Business Plan for Indian FTA / FTO with Air Charters with 10 Aircraft and 2 Bases
Bhawana Aggarwal
Industry Analysis:
Air charter market in India, in terms of growth opportunity:
There is a niche market here with India embarking on a lot of infrastructure projects and also looking to become a manufacturing base. This is only expected to grow in the future. With the rate of growth of the Indian middle class and the entrepreneurial nature of Indian business.
factors hindering the growth of this segment:
With scheduled Airlines going through a turbulent period, it is time to turn to a more reliable source of flying Air charters. There has indeed been a slowdown and the Euro zone crisis has affected not only charter operators but also scheduled Airlines. India has also not been isolated from this. However, the scope of the charter market in India is poised to expand as big infrastructure projects are being undertaken by the Indian government and private companies, both domestically and internationally.
Compression of Air charter market of India with China and other developed markets:
In spite of the rapid economic growth and technological advancements in our country, the Air travel sector is still waiting for a major change. While the government is positively working towards encouraging growth in the Aviation industry by bringing drastic changes in policies, current infrastructure is hardly capable to handle the growth. In developed markets, there are over 11,000 helicopters and thousands of private Aircraft in commercial or private use. In India, with a population of approximately over 110 crores, we have just around 175 helicopters and approximately 100 Aircraft being commercially or privately used. The use of Aircraft charter services through helicopters has a distinct advantage over scheduled operators. It provides the fastest available mode of transport on short notice, the quickest accessibility to remote areas, no waiting time at check-in counters and at Airports for connecting flights and hence is a boon to the time-conscious customer.
Company analysis:
AirCrews Aviation Pvt. Ltd. is the only company of its type in Asia. It is the only startup in the Aviation sector that cover the diverse domains of aeronautics, such as:
• Air Charters
• Pilot Training
• Aviation HR services
• Aviation Apps
• Aviation Books
• Aviation Blogs
• Aviation Lead Generation
• Aviation Link Building
• Aviation Expo
• Aviation B2B and B2C
• Aviation SEO/SMM
• Aviation Management Internships
The company have various categories of clients such as Air Charters to Tycoons, Pilot Training to buddy Pilots, Aviation HR Services to AME, Cabin Crew and Pilots, Aviation Blogs to AME, Aviation Lead Generation to Pilot Training Academy, Aviation Link Building to AME, and Management Internships for IIT and IIM students only.
The organization believes in a skilled workforce to provide valuable services. For the accomplishment of this target, the company is regularly involved in training and development programs.
Vision: To be a landmark in providing Overseas Training Education to deserving Asian Pilots in the field of Aviation and make them competent to be a force to reckon with in the International Aviation arena.
Mission: To bring out the innate talents of Indian students to the fore, channelize in a constructively way and guide them for quality overseas education to make a mark for themselves in their academic and professional life.
India's previous experience with FTA (Free trade agreement):
Regional Trade Agreements (RTAs) have become increasingly prevalent since the early 1990s. RTAs cover more than half of international trade and operate alongside global multilateral agreements under the World Trade Organization (WTO).
This regional initiative between developing economies was re-incarnated as Asia Pacific Trade Agreement (APTA). India’s first bilateral FTA with Sri Lanka (ISFTA) came into effect in March 2000.
However, the utilization rate of India’s FTAs is very low. Most estimates put it at less than 25%. Some of the major reasons for underutilization are:
• Lack of information on FTAs
• Low margins of preference
• Delays and administrative costs associated with rules of origin
• Non-tariff measures
Marketing strategy:
In this digital world, it has become very important to market your business innovatively to attract more customers and for making more sales. Innovative Marketing strategies are important for most of the industries, especially Airlines. Without some unique and never seen before Marketing tactics, you can’t survive in this competitive world. Following are some suggested Marketing plans:
1. Create your own loyalty program:
Under this kind of programs, we can provide some gift to our consumers. This will help them to connect us forever.
2. Create an impact:
In any type of Marketing, creating an impact on your targeted audience is a must. The worst thing that Airlines do is not make a unique place in the customer’s heart. One of the way to create an impact is social services. When customers read about the work done by Airlines they can feel themselves connect with them.
3. Strat stunning social media campaigns:
We are living in a world where people spend most of their daily time on social media. We can start paid advertising on Facebook, Instagram, and YouTube. With paid ads, we can target people in specific locations. Through these social media platforms, you can get intensely targeted customers.
4. Focus on existing customers:
The Airline should focus on their customers first. Existing customers of the Airline are going to benefit the Airline companies more than the new customers via mouth publicity.
5. Use the power of Influencers:
Influencer Marketing is currently booming. All major industries are looking at influencer Marketing as the best way of getting a better ROI. The Airlines should also implement effective influencer Marketing strategies. There are many benefits of influencer Marketing strategy that can help any Airline in boosting their business.
Financial Analysis:
Industry average rate for leased Aircraft for Airline (Capital expense):
Cost for rent $385,000 per month or INR 2,69,50,000 per month
Annual Rent $4,620,000 per year or INR 32,34,00,000 per year
For ten Aircraft:
Cost of Aircraft rent: $3,850,000 per month or INR 26,95,00,000 per month
Annual rent $46,200,000 per year or INR 3,23,40,00,000 per year
Cost of Airbase: INR 1,00,000 per square meter or USD 7,000,000 per square meter.
Other direct and indirect operating (floating) cost:
Fuel and Oil
Maintenance Cost
Landing Cost
Handling Fees
Crew Charges
Aircraft standing charges
Cabin Crew Pay
Bhawana Aggarwal [MBA IIM-s]
Manager FinTech
AirCrews Aviation Pvt. Ltd.
Bhawana@Air-Aviator.com
+91 98703 15314
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