Topics to be Covered
- The Project
- Business Model
- Business Requirements
- Commercial Viability
- Conclusion
The Project
- UDAN Policy of Govt. of India has included Bhagalpur in it’s list and it has to come on the aerial map sooner or later.
- State Govt. can develop this airport if a serious proposal is submitted for it’s utilization for passenger services.
- Scheduled air service is not viable with small capacity aircraft provided this is added as a part of group of aviation activities performed at the same airport.
- By setting up an Aeronautical Activity Centre one can start daily passenger service to connect nearby cities – Deoghar, Ranchi,Patna, Bagdogra, Calcutta, Gaya etc.
- Deployment of two twin piston engine P68 and three Cessna 152 aircraft at the airport will serve the purpose of Daily Services, Charter Services, Flying Training and much more.
- Addition of some commercial high brand shops and Food Court along with the boundary facing Bhagalpur Sabour Main Road will generate money for the regular upkeep of the airport.
Business Model
- Obtain Non Schedule Operators Permit from DGCA, India.
- Obtain permit to operate Flying Club
- Set up a small size Maintenance and Repair Organization for General Aviation Aircraft
- Set up an Aeronautical Engineering Training centre
- Start Daily Air Service TO AND FRO nearest major airports
- Book Aircraft on Charter
Business Requirements
- Flying Training & NSOP
- Maintenance Training
- MRO
- Daily Air Service
- Aircraft on Charter
Commercial Viability
- Estimated Investment – 12 Crores
- Projections for 5 years with minimal flying of 100 hours per month for single engine and 75 hours per month for multi engine.
- Allied Business revenue from NSOP, Aerial Survey, MRO & maintenance training not shown in the projections however expenses towards it are catered for as same manpower to be utilized towards allied businesses.
Projections for 5 years
| Amt in lakhs | Fy 22-23 | Fy 23-24 | Fy 24-25 | Fy 25-26 | Fy 26-27 | |
| I. Revenue: | ||||||
| (a) Revenue from operations | 12,60,00,000 | 12,60,00,000 | 12,60,00,000 | 12,60,00,000 | 12,60,00,000 | |
| (b) Other income | – | – | – | – | – | |
| Total revenue (i) | 12,60,00,000 | 12,60,00,000 | 12,60,00,000 | 12,60,00,000 | 12,60,00,000 | |
| II. Expenses | ||||||
| (a) Operating Expenses | 4,59,00,000 | 4,59,00,000 | 4,59,00,000 | 4,59,00,000 | 4,59,00,000 | |
| (b) Salaries and Wages | 5,10,00,000 | 5,10,00,000 | 5,10,00,000 | 5,10,00,000 | 5,10,00,000 | |
| (c) Other expenses | 1,05,00,000 | 1,05,00,000 | 1,05,00,000 | 1,05,00,000 | 1,05,00,000 | |
| Total expenses (ii) | 10,74,00,000 | 10,74,00,000 | 10,74,00,000 | 10,74,00,000 | 10,74,00,000 | |
| III. (EBITDA) [(i) – (ii)] | 1,86,00,000 | 1,86,00,000 | 1,86,00,000 | 1,86,00,000 | 1,86,00,000 | |
Conclusion
- Projections are based on minimal monthly flying hours, allied business revenue and government subsidy under UDAN Scheme are not included .
- major expenses catered for in the projection, we can see the potential of the business and its future.
- Seeing the demand and growth in the aviation sector, it’s the right time to plunge and contribute towards the growth of the industry.
- Aircraft considered in this project are available with us and are on sale. This proposal is made for engagement of a local entrepreneur in this project who has potential of minimum 10 Cr. Investment.
- After investment and operation of 2-3 years, certainly we will be backed by a regular airline under seat sharing arrangement.