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Creating a Winning Air Charter Business Plan For Success in Modern Market

Published Jul.14, 2023

Updated May.16, 2024

Creating a Winning Air Charter Business Plan For Success in Modern Market

Name: Creating a Winning Air Charter Business Plan For Success in Modern Market
Item: Creating a Winning Air Charter Business Plan For Success in Modern Market
Author: Jakub Babkins

By:

Jakub Babkins

Article Business Plan Templates Logistics & Travel Business Plans Aviation Business plans

Table of Content

1. Potential Of Air Charter Business

Air charter service is a convenient option that allows individuals and businesses to rent private aircraft for specific trips, destinations, or purposes. It provides personalized air transportation tailored to the needs of the passengers or cargo.

The air charter business operates within a complex and highly competitive industry. It encompasses a modern fleet of commercial aircraft present worldwide. According to research from MarketWatch, charter air services’ market size was valued at USD 17260.0 million in 2021 and is expected to expand at a CAGR of 12.0% during the forecast period, reaching USD 34070.0 million by 2027.

2. Executive Summary

Why do you need a business plan for a Private Air Transportation Company?

A business plan is vital for a private air transportation company. It serves the purpose of securing financing and effectively communicating the company’s strategy to partners, investors, and employees. The Airmall Business Plan exemplifies this approach, outlining both short-term and long-term objectives while providing a clear roadmap for organizational growth. Additionally, it takes into account future risks, opportunities, and challenges that may arise in the industry.

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How to write an executive summary for a private jet business plan

The Executive Summary in a private jet charter business plan should provide a comprehensive introduction to the proposed enterprise. It should be similar to an Airline Business Plan, covering background information on the company, an overview of the services it will offer, and the reasons behind its establishment.

The business plan should encompass several key components. These include clearly defined objectives, an in-depth analysis of the market landscape, a thorough evaluation of competitors, reliable financial projections, and any other areas critical to the success of this endeavor.

3. Company Overview

History Of The Charter Flight Company

Charter Flight was founded in 2017 by two former commercial airline pilots. Their mission aimed to deliver a heightened and individualized air travel experience, surpassing the offerings of large commercial flights. All the while prioritizing safety and unwavering quality at every step along the way. With this in mind, the founders had an idea of how to start a charter airline business and developed an air charter business plan sample that puts safety, customer service, and attention to detail as its highest priorities.

They have grown exponentially over the past seven years. In the Helicopter Business Plan, they now operate a fleet of over twenty aircraft, including both turboprop and jet charter planes.

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Mission

Charter Flight’s main objective is to provide exceptional, tailored private air charter flights for their esteemed clientele. They are committed to ensuring the utmost reliability, safety, and luxurious experience in private aviation. Every aspect of customer service, attention to detail, and cutting-edge technology adoption is meticulously prioritized to maintain the highest standards of safety and efficiency.

4. Services and pricing

Charter Flight offer a wide variety of aircraft charter services, including:

Private Air Charters: They provide luxurious, comfortable, safe, and private air charter services to any destination worldwide. Like a charter bus company, the private air charter service will typically include a dedicated flight crew, any necessary auxiliary staff, plus a selection of food and beverages onboard.
Group Charters: Groups of up to 10 persons can travel together on the same flight at an affordable charter flight rate.
Aircraft Charters: They provide a full-service charter flight service tailored to individual requests.
Air Cargo Charters: They provide tailored air cargo charter service to meet the needs of businesses and other organizations transporting goods on tight deadlines or to remote areas.
Business Jet Charters: They provide access to comfortable, modern, and well-equipped business jets that provide an optimal environment for work or relaxation, whichever you choose.

The pricing for our services is determined by various factors. These factors include the type of aircraft used, the distance to be covered during the flight, the duration of the flight, and the number of passengers on board.

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5. Customer Analysis

Customer Segmentation

The customer base for charter plane services can be segmented as follows:

Business Executives: Business executives who want a reliable and efficient method of traveling to meetings, conferences, or even vacations often choose to charter a plane for their needs.
Vacationers & Adventure Seekers: Those wanting a unique and memorable vacation or a thrilling adventure often rent a private plane to travel to faraway destinations for an unforgettable experience.
Celebrities & High Net-Worth Individuals: Celebrities, music artists, and high net-worth individuals often use air chartering to fly to and from vacation or promotional events. In the private jet business model, clients view private plane services as a luxurious and convenient way to get around.
Sports Teams & Equipment: Teams participating in sports tournaments and large events often rent charter planes to transport their team members, equipment, and staff to the destination.

6. SWOT Analysis

Strengths: Identify internal capabilities that will support the business venture. Examples of strengths might include specialized skills and capabilities possessed by staff, existing customer relationships, access to monetary resources, and competitive advantages in the industry.
Weaknesses: Pinpoint areas of potential vulnerability. Areas of weakness might include lacking needed resources and personnel, outdated business models, inadequate market research, and competition from rivals in the market.
Opportunities: Identify external factors that could benefit the air charter business.
Threats: External factors that have the potential to negatively affect the business should be identified. These threats may encompass abrupt shifts within the industry, emergence of new competitors, disruptions caused by external events, economic downturns, or changes in customer trends within the industry.

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7. Marketing Analysis

Competitors

The private aviation business is extremely competitive, with numerous charter companies, fractional ownership companies, and even commercial airlines vying for the same customers.

Companies such as XOJet, JetSuite, NetJets, and FlexJet are some of the most notable competition in the space. These companies have deep pockets and significant market presence and constantly create innovative solutions for their customers.

Market trends

The charter flight industry is currently experiencing a period of growth. Many major competitors have launched new jet programs and services to enhance their existing fleets and offerings.

In addition, the luxury charter market has seen significant growth in private sectors like the Middle East, Asia Pacific, and Latin America. This expansion opens up more promising opportunities for luxury charters. Moreover, with the integration of mobile technology and online booking services, there is enhanced convenience and customization available to passengers when reserving their flights.

Competitive Advantage (USPs)

The charter company maintains a competitive advantage through its unwavering commitment to enhancing customer experience. By prioritizing exceptional service, the company ensures convenience and tailored amenities for each flight. Additionally, the company places utmost importance on procuring reliable and secure aircraft, granting customers peace of mind during their air travel.

8. Marketing Plan

A charter service must act extensively when it comes to marketing. A strategic method of maximizing potential customers must be followed. The following outlines a few key areas in which to focus.

Search Engine Optimization: Keywords should be used on the home page and throughout the website to ensure that the business appears quickly in the search engine results.

Networking: A strong online presence must be created in order to make the public aware of the service. Social media must be utilized to reach potential customers and build a base of followers.

Sponsorships: As a corporate jet charter business, sponsoring events and leveraging the power of branding can be a very successful tool in exposing customers to the services offered.

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Promotions Strategy

A comprehensive approach to promotions is needed to ensure maximum exposure to the services offered by the charter service. This includes a variety of methods, such as the following.

Advertising: Traditional and digital advertising outlets should be utilized to capture the attention of target markets.
Public Relations: Coverage by industry-specific publications and news outlets should be sought to build credibility and promote the business.
Discounts: Discounts can be offered on select charters to entice customers and build a recurring revenue stream.
Contests: Online and offline contests can generate interest and spread awareness.
Events: Hosting events such as open houses and customer appreciation days can promote the business and solidify client relationships.

9. Management Team

Organizational structure

The organizational structure of the private air business plan is composed of the following:

CEO: This role is responsible for managing the business’s operations and ensuring it meets its objectives.

CFO: This role is responsible for the financial management and planning of the business.

VP of Operations: This role is responsible for overseeing the charter business’s operations and ensuring its objectives are achieved.

VP of IT: This role is responsible for managing the IT infrastructure of the business and providing technical support.

VP of Marketing: This role is responsible for developing and executing a marketing strategy and launching promotional campaigns.

VP of Sales: This role is responsible for developing and implementing a sales strategy to maximize revenue.

Chief Pilot: This role is responsible for the flights’ and pilots’ safety and compliance.

10. Financial Plan

Startup Costs

Legal Fees: $1,200
Aircraft Licensing & Regulatory Costs: $15,000
Professional Website Development: $6,000
Radio Frequency Applications & Certifications: $2,500
Airport Construction & Direct Operating Costs: $65,000
Insurance: $30,000
Company Formation & Regulatory Fees: $3,000
Office Equipment & Supplies: $15,000
Fuel & Oil Purchases: $25,000
Pilot Training & Aircraft Maintenance: $25,000
Marketing & Advertising: $10,000

TOTAL STARTUP COSTS: $186,200

Financial Projections

1st Year:

Revenue: $500,000
Fixed Costs: $250,000 (insurance, pilots, maintenance),
Variable Costs: $80,000 (fuel, oil)
Net Profit: $170,000

2nd Year:

Revenue: $700,000
Fixed Costs: $250,000
Variable Costs: $90,000
Net Profit: $360,000

3rd Year:

Revenue: $1,000,000
Fixed Costs: $250,000
Variable Costs: $100,000
Net Profit: $650,000

Funding Ask

Amount Requested: $100,000
Equity Offered: 25%
Use of Funds: $50,000 will be used to purchase necessary equipment and supplies, and the other $50,000 will be used for initial marketing and advertising efforts.
Repayment Terms: The funds will be repaid over a four-year period with 8% interest.
Collateral: All associated equipment and supplies purchased with the loan will serve as collateral for the loan.

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11. Unlock Proven Expertise and Strategic Insight for Successful Air Charter Business Planning with OGS Capital!

OGS Capital, with its team of expertise and strategic insight, can develop a comprehensive business plan tailored specifically for your air charter business. We possess in-depth knowledge and understanding of the complexities in this industry, combining it with our financial acumen to create investment-ready plans that address both operational and regulatory aspects.

Drawing on our extensive experience in the aviation industry and our deep understanding of operational, regulatory, and financial aspects, we have the ability to design plans that fulfill the requirements of investors, banks, and policymakers. These marketable plans are tailored to meet industry standards.

Our finance professionals possess the necessary skills and expertise to strategically structure financial models that maximize the competitive advantages within the air charter industry.

Our clients achieve successful results thanks to our personalized business planning and in-depth market analysis. With extensive experience in the aviation industry, no other team of consultants understands its complexities better than ours.

Contact OGS Capital to explore the potential of our professionally crafted air charter business plans and how they can align with your specific needs and goals.

12. FAQ

Q. How much does it cost to start a private jet business?

Starting a private jet business can be an expensive undertaking. With the purchase of a jet, airframe, and engine maintenance, insurance, training staff, leasing hangar space, and other start-up costs, getting a private jet business up and running may cost anywhere from $3 million to $10 million or more.

Q. Where can I download the air charter business plan in PDF?

You can find an air charter business plan in PDF format online. The SBA (Small Business Administration) website has a comprehensive business plan development guide, including a customizable plan template. You could also take a look for pre-made plans on websites like Fiverr or explore various resources on OGSCapital. There are also numerous free business plan templates available to download online.

Download Air Charter Business Plan Sample in pdf

Illustrative business plan samples

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.