Hypothetical: If you were to start an airline, what would you do?

[dajop]

Very interesting question, @Revenge.

My first thought was to start an ultra low-cost airline offering flights from pretty much every Australian city to Bali. But in reality, there isn't really any more available capacity for Australian airlines to service Bali/Indonesia (under the current Air Services Agreement) so that wouldn't really work.

My second thought would be to start an airline based in Perth with flights to/from all the major Australian centres which are timed to offer good connections beyond Perth

Combining those two, a "value carrier" that has its base in DRW and serves MEL & SYD hubbing in DRW to serve some more leisure destinations in SE Asia a couple of times a week (other than HKT and DPS) such as LOP, CEB, KBV, DAD, CXR, MPH, MFM, LGK & the like. But probably not profitable, I am guessing those who want to go to other destinations already do via various other carriers, whilst those who don't won't, even if there was an Australian carrier serving them.

 

[dajop]

Interesting proposal Mr @Revenge ... I was going to suggest something similar.
J is the cash-cow, is it not? Despite lower passenger numbers?
So could an airline survive by offering all-J, and even do it at a lower fare than the majors?

J is only the cash-cow because it has hundred passengers to fill the space that they couldn't sell to J pax at high fare levels. I think PE is the new cash cow in terms of $$/m2.

Plenty of all-Y carriers, all-J carriers really seem to struggle (they seem to come and go).

 

[encryptededdy]

IMO it's pretty hard to compete on the international premium-class market with an Australian based airline due to cost of labour. Many of your international competitors will have much cheaper workforces running their flights into/out of Australia.

 

[dajop]

Many of your international competitors will have much cheaper workforces running their flights into/out of Australia.

As do some Australian carriers. Jetstar 787 cabins (but not the flight decks) are largely staffed by workers based outside of Australia.

 

[encryptededdy]

As do some Australian carriers. Jetstar 787 cabins (but not the flight decks) are largely staffed by workers based outside of Australia.

Yep, that's true (and also Qantas/JetConnect).

 

[AustraliaPoochie]

Aircraft - Buy?
Lease?

Wet lease/dry lease?

Staff - (on plane) Employees?
Contractors?

Office (location) - Buy?
Lease?

Ancilliary staff - Employees?
Contractors?
Cleaning, aircraft maintenance...

Booking process - App?
Website?
OTBAA (Online travel booking agency agreement)?

FF tiers/levels - 2/3/4/5?

 

[pauly7]

View attachment 355538

Ready for boarding.

Ready for a lawsuit

 

[marki]

Start with a 100 Billion dollars

 

[AustraliaPoochie]

Or have a line of credit/loan avability of that amount, and so long as there is great demand for it, you can pay back the "loan"/line of credit.
Of course, better still to have the 100 bil $ in cash assets, so you don't have to pay back, and any net profit, you keep in your balance sheet, adding back to capital.
===
Re: Pauly7's reply: Ready for a lawsuit
Ps, is that plane pix too close a similar to a certain airline already flying full trot in Aust?
Have to agree, maybe a flying emu, instead of a flying kanka would be more apt.
Or an echidna is better, then it can't be a similar to the red flying roo.

 

[Forg]

My airline will sell seats at 25% the lowest alternate fares, and will be Business and Premium Economy only.
The business model will revolve around employees & purchasing of all hardware such as aircraft, and will be BYO until the company has earned enough for those things. Someone flying on those first year or two’s flights will be asked to bring the aircraft, the other passengers will share responsibility for providing air crew, etc.
Success guaranteed!

 

[AustraliaPoochie]

Maybe, follow some airlines example, ie, lease as much as possible.
By leasing aircrafts, you don't pay any capital expenses or repairs, so you can palm off the cost to the owner of the aircraft.
Lease fees will be all inclusive.
Lease fees are a tax deductible expense, as is depreciation of course, depending on which is more costly, that will be a benefit.
Leasing a building vs owning, then for repair or renovation works, you can let the owner deal with it, if you pay a lease on the building.
Of course, lease might a bit more expensive in the shorter term, but in the longer term, it can have its benefits too.
Have as many contractors as you can, so you don't have to deal with HR/emploment cost, you just have to pay the contracting company/companies a total comprehensive fee for payroll related work.
No long service debts to worry about, no non appearance to worry about, if a staff member is sick, that is for the contracting company to deal with and find a replacement.

 

[dajop]

One thing I might not do: organise for a related foreign carrier to operate services on my behalf during peak periods and start selling seats for those services when the timelines for CASA approval of the arrangement were not entirely clear.

(Sorry cheap shot).

 

[jb747]

Hire Alan Joyce, and then not do anything he suggests.

 

[AustraliaPoochie]

Hire Alan Joyce, and then not do anything he suggests.

But, then, maybe at one time, (*my speculation only, mind you*) that some people must have thought he was the best thing to run JQ and then QF.
Or maybe, both the airline at that time, and he, thought he was doing what was best for QF at that time.
To the detriment of the flying public.
Now that he has left the airship, everyone starts airing the "dirty laundry".
Didn't anyone thought when he decided to sack all the baggage handlers, and then let dnata take over, what would happen when covid ended, maybe he thought covid would not end.

 

[jb747]

Some of us knew him, his minions, and his behaviour, for a long time Poochie. At no point, ever, did he have the best interests of QF anywhere near his heart. It's not just a case of dirty laundry. He has not left the company in good shape for the future, and sadly the people who have followed him would be unable to build a house of cards, much less repair one.

 

[justinbrett]

It's good to see Bonza doing seemingly well in the Australian market

This is doing well? I'd hate to see failure!

 

[flyer89]

Hire Alan Joyce, and then not do anything he suggests.

He had the right idea…..virtual aircraft, virtual employees and then the piece de resistance: virtual passengers.

 

[SeatBackForward]

Just give me International Y service in a seat somewhere between current Y and PE, for a fare thats about 2x current discount Y offerings and you'll get me

 

[marki]

He had the right idea…..virtual aircraft, virtual employees and then the piece de resistance: virtual passengers.

Match fit ones

 

[TheRealTMA]

He had the right idea…..virtual aircraft, virtual employees and then the piece de resistance: virtual passengers.

You forgot, real bonuses.