Airline Business Plan

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Opportunity

Market

Air services between Western Europe, Turkey, and Southeast Europe are increasing in demand due to economic growth and the need for redevelopment.

The market has many components that require higher quality services than are often offered.

1. 1. Business travelers requiring convenience, reliability, speed, and schedules built around business needs.

1. 1. Travelers from government and international organizations require the same elements.

1. 1. Personal and leisure travelers from the Southeast Europe/Turkey region who have the money to travel by air and who increasingly demand a higher level of service and convenience, but at an economical cost.

1. 1. The ‘#8220’Diaspora, a personal and leisure traveler originally from Southeast Europe/Turkey but now living in and working in Western Europe.

1. 1. Western European personal and leisure travellers, mostly traveling on the airline’s routes between Western European countries.

1. Seasonal (primarily during summer, with a few niche markets in the winter) holiday traveler, primarily to Greece, Turkey, the Mediterranean islands and Turkey. Their concerns include cost, reliability, convenience, destination, and cost.

These groups will be attracted to the proposed new airline because it offers better service and in some cases, service where none is currently offered. It also offers a higher level safety, comfort and convenience and lower fares than current options. The new airline will be able to serve the niche markets identified under the Service Description section. It will then be able to identify itself as the preferred carrier in these markets.

Competiton

The four primary segments that make up the global airline industry, which operates between Western Europe, Southeastern Europe and Turkey, are:

1. 1. Mainline European airlines (primarily Swiss International and Lufthansa), Alitalia and Malev, Turkish) use their Southeast European routes to connect to major hubs in Western Europe (or Budapest or Istanbul in the case Malev and Turkish respectively) and feed traffic to their top intra-European, trans-Atlantic routes, or domestic Turkish routes in case of Turkish.

1. 1. Smaller, but generally well-established regional airlines primarily from Western Europe or the upper level of Eastern European states (primarily Swiss International, Tyrolean, and Adria) that perform essentially the same function as the mainline carriers or, in the case of carriers like Adria, link destinations in Southeast Europe to their own national capitals.

1. 1. Southeastern European home-based carriers, such as ADA Air and Albanian Airlines, Avioimpex and Balkan Air, Hemus Air and Tarom Airways, often use older, Soviet-built aircraft and turboprops. They are less well-respected, even by travelers from Southeastern Europe. These airlines connect points within Southeast Europe, or they may connect Southeastern European destinations to major destinations in Western Europe.

1. There also is a fourth segment worth noting, and that is the fairly significant charter market that exists within certain niche or seasonal markets. This market includes charter flight between Pristina, destinations in Germany and Switzerland as well as summer charters between New York and Southeast Europe. These charters are typically operated by either individual travel agencies, or airlines. They are often characterised by a low level service and use of older, often Soviet-built aircraft. The vacation charters also operate between Western Europe and Greece, Turkey, Cyprus, or other destinations in Southeastern Europe or the Mediterranean.

The proposed airline would be most compatible with the second grouping. However, it would still compete effectively against all four main segments by offering a combination safety and service, carefully chosen routes, niche-market service and convenient schedules. It would also offer reasonable and competitive fares and modern, safe and comfortable aircraft. It also will offer service on under-served and unserved routes where little or no competition currently exists.

Why Us?

Air Leo will be a leader in the expanding air-travel and cargo markets connecting Western Europe and Turkey. It will identify and serve key routes and city pairs that are currently unserved, under-served or not served and set new standards for professionalism and air service within and outside the target market.

Expectations

Financial Highlights per Year

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