How to Start a Charter Airline

Charter airlines are niche businesses that offer personalized service unavailable through major airlines. A charter airline may be asked to carry high-powered business people from place to place in between air tours for international travelers. The upside of owning a charter airline is potential profits exceeding $1 million due to premium rates for each flight. Charter airlines around the world go out of business each year due to high overheads and failure to drum up new customers. Your charter airline must start with a solid plan, experienced personnel and comfortable airplanes to beat out competing charters.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• Air operator certification
• Filed flight plans
• Fleet of small airplanes

Open a Charter Airline

1. Work with an accountant and an aviation expert to produce a business plan for your charter airline. Your business plan should detail cash reserves, lines of credit and outside investments that will allow charter flights to get off the ground. Use the business plan to explain your airline's geographic reach, philosophy on customer service and 5-year goals.

2. Recruit pilots and mechanics with experience in charter flights before proceeding with your charter airline. Your pilots should be certified by the FAA, possess exemplary flight records and be willing to work nights and weekends. A charter airline should have at least two experienced mechanics to expedite maintenance and repairs that keep your planes grounded.

3. Apply for an air operator certificate (AOC) from each country in your airline's flight path before opening for business. An AOC certifies that an airline has met minimum safety and flight licensing standards for a particular country. Your AOC application should be accompanied by copies of pilot licenses, your business plan and the required application fee. Countries like Singapore may take up to 2 years to complete their reviews, so exhibit patience during the application process.

4. Contact the airport authority in your airline's home community to negotiate runway and hangar access. An older airport may have vacant hangars available for monthly rent that eliminate building costs from your airline's budget. If you want to anchor your business to a growing airport, you will need to lease the land and build your own facilities before a single flight leaves the runway.

5. Acquire smaller airplanes for your charter airline from an industry leader like Cessna. Cessna produces charter planes in various sizes to accommodate business charters, air tours and other small-scale flights. Ask about leasing options from the provider's sales department to reduce your initial costs.

6. Generate a menu of charter rates for scheduled flights, regular charters and last-minute bookings for your charter airline. Your charter airline should schedule a handful of flights each week for business travelers who are heading to another major city in your region. Calculate charter rates based on your monthly costs and the number of seats available on your planes.

7. Reach out to booking services and travel agents throughout the United States to improve your charter airline's profile. Virgin Charter is a service run by Virgin Airlines that connects small airlines to budget-conscious travelers. Contact individual agencies and websites to figure out technical requirements for listing your rates and scheduled flights.

8. File flight plans with the FAA and other flight agencies for your regular charter routes. The FAA requires airlines to file information on departure and arrival locations, air speed, altitude and plane markings to control traffic throughout the United States.

9. Market your charter airline through the Internet and local tourist attractions in advance of your first flight. Obtain a domain name that matches your airline's name and fill the website with photos, reservation info and information about your airplanes. Distribute business cards and one-page posters to resorts, hotels and amusement centers in your region to reach your target demographic.

Tips & Warnings

• Seek a commercial loan from a local bank to jump-start your charter airline. Look at set expenses like airport leases, airplane purchases and employee wages to determine the difference between your cash reserves and your minimum budget. Deliver a copy of your business plan along with financial statements to improve your chances of receiving a commercial loan.

Resources

• Virgin Charter
• Cessna
• FAA Flight Plan Form
• Civil Aviation Authority of Singapore