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This section of the plan offers the core elements for evaluating the financial viability of the proposed new airline. The accompanying chart, which is based on the actual financial projections for the proposed airline, clearly shows a pattern of solid growth over the first three years of the operation (and which would continue into the future), which the financials consider in depth. As the accompanying chart demonstrates, the break-even point comes at a relatively modest monthly passenger load, under 22,000 passengers per month, which represents an average passenger load factor of only about 40 percent with a fleet of three RJ100s operating about six segments each per day.
As the accompanying Profit and Loss chart clearly demonstrates, the proposed airline has the potential to achieve profitability, on a month-by-month basis, by as early as the third month of operations, and to end the first year comfortably in the black - an indication of the strength of the market and the marketing plan for the venture, given the conservative nature with which the numbers were calculated.All cost items are covered in this Profit and Loss chart and, while the organization and salary and cost items presented are not lavish, they both cover the needed functions adequately and also allow some margin for movement. Cash flow is probably the factor that makes or breaks more businesses than any other, and it is even more critical to consider in a venture as capital-intensive as is an airline.As the accompanying chart and table readily show, with careful planning and control of resources and expenses, cash flow crises should not pose a threat to the new airline. The accompanying table offers key business ratios, based on the financial plan for the proposed airline. Pace Allen, Jr., Attorney - "Will Leon County Commissioners allow citizens to vote again?  A tax funded performing arts center was rejected by voters in 1993.
Both in text and in charts and tables, all the key elements are presented to offer a frank appraisal of the venture and the opportunity it presents.Of particular importance is the following section which presents the key "Important Assumptions" on the core cost and revenue aspects of the airline.
Additionally, passenger and cargo fares were considered to be flat over the entire period covered by this plan to compensate for the possibility that additional competition could force fares to remain relatively constant over the period. There is a good balance between revenues and costs, yielding healthy gross margins, and in a predictable, steady pattern of growth. It is anticipated that this load will be reached fairly early in the new airline's life and, in practice, much higher loads - into the 65 - 75 percent range during the first year of operations - can be anticipated based on the overall business and marketing plans for the airline.
Given the business plan's stress on utilizing technology to control staffing and related support and marketing costs - big problems for many airlines - the plan presented here should enable this airline to accomplish far more with less, and simultaneously to present less of a "command-and-control" problem to the management team.All flight and cabin crew salaries are included in the line designated "Operational" in the top section of the chart, with all non-salary aircraft operational costs included in the same section.
It is worth noting that even in the first year of operations, and with conservative planning, a profit, albeit relatively modest, is feasible - something unusual in the airline business.
Since 1993, City & County elected officials have used millions of tax dollars for the proposed 90% Tax Funded Two Hundred Million Dollar Performing Arts Center, "PAC"? Will citizens' again be allowed to vote? These assumptions are based on cost factors involving the proposed Avro RJ100 aircraft, and assume dry leasing of new aircraft (a comparison is also given for a purchase option, although that option, as will be apparent from the numbers, demands a much larger up-front cash outlay, and does not necessarily lead to economies of operation, particularly in the short run).Among the assumptions made were that the airline will begin operating with just three 99-passenger regional jets, with very low load factors, beneath 25 percent of capacity, and at fare levels that in all likelihood are lower than reasonably expected on the planned route network.
However, the objective of this exercise was to show that the proposed operation will be profitable even with much lower revenues than would normally be expected, and the numbers do in fact confirm a profitable outcome.Additionally, expected net revenues from offering peak-demand special flights also are calculated. Financial turn-over also is in good balance and, as other tables and charts show, with careful planning of expenditures cash flow is maintained in good balance throughout the life of the plan.
All revenues, which derive almost entirely from airline operations (both scheduled and special flights) are also provided in the top area, along with a deduction for the direct cost of sales, such as reservations fees and commissions (an area that hopefully can be reduced even further through e-reservations and e-ticketing, though it probably cannot be eliminated altogether. Nevertheless, it would offer an extra cushion of safety to arrange for availability of additional credit facilities or cash reserves, or equity investment, to be called up only as needed in the short-run should cash demands out strap expectations, immediate revenues, and on-hand cash on a temporary basis.It should be noted that a 30-day accounts payable repayment schedule is included in the planning for the financials. If not, why not? Elected officials should allow citizens to vote again or they should stop spending for a PAC rejected by voters in 1993. These assumptions were taken to ensure a conservative approach to the financial planning, and to demonstrate that even with these constraints the proposed airline can be profitable as early as the first year of operations.It also was assumed that the aircraft will receive maximum utilization, up to six, seven, or more segments per day.
They are set apart separately from the scheduled-service revenues to show that both types of service - and particularly the more important scheduled service - are viable and the airline will be profitable even without these additional revenues.The assumptions utilized here are based on dry leasing new Avro RJ100s at a high level of outfitting and with necessary spares included. Clearly the affect of these charges on the bottom line can be seen in this chart, even figuring that 60 percent and more of airline clients will utilize electronic means for ticketing). However, a majority of the airline's revenues will come from online sales, with payment by credit cards and generally rapid settlement, and also from ticket sales from travel agencies that are required to make payments usually in half the accounts payable schedule used in the assumptions for this plan.

KG - Anwaltskanzlei Hesse - RECHTSANWALTSKANZLEI SCHÜTT & DINSLAGE - RECHTSANWALT ROLAND SPERLING - Dr. A "wave" or "W" route pattern, and reciprocating or circular routes, was assumed, rather than simply a spoke-and-hub route pattern, to enable service to more destinations and to maximize use of the aircraft.
Given the large fluxes of cash, even these payment methods allow for significant amounts of funds to be receivable at any given time but, again, the financial calculations indicate that this should pose no significant problem to the airline's financial management or cash liquidity. Prudent, experienced management will regard these caveats carefully and, in so doing, will see the airline through its initial challenging launch into a period where growth will be both solid and sustained.
A major feature of the route planning has been to enable business travelers to go and come back from destinations generally in the same day, and certainly in the same week. Profits in the second and third years show substantial growth, with a combined net profit in excess of [XYZ] million USD projected for the third and fourth years, even given the limited size of the fleet (up to nine mid-sized jets by the end of the third year of operations) projected for the airline.
A conservative approach also was taken with this segment, and again it was shown to be a profitable area to pursue, although relatively modest particularly at the outset in terms of overall revenues.It is strongly suggested that the Important Assumptions section be reviewed carefully prior to more in-depth examination of the financials since it explains the premises on which the financials are based. It also should be noted that the aircraft costing section is based on a segment approach, with aircraft acquisition, operating and crew costs, and some direct sales costs, as well as revenues, apportioned on a "segment" basis. Note that some elements that go into the segment costing are based on hourly costs, extrapolated to the segment length, and others are strictly on a "per segment" basis.
The number of aircraft employed are stated at the top, on a "full-time equivalent" (FTE) basis, allowing for variance in fleet size during the year as new aircraft are brought into the fleet. The Plan has never been approved by voters and many city and county commissioners agree, the PAC may never be built. Let’s not double Tallahassee 's Culture Tax to please “a small group of people with a lot of desire" to go around Leon County voters once again.
Now is the time to redirect the 4th cent currently dedicated to the PAC to valuable “heads in beds” tax regenerating tourism advertising and marketing. Don’t Dump Tommy Waits, Tallahassee Arts Rock without Taxes, Let’s Build on our History, Florida Welcome Station, Coonbottom Pilau, Book Reviews, Restaurant Reviews, Trees R’ Us Tallahassee, Tallahassee Ecotourism, Minutes of Leon County Tourist Development Council, How Goodwould you like a $300,000 Goodwood Bailout?, Use bed taxes to raise more taxes? Danke - Munch - Paul - Pausch - Plemper - Rechtsanwaltin Riese - Rechtsanwaltin Susanne Gro?e Graf.Adolf-Str. 41 Innenstadt - Rogers - Scholzen - Schratzlseer - Terhaag & Partner - Wild - Burgard - Hedwig - Keerl - Kiel - Marbach - Sawall - Apotheken Bismarck - easyApotheke - Im Hauptbahnhof - Marien Apotheke Inh.
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