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Aircraft Rental Instruction Business Plan
Executive Summary
Lansing Aviation is being formed as a private company offering services to student pilots. Lansing Aviation will offer well-maintained aircraft for individual rental and for flight training. Lansing Aviation will also provide primary and advanced flight instruction through the use of independent flight instructors possessing corporate and airline backgrounds. Lansing Aviation will offer professional aviation consulting for corporate, airline, and individual aviation needs.
The Company
Lansing Aviation, LLC has been created and legally organized as a Michigan Limited Liability Company based in Lansing, Michigan. The principle investors and operators will be responsible for all airplane acquisitions and company decisions. Lansing Aviation will operate its aircraft out of Capital City Airport (LAN) in Lansing, Michigan. The aircraft records, scheduling, and office will be located at an off-airport location 15 miles north of Capital City Airport.
Services
Lansing Aviation offers services in three primary areas; aircraft rental, flight instruction, and aviation consulting. In order to do so, Lansing Aviation will maintain a Cessna 172 Skyhawk updated with the latest avionics.
Our competitive differences include professionally maintained aircraft, renter/instructor insurance, and our 24-hour scheduling service that will allow greater flexibility of our aircraft flight times. In the future, Lansing Aviation plans to enhance their aircraft rental position by acquiring complex, high-performance, single and multi-engine aircraft for commercial and airline transport pilot training and rental. We also plan to conduct up-to-the-minute aircraft scheduling through the use of the Internet and an online business website.
The Market
The airline pilot shortage has created an immense demand for increased pilot training. The previous aircraft rental company in Lansing ended up needing additional aircraft to meet the increased demands of new students in the area. Mackinac-Great Lakes Airlines Systems is the largest employer in Lansing, with 19,000 employees, and we feel that these employees are aware of the excellent careers held by M-GLAS pilots. We hope this awareness will generate interest in flying. Additionally, many M-GLAS pilots and M-GLAS mechanics fly small airplanes for fun and to transport their families to vacation spots.
There are several students currently flying at Capital City Airport that are unhappy with either the quality of their current instruction or the poorly maintained aircraft they are renting. A flight with our instructors in our well-equipped Cessna 172 Skyhawk will confirm their displeasure with our competition and generate new business for us.
Lansing Aviation will be focusing initially on students interested in obtaining their private pilot certificate. These students will primarily come from word-of-mouth-advertising from our instructors, students, and other contacts at Mackinac-Great Lakes Airlines System (M-GLAS). We will attempt to continue teaching these students through their instrument rating course with us, upon completion of their private pilot package.
1.1 Objectives
- Form a Limited Liability Corporation (LLC) for liability protection of personal and company assets.
- Acquire a Cessna 172 Skyhawk aircraft for rental and flight instruction.
- Operate the aircraft for at least 50 revenue flight hours per month.
- Aircraft revenue to exceed hangar, insurance, fuel, maintenance upkeep and loan expenses resulting in a net income/profit.
1.2 Keys to Success
- A 24-hour aircraft schedule will provide students and renters with better schedule planning.
- Marketing the aircraft to the 2,100 Mackinac-Great Lakes Airlines System airline pilots, their familes, friends, and neighbors in Lansing to generate more exposure and word-of-mouth advertising resulting in more revenue flights.
- Preventative aircraft maintenance to eliminate aircraft downtime.
- Thorough and safe training of students and selective aircraft checkouts for rental customers to insure the aircraft is operated carefully, safely, and respectfully.
1.3 Mission
Lansing Aviation offers an affordable, professionally-maintained aircraft for rental and flight instruction. We will provide a safe and effective learning situation for our students while adhering to safe practice and to applicable federal and state aviation regulations. Lansing Aviation will provide students with an excellent aircraft for flight training and an aircraft to fly upon successful completion of their training.
Company Summary
Lansing Aviation is a new company that provides aircraft rental for general aviation enthusiasts, flight instruction, and a dependable aircraft to build flight hours. We will focus on aircraft rental for registered pilots and rental for beginning and advanced flight training. Initially we will be marketing our new business with aircraft specifications which include:
- Clean, safe, and nice-looking aircraft readily available.
- Professionally maintained by certified aviation technicians.
- Continuously updated with leading-edge avionics.
2.1 Company Ownership
Lansing Aviation, LLC has been created and legally organized as a Michigan Limited Liability Company based in Lansing, Michigan. The principle investors and operators will be responsible for all airplane acquisitions and company decisions.
2.2 Start-up Summary
The start-up costs of Lansing Aviation, LLC include:
- An aircraft down payment.
- Office expenses.
- Down payment on aircraft renter’s and flight instructor’s insurance.
- Hangar deposit and first month’s rent.
- Aircraft loan application fees.
- ADF radio purchase.
- A small cash reserve.
- Legal costs.
2.3 Company Locations and Facilities
Lansing Aviation will operate its aircraft out of Capital City Airport (LAN) in Lansing, Michigan. The aircraft will be hangared on the airport located just north of the I-96 Expressway and Airport Road exit. Students, renters, and instructors will be given full access to the hangar facilities. The aircraft records, scheduling, and office will be located at an off-airport location 15 miles north of Capital City Airport.
Services
Lansing Aviation will provide students, instructors, and pilots with a well-maintained aircraft for individual rental and instruction. Additionally, we will provide professional and accurate aviation consulting.
3.1 Service Description
- Aircraft Rental: We will offer a rental aircraft clear of maintenance discrepancies to students, instructors, and individual renters.
- Flight Instruction: We will provide prospective students with a qualified and professional selection of independent, certified flight instructors capable of helping students obtain their desired flight ratings.
- Aviation Consulting: We will offer individual advice in the aviation industry including airline, corporate, and military recommendations. Additionally, we will attempt to aid our customers with job leads and references in their desired fields.
3.2 Competitive Comparison
The competitive differences are:
- Our aircraft will be professionally maintained to the highest standards and regulations. Flying the aircraft with broken, deferred, or damaged components will not be acceptable. Our students, renters, and instructors will not have to fly aircraft that aren’t properly maintained.
- We will provide renter and instructor insurance for our clients.
- Our 24-hour paging service will be used for aircraft scheduling and will give us a competitive edge over other aircraft rental and instruction operators that open and close according to a fixed schedule.
3.3 Sales Literature
The company will advertise its rental aircraft and flight instruction position in the Mackinac-Great Lakes Airlines System airlines pilot union newspaper, the “ALPA Times.” Additionally, brochures describing the aircraft and rental charges will also be positioned in the M-GLAS airlines’ union headquarters in Lansing, Michigan. All other initial advertising will be through word of mouth from current instructors, renters, and students.
3.4 Technology
Lansing Aviation will maintain an updated Cessna 172 Skyhawk.
- The aircraft will have at least two 720-channel radios for legal and practical navigation and communication purposes.
- The aircraft will have the required equipment and certification necessary to conduct instrument training and actual instrument flight.
- The aircraft will be continuously upgraded with M-GLAS Aviation Technology (M-GLAS-AT) avionics.
3.5 Future Services
In the future, Lansing Aviation will enhance their aircraft rental position by acquiring complex, high-performance, single and multi-engine aircraft for commercial and airline transport pilot training and rental. We also hope to conduct up-to-the-minute aircraft scheduling through the use of the Internet and an online business website.
Market Analysis Summary
Lansing Aviation will be focusing initially on students interested in obtaining their private pilot certificate. These students will primarily come from word-of-mouth-advertising from our instructors, students, and other contacts at Mackinac-Great Lakes Airlines System. We will attempt to continue teaching these students through their instrument rating course with us, upon completion of their private pilot package.
We feel that our well-maintained aircraft, combined with our personable and enthusiastic flight instructors, will generate repeat business from our private pilot students returning for their instrument ratings.
4.1 Market Segmentation
- Unsatisfied Students: We hope to obtain students and renters that are dissatisfied with their current instructors or aircraft from our competition before they become so frustrated that they cease flying.
- M-GLAS Employees: Our largest group of new students will hopefully come from Mackinac-Great Lakes Airlines System employees looking to start an aviation career. However, the M-GLAS pilots, M-GLAS mechanics with pilots licenses, and their children will also serve as a strong target market for us.
- Curious Flyers: The unrealized group of students that have “always wanted to learn to fly” is another market segment that we intend to develop.
- Other Flights/Miscellaneous Rental: Sight-seeing flights, color tours, real-estate surveying, Air Force training, and traffic watch will also be targeted.
4.2 Target Market Segment Strategy
We will focus our marketing to prospective students that are looking for fun, qualified instructors and a well-maintained and well-equipped aircraft. The aircraft must fly several hours each month, so we will continuously urge interested students to call our list of qualified instructors. Each prospective pilot that contacts Lansing Aviation for information will be sent a private pilot price sheet with approximate costs and a free 6-month subscription to AOPA Flight Training magazine.
4.2.1 Market Trends
The airline shortage has created an immense demand for increased pilot training. The previous aircraft rental company in Lansing ended up needing additional aircraft to meet the increased demands of new students in the area. There are rising numbers of students and renters that are looking for a professionally-maintained and well-equipped aircraft for training and renting.
4.2.2 Market Needs
There are several students currently flying at Capital City Airport that are unhappy with either the quality of their current instruction or the poorly maintained aircraft they are renting. A flight with our instructors in our well-equipped Cessna 172 Skyhawk will confirm their displeasure with our competition and generate new business for us.
Mackinac-Great Lakes Airlines Systems is the largest employer in Lansing, with 19,000 employees, and we feel that these employees are aware of the excellent careers held by M-GLAS pilots. We hope this awareness will generate interest in flying. Additionally, many M-GLAS pilots and M-GLAS mechanics fly small airplanes for fun and to transport their families to vacation spots.
4.2.3 Market Growth
The rental aircraft in the Lansing area are averaging over 50 hours of revenue flying per month. This indicates a very solid number of new students, additional ratings for current students, and more disposable income being used to obtain the long-time personal dream of obtaining a pilot’s license. Lugnut Flying Aviation, a flight school that ceased operation, was averaging over 70 hours of revenue flying per month and produced a net profit in the first year of operation.