Write aviation business plan and tender small charter company named Flights For You which is located at Archerfield (Qld) of Australia.

PART 1: BUSINESS COST

Business Summary

The current study is based on a small charter company named Flights For You which is located at Archerfield (Qld) of Australia. Charter flights are called unscheduled flights which does not belongs to the routes associated with regular airline. The owner of the small charter company is use to rent charter flight as well as entire aircraft. The owner of the Flights For You charter company himself determine the location of departure and arrival along with the time of departure and arrival (Randt et al. 2015).  There are some different types of air charter or charter flights such as private charter, public charter, affinity and single entity. The charter company is currently operating Cessna 172 with which the company use to conduct flying for 15 hours in a week for charters that include 5 days. The owner of the charter company is the chief pilot as well as the owner himself is the only pilot of the air charter. The company is use to operates with only one charter plane throughout the year which is flown by the owner himself who is the only pilot of the charter company. In this study, the current charter company user to rent its charter named Cessna 172 for private use. The time and place of departure and arrival and charges are determined by the owner himself. 

About the business

The current study is about the air charter company named Flights For You which is located at Archerfield (Qld) of Australia and owned as well as operated by a single owner. The company operates it air transport business with only one plane. The owner of the charter company is the chief pilot who uses to fly the charter plane named Cessna 172. In a week Cessna 172 use to fly for fifteen hours on a charter consists of 5 consecutive days. The chief and only pilot of the charter company who is also the owner of the company usually operates additional charters for 10 hours in every month. The office of the Flights For You is at the home of the owner. For the only aircraft named Cessna 172, all required repair and maintenance work is done in Hobart which is the capital of Tasmania, the island state of Australia. The aircraft of Flights For You is going to be signed up for lease consisting with 5 years which will have a residual value of 25%. The owner of the company is use to draw a total wages of $75000 which includes superannuation. 
The entire set-up costs associated with Flights For You charter company those includes costs of getting certificates of air operators, office equipments and old route are paid in the bank through which the company use to do its external financial activities related with its charter business. The company currently has got a request from the Department of Agriculture for submitting tender for providing flights for the academic researchers those are appointed by the department for investing wild dogs attack in Northern New South Wales (NSW) and South East Queensland of Australia. Due to this purpose, the charter company (Flights For You) needs to purchase a ATC rotating plotter. The company needs to plan for two flights during each month those are required to be scheduled for separate days in a month (Y?lmaz & Üzülmez, 2017). 

About the market

The market from where the charter company, named Flights For You use to operate its business in and around Australia. The charter market of Australia is rapidly growing due to the development of different sectors such as education, business, travel and tourism, medical and more (Renwarin, 2017). The improved technology and its use in airways have modified the air transport mode in a unique way. This improvement of air transport which is entirely based on aircraft is become responsible for attracting people towards availing charter services. The tendency of customers to work faster related with educational, political, medical and others sectors has instigated the urge of using charters of the people. There are too many charter companies operating through Australia and its different states which have created market competitiveness as well as opportunities. For this reason, the businesses those are associated with air charters are having huge opportunities and competitive advantages (Flouris & Lock, 2016).

About the future

According to the present scenario of the Flights For You Company in terms of its productivity, degree of market capitalisation and profitability it is assumed that the company is having a great future. It is expected that in coming years, this small charter company will be able to make its strong identify in the Australian charter market. The air transportation business opportunities in the current market those are provided by the federal government is playing an important role in the growth and development of entire aviation industry. Thus, the growth of Australian aviation industry has started accelerating the growth of small charter business operating in the country at present (Murrieta-Mendoza, Botez & Patrón, 2015). Flights For You is a growing charter company which is experiencing financial and operating growth during last few years. 
The reason behind such growth of the company is associated with the committed service which is provided by the company to its customers who are residing in and around Australia. The charter company has implemented after sale service which is also handled by the owner himself who is also the chief pilot of the company (Flouris & Lock, 2016). With this implementation, the owner of Flights For You become able to interact with its prospective customers to understand their choice and preferences. Here, the choice and preferences of the customers includes price of the charter, location and facilities those are intended by them to get during flights. The growing customer demand for availing charters is acts as the major opportunity for Flights For You Company to grow and to have a well build future in terms of business operation and profitability (Lohmann & Spasojevic, 2018). 

About the finance

The charter company named Flights For You has different sources of finance from which it use to collect funds to operate its charter business. The two major sources of finance for the company are the owner’s capital and Bank. The company use to retain its business profit which it uses to invest in regular business operation. According to the current scenario, the charter company (Flights For You) use to conduct flying for total 25 hours in a month which includes 15 regular hours and 10 additional hours per month. (Kivits & Charles, 2015). The costs of the aircraft named Cessna 172 is approximately $80000 which has already signed up for lease which includes a residual value of 25% of the book value of the aircraft. The lease will be hold for 5 years. 

Particulars    Annual Costs ($)    Costs Per Hour($)    Costs Per Month ($)
Set-up Costs:              
Air operators certificate cost    178    7.12    14.83
Test Approvals cost    300    12    25.00
Cost of office equipments    385    15.4    32.08
Costs of old route permit    137    5.48    11.42
Total Set-up Costs ($)     1000    40    83.33
Fixed Costs:             0.00
Rent    1250    50    104.17
Lease on Equipments    450    18    37.50
Insurance    1500    60    125.00
Depreciation    12000    480    1000.00
Wages with superannuation    900000    36000    75000.00
Annual check and renewals of Pilot    1000    40    83.33
Total Fixed Costs ($)     916200    36648    76350.00
Variable Costs:              
Operational Costs    34500    1380    2875.00
Costs of fuel    6000    240    500.00
Repair and maintenance    25000    1000    2083.33
Income tax    1050    42    87.50
Total Variable Costs ($)     66550    2662    5545.83
               
TOTAL COSTS ($)     983750    39350    81979.17
                

Table 1: Costs Structure of Flight For You
(Source: Created by the researcher)

Particulars    Amount ($)
Revenue from aircraft    1015000
Revenue from others sources    24500
Total Revenue ($)     1039500
Total Costs    983750
Annual Profit ($)      55750

The charter company named Flights For You use to incur several fixed costs and variable costs those are associated with its regular business operation. The company also has incurred some set-up costs. After meeting all relevant operational costs, Flights For You use to generate annual profit of $55750. The company is efficiently operating its charter business with a set of effective business strategies for which it become able to draw annual profit from its business (Halpern & Graham, 2018). 

Supporting document

The Flights For You Company located at Archerfield (Qld) of Australia use to compliance with the aviation policy and regulations formulated by the Australian Government. According to this rule, the fundamental role of Flights For You Company is to act in accordance with the stated rules, policy as well as regulatory framework designed by the federal government for the Australian airports and aviation industries (Kivits & Charles, 2015). CASR Part - 135 has formulated a set of rules for the small aeroplanes those are used by air transport companies of Australia (here, Flights For You). According to the Part 135, small airplanes refers to the aeroplanes having the following features,
•    It must have take-off weight which should not exceed 8,618 kg
•    It must fit with a configuration of passenger seat which should not exceed 9 (casa.gov.au, 2018).

PART 2: TENDER

1. VNC Chart

Visual Navigation Chart of VNC Chart is a chart required to be designed before scheduling a flight. This chart helps to make flight plan which is related with controlling airspace. This chart helps the pilot to navigate while it is nearing to some restricted place or some danger area or controlled area (aft.com.au, 2018). 

Figure 1: VNC Chart
(Source: Created by the researcher)