Starting an airline in Nigeria involves the act of transporting goods and people also known as consignments from one place to another, It can be international or locally. Airline business is somehow related to freight forwarding, The aim of an airline is to convey goods and people from one location to another. Although starting an airline business is capital intensive, but there are lots of profits to be made from this investment.
Starting an airline business and running it successfully should be the major consideration of any entrepreneur. One thing is to start a business and other factor is to run it successfully in a way that will guarantee huge return of investment. An airline business requires careful analysis because the processes involved are too numerous, It is not a jump in quick business, and morever the variety of challenges and issues requires master planning.
When talking about the challenges of starting an airline company in Nigeria, There should be an acknowledgement that the challenges might not only come from the start-up capital, but also from the required sources in running and maintaining a successful airline business. Once everything can be put in place, then there is a positive believe that it will be profitable.
How To Start An Airline In Nigeria
The following are ways of starting an airline in Nigeria:
1. Market Survey
Airline business is a complicated industry that is full of processes and procedures. Study the airline industry. An extensive survey should be conducted which involves the practices, theories, regulations, laws, aspects of trading, documentations, market requirements and informations from recognized sources. You should also have knowledge of your competitors and their way of operations.
2. Location
After conducting a market survey/research, the next step is the location. The environments for establishment matters a lot. The structure of the environments should match with the rules and regulation of Nigerians law, and avoid locations that will be tag as illegal zone/structure.
The airline business location should be conducive for commercial activities to take place, and there are many certain factors that determines whether the environment fits in the criteria for establishing an airline business, One of the important factors is “Noise Pollution”, You don’t need to establish an airline that will affect individuals living within. This is the reason why airlines are usually established a little bit far from human inhabitant to avoid noise pollution and other environmental discomfort.
3. Business Plan
Business plan is the root of every successful business. You should prepare a good business plan for the operation.
Business plan will help you realize and organize many steps required of you to start up your business. Most importantly, it can as well serve as a source of document to attract potential investors to invest in your business, which gives chances to more profitability.
Your business plan will involves all the principle operation, business descriptions, operational cost, marketing costs which ranges from marketing strategies of the company and plan of achievement.
4. Capital
Starting an airline business is capital intensive, so you will need finances to start and run a successful airline business. A support from government or successful investors might be needed.
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5. Business Registration
The necessary licenses should be obtained by registering your business. To obtain the required licensing for an airline business, you must visit the Corporate Affairs Commission (CAC) and other adequate authorities to ensure that your business is registered.
You must also obtain a certification from the authorities to operate as an airline business in Nigeria. The steps involves writing an application letter, which involves your name, company’s name and address of the company. This serves as an application for operation.
6. Getting Started
Buy your airplanes. Note that; the type of airplanes you choose depends on how much you have budgeted both in transportation and number of pilots you intend to have.
Before purchasing your airplane, you should make an enquiry concerning the engine information, airframe maker, magnetos, propeller information and other necessary informations for your airplane. The most important aspect is to buy airplanes that will serve with what is best for your criteria.
Requirements And Cost Of Starting An Airline In Nigeria
Here are the requirements and rough cost estimate needed to setup an airline in Nigeria:
1. Business Plan: Airline business plan creation ranges from $600 to $10,000
2. Environment: The environmental cost is another requirements to consider when starting an airline business. The environmental consideration involves the constructional cost and other related environmental services. This cost about $300,000 to $800,000.
3. Business Registration: Getting a license for your airline business can cost $5000 minimum.
4. Online And Offline Marketing Cost: This ranges from $1000 to $10,000 depending on the type of marketing strategies used.
5. Logistics Cost: The logistics varies from $2 million to $3 million.
SUMMARY
Airline business is a capital intensive business which requires careful research and market survey. The requirements and cost of starting an airline in Nigeria ranges from $3 million to $5 million (dollars). Base on the standard you may want to run it will determine whether the startup will reduce or increase. Starting an airline business in Nigeria can be risky, therefore, be extremely careful with your planning terminologies.