Airline business plan

report

definition

Report, Presentation,
Financial Model
key stakeholders
→ Understand market
needs & dynamics
→ Assess competitor
s’offering
→ Anticipate operational
constraints

Step 1 : Gathering Market Intelligence
The first step involves gathering comprehensive market intelligence. This includes conducting an in-depth analysis using market databases and collected data, holding regular alignment sessions with the project team, and interviewing various market stakeholders such as travel agencies, hotel owners, airport management, government officials, and local accountants. The aim is to capture market opportunities and drivers, identify and quantify passenger profiles, review competitors’ positioning and products, assess the potential for market stimulation, and understand any constraints. The main deliverable for this step is a detailed market intelligence report.
→ Differentiate from competitors
→ Meet market needs
→ Develop the airline’s expansion
strategy
→Identify aircraft size and range
needs
→ Set up A/C sourcing strategy

Step 2 : Defining the Operating Model
In the second step, the focus is on defining the operating model. This process includes hosting a business model definition workshop, conducting a preliminary route profitability assessment, and proposing network and fleet planning. The goals are to ensure a common understanding of market inputs, define the business model, develop the business case including routes, frequencies, and fleet planning, and establish costs and revenue assumptions. Additionally, risks and opportunities will be identified and assessed. The key outputs from this step are a workshop and a preliminary report that describes the final business case with assumptions, agreed scenario variants to be modeled, and the identified risks and opportunities.
→ Estimate start-up costs
→ Maximize project attractiveness
to investors

Step 3 : Performing Financial Forecasts
The third step involves performing financial forecasts. This step includes creating analytical financial projections and engaging in iterative discussions on results and assumptions. The objectives are to optimize financial performance and project robustness, ensure the project team is comfortable with all elements of the business plan, and maximize the project’s attractiveness to investors. The final deliverables include an Excel-based financial model, a financial forecast over the agreed period, a detailed initial investment level, a project return on investment (ROI) for investors, and the proposed shareholding structure.