Airline Start-Ups & Market Development

Establishing a new airline or entering new markets requires detailed planning. Analysis of the environmental, regulatory, competitive and growth potential is critical to determining the feasibility of a project and the scale of the opportunity. We understand aviation markets and have access to expertise, resources and tools to apply commercial rigor to decisions on business development.

The process of reviewing and scoping opportunities is generally team-based and begins with a macroeconomic analysis, examining the key market drivers and dynamics (e.g. the population, business and demographic mix, GDP profile). We then drill down into specific aviation issues such as the regulatory overlay, existing and likely future competition, historic traffic growth, etc. All of this enables to deliver fully-informed recommendations to the client.

In the case of a new airline, we can develop and evaluate a series of alternative business models and focus on their likely success in various market scenarios. A preferred option is then developed in more detail. Some airline models may not work in certain markets or competitive landscapes and this becomes key to the final preferred option and detailed airline analysis.

In the case of airlines expanding to new markets, many of the considerations are the same although they are often dealt with at a relatively micro level of two or three route options.

CAPA Consulting is able to fast track airline feasibility studies as we have a solid base understanding of all aviation markets including emerging markets in Asia, Africa and the Middle East. We provide an honest view of the likelihood of success for a potential airline investor or an airline executive considering market expansion alternatives.