The Business: Airsuper

AIRSUPER
Part 02
THE BUSINESS
2.1 BUSINESS SUMMARY
Bangladesh, officially the People's Republic of Bangladesh, is a country in South Asia. It is
bordered by India on all sides except for a small border with Burma (Myanmar) to the far
southeast and by the Bay of Bengal to the south. Its capital and largest city is Dhaka.
Bangladesh has 3 international airports, 5 domestic airports and 7 STOL (Short Take-off and
Landing) ports, with 1 new domestic airport under construction. It also has several airstrips,
some built during the World War II.
Shahjalal International Airport

Official full name Hazrat Shahjalal International Airport (formerly Zia International Airport)
(IATA: DAC, ICAO: VGHS) located in the capital Dhaka, is the largest airport in
Bangladesh. It started operations in 1980, taking over as the country's sole international
airport from Tejgaon Airport. It is the home base and hub of all airlines of Bangladesh,
including Biman Bangladesh Airlines, GMG Airlines, and United Airways.
The airport has an area of 1,981 acres (802 ha). Nearly 52% of the country's international and
domestic arrivals and departures occur through this airport, while the country's second largest
airport, Shah Amanat International Airport in Chittagong, accounts for about 17% of
passengers. Approximately 4 million international and 2 million domestic passengers and
150,000 tons of freight and mail pass through the airport annually.
Shahjalal International Airport connects Bangladesh with many major cities of the world;
Biman Bangladesh Airlines flies internationally from the airport to 13 cities in Europe and
Asia.
Location
The airport is located in Kurmitola, 11 NM (20 km; 13 mi) north of the capital Dhaka.
2.2 OBJECTIVES
The proposed airline will have as its primary objectives the following elements:
1. To establish and operate a new regional airline aiming specifically at linking with the
rapidly expanding markets of Asia.
2. To provide service and absorb unmet demand in three key traffic categories: unserved and
under-served routes on which high demand currently exists or can be developed; serving key
Business Plan on AIRLINE BUSINESS
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AIRSUPER
niche markets where demand is either unmet or poorly served; and meeting peak traffic
demands on certain key regional, seasonal, and variable routes where very high load factors
can be predicted despite existing, but lower-quality, competition.
3. To implement an organizational and marketing strategy that will, beginning in the first year
of flight operations, achieve average passenger load factors in the 65-85 percent range,
depending on route and season, and increasing thereafter to the 75-90 percent range, thereby
maximizing revenues and return on investment while minimizing risk.
4. To achieve net operating profits within the first 12 months of flight operations and steady
growth enabling rational expansion of the airline thereafter.
5. To gear operations, and present a professional, serious, growth-oriented image from the
outset, that will set the stage for reasoned, planned expansion, mirroring growth rates
projected for the first year of operations, and that will enable the airline to extend its regional
scope and, in future years, to transition from its initial regional status into a larger continental
and intercontinental carrier.
6. To become the carrier of choice for locals, expatriates and foreigners traveling to or from
Bangladesh.
7. To embark on strategic cost containment programs and process efficiencies by introducing
quality management systems into the Companys processes.
2.3 MISSION
The proposed new airline's mission, simply stated, is to fill a niche in the growing air-travel
and cargo markets linking Asia; to achieve high, and profitable, load factors by identifying
and serving key routes and city pairs currently unserved, under-served, or poorly served, and
where significant unmet demand exists; and to set a new standard for air service and
professionalism both within the target market region and beyond. To be the most preferred
airlines of Bangladesh.
Airsuper has a mission to provide safe, efficient, low-cost consumer air travel service. Our
service will emphasize safety as its highest priority. We will operate the newest and best
maintained aircraft available. We will never skimp on maintenance in any fashion
whatsoever. We will strive to operate our flights on time. We will provide friendly and
courteous "no frill" service.
By utilizing the latest aviation, electronic, and informational technologies, and by designing
effective and efficient systems and building in quality control from the outset, we aim to
ensure the highest level of service, operations, and safety, all based around the needs, wants,
comfort, and convenience of the passenger and the cargo client.
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In short, this airline wants to be known by its proposed guiding motto: "We've got a job to do,
and we do it every day - for you!"
2.4 KEYS TO SUCCESS

In descending order of importance, the five critical keys to success for the proposed new
regional airline are:
Employing an experienced, highly professional management team that combines
vision; realism; financial ability; solid knowledge of the aviation business; familiarity
with, and belief in, the utilization and benefits of the latest aviation, electronic, and
informational technologies; on-the-ground knowledge of the region and markets to be
served; realization of the crucial importance of an organization's personnel to its
success; and a total familiarity with, and commitment to, the overall mission and
goals of the proposed new airline.
Intelligent, progressive, and aggressive marketing that identifies the airline as a

different kind of player, one that is sharper and smarter, and with a higher level of
professionalism and operational standard than is the norm in the target region.
Concentration on safety, with highly trained, dedicated, and professional personnel,
caring for the passenger and the passenger's needs and wants, the advantages offered
by advanced technology, and straightforward, understandable, highly competitive
tariffs and fare pricing, all will form key pillars of the marketing strategy.
Identification, through careful market research, of unserved or under-served

routes and city pairs in the target market area with sufficient passenger demand to
enable high load factors and profitable operations utilizing the category of aircraft
envisaged.
Use of an all-jet fleet of newer, modern aircraft that offer a high level of comfort,
safety, and fuel and operational efficiency and flexibility, which meet all normal
aviation standards, and which offer sufficient, but not excessive, passenger and cargo
capacity on the envisaged routes.
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Use of advanced electronic and information technology to reduce staffing and
other operational costs; expand the potential market base; readily capture sales
opportunities; simplify and speed passenger, baggage, and cargo handling; and
enhance customer convenience and satisfaction.
Additional important, though less critical, keys to assuring the airline's success include the
following:
Identifying, negotiating, and entering into, in the pre-operational stage and early on,
beneficial associations, cooperation, and partnerships with larger, more established,
highly regarded carriers.
Establishing a high level of operational oversight and quality control.
Avoiding the temptation to go head-to-head with established carriers
Maintaining flexibility that enables the airline
Identifying, developing, and quickly and cost-effectively exploiting opportunities
Looking to combine the core aviation business with ancillary marketing concepts and
activities
Avoiding growth for growth's sake
2.5 DESCRIPTION OF THE BUSINESS

Airsuper, the idea behind its creation is to take advantage of a specific gap that existing in the
Bangladesh Air Transport industry for quality oriented local airline but with a global reach.
The repeated failures of the national carrier and the even enhancing shares of foreign air
carriers in Bangladesh market only made the country, its intelligentsia and its business
community more determined than even before to have an air carrier of Bangladeshi origin,
free of state interference that could challenge the hegemony of foreign airlines and help the
country to gain its rightful place on the global air transport map.
The allocation of more slots for the private airlines was due to a change in the government
policy, as it seeks to inject competition in the aviation industry. The government is now very
liberal. Government encouraging the private sector to have its share of the growing market
and local airline must be ready to face competition and should improve their service quality.
Bangladeshs air traffic grew 7.3 per cent on 2008, making it one of the fastest growing
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aviation markets in the region, but decades of poor performance by the other airlines has
enabled foreign carriers to snatch almost 80 per cent of the market. Government decision
proves that it wants a level playing field in the aviation industry. Airsuper Aviation Private
Limited is an integrated aviation company. The company aims to bring new concepts and
approach to efficiently expand travel and tourism Industry in the country. Airsuper starts
working with few Domestic and International clients.
Airsuper comprises a team of dynamic talented Bangladeshis who are fully committed to
make this vision successful. Involvement in this airline is an opportunity to be a part of a
unique venture that will have a significant impact on national economy. The Company has
been formed with the intention of operating, managing and eventually owning several
commercial aircrafts that will utilize Bangladesh as its base of operations.
Location:
Besides its Head Office at UTTARA and other sales offices at Dhaka, the Company has
airport offices at Dhaka's Shahjalal International Airport, Chittagong Shah Amanat
International Airport. Airsuper has been operating different types of freighter in the Domestic
& International Sectors.
It is anticipated that most routine maintenance will be performed at the base location, with
some more minor maintenance and repairs relegated to other locations in the route network.
In both cases, most of this routine maintenance and repair work will be contracted out to
established and experienced service providers, reducing the need for the new airline to
maintain its own extensive maintenance and repair teams and facilities.
The airline will, however, perform its own normal line maintenance at home base and will
utilize locally available services away from home. Aircraft also may be based at key airline
hub locations away from the home business base as well.
As the fleet expands over time, additional parking and storage space will be needed either at
the main base location or at regional hubs in the airline route network. Additionally, sufficient
office space, preferably in one central location at or near the base airport, will be required to
house the airline's main administrative offices and its central reservations system.
While the airline may consider establishing its own sales offices in key market locations, in
general sales will be handled through a combination of Internet marketing utilizing the
airline's own website as well as other Internet travel websites, designated general sales agents
in given locales, and regular travel agencies everywhere.
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Domestic
Bangladesh
o Dhaka - Shahjalal International Airport (Base)
o
Chittagong - Shah Amanat International Airport
International
United Arab Emirates
o Dubai - Dubai International Airport
India
o
Thailand
o
Kolkata - Netaji Subhash Chandra Bose International Airport
Bangkok - Suvarnabhumi Airport
Malaysia
o
Kuala Lumpur - Kuala Lumpur International Airport
Airsuper will start with a fleet of two B-737 aircraft to operate in the Regional Destinations
such as Kolkata, Jaipur, Bangkok and Kunming; Domestic Destinations like Chittagong and
Sylhet. The second phase will include Far-East, Middle-East by using Wide Bodied Aircraft.
2.6 FLEET
The Airsuper fleet consisted of the following aircraft:
Air One Fleet

Aircraft
Total
Notes
Boeing 737-200
Stored
McDonnell Douglas MD-83
Operated by Trans Global Airways
Total
2.7 WHY AIRSUPER?

Full Service airline focusing on high quality service at a competitive price.
Best domestic Airline in Bangladesh will on a rapid expansion plan to international
destinations.
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Named as the second designated air line by the Civil Aviation Authority of
Bangladesh to serve Dubai, in Middle East; India in Indian sub-continent; Thailand,
Malaysia.
Online in 4 international sectors with a plan to double its international network of
destinations by 2018.
Professional & Qualified Management Team from all corners of the world.
Aiming to be the NUMBER ONE airline in Bangladesh within 2025.
2.8 AIRSUPER AIRLINES WHY DIFFERENT
We have gone through AirSuper positioning factors, to see how they have differentiated
themselves among the other competitors. It refers to any aspect of its product, service or the
organization itself that differentiates it from similar objects. It is either a uniqueness of the
brand or a claim not otherwise made in that particular field by others. However, AirSupers
business Class is designed to give passengers comfort, combined with great service, for an
all-round better flight. Here is the area where AirSuper has differentiated themselves among
the competitors with some diverse characteristics. LikeElegance of AirSuper
AirSuper is highly exclusive in terms of products and services with the elegance. This will
make passengers the ultimate in flight comfort and luxury. Starting from their flight
attendants, their approach, and dress up, the generous seat pitches, the entertainment systems
all give the long flights a royal look.
Seating Arrangement
In order to give an experience of comfortable journey, AirSuper contour seats with 32-34 inch
seat pitches or a 3-4-3 configuration, rather than the customary 3-3-3 configuration. Each seat
boasts lumbar support, wonderfully spacious, and comfortable with adjustable headrest,
recline facility, flexible side flaps, personal seat-back entertainment system with power and
USB connection. Considering the spacious comfort, in Airbus A380 they limit their seats into
500+ only, whereas they have the capacity of 800 seats there in economy class. Comparing
to other airlines, Emirates has been most conscious about the seating comfort of passengers
of economy class.
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Communication & Entertainment
Passengers get to enjoy the award-winning Information, Communication and Entertainment

(ice) system. Over 600 channels of on-demand entertainment with personal digital
TV screen, makes the hours slip for the passengers. Plus, high speed internet is also
available in-flights, which enable to be in touch with the ground with in-seat satellite
telephone, e-mailing, text messaging, and laptop recharging facility. Apart from
that, it also includes 130 on-demand films, 15 video on-demand channels, 60 prerecorded channels, 350 audio channels, and about 50 video games, available in 7
languages. Direct data link with BBC news, and IPods integrated with the system
to control and play video and music, are also available there.
Seating Arrangement
In order to give an experience of comfortable journey, AirSuper contour seats with 32-34 inch
seat pitches or a 3-4-3 configuration, rather than the customary 3-3-3 configuration. Each seat
boasts lumbar support, wonderfully spacious, and comfortable with adjustable headrest,
recline facility, flexible side flaps, personal seat-back entertainment system with power and
USB connection. Considering the spacious comfort, in Airbus A380 they limit their seats into
500+ only, whereas they have the capacity of 800 seats there in economy class. Comparing
to other airlines, Emirates has been most conscious about the seating comfort of passengers
of economy class.
In-flight catering facility
AirSuper will offer in flight catering facility which is most modern and integrate perfectly
cooked, absolutely hygiene, and totally fresh food production with thoughtful preparation and
automated equipment handling. The kitchens add in preparation areas for Chinese, Japanese,
Asian Sub- Continental, Arabic, Middle Eastern and Continental meals. AirSuperwill also
range foods according to medical, dietary and religious special meals. However, despite the
varied range of dishes produced, no pork or pork products ever enters there and all food
products are halal. Every foods serve on AirSuper are planned and prepared with the same
care and the same high-quality ingredients, Emirates claims.
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Flight Attendants
Flight attendants of AirSuper are highly distinguishable for their style and elegance. AirSuper
have been recognized for having the best-looking flight attendants and uniforms in the
industry. They are from various background and multilingual, which helps to have effective
communication with the passengers. AirSuper ensure that every passenger enjoys the same
high standard of service from their attendants with polite, knowledgeable and sophisticated
presentation.
Hi-tech Aircrafts
AirSuper are outstanding for aircrafts with superior technology. In spite of being so powerful,
the engines are comparatively quite enough. Other Airbus and Boeing are also enriched with
powerful engine and security. These will make AirSuper one of the fastest growing airlines as
well as safest flights in the sky compare to others.
2.9 AIRSUPER GETS A FACELIFT

At Airsuper Airlines, we are turning over a new leaf to deliver international standard service.
That means on the dot time management, state of the art aircraft and service that we would
want ourselves. Imagination with hopes, with dreams of something better, something greater,
something more grand than grand itself we have redesigned our organizational structure and
our management to bring our offerings on par with the leading standards of aviation.
2.10 AIRSUPER SERVICES

As demonstrated throughout this business plan, it is clear that a strong growth potential exists
for the future, and the airline will gear itself toward sensible, well-based growth and solid
financial and business planning. The proposed new airline has the potential to become a
strong, well established, and as the numbers indicate extremely profitable carrier, starting
from now.
2.11 IN THE AIR

At Airsuper Airlines we believe in simplicity, and giving our passengers outstanding value for
money- because you're special to us All Airsuper Airlines passengers are offered a lipsmacking full hot meal. Safety and comfort for our passengers is a top priority. We always
use the highest safety precautions on every flight, and we make sure passengers always have
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blankets and pillows for extra comfort. Because we know that not everybody out there is a
fan of things like eel, squid, or long green beans, we make sure that our on-board food caters
for everyone's tastes. If you have special dietary requirements (like an irrational fear of
carrots), simply inform us when you make your reservation, and we'll make sure it's not a part
of your meal. Airsuper launches flight-shuttle bus service between Hazrat Shahjalal Internal
Airport in Dhaka and Chittagong offering its passengers the option to take a direct route to
the port city.
The new service is aimed to greatly enhance convenience for passengers who will be
travelling or lives outside Dhaka.
In reviewing the planned services to be offered by the proposed new airline, this plan will
divide services into two main categories: passenger services and cargo services. Within each
category, the service strategy as well as general services to be offered are presented and
reviewed.
2.12 START-UP SUMMARY

Most of the planned start-up costs are apportioned to the following six areas, in
approximately declining value:
1. Dry leasing or purchasing three (followed by two more by the end of the first year of
operations) mid-to-large-size regional jet aircraft.
2. Provision of a sufficient cash reserve to assure timely payment of the leasing or
finance payments and operating costs of the aircraft through at least the first six
months of operations.
3. Marketing, advertising, and public relations costs, including costs of setting up a
website capable of offering flight and fare information and making online sales and
reservations, and related Internet marketing, as well as conventional print and
broadcast advertising, and public relations activities.
4. Costs associated with recruiting, training, and certifying flight and ground operational
crews.
5. A reserve to cover overall operating costs, aside from aircraft operating costs, over at
least the first six months of operations.
6. Administrative and legal costs incurred in setting up the business and the airline
operations.
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2.13 SPONSOR:
CHAIRMAN
CHAIRMAN
Israt
Jahan
Tama
Israt
Jahan
Tama
CHIEF
CHIEF
FINANCIAL
FINANCIAL
OFFICER
AND
OFFICER
AND
TREASURER
TREASURER
DIRECTOR,
HR
&&
DIRECTOR,
HR
R&D
R&D
Thuhin
Roy
Thuhin
Roy
Amjadur
Rahman
Amjadur
Rahman
AIRSUPER
AIRSUPER
AIRLINES
AIRLINES
DIRECTOR
OF
DIRECTOR
OF
MARKETING
MARKETING
AND
SALES
AND
SALES
MANAGING
MANAGING
DIRECTOR
OF
DIRECTOR
OF
OPERATIONS
OPERATIONS
Morshed
Alam
Morshed
Alam
Mehedi
Hasan
Mehedi
Hasan
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Our sponsors are the total investment. The rest 100% of the capital was invested equally by
the principals. The following table summarizes the investment scenario:
Accounts required and contributed

Total Requirement
Amount in TK.
Percentage
(approximately)
100%
Israt Jahan Tama
135,297,100
22.55%
Thuhin Roy
135,295,400
22.55%
Amjadur Rahman
29,057,400
4.84%
Morshed Alam
300,000,000
50%
Mehedi Hasan
350,100
0.06%
600,000,000
100%
TOTAL
2.14 TECHNOLOGY:
All equipment and systems that will be utilized by Airsuper has been carefully and diligently
evaluated. Management feels that it is an advantage to be starting an airline today vs. using
many of the systems that burden even the largest domestic carriers with extra cost due to
outmoded technology.
Flight may be based on aerodynamics, but the proposed airline will be based on technology,
and lots of it.
Efficiency
and
convenience through
use of the most up-todate
informational
and
electronic
technologies,
in
addition to modern
aviation
and
navigational
technology, is guiding
principal
of
the
proposed new airline. Technology will also be a cornerstone of the new airline's marketing
strategy.
Airsuper will start with a fleet of three B-737 aircraft to operate in the Regional Destinations
such as Kolkata, Jaipur, Bangkok and Kunming; Domestic Destinations like Chittagong and
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Sylhet. The second phase will include Far-East, Middle-East, Europe and USA by using Wide
Bodied Aircraft.
Airsuper has also developed a strong base in the total Aviation Business and offers a varied
range of Aviation Services including Aircraft Sourcing, Emergency Evacuation of Patients
and VIP Aircraft Mobilization. Among the technological features the new airline will offer
are:
Internet marketing and online reservations (e-reservations) and sales (e-sales)
that will provide quick and easy access to airline schedules, flight availability, reservations,
and ticketing to a wide range of customers worldwide. This eliminates payment of agency
commissions and keeps costs low - savings that can be passed on to the customer.
Electronic ticketing (e-ticketing) which will enable passengers to obtain their tickets
online and avoid the need to obtain paper tickets from airline offices, travel agencies, or at the
airport. It also frees the airline from having to stock, track, and issue tickets and maintains
paper trails of them. Again, more savings for both the airline and the customer.
Electronic check-in (e-check-in) that will virtually eliminate waiting in line to

check-in for e-ticketed passengers, enabling them to confirm their identities, obtain their
boarding passes, and check-in their baggage (and even purchase tickets upon check-in)
utilizing a user-friendly kiosk that eliminates those last-minute frustrating waits to get to the
counter. And it also greatly reduces the airline's needs to staff check-in desks, control long
lines, employ local contract ground staff, and expend money and resources on an antiquated
system that only adds to the traveler's inconvenience and frustration. Another win-win
situation for both airline and passenger.
Electronic baggage tracking (e-baggage tracking) which will enable the airline to
track any piece of baggage from check-in to final pick-up and claim. If courier services can
track parcels as they move around the world, and enable customers to track their parcels
using tracking numbers and online tracking systems, then why can't the same system be used
to assure that no passenger will ever again have to wonder where his or her baggage might
be? There may still be contingencies (such as late check-in, lack of space, security
restrictions, late connections, and so forth) that cause baggage not to be placed on a given
aircraft, but at least both the airline and the customer can be assured that they both know
exactly where the given item of baggage is at any moment, and when it might be expected to
arrive at the destination. This could well be an exclusive feature of the proposed new airline
since no other airline appears to be utilizing it at present.
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Electronic cargo tracking (e-cargo tracking) is the same basic idea as e-baggage
tracking, and will use the same basic system, only for tracking cargo and parcels.
Electronic quality control (e-QC) is another innovation that will enable technology
to create a far better flying experience for the customer, give airline management and staff
greater control over airline operations and performance, and save time, effort, money, and
staff resources in the process. What is envisaged is a central electronic matrix that controls
and monitors scheduling of aircraft, equipment, personnel, supplies, and support materiel, and
responds to problems, excesses, and deficiencies.
It also will track all elements of a given passenger's or customer's transactions and
interactions with the airline, from initial flight inquiry through reservations, ticketing, checkin, flight, connections, and final baggage pick-up, claim, and check-out, as well as any
standing preferences, follow-up comments, inquiries, or problems. It also will monitor things
like weather conditions, flight delays or projected delays, gate jam-ups, and other
contingencies, and will automatically notify appropriate airline personnel as well as
passengers and customers of any advisories, warnings, or changes.
Electronic financial control (e-finance) will enable complete electronic financial

control and monitoring of the airline's finances, clear advantages.
Additional
technological features will
be incorporated on-board
the aircraft to provide
flight crews with the latest
navigational
and
communication technologies
to assure the highest level of passenger safety and also airline reliability and punctuality.
Included in this technology, in the case of the Avro aircraft, is all-digital ARINC 700 avionics
with advanced Cat IIIb low weather-minimal landing capability to permit landings under the
poorest permissible approach and visibility conditions.
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Part 03
MARKET ANALYSIS
3.1 MARKETING ACTIVITIES:
Marketing is a process of finding out what the customer wants also gathering those
requirements. Because an efficient marketing program needs every company to fulfill
customers' needs. Within the company, the marketing group has to consider customer values
and customer satisfaction before considering offering a service.
Other definition of marketing is the "selling of products or services: the business activity of
presenting products or services in such a way as to make them desirable. However, the formal
definition of "marketing is an organizational function and a set of processes for creating,
communication, and delivering value to customers and for managing customer.
3.2 TARGET MARKET

Initially the first and the most important part of marketing activities is the target market.
Target means set up a goal. For our Air line business the first target market is the
businessman. We will provide superior personal services to buyers. Our customer service
philosophy is unique. Our target countries are Asian Country like India, Malaysia, Thailand
and United Arab Emirates.
3.3 MARKET SEGMENTATION

A complete market analysis and segmentation will require a specific passenger and
destination survey, the cost of which is included in the Start-up Costs for the airline.
Preliminary analysis (based on a variety of methods, including observation, interviews with
travel- and airline-industry professionals, economic segmentation, future projections based on
marketing plans, and experience with the region and market) for planning purposes, however,
indicates the following approximate market segmentation overall (considerable variations, of
course, would be anticipated depending on route, season, and other factors):
Business - 15%
Government and International Organizations - 10%
Regional Resident Personal and Leisure Travelers - 20%
Diaspora Personal and Leisure Travelers - 10%
Western European Personal and Leisure Travelers - 5%
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Seasonal Holiday Travelers - 10%*
* The seasonal/holiday travel segment of the market to some degree distorts the overall
market percentages, but might initially be anticipated for two reasons: first, it compensates
for the drop in business and government travel that can be expected during the peak summer
holiday travel season; second, a significant portion of this traffic is likely to be carried on
flights employing specially chartered or wet-leased supplemental aircraft.
The accompanying Market Analysis chart below show total potential markets based on
estimated population in each segment, as well as potential growth rates in air travel in the
new airline's target market region within those segments, but do not reflect the anticipated
passenger demand from those markets. Overall make-up of the airline's anticipated passenger
loads by market segment are presented above.
3.4
4P Analysis: AirSuper
=====================================
As per our objective of the report, we will mainly focus on the marketing strategies of
AirSuper and therefore starting with finding 4Ps which will only cover the Product/ Service,
Price, Promotion and Place/ Distribution strategy of Emirates Airlines.
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Product Service
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
For any marketer to implement any marketing strategy it is vital to start with the analysis of
the Ps staring with product or service. But before that marketer need to find out the effective
customer segment and also based on that need to position the product or service. In this report
we have come up with the effective market segment of AirSuper Airlines.
As AirSuper Airlines is the service providing company, the product will be the service.
AirSuper Airlines is the other synonym of high quality service. We will position ourselves in
the market as the high quality service provider among all other competitors. Their service is
not only blend with quality but also touch of royal feelings, warm hospitality and also
technology. In our assessment we have found out some services that are claimed to be their
strength and uniqueness.
Price
--------------------------------------------------------------
Perfect pricing is one of the most important parts for any marketer as it has direct effect on
the level of service and also the profit for any business. Here in Air Super Airlines for the
business classes we have analyzed the price of ticket for few locations and found out its
pricing behaviors those are described here in a gist.
Pricing Strategy
We determined the price of our fair based on value based pricing method which does not
depend on the cost rather depend on the value of the service that we are offering. Firstly we
determined how much money our customers will be willing to pay to get the service that we
are providing and then accordingly we determined our cost budget to match that price and
have a profit. For pricing the foods of our food corner we will charge One Taka more than the
market price.
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Like everything else about it, the new airline's pricing strategy will also set it apart from the
pack and will form a key aspect of its overall marketing strategy.
It is almost a stock joke, the unwieldy and impenetrable forest of airline tariffs and fares and
promotions (often available for something like three seats on a flight - and that is meant to
win customers) common in the industry today. Few things have garnered the notoriety and
degree of customer suspicion and dislike that airline pricing has, and yet there are few moves
afoot to improve the situation.
We intend to change that, and will not only make our business more predictable and "userfriendly" to the passenger, but also will help fill our planes and make our financial direction
more predictable and clear to our management and our bankers as well.
The game plan is simple enough, offer customers good service to places they want (or need)
to go to, and at a fair and predictable price. Competition on the basis of price alone has
spelled disaster for more than one carrier, and once down that slippery slope it is hard to turn
back. And while price is clearly an important factor driving the marketplace, it is by no means
the only one. It will not be our aim to be the lowest-priced competitor in the market (though
we may be on occasion). Nor will we seek to be the highest priced, either. Fairness, clarity,
and a rational fare basis, combined with better service and greater convenience than offered
elsewhere will be our guiding principles.
Essentially, we will work from only two sets of fares (existing for market segmentation
purposes) for our service:
Weekday fares, in both Value and Premium (aimed primarily at business travelers who
are willing to pay a higher price to be able to go and come back during the week).
Stay-over weekend fares, in both Value and Premium (aimed more at the personal or
leisure traveler for whom price is more important than traveling mid-week).
Route
Amount of TK.
Dhaka to Chittagong
2000
Dhaka to Sylhet
1500
Dhaka to Dubai
60000
Dhaka to India
20000
Dhaka to Malaysia
25000
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Dhaka to Thailand
15000
The only variations on those fares will be these:
Set, publicized discounts for early reservations and purchasing tickets in advance.
Set, publicized discounts for reserving and ticketing online, electronically.
Seasonal and certain peak-period adjustments to the basic fare or adjustments due to
spikes in fuel prices and the like.
Infant and child discounts based on the original fare (up to free in the case of infants).
Given our stress on electronic reservations and ticketing, most tickets will be paid for in
advance of the departure date, which means the new airline - again, as part of its marketing
strategy and offering a higher level of concern for the traveler - should avoid the common and
much detested practice of overbooking. This also is where stand-by can help fill any voids
that may occur.
In addition, fares for the most part should be based on some rational system that is calculated
on distance and actual costs, and not simply what the market will bear.
Place
--------------------------------------------------------------
For making the product or service available near to consumer door, distribution or
product placing plays an important role. It can be in direct forms and indirect
distribution.
AirSuper Airlines uses both the form, for example tickets are available at their head
office or regional office or ticket counter. In indirect distribution they uses different
travel agents. Apart from that passenger have the flexibility to book the ticket through
internet using their web site www.AirSuper.com.
Besides its Head Office at UTTARA and other sales offices at Dhaka, the Company
has airport offices at Dhaka's Shahjalal International Airport, Chittagong Shah
Amanat International Airport. AirSuper has been operating different types of freighter
in the Domestic & International Sectors.
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AirSuper will start with a fleet of two B-737 aircraft to operate in the Regional
Destinations such as Kolkata, Jaipur, Bangkok and Kunming; Domestic Destinations
like Chittagong and Sylhet. The second phase will include Far-East, Middle-East by
using Wide Bodied Aircraft
Promotion
----------------------------------------------------------The overall concept and design of the airline sets the stage for its promotion. Marketing and
promotion will stress the unique qualities of the airline and the points that set it apart. Strong
public relations combined with well-placed, well-designed, distinctive advertising appealing
directly to people who are the airline's prospective customers will help get the word out.
Special effort must be made to develop and operate a highly functional, fast, rock-solid, and
user-friendly website for online information, reservations, and e-ticketing. Internet marketing,
combined with conventional non-Web marketing, will steer people to the website. The more
customers use the website, the easier and more pleasant the experience will be for them, and
the more economical and efficient, and predictable, will be the process for the airline.
Special attention will be made at the outset to reach the trend-setters and opinion-leaders in
our various target markets, even going so far as to arrange personal meetings between airline
executives and marketing directors and those opinion leaders, particularly either in Asia who
deal or otherwise have a close connection to the target region.
While in general, special promotional fares and the like will be limited, the airline may
consider launching with a special promotion simply to get known and to "get off the ground"
with planes that are not mostly empty, as is often the case with new airlines. Overall,
management and the sales and marketing department will coordinate closely and will employ
outside consultants as need be to assure the most positive possible launch.
Advertising
Marketing is one kinds of valuable property for every company. Although often there is the
misconception that marketing is advertising only. There is in fact from reality advertising is
just one step of marketing. So we will follow the all steps of the marketing activities. So we
will design and use new marketing mix vehicles to convey our existence. We promote our
Airsuper service we will give advertisement in different media. Since the objective of giving
our ads will be to inform and persuade people to buy our service we will chose television,
newspaper and to some extent billboard media to give ads.
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Communication Tools:
Broadcasting Media: TV and special Show.
Printing Media: Current Newspaper, magazines and Poster.
Direct Mail: subscriber lists.
Others Media: Banner, Internet, Billboard, workshop etc.
Others Communication tools: Fair, Leaflet, Brochure, Dairy, Calendar, Moneybag,

CD Web site, Email list, SMS.
From our website buyers will know about:

I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
Company
Annual Turnover.
Numbers of employees.
Total number of Aircraft.
Total capacity of seat planning.
Name of Airlines.
Address of ticket office.
Types of facilities offer.
Quality control.
Sample.
Telephone.
Fax.
E-mail.
Timing:
The T.V ads will be telecast at night and preferably after and before the news and the daily
soaps that are aired on screen. Newspaper ads will be given on Fridays and billboard ads will
be given throughout the year only for the first year of inauguration of our Airline service. The
sales promotion techniques will be applicable during particular holidays and festivals. The
sales techniques and networking system will be implemented throughout the year until they
are changed.
The airline's strategy has already been adequately explained elsewhere in this plan: target
unserved and under-served markets, seek out niches and unmet demand, and offer a higher
level of service and a higher standard than the competition. The airline will utilize technology
to reduce costs and offer better service and greater convenience to the passenger.
In this section we'll examine how the new airline will go about cutting out its niche through
its marketing strategy.
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3.5 MARKETING STRATEGY
The proposed new airline intends to cut out new territory as it goes about marketing itself.
While it will clearly serve the target markets of Asia, it will just as clearly be a different kind
of player on the field, and will seek to be known not only as an Asian airline. The airline's
emphasis on the latest information and electronic technology, and its stress on comfort,
convenience, safety and customer service, will be cornerstones on which the marketing
strategy will be built.
The airline will utilize a combination of methods to achieve the recognition that it both
desires and needs. A fairly large advertising budget is planned to buy the space and time to
get its name and message in front of the largest possible group of potential customers that it
can. Given the crowded field of Asian regional airlines, it is better to come on like a lion than
a lamb, or you may be lost in the herd.
The airline will also utilize public relations to good advantage to extend and supplement its
advertising budget.
There are a number of "hooks," aside simply from its newness, that the airline can utilize to
get the media's attention. The airline is opening up new markets, and it also is transcending
the technological barrier with the latest technology in the business in Asia, or anywhere. It
has big ambitions, but knows that it needs to serve the customer first to realize them. And it
wants to know and serve its markets better than anyone else.
3.6 SALES STRATEGY

The airline's sales strategy will flow from its overall concept and marketing approach. Mass
marketing, but with a personal touch utilizing airline employees as spokesmen will aim to
steer as many people as possible either to the airline's website, or to its telephone-based
customer-service representatives. While clients are free to utilize their own travel agents, and
the airline may also want to be accessible through general travel sites the more customers that
can be encouraged to use the airline's own reservations and ticketing services, the less
revenue will have to be shared in the form of expensive commissions.
E-reservations and e-ticketing, combined with e-check-in, make the most sense for any
customers who have online access, and also for the airline itself. But nonetheless, the airline
must not lose sight of the fact that many people do not have access to the Internet, or do not
care to use it to arrange their travel, or perhaps just prefer a more personal touch, and so other
means of access must always be readily available.
The regional and specialized sales and marketing managers, as explained in the section on
Personnel, will concentrate their effort on targeting specific clients that have the potential to
offer corporate or group travel or who are potential air-cargo customers. The airline will not
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have the resources to field a large sales team, and so these regional managers must target their
efforts, and the airline must effectively utilize its mass marketing methods as well as the
Internet to attract individual travelers who, once they experience the new airline, hopefully
will feel a close affinity toward it and will become loyal and happy customers.
3.7 SALES FORECAST

The company is forecasting very encouraging annual sales in year one of flight operations.
Year two of flight operations sales are forecasted to more than double. Assumptions made for
load factors are: 55% in year one, 62% in year two.
The company has also prepared five-year projections that are based upon expanded service to
additional market areas. This five year plan is a part of our due diligence package. These
sales costs consist of travel agent commissions, credit card discounts, and federal excise
taxes.
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3.8 SWOT Analysis of AirSuper

Strength
Weakness (Based on others experience)
Royal Touch of Middle East.
Multi lingual flight attendants from
Aircrafts
are
with
Food
Standard
will
varies
with
location. .
superior
technology.
luggage.
various backgrounds.
Delay of connecting flight and getting
Only one Bangladeshi flight attendant
Seating arrangement, Entertainment,
for all Bangladeshi passengers, in one
and Internet facilities.
flight.
Discount
facilities
on
special
occasion
Service standard of economy class is

lower in Bangladeshi flights.
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Threat
Opportunity
Multiple competitors from the same
British Airways, one of the major
region (like Etihad, Qatar, Saudi and
competitors of AirSuper, has turned off
Gulf Airways) and splitting down of
their business in Bangladesh.
customers due to this reason.
Availability of Cheap labor here.
Lack of Air Port management
A huge number of Hajjis at Hajj time
system and necessary facilities in
provide a large number of customers at
Bangladesh
a time.
(Like-
Lighting
problem, air traffic etc).
Bangladesh is the country of worlds
Rising fuel price.
largest sea beach, which can act as a
Price sensitivity of Bangladeshi
major influencer to bring customers.
people.
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3.9 OPERATING PROCEDURE:
The company will be organized into five major operational areas:
1. Flight Operations.
2. Maintenance.
3. Financial.
4. Marketing.
5. Customer Service.
3.10 OUR ROUTS OF OPERATION:

Airsupers current schedule covers 7 destinations both domestic and international. Dhaka is
the hub of the airline and also the largest gateway for international air traffic into and out of
Bangladesh. Dhaka is expected to serve approximately 3.8 million passengers in 2010-11 as
per data from MIDT. The biggest single country for traffic from Bangladesh is Saudi Arabia
which is home to approximately 2 million expatriate Bangladesh nationals. United Arab
Emirates, other GCC countries, Malaysia, Singapore, Thailand, United Kingdom, United
States of America are other major destinations from Bangladesh.
The schedule can be divided into three categories
1. Domestic
2. International narrow body services
3. International wide body services
Airsuper currently serves two domestic points Dhaka and Chittagong. With the return of all
Dash 8s currently in the fleet back to service after their respective checks, services to one
more key domestic point Sylhet is expected to resume.
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International services with narrow-body aircraft include operations to India and the Far East.
Kolkata is served twice daily from Dhaka and seven times a week from Chittagong. Total
21weekly services with Boeing 737-200aircraft.
Kuala-Lumpur is served daily with McDonnell Douglas MD-83.
International services with wide-body aircraft include operations to Dubai
Dubai thrice weekly with McDonnell Douglas MD-83.
Dubai is expected to be operated four times weekly.
Abu Dhabi is expected to be served thrice weekly.
Airsuper has the target to operate the following routes*:
From Dhaka
Domestic (with 2 aircraft)
Chittagong 32 per week
Sylhet 14 per week
International (with McDonnell Douglas MD-83)
From Dhaka to
Kolkata 14 per week (with Boeing 737-200)
Kuala Lumpa 7 per week
Bangkok 3 per week
Dubai 3 per week
Abu Dhabi 2 per week
From Chittagong
Domestic
Coxs Bazaar varies depending on season
International
Kolkata 7 per week
Bangkok 3 per week
* Routes and frequencies are subject to change as per market demand.
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3.11 LIST OF AIRLINES OF BANGLADESH

This is a list of airlines which have an Air Operator Certificate issued by the Civil Aviation
Authority of Bangladesh.
Airline
IATA
ICAO
Callsign
Best Air
5Q
BEA
BEST AIR
Biman Bangladesh Airlines
BG
BBC
BANGLADESH
Bismillah Airlines
5Z
BML
BISMILLAH
GMG Airlines
Z5
Royal Bengal Airlines
4A
United Airways
4H
UBD
UNITED
BANGLADESH
Zoom Airways
3Z
ZAW
ZED AIR
Hub Airport(s)
Shahjalal International
Airport
3.12 REQUIREMENTS FOR INTERLINE ARRANGEMENTS

In order for the new airline to be able to obtain the interline arrangements such as codeshares, interline fare agreements, frequent-flyer mileage sharing, and so forth, that will be so
important to its competitive posture and overall success, it must:
Meet the standards to have a two-letter airline code.

Meet the highest standards for safety, reliability, and service.
Be accessible through normal reservations and ticketing systems.
Meeting these requirements, and negotiating the desired agreements, will be priorities from
the outset in setting up the new airline. Additionally, partnering and interline arrangements
will be carefully identified and sought that will offer the new airline strategic partnerships
that will help give it the "cover" of larger, more established carriers, and also the status and
service and growth potentials it will need to grow beyond its initial stage and to become a
true presence in the aviation world. Operation of a single type of aircraft will have significant
cost, maintenance, and training expense reduction. So we have a expense of this mandatory
cost.
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3.13 AIRCRAFT SELECTION
Several potential fleet aircraft and manufacturing sources are being considered and evaluated,
including the following:
Boeing 737-700
McDonnell Douglas MD-83
Also, in an all-freighter configuration, the BAe 146-200QT** and BAe 146-300QT**
* QC = "Quiet Convertible" version allowing quick-conversion from passenger to fullfreighter configuration; only five of these - the complete production run - currently are in
service worldwide.
** QT = "Quiet Trader" all freight version, of which in service there are 13 in the 200 version
and 10 in the 300 version.
A number of key factors have mitigated toward the probable aircraft of choice for the new
airline. Among those factors are the following:
1. Relatively low per-seat acquisition cost.
2. Four-engine configuration which gives it an added safety factor (while also increasing
operating costs, however).
3. Spacious, comfortable cabin interiors that offer the only seat, aisle, and overhead bin
dimensions available in a regional jet that are equivalent to those on standard-size jets.
4. The option of flexible cabin and seating configurations that allow for varying the
number of seats provided for various classes depending on demand, the number of
seats abreast, types of seat coverings, the number of seats provided on a given flight,
and so forth.
5. Availability of the aircraft from various sources on both lease and purchase bases.
Seating capacity is an important consideration both from the point-of-view of capacity, load
factors, and per-passenger-mile costs, but also from the point-of-view of "scope clauses" in
pilot union contracts.
There are trade-offs with both series to consider: The 100 series offers greater capacity
without the need to go to six-abreast seating and lower per-passenger-mile costs at higher
capacities, but it also offers somewhat less range and requires a longer takeoff roll than the 85
series.
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3.14 AIRCRAFT ACQUISITION
Another issue still being evaluated and which will be decided is the question of how to
acquire the aircraft. For a variety of reasons, including the ease with which the leases can be
cancelled by the lessor and the lack of "ownership" of the aircraft, wet leasing has been ruled
out except for short-term acquisition of aircraft that would be employed in meeting peak
demand-type services as outlined elsewhere in this business plan.
The two remaining options both need to be examined from cost, flexibility, and finance points
of view: Dry leasing the aircraft (generally on a five-year lease), or outright purchase. Both
provide long-term control over the aircraft, and while both options tend to restrict changes in
the fleet that might be preferred after the initial years of operation, market conditions and
high demand for aircraft indicate that it would be relatively easy to be released from the
leases, or to sell or lease the aircraft to new owners or operators, or to return them to their
sources.
3.15 MAINTENANCE:
All regular "A" and "B" maintenance will be performed by Airsuper personnel at our own
leased facilities at each airport served. We will also have tools and parts inventory at each
site.
Ground Handling:
Airplane parking services, baggage loading and unloading, and baggage and freight handling
services will be outsourced at all airports other than the Any country hub where these services
will be performed by Airsupers personnel.
Food Service:
All condiments and beverages served on Airsuper flights will be purchased from in-flight
food service providers.
3.16 CREW RESOURCE MANAGEMENT:

It is a formal training program which is set up to concentrate on the human factor in aviation.
Airlines were noticing that although pilots were technically competent, their people skills
were deficient. In other words, the captain could fly a perfect, but could not work in a
synergistic environment to effectively accomplish tasks. This can create a potentially
dangerous situation. Our training managers teach pilots how to improve communication,
prioritize tasks, delegate authority, and monitor automated equipment.
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3.17 THE TAKEOFF BRIEFING:
The takeoff briefing is one of the most important briefings during the course of a flight. This
just means that we are going to do what we said you would do. A crew briefing is not limited
to reviewing an instrument approach procedure, or detailing aspects of the flight to the flight
attendants.
3.18 OPERATIONAL ADVANTAGES:

Over-all operations will be seamless from area-to-area of Airsuper management information
systems as a whole. Most systems utilized by the major carriers today are put in place more
than 20 years ago. Thus, there is a constant need for each operational area to "talk" or "retransmit" essential data to one and other. Not only will Airsuper's information systems
operate "seamlessly" but they will also greatly enhance the ability to conform to all
compliance requirements.
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Part 04
Management
4.1 PERSONNEL
We all know that for being a good work we always need a good person. So making a good
business we always need a good person. So personal is one of the major parts of the business
plan. In operating our business efficiently in every step, we have to hire some qualified
employee. More than in most businesses, management is critically important to an airline,
and especially an airline envisaged as this one is. To reiterate a point made early in this plan,
the right management team is seen as the first and foremost key to the success of the overall
venture. We endeavor to have such a team.
In here we will show our official person by category wise. The levels of organization
(reflected in the personnel and salary chart in the Personnel section of this plan) are as
follows:
President and chief executive officer (who reports to the Board of Directors of the
airline company).
Vice president and general manager.
Functional vice presidents for the core areas of commercial activities, finance, and
operations.
Directors covering sales and marketing, communications, human resources, flight

safety, flight operations, ground operations, maintenance, and information systems.
Managers in sales and marketing, as well as in station management functions.
Professional, engineering, ground handling, service, and other support personnel.
On the flight side, which reports to the director of flight operations and also responds to the
director of flight safety, there are only three levels of personnel:
Captain;
First officer;
Flight attendant.
Salary scales and levels of authority have been simplified and based on a rational scale
allowing for similar levels, though of different natures, of functional work to be compensated
at the same pay levels. The overall objective is to foster an atmosphere of cooperation and
shared responsibility to the overall mission, which is to provide the customer and client with
the best possible, safest, and most satisfying experience with the airline. Cross-training and
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cross-functioning are important parts of the organization plan, as explained in more detail
elsewhere in this document.
4.2 MANAGEMENT TEAM

A complete management team, covering the elements of administration, aviation, and
finance, is being assembled. This team brings together a wide range of skills and backgrounds
covering the key areas needed to form, launch, and operate the airline, and from a range of
national origins.
4.3 MANAGEMENT TEAM GAPS

It is premature to speak of management team gaps until a core management team is named.
The individuals who will play leading roles with the new airline will need to possess the
widest possible range of the requisite skills. The current project team believes investors in the
airline will want to play a key role in helping formulate core management. Once primary
investment is established, that step can be undertaken, and it is anticipated that the core team
will be finalized quickly.
The new airline will need people with skill, experience, energy, and vision to head up and
serve in such areas as information management, flight safety, aviation operations, aviation
maintenance, ground operations, sales and marketing, communications, and human resources
management. Also good pilots, co-pilots, cabin crew members, and ground staff, and
administrative staff.
4.4 PERSONNEL PLAN

Along with aircraft acquisition and operating costs, personnel costs represent one of the two
largest cost factors faced by the new airline. Additionally, the airline's personnel will largely
determine the success of the venture. Therefore, it is crucially important to develop and
implement an effective personnel operations and compensation plan.
The Personnel Plan for the new airline reflects the stress on the use of technology to reduce
staffing and costs, and the concomitant stress on customer service. Consequently, staffing is
heavier in such areas as information technology and oversight of such functions as human
resources, flight safety, flight maintenance, and ground operations than might otherwise be
the case with a smaller regional airline. On the other hand, functions such as sales and
marketing, bookkeeping and finance, and personnel management are reduced, with the
assumption being that the effective use of advanced, cost-efficient informational technologies
in these areas will make up for the reduced staffing, resulting in significant cost savings while
providing superior results at less effort.
Staffing in the sales and marketing area is aimed at targeted customer contact to generate
corporate and group business, rather than individual sales, and to develop special marketing
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programs designed to generate significant increases in both passenger and cargo business.
Responsibilities will be divided along both regional and functional lines, with three regional
sales and marketing managers and two targeted, global sales and marketing managers (one
responsible for special sales aimed specifically at the peak traffic/special flights/holiday
travel/charters market, the other for air cargo sales), reporting to one director of sales and
marketing. Additional personnel will answer customer inquiries and take reservations on the
telephone at central headquarters, with phone calls forwarded to them from throughout the
airline market area, and also will respond to e-mail/website-forwarded inquiries.
All key functional positions throughout the airline, including in the sales and marketing area,
are backed up by professional support personnel, most of whom will be cross-trained in
different areas, so there will always be coverage of all key functional areas as well as back-up
support when work demand requires it.
In the ground-service area, the airline will utilize its own personnel to the extent practical in
order to assure a more consistently positive experience for the passenger. All major
destinations will be staffed by airline personnel, while at some smaller and more remote
destinations, or where local practice or requirement dictates it, ground handling and service
may be contracted out to local service providers.
Even in such cases, efforts will be made to utilize spare flight crew personnel to assist with
oversight of ground services and respond to customer needs, again stressing the airline's
focus on cross-training. Finally, as revenues and passenger demand increases, the Personnel
Plan can be expanded to provide additional ground service personnel at key locations and to
expand the number of locations where the airline provides its own ground-service staffing.
Again through the use of e-ticketing, e-check-in, and e-baggage tracking, ground-service
staffing requirement will be very light compared with a more traditional organization.
Particularly given the fairly light flight scheduling at most locations and the convenient size
of the projected aircraft, check-ins should be quick and easy, with little waiting in line or
fighting with crowds - major marketing advantages as well.
Finally, the proposed hierarchy and salary structure is designed to be both economical as well
as sufficiently attractive and competitive to enable the airline to recruit good, qualified
personnel. At the same time, in keeping with the overall ambience of the airline, it also
stresses relative equality and fairness in its structure. A good benefits package, consistent
with, and perhaps better than, available elsewhere in the industry or related industries, and the
more abstract benefits of being part of a well-respected, well-functioning, professional,
winning team, also will be elements attracting good employees to the new airline and keeping
them on the team.
One other issue worth considering, though it is not included in the current plan, is the
possibility of offering a bonus to all employees, as a specific percentage of their pay, when
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the airline shows a particularly profitable year to encourage additional "pride of ownership"
and esprit de corps.
Part 05
REGULATORY REQUIREMENT
Regulatory requirements are in every business. Before starting our business we have to
collect legal documents which are necessary for our Airline Business. Those are given below:
Regulatory Issues
AirSuper Airlines, establish as a private company, under the Companies Act, 1994 to carry on
the business of Air Transport Services including Passenger, Cargo, Mail, Air Ambulance,
Charter, Ferrying, Rescue Evacuation and Training of Pilots, Technicians, Engineers, Ground
Handling handling of Ground Support Equipment etc.
During the first six months we have undergone both a Civil Aviation Authority of Bangladesh
(CAAB) operational review and inspection and an International Air Transport Association
(IATA) one. These inspections resulted in us taking actions to enhance the performance of the
Company and to improve its operational systems. To this end the Company has purchased the
proprietary Aircraft Resource Management System (ARMS) operational suite of software
programs which will aide operational efficiencies and performance improvements during the
Remainder of 2011 and 2015.
Trade license
At first we have to collect trade license from government to do business. Registrar Joint
Stock of Companies (RJSC) will give the certification for formation of our company. City
Corporation Taxation Rules, 1983 is applicable for the Trade License Rules:
1. A license shall be issued exclusively in the name of the license and such license is not
transferable.
2. The license issued shall contain the amount paid, the nature of profession, trade or calling
for which it is granted along with location and duration and it shall be deemed to be properly
signed if it bears facsimile of the signature of the Mayor stamped thereupon and the signature
of the person delivering the license at the time of receiving payment.
3. The license issued by the City Corporation shall remain valid for the financial year and it is
renewable annually on payment of the tax.
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Certificate from (FBCCI)
We will collect export oriented establishments with documents certified by Federation of
Bangladesh Chamber of Commerce and Industries (FBCCI).
Tax identification number certificate
We have to collect TIN (Tax Identification Number) certificate.
Environmental Clearance
Environmental clearance must be obtained from the Department of Environment. The process
takes 15 days for projects with low levels of potentially adverse impact and 30 days for
projects with significant.
ENVIRONMENTAL IMPACT
We are doing the business of Airline service. So from our business there will be less harmful
elements which can create negative impact on environment. They are:
Noise pollution: Aircraft noise is a serious concern around all airports and under flight paths
notwithstanding the adoption of quieter aircraft and engine technology. Aircraft noise is a
controversial matter. It is frequently asserted by the aviation industry that the number of
people exposed to noise problems.
Ground level air emissions: Aircraft continue to emit more ground level ozone precursors.
Aircraft emit their exhaust gas pollutants directly in the upper troposphere and lower
stratosphere. These emissions interact in these sensitive parts of the atmosphere and are
responsible for climate changes.
To reduce this pollution we will take some steps. We dont create a harmful situation for the
local people.
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Part 06
MARKET INFORMATION
Market Information means to know about the product supply, demand and competitive
information of the market. Market information is very essential part for our business.
6.1 COMPETITION
Current Market Situation & Competitor Analysis
A large number of company increase competition because more companies must compete for
the same customers and resources. Competition is volatile and can be intense. The
competitors intensifies if the service have similar market share, leading to a struggle for
market leadership. Among the other competitors the most popular is GMG Airlines. There are
some weak competitors in this industry at present but many are willing to join in the growing
sector. But since the larger portion of the market is untapped and un-reached, we think we do
not need to engage in any aggressive competitive strategies.
6.2 MAIN COMPETITORS

When we run the business in the market our first challenge will be the competition in the
market. There are a lot of competitors already in the market who are giving service in
Bangladesh for last few years. These are our direct competitors. Among all direct competitors
existing in the market, we have identified our main competitors and below there is a brief
description about our main direct competitors:
The New GMG
GMG Airlines today took the delivery of its second Boeing 767-300 aircraft. The newly
inducted aircraft with 250 seating capacity would be used to operate flights to the Middle
Eastern countries. With induction of this new aircraft, the fleet size of GMG now reaches to
eight. The company plans to add more aircraft in its expanding fleet to introduce new routes and
destinations to become most preferred airline in the region.
Mr Shayan Fazlul Rahman, Chairman of GMG Airlines, Mr. Shahab Sattar, MD of GMG
Airlines received the aircraft at the Hazrat Shahjalal International Airport in Dhaka amid
presence of Mr. GM Quader, MP, Honourable Minister, Ministry of Civil Aviation and Tourism,
senior government and company officials.
United Airways (BD) Ltd

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AIRSUPER
United Airways (BD) Ltd, a public limited company by shares, is founded by an expatriate
airline pilot, Capt. Tasbirul Ahmed Choudhury along with a group of professionals, business
people, entrepreneurs united together in a shared vision to develop a world class airline in
Bangladesh. The Company has been formed with the intention of operating, managing and
eventually owning several commercial aircrafts that will utilize Bangladesh as its base of
operations.
Best Air
Best Air was a domestic private airline of Bangladesh, a subsidiary of Best Aviation. Best Air
was the favorite airline for the people of Bangladesh due to its excellent customer service.
The company formed in 2007 as a joint
venture between Best Aviation and a
Kuwait-based
company,
Aqeeq
Aviation Holding which controls a
70% share of the airline. It started
operations in January 2008 from
Dhaka's
Shahjalal
International
Airport. Best Air suspended its
operations in 2009, due to extra
ordinarily high fuel costs. Best Air has
recently announced that they have
received a large investment from
Destiny Group LTD of Bangladesh and
will restart operations on the 26th of March, 2011. They intend to re-enter the domestic
market with 3 brand new ATR-72 aircrafts. Plans call for the acquisition of 3 A320 aircraft
later this year, followed by the A330 or B777 for long haul routes in the near future.
6.3 USER
For our airline service the first target user is the businessmen who use to go many places for
their business purpose. Our second target user will be the Government and International
Organizations who also use to go many places for their working purpose. Our last target
market will be seasonal Holiday Travelers.
6.4 SALES CHANNELS

We have decided that at first we will select only one office for our sales channels. And the
branch will in Uttara.
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AIRSUPER
6.5 DISTRIBUTION CHANNEL
Sales of airline tickets have historically been either direct from the airline itself or through
various travel agents. Modern computer technology and communications capability are
changing the mix dramatically. Travel agents once accounted for 80% of ticket sales. This
channel of distribution has been one of very high cost to the airlines. Travel agent
commissions at one time became the highest individual cost item to an airline. The airlines
found themselves held hostage. The physical cost of printing and distributing tickets is also
substantial. Travel agents estimate that it costs them an average of 2000 TK in total cost to
originate an airline ticket. Many of them have begun to add their own service fees to the
actual cost of a ticket.
6.6 FUTURE DEMAND

The demand for our service is expected to increase in future. Because, as time is passing
more and more people of our country is getting education and doing jobs. Moreover, the
sense of independence is also increasing among the people. Apart from the economic and
emotional reasons the demand for our Airline service is also expected to increase because in
future the population of our country will be even higher. So, it is possible that the government
of Bangladesh will allow more people to have a job in abroad in order to decrease the
unemployment rate.
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AIRSUPER
6.7 AIRSUPER STRATEGIES AGAINST ITS COMPETITORS
Competitor Analysis of AirSuper

In formulating marketing strategy of AirSuper, we will consider the strategies of the firm's
competitors. While in highly fragmented airlines industries the moves of any single
competitor may become a vital part.
AirSuper Competitor analysis has two primary activities,
1) Obtaining information about important competitors, and
2) Using that information to predict competitor behavior over the airlines industry
Competitor Analysis Framework of AirSuper
AirSupers framework for analyzing competitors like Saudi, Qatar, Kuwait, Gulf, Etihad etc
is based on the following four key aspects of a competitor:
Competitor's objectives
Competitor's assumptions
Competitor's strategy
Competitor's capabilities
Finally AirSuper believes that by using Total Quality Management (TQM) it can enhance its
ability to maintain quality services and become a well-run airlines company in Bangladesh in
the long run.
Further Competitive Moves of AirSuper
In pursuing an advantage over its rivals, AirSuper pursues several competitive moves:
(a) Changing prices - raising or lowering prices to gain a temporary advantage, e.g.
discounts with its class packages, hajj periods, and discounts for labor companies etc.
(b) Improving service differentiation - improving features, implementing innovations in
the service and enhance the ease flying with Emirates, e.g. technological innovations in
the flight.
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AIRSUPER
Part 07
FINANCIAL DATA
This section of the plan offers the core elements for evaluating the financial viability of the
proposed new airline.
7.1 BACKGROUND:
Airsuper Airlines Ltd., establish as a private company, limited by shares to carry on the
business of Air Transport Services including Passenger, Cargo, Mail, Air Ambulance, Charter,
Ferrying, Rescue Evacuation and Training of Pilots, Technicians, Engineers, Ground
Handling (own & third party) handling of Ground Support Equipment etc. The Company
presently has 03 (three) domestic and 04 (four) international destinations.
7.2 NATURE OF BUSINESS:

The principal activities of the company are to provide all kinds of airlines services to
customers at home and abroad.
The financial Statement prepared by the Management of the Company present fairly its state
of affairs, the result of its operation, cash flows and changes in equity. The company is
seeking to raise of 1508157296 taka for the purpose of financing the acquisition of the
aircraft, facilities modifications, equipment, and funding operating expenses. Another
600000000 taka will be invested in the company by its five co-owners. The project cost of the
business plan is 1508158000 taka.
This financial projection is based on sales volume at the levels described in the sales
forecast section and presents, to the best of management's knowledge, the company's
expected assets, liabilities, capital, and revenues and expenses. The projections reflect
management's judgment of the expected conditions and its expected course of action given
the hypothetical assumptions. The company's expenses are primarily those of salaries,
utilities, and insurance costs. Other expenses are based on management's estimates and
company averages.
7.3 SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting:
The financial statements have been prepared on a going concern basis under historical cost
convention on accrual basis and in accordance with Generally Accepted Accounting
Principles (GAAP). The accounting polices have been consistently followed.
Basis of Preparation and Presentation of the Financial Statements:

The financial statements have been prepared and the disclosures of information thereof have
been made in accordance with the requirements of Bangladesh Accounting Standard (BAS)
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AIRSUPER
as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) and other the
applicable laws, rules and regulations.
7.4 PROJECT COST

We initially invest to our company 150 core 81 lack 58 thousand taka in our total business.
Project cost is one of the important parts of business plan. For starting a business it is
mandatory to identifying the project cost of the business. Because Project cost cover all the
sectors of investment that we provide for our business. In our investment we identify our debt
to equity ratio and that is 60 % long term and short term loan with 14 % interest. And we are
the owner Contribute 40% for in this investment of the project.
7.5 SOURCES & USES OF FUNDS

Our sources of fund are our sponsors. They are initially our well wisher and relatives. We
take long-term and short-term loan from banks that we previously mentioned. We also have
others sources for investment.
7.6 ASSUMPTIONS FOR SALES FORECASTS AND COSTS FORECASTS

The company is forecasting very encouraging annual sales in year one of flight operations.
Year two of flight operations sales are forecasted to more than double.
The year two numbers are based upon adding more flights and more airplanes to the routes
already served. This will enable us to maximize profits within the market we have created
without incurring the additional expense of opening new markets. It also allows for more
controlled growth and eliminates the risks, early on, of the loss of control of operational
procedures that can occur either with de-centralization or growth that is too rapid.
The company has also prepared five-year projections that are based upon expanded service to
additional market areas. This five year plan is a part of our due diligence package. These
sales costs consist of travel agent commissions, credit card discounts, and federal excise
taxes.
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AIRSUPER
7.7 PRO FORMA INCOME STATEMENT
Sales:
Sales of passenger tickets are recognized on operating revenue after these are availed of /
flown by the passengers within the period of their validity or on the average basis where
validity of such tickets has expired. Tickets sold but remaining unused represents a liability
and are shown as provision for unavailed tickets or unearned revenue. Beginning sales
forecast based on capturing 5% of the market share and capacity utilization rate at 75%. First
year our sale is 2,908,066,425 taka and after five years our sales will be increased in
46,529,062,800 taka.
Costs of goods sold:

COGS are estimated to be 45% of the sales according to industry averages. Analysis of
industry COGS costs are attached in the appendix.
Gross Profit:
In first year Gross profit is 1,599,436,534 taka and in last year gross profit is 25,590,984,540
taka.
Salaries:
Salary and wages are included in direct expenses. We get its information in the forecasts and
associated salaries. It depends on the basis of the personnel. First year our salary expense is
48,660,000 taka and after five years our salary expense will be increased in 65,868,000 taka.
Rent:
We rent for our office in the area of Uttara because the area is suitable for our business
communication. We rent 1400 square area and per square is 60 taka and for our air shed we
rent 100000 square area and per square is 20 taka So first year our cost is 25008000 taka and
last year will be increased 53,808,000 taka because then need additional area of 50000 square
at Tk. 22 per square foot.
Insurance:
The Company operates unfunded Group Insurance Scheme. Provision for Group Insurance is
being made annually for the companys permanent employees of the age group less than 65
years. Its range of costs to be 0.035% on sales. In first year insurance is 1,017,823 taka and in
last year insurance is 16,285,172 taka.
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AIRSUPER
Utilities:
It means various types of bills like electricity, water, gas that we use for our office purpose
and service process. Its range of costs to be 5% on sales. In first year utilities amount is
145,403,321 taka and in last year is 2,326,453,140 taka.
Telephone:
Its range of costs to be 0.2%. In first year telephone bill is 5,816,133 taka and in last year
telephone bill is 93,058,126 taka.
Advertising:
We use media for our advertisement like newspaper, television, web site, market research,
direct mail, internet and tradeshows. In first year advertise expense is 15,010,000 taka and in
last year advertise expense is 13,450,000 taka.
Entertainment:
Its range of costs to be 0.2%. In first year entertainment is 5,816,133 taka and in last year
entertainment is 93,058,126 taka.
Operating Profit:
In first year operating profit is 1,225,424,206 taka and in last year operating profit is
22,201,908,830 taka.
Interests:
Our interests will be calculated at 14% on short term and long term loan. First year our
interest is 0 taka and after five years our interest will be 535,703,440 taka.
Taxes:
AirSuper is the private limited company dealing in Airline Business. Company is to pay
income tax @ 35%. Deferred tax is recognized on differences between the carrying amounts
of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit, and are accounted for using the balance sheet liability method.
Net Profit:
In first year Net profit is 796,525,734 taka and in last year Net profit is 14,083,033,504 taka.
Dividend:
The Board of Director has recommended Cash Dividend at the rate of 25% amounts to taka
569,200,000 of profit after 4 years of our business.
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AIRSUPER
7.8 PRO FORMA BALANCE SHEET
The projected balance sheet illustrates the growth of the net worth of the business and may
also be utilized to estimate future stock values based upon industry multiples. In our business
Assets and liabilities & owners equity amount is fluctuate in every year. We have no loss in
any year.
Assets:
Cash: Cash and Cash Equivalent include cash in hand, cash at banks, which are held and
available for use by the company without any restriction.
Account Receivables: Our accounts receivables are increased over the years. It is 5.31% on
sales. In first year it is 154418327 taka and in last year it is 2470693235 taka.
Inventory: Inventories are stated at the lower of cost and net realizable value. Cost is
determined on a normal average basis for consumable stores, Aircraft spares and catering
items. Cost comprises the aggregate of purchase price plus other related expenses incurred to
bring the inventories to our present condition and locations. Our inventory is 247185646 in
starting and 3954970338 taka in ending at 8.5% on sales.
Liabilities & Owners Equity:

Accounts Payables: Liabilities are recorded at the amount payable for settlement in respect
of goods and services received by the company. Our accounts payables are increased over the
years. It is 1.2% on sales. In first year it is 34896797 taka and in last year it is 558348754
taka.
Long Term & Short Term Loan: We are taking almost 40% short term loan. Rest of the
60% loan we are taking as long term loan.
Accrued Expenses: Our accrued expenses are increased over the years. It is 0.2% on sales.
In first year it is 5816133 taka and in last year it is 93058126 taka.
7.9 PRO FORMA CASH FLOW STATEMENT

Statement of cash flows is prepared principally in accordance with cash flows from operating
activities, investment activities, financing activities, net cash flow and cumulative cash flow.
Net increase in cash is also fluctuated in total business years.
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AIRSUPER
7.10 PRO FORMA STATEMENT OF RETAINED EARNINGS
As earlier we mentioned that we have distributed 8% of ownership into capital market. So we
are give dividend to my share holders only in the 5th year.
7.11 INVESTMENT SCHEDULE FOR NEXT FIVE YEARS

We have provided a planned investment schedule for our 5 years business plan. This covered
the entire sector that we invest in our business.
7.12 DEPRECIATION SCHEDULE

In respect of all other assets, the quantum of annual depreciation charge is calculated over
their estimated useful lives using the diminishing balance method of depreciation. All the
assets acquired or disposed off during the period have been depreciated for the period of its
use. The rate at which the assets are depreciated per annum depended on the nature and
estimated useful life of each assets are consistently applied since the inception of the
company which are given below:
The applicable rates of depreciation for each type of assets are as follows:
i) Building & Constructions, Automobiles 20%
ii) Electrical Equipment, Renovations & Decoration, Office Equipment, Ground Support
Equipment 15%
iii) Technical Manual, Computer Reservation System, Furniture & Fixture, Crockerys &
Cutleries 10%
iv) Aircraft tools and Equipment 4%
The air crafts and handling equipment acquired as a finance lease basis, have been
capitalized, charging depreciation and interest, instead of lease rental. The whole amount of
depreciation has been charged off partly to cost of sales and partly as expense in consistent
with practice.
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AIRSUPER
Part 08
Conclusion
Airsuper, the idea behind its creation is to take advantage of a specific gap that existing in the
Bangladesh Air Transport industry for quality oriented local airline but with a global reach.
Airsuper Aviation Private Limited is an integrated aviation company. The company aims to
bring new concepts and approach to efficiently expand travel and tourism Industry in the
country. We embrace both domestic and international markets and efforts will continue to
ensure that Airsuper becomes and is recognized as market leaders in both sectors. I am
therefore confident that Airsuper has an exciting and profitable future ahead. The new Board,
the management and all our employees are committed to driving the Company forward for
the reward of its shareholders, its employees and for Bangladesh itself. First year we are
going to recruit 83 employees and it will be increased by 96 in last year. The salary of the all
employees will vary depends on their position. We select several potential fleet aircraft and
manufacturing sources are being considered and evaluated, that are Boeing 737-700 and
McDonnell Douglas MD-83.Another issue is Aircraft acquisition still being evaluated and
which will be decided is the question of how to acquire the aircraft. The company is
seeking to raise of 1,508,157,296 taka for the purpose of financing the acquisition of the
aircraft, facilities modifications, equipment, and funding operating expenses. Project cost is
one of the important parts of business plan. Finally a Company depends for its success on its
assets and one of our most valuable assets are our employees. Without their unstinted efforts
the Company would not be in the favorable position its finds itself today. In conclusion we
would therefore like to wish that the business plan is successful because our plan is very
realistic and positive sight of the airline business. We will become the airline of choice for
people traveling to and from Bangladesh.
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AIRSUPER
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AIRSUPER

Shahjalal International Airport

2.4 KEYS TO SUCCESS

Intelligent, progressive, and aggressive marketing that identifies the airline as a

Identification, through careful market research, of unserved or under-served

Business Plan on AIRLINE BUSINESS

2.5 DESCRIPTION OF THE BUSINESS

Business Plan on AIRLINE BUSINESS

Chittagong - Shah Amanat International Airport

Kolkata - Netaji Subhash Chandra Bose International Airport

Bangkok - Suvarnabhumi Airport

Kuala Lumpur - Kuala Lumpur International Airport

Air One Fleet

McDonnell Douglas MD-83

Operated by Trans Global Airways

2.7 WHY AIRSUPER?

2.8 AIRSUPER AIRLINES WHY DIFFERENT

Passengers get to enjoy the award-winning Information, Communication and Entertainment

Business Plan on AIRLINE BUSINESS

2.9 AIRSUPER GETS A FACELIFT

2.10 AIRSUPER SERVICES

2.11 IN THE AIR

2.12 START-UP SUMMARY

Business Plan on AIRLINE BUSINESS

Business Plan on AIRLINE BUSINESS

Accounts required and contributed

Israt Jahan Tama

Electronic check-in (e-check-in) that will virtually eliminate waiting in line to

Business Plan on AIRLINE BUSINESS

Electronic financial control (e-finance) will enable complete electronic financial

Business Plan on AIRLINE BUSINESS

3.2 TARGET MARKET

3.3 MARKET SEGMENTATION

Regional Resident Personal and Leisure Travelers - 20%

Diaspora Personal and Leisure Travelers - 10%

Western European Personal and Leisure Travelers - 5%

Business Plan on AIRLINE BUSINESS

Seasonal Holiday Travelers - 10%*

Business Plan on AIRLINE BUSINESS

Business Plan on AIRLINE BUSINESS

The only variations on those fares will be these:

Business Plan on AIRLINE BUSINESS

Direct Mail: subscriber lists.

Others Media: Banner, Internet, Billboard, workshop etc.

Others Communication tools: Fair, Leaflet, Brochure, Dairy, Calendar, Moneybag,

From our website buyers will know about:

Business Plan on AIRLINE BUSINESS

3.6 SALES STRATEGY

3.7 SALES FORECAST

Business Plan on AIRLINE BUSINESS

3.8 SWOT Analysis of AirSuper

Weakness (Based on others experience)

Royal Touch of Middle East.

Multi lingual flight attendants from

Delay of connecting flight and getting

Only one Bangladeshi flight attendant

Seating arrangement, Entertainment,

Also, in an all-freighter configuration, the BAe 146-200QT and BAe 146-300QT