Starting a Private Company?

[Asmir Hamidovic]

Hello

i was wondering some time in the future i might try to start my own private jet charter in Bosnia based out of Sarajevo! What are some type of things that are neccesary to start a buissnisse like this? I was thinking of starting off with 1 airplane something like Diamond D-JET! Thanks

[Spad13]

Knowledge of local laws/regulations, knowledge of market (is there one?), substantial initial capital would all be a good start. I would also think the D-Jet might be a tad small, especially for a single-ship operation.

[Asmir Hamidovic]

Knowledge of local laws/regulations, knowledge of market (is there one?), substantial initial capital would all be a good start. I would also think the D-Jet might be a tad small, especially for a single-ship operation.

Well i have a few relatives who are possible investers and the ones with the money i dont think i would want to go any higher than a million and half as the price tag! There is a market definitely for a lot of singers and futbal players for the federation of Bosnia and Hercegovina and they are flying with privates that are based out of the country such as NETJETS Europe. I honestly believe it could be very sucessfull! And i would be flying so that takes care of one less pilot hiring!

[Spad13]

Well i have a few relatives who are possible investers and the ones with the money i dont think i would want to go any higher than a million and half as the price tag! There is a market definitely for a lot of singers and futbal players for the federation of Bosnia and Hercegovina and they are flying with privates that are based out of the country such as NETJETS Europe. I honestly believe it could be very sucessfull! And i would be flying so that takes care of one less pilot hiring!

I don't know if you mean 1.5mil in Euro or dollars, but either way that's way too little. To start a viable aviation enterprise, I'd say you're off by a factor of at least three, and that's by US standards. I highly doubt fuel, training or parking fees are lower in Europe. As for flying single-pilot, I don't believe that's allowed for a charter operator under the JARs, but I would have to double-check that.

In any case, I wouldn't go near anything like this with much less than about $5 million in cash. Remember, you need money not only to buy the aircraft and initial supplies/equipment, but also to survive the first year or two, when you likely won't be profitable.

I take it, you haven't priced insurance yet? That's going to be a pretty penny also, assuming you can get insurance at all without jet time. My guess is that you won't, so you will need to hire some jet jock to "mother-hen" you for a couple of hundred hours at least.

Many people think that this is just a matter of buying an airplane and off you go. The truth is the airplane is just the beginning.

[Asmir Hamidovic]

I don't know if you mean 1.5mil in Euro or dollars, but either way that's way too little. To start a viable aviation enterprise, I'd say you're off by a factor of at least three, and that's by US standards. I highly doubt fuel, training or parking fees are lower in Europe. As for flying single-pilot, I don't believe that's allowed for a charter operator under the JARs, but I would have to double-check that.

In any case, I wouldn't go near anything like this with much less than about $5 million in cash. Remember, you need money not only to buy the aircraft and initial supplies/equipment, but also to survive the first year or two, when you likely won't be profitable.

I take it, you haven't priced insurance yet? That's going to be a pretty penny also, assuming you can get insurance at all without jet time. My guess is that you won't, so you will need to hire some jet jock to "mother-hen" you for a couple of hundred hours at least.

Many people think that this is just a matter of buying an airplane and off you go. The truth is the airplane is just the beginning.

Ohh wow hehe there is much more to it! No i didnt mean me flying alone i would hire a co-pilot! If for example i was interested in a Embreare, would they offer something like a loan for the aircraft?

[Spad13]

Ohh wow hehe there is much more to it! No i didnt mean me flying alone i would hire a co-pilot! If for example i was interested in a Embreare, would they offer something like a loan for the aircraft?

Finding a loan is not a problem, as long as you have collateral, which, for a startup charter outfit in Bosnia would need to be substantial I would think.

[Asmir Hamidovic]

Finding a loan is not a problem, as long as you have collateral, which, for a startup charter outfit in Bosnia would need to be substantial I would think.

Please tell me what you think of this idea, operating couple of gliders. Since Sarajevo and other Bosnian cities have a lot of great scenery please tell me what would it take for me to operate such a company! And a cost for a cheap glider on avarage?

[Spad13]

Please tell me what you think of this idea, operating couple of gliders. Since Sarajevo and other Bosnian cities have a lot of great scenery please tell me what would it take for me to operate such a company! And a cost for a cheap glider on avarage?

I know absolutely nothing about gliders, so can't help you there.

[Asmir Hamidovic]

I know absolutely nothing about gliders, so can't help you there.

Ohh i see thanks anyway!

If anybody else has any info please do share

[HalcyonDays]

Finding a loan is not a problem, as long as you have collateral, which, for a startup charter outfit in Bosnia would need to be substantial I would think.

I suppose a loan from a manufacturer would claim the aircraft itself as collateral. There would, however, have to be a large equity interest in the aircraft itself held by the owner, especially from an unknown start-up, and especially these days, ie. not less than 30%.

I would have thought it better to lease an aircraft anyway rather than buy outright, even if finance for the latter were available.

I find the venture proposed extremely speculative. It may be possible for co-investors from the country or the region to be enticed along, but otherwise it's likely a non-starter.

It's an old joke, of course, but still with more than a grain of truth : to make a million in aviation, you need to start off with two million. Today, the margin is probably 5 to 1, ie. $10m. There have been few really financially successful aviation enterprises, especially long-term.

[Airbus_A320]

First, go to school and learn something useful. You'll have to do research to make sure your business idea is viable. It's certainly possible to be successful as is shown by the article in the link i posted.

http://www.bizjournals.com/atlanta/stories/2009/03/09/focus7.html?b=1236571200%5e1788157

[Asmir Hamidovic]

Thanks guys great advice! My goal is to bring more aviation to Bosnia and introduce it to the young population! I would really like to start some type of operations wheater that is parachuting or gliding ort para gliding that is successfull! And than introduce it to young people!

[Dmmoore]

Thanks guys great advice! My goal is to bring more aviation to Bosnia and introduce it to the young population! I would really like to start some type of operations wheater that is parachuting or gliding ort para gliding that is successfull! And than introduce it to young people!

A worthy goal.
I suggest the following:
Finish your education. An MBA wouldn't hurt.
Plan on taking 5 years to develop your business plan.
Find employment with a similar enterprise (in a different location) to gain experience and to become familiar with the operating realities of the enterprise.
Modify your business plan as you gain experience.
Research the economy of the local area in which you choose to operate.
Investors will be more likely to take a chance on a new enterprise when the homework has been accomplished.

[ATLcrew]

I know that this is a 10+ year thread revival, but something truly remarkable has taken place. In this photo you see two people who've posted in this thread and who are presently on day 2 of a 4-day trip as a crew. In case anyone needed proof how small the aviation community really is, here's your proof.

[Gabriel]

I know that this is a 10+ year thread revival, but something truly remarkable has taken place. In this photo you see two people who've posted in this thread and who are presently on day 2 of a 4-day trip as a crew. In case anyone needed proof how small the aviation community really is, here's your proof.

ATL, I like you captain's Christmas tie. (I also like your A320 )