Professional Documents
Culture Documents
Flight School Business Plan
Flight School Business Plan
Flight School Business Plan
Objectives
Mission
Keys to Success
Company Summary
Company Ownership
Start-up Summary
Company Locations and Facilities
Services
Service Description
Competitive Comparison
Future Services
Market Analysis Summary
Market Segmentation
Target Market Segment Strategy
Market Needs
Market Trends
Market Growth
Service Business Analysis
Competition and Buying Patterns
Management Summary
Organizational Structure
Executive Summary
Statesville Flight School will offer private and commercial pilot training to aviation
enthusiasts. Statesville Flight School will provide flight instruction as well as
providing self-fly hire for licensed pilots.
We will be located at Capital City Airport, Statesville and we have a modern fleet of
aircraft available for business or pleasure 24 hours a day. All aircraft are well
maintained and have modern avionics (including GPS receivers).
Statesville Flight School will allow customers to sample the experience of piloting an
aircraft with a trial flight. Trial Flights are very popular as gifts for children of all
ages! Christmas, Birthday, Retirement, any occasion really, the vouchers come in
Greetings Card form, complete with their own envelope and may be purchased over
the telephone by credit or debit card, or in person from the Statesville Flight School
office. Besides being an unusual and fun gift, a Trial Flight can often act as an
introduction to a Private Pilots License, or at the very least, return visits to reexperience and enjoy the thrill of flying.
We have aircraft to fit everyone's needs as well as affordable pricing.
We offer a starter pack that is an ideal gift for anyone who is interested in learning to
fly.
The starter pack is made up of the following:
Statesville Flight School offer aircraft that are safe, and attractive. All of our aircraft
are professionally maintained by certified technicians and they all have top of the
range avionics.
Statesville Flight School use independent flight instructors with airline backgrounds.
Statesville Flight School will also seek to build relationships with corporations and
regional airlines offering both training and aircraft rental.
Objectives
Our three main objectives are that
1
We will manage the business from our own cash-flow ensuring we maintain
tight budgeting and show a net profit
2
3
We will use aircraft that not only meet all legal requirements but will be
beautifully maintained and presented.
We will have a safe environment for our students. We will strictly adhere to all
national and state aviation regulations.
Mission
Statesville Flight School will offer private and commercial pilot training to aviation
enthusiasts. Statesville Flight School will provide flight instruction as well as
providing self-fly hire for licensed pilots.
Keys to Success
1
2
3
4
5
We will have aircraft ready 24 hours a day ensuring maximum benefit to our
students
Guaranteed quotes to customers for lessons or aircraft rental.
Effective and clear marketing to generate more exposure and word-of-mouth
referrals.
Pro-active aircraft maintenance that will dramatically reduce aircraft
downtime.
We will check our aircraft within the national and state guidelines.
Company Summary
Statesville Flight School is being formed as a private company offering services to
both student pilots and for companies and individuals looking to rent aircraft.
Statesville Flight School will operate its aircraft out of Capital City Airport in Capital
City, Statesville. The aircraft records, scheduling, and office will be located at our onsite airport location.
Company Ownership
Statesville Flight School has been created and legally organized as a Statesville
Limited Liability Company based in Capital City, Statesville.
Start-up Summary
A small aircraft rental business is likely to specialize in one or two aircraft. Obtaining
even a basic model can be extremely expensive.
One of the most popular aircraft for PPL training is the Cessna 152, a two-seater,
costing around $20,000 (plus VAT) second-hand. A second-hand four-seater Cessna
172 costs around $40,000. Other models include the Piper Warrior ($42,000) and
Cherokee ($54,000); both prices are for second-hand models. Prices will vary
depending on the aircrafts age and condition; larger craft are considerably more
expensive.
New micro lights range from $15,000-$25,000, depending on model. Trade journals
can be checked for sale and leasing prices.
Aircraft maintenance, hangarage, and insurance for a hard working aircraft can be
$12,000 per year. Landing and parking fees should be considered. Flying license fees
will have to be paid.
An office and extra rooms for ground lessons and perhaps residential courses will
need to be furnished. The latter will boost initial costs considerably with additional
furniture, fittings and decoration. Ongoing costs include catering, fuel, electricity and
cleaning materials. Costs will include qualified staff, as the majority of schools have
their own examiners so that flight and ground tests can be taken there. Restrictions
imposed by the new JAR-FCL regulations prevents examiners from examining pilots
with whom they have flown as instructors, which may mean having to hire freelance
The start-up costs of Statesville Flight School are approximately $52,500 that includes
hanger and aircraft down payments.
The start-up costs of Statesville Flight School include
Office expenses.
Legal costs.
Start-up Expenses
Legal Fees
Office Supplies / Expenses
Aircraft Insurance
Hanger Rental
$1,000
$1,000
$2,500
$1,000
Total
$5,500
Assets
GPS Receivers
Aircraft down payment
Computer equipment
$1,000
$36,000
$3,000
$40,000
$14,500
Total Requirements
$60,000
Funding Investment
John Smith
Loan
$30,000
$30,000
Total Investment
$60,000
Services
Statesville Flight School will offer private and commercial pilot training to aviation
enthusiasts. Statesville Flight School will provide flight instruction as well as
providing self-fly hire for licensed pilots.
Aircraft rental and flight instruction
We will have access to the following aircraft through financial arrangements with
their owners.
Cessna 152 - The Cessna 152 is the most popular trainer in the world. Very
durable and forgiving, these two seaters make great trainers.
Cessna 172 - The Cessna 172 also provides an excellent training platform and
is one of the most popular airplanes ever built.
PA38 (Tomahawk)
Piper Warrior - If you would like more space, the Piper Warrior may be a
better fit during the training period and subsequent recreational flying.
Archer - When you want a little more speed and carrying capacity for longer
excursions, you may find the Archer serving your needs. This fixed gear
aircraft is reliable and easy to fly.
Superhawk - The Superhawk is faster and can carry more load than the
standard 172. This makes it a good cross-country aircraft.
Cessna 182 - The Cessna-182 is a comfortable and spacious 4-place plane. It is
a good choice for trips for four people and some baggage. It is a relatively fast
fixed gear aircraft as well and a good transition to complex aircraft.
Cessna 182 - This 1999 Cessna-182 is well equipped and luxurious.
Cessna 172RG - When you are ready to step up to retractable gear aircraft,
the ...Cessna 172RG...
Arrow II - ...and the Arrow II are excellent aircraft for that transition.
Comanche - When you have accumulated enough hours and skill, you may
find the Comanche the ideal plane for the really long trip to Mexico or
Canada.
Cessna 210 - The Cessna-210 is an excellent single-engine traveler. It is fast
and can carry six people plus baggage. It is a high performance aircraft which
requires some time in complex aircraft as preparation for this craft. The
Cessna-210 is a good choice for long distance trips for the family.
Citabria 7KCAB - The Citabria 7KCAB is a sport aircraft which requires
additional special training. It is aerobatic and a favorite of seasoned pilots.
Private pilot:
Total = $ 4271.20
Instrument rating:
NOTE: The instrument rating requires 40 hours of simulated or actual instrument
flight hours. A minimum of 15 hours out of it must be in an airplane as dual
instruction and the rest will be done as simulated with a safety pilot while building
CC as PIC. We require a one (1) hour ground lesson for each flight lesson from the
Gleim instrument syllabus.
Total = $ 2979.50
Total = $ 4741.38
Total = $ 3756.00
We also offer
Special Training
Post PPL Training - Advanced Handling Course
Learn to fly with Statesville Flight School
Price: $ 359
Have you ever wondered what your aircraft is capable of?
By doing the advanced handling course you would find out in no time. The course is
made up of four 1-hour lessons; this meaning that it could be done in just a couple of
days!
-
1
2
3
4
Technology
Statesville Flight School will maintain an updated Challenger 601-3R.
1
2
3
The aircraft will have at least two 720-channel radios for legal and practical
navigation and communication purposes.
The aircraft will have the required equipment and certification necessary to
conduct instrument training and actual instrument flight.
The aircraft will be continuously upgraded with Statesville Airlines Aviation
Technology.
Convenience - You fly in and out of smaller general aviation and local
airports, which are closer to your destination. No traffic jams or crowded
parking lots. No "baggage roulette." We have ample room for luggageeven large bulky items.
Flexibility - Do you need to visit multiple sites in a single tour? Stop and
pick up a client, then fly to another destination? With air charter travel,
you set the itinerary.
En route work efficiency - Turn flight time into productive time. Free from
the straightjacket of commercial air seating among strangers, you and your
colleagues can review strategies, rehearse a sales presentation, or discuss
confidential subjects in a relaxed and private manner.
Reduced stress - Without the hurry and the hassles of a commercial flight,
you and your associates arrive relaxed and ready to do business. As soon
as your work is complete, you know your plane will be waiting.
Every seat is first class - We provide the food and beverages you prefer
and accommodate special requests with ease.
This growth has created an increased demand for pilots and there is currently a
shortage of qualified pilots.
Students
An aircraft rental business primarily specializes in private and commercial pilot
training. Other services offered may include aircraft sales or leasing, aircraft self-fly
hire for licensed pilots, aircraft taxi and charter, aircraft engineering or pleasure
flights. The services provided will depend on the renters size, which may vary from a
two aircraft operation to a fleet of 20 or more. Aircraft renters are located on licensed
airfields (flying training for a pilot's license or rating can be provided only from a
licensed airfield). There may be several businesses on any particular airfield.
A wide variety of aircraft are used for leisure flying, including conventional light
aircraft, micro lights, gyroplanes, foot-launched parachutes and gliders. Light aircraft,
such as a conventional single-engine Cessna 152, will normally be used for basic
flying training.
A common way to start is via a trial lesson. These cost $40-$90, depending on the
flights duration and the cost of flying in the locality. Following a trial session, many
individuals choose to work towards a Private Pilot's License (PPL), which is
appropriate for recreational use.
Most schools charge around $3,000-$5,000 for a 45 hour licensing course. Anyone
learning to fly (or undertaking training for further licenses or ratings) must now do so
in accordance with the new system.
Fees vary depending on what is included, e.g. ground exams, flying exams, landing
fees, use of flight simulators. Checking advertisements in Pilot magazine will help to
gauge standard fees and charges. Some schools offer intensive residential courses.
Other courses offered (subject to the schools size and facilities) include night flying,
seaplane, Instrument Meteorological Conditions Rating (IMC), and Airline Transport
Pilots License (ATPL).
Microlight training may be offered (lessons cost around $70 per hour). Micro lights
are subject to less legislation, so are a popular option. Microlight aircraft may be hired
out to qualified pilots at about $40-$60 per flight hour.
The number of aerodromes in the US is falling, due to problems with zoning, planning
issues, (e.g. noise levels affecting local residents), and restriction on their use. More
people are being tempted both to learn and to fly abroad, where the weather is better
and lower duty levels on fuel make flying much cheaper.
Market Segmentation
Statesville Airlines, who are based at the airport, employs 9,000 people. Statesville
Airlines are a respected employer and we are in the driving seat in regards to training
their pilots. May Statesville Airlines pilots and mechanics have expressed an interest
in renting our smaller planes to fly their families during the holidays.
There has previously been a problem at Capital City Airport as the smaller aircraft
have been poorly maintained. We will make maintenance a priority and operate an
open door policy for our students where they can check our maintenance schedules.
Whilst Statesville Flight School will focus on students attempting to obtain their
private pilot certificate, we will also offer trial and fun flights at reasonable prices to
generate local interest. We will offer a range of course including safety and IMC.
In addition we will offer sightseeing flights, day tours and traffic watch.
Target Market Segment Strategy
Our marketing will target potential students where we will emphasize our qualified
instructors and our modern fleet of aircraft that are available 24 hours a day. Our
aircraft are well maintained and have modern avionics (including GPS receivers).
All potential customers will be sent our brochure where we will show the benefits of
training with ourselves and our clear pricing structure.
Market Needs
Learning to fly is an expensive pastime, but the popular image of prospective pilots as
young and wealthy is a misleading one. While, inevitably, some customers will fit this
description, many more will not. Although a reasonable level of disposable income is
necessary to fund an interest in flying, pilots come from a broad sector of society,
although the majority of customers are likely to be male.
Offering courses in helicopter flying, micro lights etc will further broaden the
customer base. Customers will include those wishing to take a full flying course,
those requiring more specialized training and qualified pilots wishing to hire a plane
for leisure flying.
With the possible exception of intensive residential flying courses, customers are
usually from the immediate area.
Market Trends
Pilot licenses (in the United States, airman certificates) are issued by national aviation
authorities, and establish that the holder has been trained by a qualified flight
instructor and has met a specific set of knowledge and experience requirements. The
licensed or certificated pilot can then exercise a specific set of privileges in the
nations airspace. Despite attempts to harmonize the requirements between nations,
the differences in certification practices and standards from place to place serve to
limit full international validity of the national qualifications.
In the U.S., airman certificates are issued by the Federal Aviation Administration
(FAA) and pilots are certificated, not licensed, although the word license (note the
spelling) is still commonly used informally. Legally airman certificates can be
revoked by administrative action; whereas Licensing requires intervention by the
judiciary system. In Canada, licenses are issued by Transport Canada, and in the
United Kingdom by the Civil Aviation Authority (CAA).
At all times, an aircraft in flight must be under the authority of an appropriately
qualified pilot, the pilot in command, who is responsible for the safe and legal
completion of the flight.
Pilots are qualified to fly at a specific privilege level and in one or more specific
categories of aircraft. Examples of privilege levels found in most countries are:
Student: the pilot can be trained by an instructor for his or her first full
certificate and is permitted to fly alone (solo) under specified circumstances.
Private: the pilot can fly for his or her own pleasure and is not allowed to
accept compensation for flying except in some specific circumstances.
Commercial: the pilot can fly for hire.
Airline Transport: the pilot can be the captain for a scheduled airline.
The licenses are also further broken down into category, class, and in some cases,
rating.
A category is defined as "a broad classification of aircraft", broken down into
Airplane, Rotorcraft, Glider, and Lighter-Than-Air. A class is defined as "a
classification of aircraft within a category having similar operating characteristics",
which include single engine, multi-engine, land, water, gyroplane, helicopter, airship,
and free balloon. In addition, a type rating is required for aircraft over 12,500 pounds,
or aircraft which are turbojet powered. Further endorsements are required for high
performance (200 horsepower or greater), complex (retractable landing gear, flaps,
and a controllable pitch propeller), or tail-wheel equipped aircraft, as well as high
altitude operations.
Most Private Pilot certificates are issued as "Private Pilot: Airplane Single Engine
Land", which means the pilot may employ his piloting privileges in any single engine,
land based airplane he is qualified in. A pilot is only qualified in the category and
class of aircraft he takes his check-ride in. Therefore, a pilot who takes a Commercial
Pilot check-ride in a multi-engine, land-based aircraft and passes may only exercise
the privileges of a Commercial Pilot in multi-engine, land-based aircraft. That pilot
may not exercise the privileges of a Commercial Pilot in single engine or sea-based
aircraft without passing the appropriate parts of a check-ride in those particular
categories of aircraft.
The typical order in which a pilot obtains ratings is: Private Pilot (35-40 hours total
time required) Instrument Rating Commercial Pilot (190-250 hours total time
required) Airline Transport Pilot
In the course of the Commercial Pilot training, most pilots will also receive their high
performance and complex endorsements, as well as get a multi-engine rating before
applying for the Airline Transport Pilot license.
Others include
Sport pilot certificate (United States only), used for Light-sport aircraft, a
category that was designated in 2004. These aircraft are larger and faster than
U.S. ultralights, and carry more fuel and often one passenger.
The ultralight category of aircraft in the U.S. requires no specific training and
no certification.
The pilot can separately add certain ratings such as the instrument rating.
Market Growth
Our research shows that currently training aircraft at Capital City Airport are
averaging 38.5 hours of flying per month. There is a regular stream of students, and
Management Summary
Statesville Flight School is being formed as a private company offering services to
both student pilots and for companies and individuals looking to rent aircraft.
Statesville Flight School will operate its aircraft out of Capital City Airport in Capital
City, Statesville. The aircraft records, scheduling, and office will be located at our onsite airport location.
Company Ownership
Statesville Flight School has been created and legally organized as a Statesville
Limited Liability Company based in Capital City, Statesville.
Management Team
John Smith will ensure that the company operates in accordance with the company
mission statement.
Strategic Direction
SWOT Analysis
This is a summary of the business's most important strengths, weaknesses,
opportunities and threats.
Strengths of the Business
Excellent quality product
"Which means that" Adds to reputation.
Good management skills.
"Which means that" Well run business
Good ability to extract information.
"Which means that" Can control the business.Weaknesses of the Business
New Player.
"Which means that" Credibility problem may affect initial sales
Lack of systems
"Which means that" The company needs to develop systemised
operational &
sales techniques or sacrifice profits
Opportunities in the Marketplace
Add-on products such as **
"Which means that" A potentially enormous market for {YOUR
COMPANY NAME} to tap into.
Growing market segments.
"Which means that" {YOUR COMPANY NAME} should target these
segments.
Threats in the Marketplace
Increasing supplier prices.
"Which means that" Resulting in reduced profitability.
Declining size of the ** segment.
"Which means that" Need to focus on growing segments to spread the
company's portfolio
New Products
To evaluate and launch new products or services which will turn over
$xxxxxx in the first year.
Other Objectives (Goals)
To not exceed a marketing budget of $xxxxxx
To not exceed a payroll budget of $xxxxx
To not exceed a general overhead budget of $xxxxxx
The major task objectives for each area of the organisation, together with
responsibilities and timings are detailed in the Roll-Out Plan.
Marketing Plan
MARKETING OBJECTIVES
Sales Objective
PROMOTIONAL STRATEGIES
Print Advertising
Develop a corporate brochure.
June 200A
Advertise in local publications
Jan 200A
Advertise monthly in magazines that are specifically targeted to the ** and
** segments.
Jan 200A
Advertise monthly in magazines that are aimed at the general industry.
Jan 200A
PRICING STRATEGIES
Price Level
Maintain price level in all segments at xx% higher than competitors to
reinforce the quality image.
Jul 200A
Discounts
Offer x% discount for payment with order.
Jul 200A
GENERAL MARKETING STRATEGIES
Competitor Profile
Keep updated competitor profile.
Jun 200A
Marketing information system
Document on every enquiry "How did you hear about us?"
Jul 200A
Document on every order "How did you hear about us?".
Jul 200A
Produce monthly sales reports by product, by market segment, by territory
and by sales representative.
Mar 200B
Financial Plan
FINANCIAL
Net Profit
$xxxxx.
Gross Profit
Budget
Marketing Budget
Payroll Budget
Management Overheads
$ xxxxxxx
$ xxxxxxx
$ xxxxxxx
FINANCIAL STRATEGIES
Cash Flow
Eliminate cash shortage in the traditional tight periods of December to
January
Jun 200A
Collection Days
Reduce the average collection days from xx days to xx days.
Jun 200A
Payment Days
Maintain payment of bills, on average, to xx days.
Jun 200A
Expenses
Develop and implement new policies on approval and signatories on
expenses.
Mar 200C
Leases
Pay off the existing lease on capital equipment, thus reducing the monthly
financial burden.
Jun 200A
Overdraft
Reduce the overdraft from $xxxxxx to $xxxxxxx
Jun 200A
Wages
Pay all wages on a monthly basis instead of weekly.
Jan 200A
New Equipment
Organise funding for the $xxxxxxx expenditure on new equipment.
Jan 200A
Payback
Ensure a payback on new equipment through sales of one year.
Jun 200B
Inventory
Improve the number of stock turns to xxxxx a year.
Jun 200A
Rent
Negotiate new terms on the premises and reduce existing payments by xx%
Aug 200B
Bank Charges
Renegotiate with the bank and consolidate some outstanding loans with
lower interest rates.
Aug 200B
Organisational Plan
ORGANISATIONAL AND MANAGEMENT
Next Year's Objectives
Budget
$xxxxxxx
Staff