Ask HN: Help me start a different sort of startup: an airline
Hey guys
I know this is a lot different than the usual concepts/ideas thrown around here, but I thought it'd still get a lot of interest.
I'd like to start an airline. Not a low-cost one either, but a full international airline, focusing on ultra-long range travel (trans Pacific to start [Melbourne, Sydney, Auckland -> LA, SFO, Vancouverish]). I'd like to work on improving the airport process (as all airlines say they do, but I'd like to digitise almost everything from tickets, to boarding passes and baggage tags).
I feel that long distance travel requires an entirely different approach than just buying a bigger jet and providing the same services as ~2 hour flights. There are a few airlines doing well but I still feel there's room for improvement. A few hurdles though:
1. I don't know what to do now. There isn't too much information available (especially here). I'm leaning towards talking to a lawyer (maybe? don't have any money though) and have been reading the Airbus/Boeing "Jump start" [1][2] areas. Informative and helpful, but mostly if you already have the money.
2. I live in Australia (Perth) and there isn't the greatest amount of money here I'd imagine. At least compared to American sources. I'm aiming to find the money to afford the consulting fees of Airbus/Boeing and going from there to see the viability. I'd likely move to Sydney or Melbourne and try to take it further once I have a more concrete plan.
3. Right now most of what I have is a load of notes, a huge willingness to get it done (reached a point in life where I'm just saying fuck it and going with something), and a vision of how travel should be for those who can't regularly afford business/first class.
4. I understand the industry (well, from what I can glean). It's a tough, cutthroat business with very little profit in general. I'm ok with this. I'd still like to raise the bar with air travel from where it is now.
Most of you are probably extremely skeptical or doubtful and I understand, but I'd love any advice, help or even just a short mail.
[1]: http://www.airbus.com/en/services/start-me-up/airline-v-plan/
[2]: http://www.boeing.com/commercial/startup/index.html
I think you are confusing a few things.
1) Airlines are becoming more and more digital, but for the most part, that I don't think that really has an affect on the experience, and I think that is what you need to be focusing on.
2) You say 'not a low-cost one', but then you say 'for those who can't regularly afford business/first class'. In a low-profit enterprise, is it realistic to go for a 'boutique' experience and not focus on the highest ticket price?
I say this because I once was thinking of going into the airline biz as well. My angle was a first-class only airline. Refactor the entire check-in and boarding process. No more standing in lines to check your bags and then stand in line to get through security.
Drive up to the airport and your bags are unloaded and a valet takes your car, you're brought into the check-in lounge, and sit comfortably while you wait for a check-in agent to come by and check you in. Manage our own security process so again, no line-ups, we'll let you know when we're ready for you, just relax, enjoy a beverage, etc. etc.
Then, a plane which is full first-class has much fewer checked bags (carrying less people), so more room for cargo to improve margins. Plus with each ticket being a high-dollar, you've got good revenue rolling in (in theory anyway).
When I was thinking about this, I found an all first-class airline which was basing itself out of Las Vegas, but I can't remember what they where called, and they may not have made it off the ground.
I understand the industry (well, from what I can glean)
I don't think that's going to cut it. I think that if you are going to be taken seriously by investors of the scale necessary to get something like this going, you're going to need a management team made up of airline industry professionals with proven track records. So, if I were in your shoes, I'd begin by talking to as many high-level people in the airline industry as I could, and seeing how many you can convince to jump on board your project.
Look into so called Virtual Airlines. Basically airlines without an Air Operator's Certificate that handles all the sales and logistics of running an airline, but pays a third party to actually own, maintain and fly the airplanes. The big advantage being is you don't need as much up front capital and don't have to deal with the problems of actually owning or leasing hardware.
This is not too uncommon among some smaller local airlines, but I don't think anyone has tried it for long range passenger flights.
If you haven't yet, I would spend a couple years working for a reasonably good airline (US: Southwest, Virgin America, JetBlue, etc.) and see how it's done. Not sure which function would be the best to focus on, but operations seems like the trickiest part in managing costs, schedules, fares, passengers, employees, airport personnel, federal agencies, you name it.