Taking Flight: Essential Guide to Launching Your Own Aviation Company in the UK

Are you passionate about aviation and dreaming of starting your own aviation company? However, starting an aviation company is no mean feat. It will take a considerable amount of research, investment and a strategic approach that, much like flying itself, requires a specific skill set and dedication to ensure you can make a success of your new venture.

With various regulations, licences, and procedures for new pilots and aviation businesses to follow, being prepared and doing your due diligence is vital. After all, you want your new business to soar, not to be grounded because of simple oversight.

There are currently over 3,000 registered aerospace companies in the UK, and this sector is one of the largest employers in Europe. The industry provides over 230,000 jobs in the UK alone and contributes £20 billion annually to the economy.

Read on to learn how to prepare to open your new aviation business and what to consider before you take off.

Identifying the niche for your aviation company

What kind of flights you will offer is the first place to start. The UK has a thriving and well-established aviation industry and is home to some of the busiest airports in the world; however, commercial aviation isn’t your only option.

You must identify a niche to give yourself the best chance of success. This can help you target your audience and create a name for yourself rather than simply getting in the air.

Your first step is to identify the different segments of aviation and the established players. For example, you could focus on areas such as;

• Air ambulance services
• Air Rescue
• Aerial surveying
• Corporate jet services
• Business travel
• Luxury travel
• Leisure flights (i.e. skydiving)
• Photography

Conduct thorough market research into the businesses already operating, their flight times and schedules, frequency of use, airport statistics, and the planes themselves. Identify areas where you can disrupt the status quo, offer something that isn’t currently being offered, and carve a niche for your company to swoop in and take over.

Business plan for your aviation company

Much like with any business you start, you need a detailed and extensive business plan. Unlike some startups that can be drawn up on the back of a paper napkin, for an aviation business, you need to be as detailed and specific as possible. This is where the above point can come in handy too.

Having a niche figured out, and a market analysis for this niche can provide the backbone for your business plan. A good business plan will include the following;

• Competitive analysis
• Industry and your target markets
• Financial backing and investment opportunities
• Spending
• Marketing
• Risks and mitigations plans
• Capitalisation plans
• Operations and management

These points are a bare minimum, and you need to include as much detail as possible to help you secure funding and approvals and overcome any challenges you might face. You need to know every single aspect of your business projections and how you will get from where you are now to where you need to be in specific details.

Legal requirements for launching an aviation company in the UK

The UK and, indeed, many countries around the world have very complex and stringent regulations regarding flying and operating aviation companies. Before you even consider booking your first flight, you must ensure you are up to date with the industry regulations and requirements, not just for yourself but for all employees. Everyone needs to be aware of all compliance issues and how they affect the job role they will be carrying out.

The CAA (Civil Aviation Authority) and the Department for Transport oversee the aviation industry, and the UK is party to international agreements such as the Chicago Convention 1944. you need to ensure you are aware of each specific piece of legislation for the countries that will be operating in and hold the correct licences and permits for flights pertaining to your business. This can be determined by many different things, such as the number of passengers your plan holds, the industry you operate in, and more.

Financing options for your aviation company

Launching an aviation company in the UK requires a significant financial investment. Funding options include aviation financing, capital markets, tax equity, and export credit agencies, to name a few. You will need to acquire aircraft, hire and train staff, and cover other expenses such as insurance, maintenance, and marketing.

Aviation firms specialising in financing for all aspects of operating or sourcing new planes exist to help you get up in the air in the best aircraft possible for your new startup.

However, buying the plane isn’t your only financial issue. You will require significant funding or not only purchase the appropriate planes but also gain the necessary certification and expertise to get up and running. A plane on the ground is wasted money, as they say, so you will need heavy investment to pay for aircraft insurance, marketing, booking technology, digital aspects of running a business such as a website, fuel, equipment, airport charges and fees as well as maintenance, repairs and any added extra you will be offering. A comprehensive business plan should have covered this allowing you to appeal to investors to help you get the funding you require to get started.

Aircraft Sourcing & Selection

A vital consideration when setting up your aviation company is the type of aircraft you will be flying. You need to make the right choice based on several factors, including competitor analysis, budget, target audience and the overall forecast of business goals.

The type of plane you choose will be integral to the success of your business and should be made with careful consideration.

It should be clear from your research the size of the planes you require and the size of your fleet. 

If you are serving smaller audiences, then a light jet o a medium jet could be your best investment. If you want to operate commercially, then looking into a Boeing could be more suitable. Again for air rescue, you need to ensure your helicopter has sufficient space for medical equipment and holding passengers on stretchers as well as the required number of crew and medics.

From here, you need to find a broker or a supplier and decide if you are purchasing outright or you are going to be leasing your aircraft.

Other Considerations

Your long-term goals for your new startup need to be evident from the inception. What exactly you want to gain from your business goes hand in hand with you. You need to have goals and a vision for your business to be able to push through the hard times. And there will be hard times. As soon as you start operating, you will likely be running at a loss for an initial period. And well, you set yourself up for success at this point, and even before you get there will prove to be make or break.

It’s simply not good enough to want to get an aircraft in the air; you need to be focused on reaching goals.

With this in mind, it can be worthwhile to study some of the biggest and most successful operators in aviation, whether they perform in your niche or not; look at success and failures to see what separates them both and what you can avoid.

Being proactive and always striving for more will help you to succeed and reach your goals.

Conclusion

The UK aviation industry is thriving right now, and there is always an opening for new and emerging entrepreneurs in this sector to carve out a space and name for themselves. However, it won’t be easy, and the industry is notoriously tough to set up. You will need to jump through many hoops to ensure you are legal and ready to take on the challenge.

The post Taking Flight: Essential Guide to Launching Your Own Aviation Company in the UK appeared first on Start Your Business Magazine.

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By: Start Your Business
Title: Taking Flight: Essential Guide to Launching Your Own Aviation Company in the UK
Sourced From: www.startyourbusinessmag.com/blog/2023/03/28/26515/?utm_source=rss&utm_medium=rss&utm_campaign=26515
Published Date: Tue, 28 Mar 2023 08:25:51 +0000

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