Things To Keep In Mind Before Starting An Air Charter Business

Things To Keep In Mind Before Starting An Air Charter Business

Starting an air charter business is a good proposition but it is one of those ventures that are ingrained with some specific risks. Such risks have to be evaluated and assessed prior to investing in the business of air charter. Prior to starting the business one has to be keep in mind the fact that there is a risk of disruption in revenue earning as the charter service is meant for bridging the distances that are not usually covered by mainstream airlines. Air charter business is basically meant for facilitating flights to and from the airports that are often not served by mainstream airlines. Hence, a steady flow of revenue cannot be assured. But if you are going to the get the cooperation of cooperates and government agencies then fortune can be in your favour in terms of prospering in the business.

It should be noted that before starting the airline charter business one has to develop a concrete business plan with that particular company that will address issues like flight range, secondary services, and the plan should also include clauses about initial/start up investment/capital. A three to five years projection must be reflected in the business plan so as to evaluate the ups and downs of the business in the long run. Moreover, for depicting sources of additional revenue the entrepreneur should list airplane appraisal, consulting, etc. The next thing that one has to keep in mind before starting an air charter business is obtainment and allocation of funds. You must be the primary investor but you will be needed other investors too, and hence, you have to approach venture capital firms, banks and also airplane enthusiasts. One needs to approach banks because banks have the potential to offer commercial loans to finance equipments needed for operating the business.

The next step that the entrepreneur should remember in terms of setting up the business is to estimate the infrastructural related costs. In this respect the entrepreneur must visit regional airport to learn about the minimum requirements that are needed for construction permit and land lease related to new airlines operations. For starting the airline charter business you need to have runway space, offices and hangar and that is the reason why before starting the business you must lease land from airport authorities because only they can provide you with the needed amenities. Remember, apart from arranging experienced staff for running the business, before jumping into the business you should seek aircraft certification from the Federal Aviation Administration. There are some compliance issues that have to be satisfied and for that particular reason, being an entrepreneur, you have to keep in touch with government agencies related to the aviation industry. And finally, you have to get into negotiation with jet fuel suppliers having distribution facilities that cover the region in which your business would be operating.

Hence, the aforesaid points must be kept in mind prior to starting an air charter business. Each and every mentioned point is meant to be addressed and each and every requirement is meant to be satisfied in order to ensure that in the long run your air charter business would be running smoothly.

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