Tuesday, March 27, 2012

Business Plan for a corporate shuttle project

As part of my MBA studies, I drafted a comprehensive business plan of an air corporate shuttle project under the fictitious name majlis aviation. The project formed actually part of my former company Gulf Executive Aviation but never materialized so I thought it to be a good idea to revive the project. If interested, you know where to reach me!
executive summary
majlis aviation (MA) was established in February 2005 by the author to perform quality and safe air charter and aqviation consulting services for internationally operating companies and frequent flyers from and to Bahrain, Qatar, and Saudi Arabia. All current services offered by MA are operational. 
The author is the current sole owner of the company and handles all operational and administrative tasks with the exception of business development matters. The author is a commercial pilot and is educated to university level. He possesses 10 years of aviation experience, including senior positions with private charter companies. Business Development is managed by Mr. ABC. Mr. ABC holds a Master’s degree and possesses more than 25 years of aviation experience, mostly in senior business development and quality positions. 
The company has a number of business objectives, including:
  • To achieve a turnover of USD 40,000 per month for the first 6 months;
  • To sell 300 flight hours of in-house charter flights per year (these flight hours compare to approximately 6 flights per month);
  • To attract funding to lease/manage a business jet (a potential agreement is in the process of being signed and does not form part of this fund raising plan);
  • To be the primary contact for internationally operating companies in Saudi Arabia, Qatar, and Bahrain regarding travel arrangements for their employees;
  • To be recognized as the number one aviation consultant in the Middle East; and
  • To be awarded with a contract to operate a weekly corporate shuttle.
MA is seeking to attract USD 150,000 in debt to establish a corporate shuttle project. A corporate shuttle is a semi-scheduled flight for a number of businessmen who are regularly traveling the same route. At least 4 petrochemical plants in Saudi Arabia are looking into possibilities to operate such a shuttle service. MA has approached all four companies and has found sound interest in the project, which, once materialized, would guarantee a minimum turnover. The aircraft would be leased under a lease agreement from an existing operator including its crew. MA faces no regional competition for corporate shuttle services as indicated in this plan.
Pay-back of the loan would start after 12 months at a monthly rate of USD 5,000 till the loan has been amortized. MA proposes a 10% effective interest rate, to be paid yearly. Even under the worst-case scenario the risk that the loan cannot be paid back on schedule is negligible. Collateral will be the guaranteed income from the corporate shuttle contract.
The general aviation market in the Middle East and especially in the GCC countries is still at an early stage of development. As yet, only a few charter companies are established locally and the region relies completely on outer region expertise for the aviation consulting market resulting in a vast market for our services.


  1. Hey Alex, weren't you the guy who set up the weekly shuttle from Riyadh to Dubai for McKinsey back in the old days? That was surely one of the best and most convenient modes of air transportation I have ever encountered!

    1. Bill, we were indeed involved in the shuttle project. A few hiccups along the way to set-up but nothing major.