Business plan

BargainAir Express Airways Name subject to change

IDEA PITCH FOR GROUP

Purpose

To provide competitive fares on routes into deep South America where legacy carriers have premium fares.

Example: Miami to Montevideo flights

Realize how there is only one carrier on the route and it is one of

America’s legacy carriers, American Airlines. $1,311 is a bit steep.

Market Analysis

The Low Cost Carrier {LCC} has been an airline model that has surged in popularity and growth within the past few years. In the United States, we have several large LCC’s.

In Europe, the second biggest carrier is an LCC named Ryanair. They also have Norwegian Air.

Market Analysis [Part 2] While Europe and North America might seem saturated with LCC’s, South America is a different story. Spirit Airlines has a great market share for Central American routes and short distance South American routes such as Colombia or Ecuador. On the other hand, there are no American LCC’s flying into deep South America such as Paraguay, Argentina, or southern Brazil.

The primary airlines that do are…

LATAM AMERICAN

DELTA UNITED

AVIANCA

None are considered low-cost

Market Analysis [Part 3]

International competitors based directly on our business model that do fly to South America…

COPA GOL

Only two potential competitors which makes things easier. This is actually great because none of these are from the United States and

we would most likely be based in MIA or FLL.

ROUTE EXAMPLES

I made a map of how this operation might run. We would get “feeder” traffic from the US and feed them to South America. We would use the same narrow-body aircraft because they could fly short routes or long routes which is why they are perfect.

Fleet The airline would be run on a basis or one or two common fleet types (to minimalize maintenance costs). Furthermore, since these are “long- thin” routes for demand, we would use smaller-narrow body aircraft rather than jumbo jets to achieve maximum profit on flights.

That leaves us with…

Airbus 321LR

AIRBUS 220

Boeing 737MAX

Fleet [Part 2] All these options are HIGHLY efficient aircraft with maximum capabilities since these are all new aircraft designs within the past few years.

That means fuel costs will be significantly lower than buying an aircraft from the 1970s, 1980s, or 1990s. [Example DC-10, MD-11, or B747]

Airbus 321LR

AIRBUS 220

Boeing 737MAX

Resources Thankfully, we have a vast amount of resources online for market projection growth, fuel costs, airports, etc. Plus, going to the Boeing or Airbus website, they provide reports about future growth and the way the market is heading. I took a screenshot at just one page on the Boeing website and there are many other pages out there.

Resources [Part 2] I think it’s fantastic that we have all these resources because it allows us to put more facts into the paper and not worry so much about B.S. the project. I noticed in his syllabus he says he wants facts and NOT a lot of “I feel”

KEEP IN MIND WE HAVE TO WRITE ABOUT ALL THESE SUBJECTS SO WE HAVE TO PICK SOMETHING THAT GIVES US A LOT OF RESOURCES AND

SOMETHING AT LEAST ONE OF US KNOWS WELL