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Philippines low-cost carrier investment proposal

Philippines low-cost carrier investment proposal

Project Title : Airline Investment Proposal

Project Cost:
Amount Invested : USD 1,030,401.00
Amount Required : USD 500,000.00
Knowledge / Experience Required: finance
Proposed Investor’s Role: as consultant; others (Silent Equity Partner)
Industry: Aviation
Project Stage: Expansion

More Information:

The main goal of Aero Majestic Airways Inc. is to provide the services and features of a full-service airline and the comfort of a charter airline at the cost equivalent to a low-cost carrier. Thus the airline will provide its customers with the best value for money. The project is motivated by the booming tourism industry in the Philippines and the occurrence of investors flocking to Asia. Both effects significantly influence the transportation business in Philippines, primarily the airline business. Due to recent regulation changes in the Philippines Civil Air Regulations, an airline or air operator cannot perform their own maintenance. Instead, it is required to have an Approved Maintenance Organization to perform the maintenance, the airline or air operator monitoring and performing audit functions only.

Aero Majestic Airways Inc. has the following permits and certifications:

Civil Aeronautics Board Certificate of Public Convenience and Necessity (CPCN) to operate Domestic Non-Scheduled Air Transportation Services.
Civil Aviation Authority of Philippines Air Operator Certificate
Authorized Airports:
• All CAAP authorizes airports/airstrips Special Authorizations
• Low Visibility CAT I Operations
• Continuing Airworthiness
• Civil Aviation Authority of Philippines Approved Maintenance Organization

The authorizations give Aero Majestic an advantage – the right to perform air transportation and aircraft maintenance to its aircraft and also to third party aircrafts.

Areas of Operation:

Aero Majestic is operating with an intention to provide convenience to the Filipino and the foreign public by serving the majority of the feeder airports as well as the major airports in the Philippines. The main operations base is situated at the Zamboanga International Airport, Zamboanga City. The main base is where the hangar and aircraft parking are located, and is also used for maintenance and technical work. Aero Majestic’s corporate office is located in Paranaque city area which serves as an executive headquarter and finance department of the company. The purpose is to centralize the management operation of the company. Aero Majestic has a sub-base at Diosdado Macapagal International Airport, Clark and has capability to establish a sub-base at Mactan International Airport. Currently, the Diosdado Macapagal International Airport sub-base is used as a technical stop for Aero Majestic’s operations in Luzon region.

Market development plan:

The YS-11A 500 series turbo porp aircraft have proven their performance capability over the years. YS-11A has a reputation for the lowest operational cost in its class. Also, one of the main characteristics is that the aircraft has capability of carrying either 64 passengers or 5 tons of cargo, or performing a combi operation with 64 passengers and 2 tons of cargo. This creates a big advantage over other turbo-prop aircrafts utilized by other airlines which have limited load carrying capabilities and higher operations. Also, being the only carrier which can provide large capacity aircrafts to cater for ad-hoc and on demand charter, Aero Majestic has an advantage over its competitors who don’t have the same capacity, including major airlines who cannot perform charter.

The current routes operated by Aero Majestic have no competitors, allowing us to command the fare prices.

MONTHLY INCOME

TOTAL GROSS REVENUE Php15,971,239.68

LESS
DIRECT OPERATING COST Php5,926,400.00
INDIRECT OPERATING COST Php949,240.00
NET MONTHLY INCOME Php9,095,599.68

We can offer 40% of the monthly profits to the prospective investor as his returns from the investment made in the company. My equity in the company will serve as guarantee for your investment. All investments made by the company are from my personal capital. The company has no loans or liabilities. The current book value of the company is USD 1,030,401.00.

The cost remains the same as operating a low cost no frill airline. Currently investments are needed to further improve cash flows and provide capital for expansion and upgrade of services.

The capital will be used for the following main reasons
1. Marketing
2. Expansion: opening of new routes
3. Covering operational expenses
4. Improveing the ticket reservation system

Contact Information

CAPT. RAHEEL SHAIKH ( raheel.shaikh@aeromajestic.ph)

Postal Address : Rm. 2A, Sapphire Logistics Center, Multinational Ave., Sto. Nino, Paranaque
State : Metro Manila
Post Code : 1700
Country : Philippines

Telephone : 006328235607
Mobile: 00639995852777