at startup funding as well as whether we intend to go public soon or involve the public with funding through equipment trusts.
When I did this, we had a professional certification team. That team manned all the mandatory positions plus all the crew positons for the proving runs. Our people conducted the first traininng classes for flight attendants and our students had an average of twelve years in the industry.
You also need some professional manual writers. It is not enough to try and copy other books. It si an art and then the people involved need to read them.
This approach will allow your core real people to concentrate on what your real objective is. Setting up the business side. All the people I had are going to resign at certification so you need to have the back ups, the real people for the jobs, working on the policies and procedures and the planning. Ecxecutives need to address all the route and airport issues.
I think you will find this method the most cost efficient in the long run.
One thing you ahve to do is put together a budget of start up costs for the airline. This amount will be capitalized with the gain of certification.
When I used to do it, we could get a certificate for about $500k and it took about 6 months. That was doing it the really cheap but effective was. After ValuJet crash, that number changed to about $1.1m and over a year for final certification.
The question is what amount of money do you want to spend on all these other things prior to certification.
The spreadsheet that I have goes over the startup costs and increases as you go. It also looks at the various aircraft and figures how many crews you need for the flying projected. It has been some time since I messed with it but it was a good starting place.
We need to look at startup funding as well as whether we intend to go public soon or involve the public with funding through equipment trusts.
When I did this, we had a professional certification team. That team manned all the mandatory positions plus all the crew positons for the proving runs. Our people conducted the first traininng classes for flight attendants and our students had an average of twelve years in the industry.
You also need some professional manual writers. It is not enough to try and copy other books. It si an art and then the people involved need to read them.
This approach will allow your core real people to concentrate on what your real objective is. Setting up the business side. All the people I had are going to resign at certification so you need to have the back ups, the real people for the jobs, working on the policies and procedures and the planning. Ecxecutives need to address all the route and airport issues.
I think you will find this method the most cost efficient in the long run.
