Are you about starting an airport management business? If YES, here is a complete sample airport management business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting an airport management business. We also took it further by analyzing and drafting a sample airport management marketing plan template backed up by actionable guerrilla marketing ideas for airport management companies. So let’s proceed to the business planning section.
Why Start an Airport Management Business?
Airport management is one of the few businesses that is restricted to location and of course the presence of airports and it requires core professionals to handle. An investor with the right skills and connections can start this business.
If you are sure that this type of business is what you truly want to do after you must have conducted your market research, then you should start by writing your business plan. Your business plan is a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.
The truth is that it is one thing to have a fantastic business plan and another thing for the business plan to translate to profits, that is why it is important to assemble a team of experts if you want to be successful with your airport management company.
Below is a sample airport management company business plan template that will help you successfully launch your own.
A Sample Airport Management Business Plan Template
1. Industry Overview
The airport operations industry comprises of businesses that operate international, national or civil airports or flying fields. The industry also includes operators that provide aircraft parking, air traffic control services, cargo handling and other relevant services.
Please note that establishments that engage in fuel wholesaling and airport janitorial services are excluded from this industry, while most aircraft repair and maintenance services are included in the Aircraft Maintenance, Repair and Overhaul industry.
If you pay close attention to the Airport Operations industry, you will notice that the industry has experienced healthy growth over the five years to 2018 as improving economic conditions have fueled demand for airport services.
Increased travel activity on the part of both domestic and international consumers has stimulated flight activity and generated revenue through passenger charges and aircraft support services, while rising per capita disposable income has enabled consumers to spend more on duty-free retail outlets, car rentals and other non- aeronautical industry services.
The industry is expected to continue expanding over the coming years as demand for air travel continues on its upward trajectory.
Statistics has it that in the united states of America alone, the Airport Operations industry generates over $9 billion annually. The industry is responsible for the employment of over 105,556 people.
Experts project the airport operations industry to grow at a 3.6 percent annual rate between 2013 and 2018. CDA, The Port Authority, Atlantic Aviation FBO, Million Air Interlink and Signature Flight Support are the companies with the lion share of the available market in the United States of America.
A recent report published by IBISWorld shows that airports tend to be located in regions with large populations and significant economic activity, though government regulations and aircraft noise concerns often cause industry establishments to be located at a distance from heavily urbanized areas.
The report also stated that the geographic spread of airport operators is also affected by a region’s transportation infrastructure and environmental policy. The Southeast is the most populous region in the United States, accounting for 25.7 percent of the total US population.
As a result, airport operators in this region benefit from a steady stream of consumers who require industry services for both personal and professional travel.
No doubt, if an investor who intends starting his or her own airport management business has the right connections, networks, managerial skills, and takes delight in managing airports for clients, then he or she is going to find airport management business very rewarding and lucrative.
2. Executive Summary
Purple Bloc® Airport Management Company is a licensed airport management company that will be based in Los Angeles – California but will hope to manage several airports that are spread across the state of California.
Aside from managing Mammoth Yosemite Airport, Del Norte County Airport (Jack McNamara Field) and McClellan–Palomar Airport, we have put strategies in place that will help us win contracts to manage Los Angeles International Airport and other world – class airports.
Purple Bloc® Airport Management Company will provide aircraft parking, air traffic control services, cargo handling services and other relevant services for airports. We will ensure that every airport that is kept within our care are properly managed in terms of operations, maintenance and renovation because we are in business to deliver excellent services.
We have been able to acquire all the relevant trainings and certifications in the field of airport management so as to enable us perform excellently. As an airport management company, we are going to be both proactive and reactive when dealing with our clients.
Purple Bloc® Airport Management Company will be owned majorly the Mr. Pearson Wilberforce and his immediate family members.
Pearson Wilberforce is a facility management guru that has worked with top players in the Airport Operators industry in the United States of America for many years prior to starting his own business. He has a degree in estate management from University of California – Berkley.
3. Our Products and Services
Purple Bloc® Airport Management Company is set to run a standard and profitable airport management business within the scope of the airport operations industry in the United States of America.
Our intention of starting an airport management business is to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our goals. Our business offerings are listed below;
- Aeronautical services
- Parking and ground transportation services
- Retail stores and hospitality services
- Car rental services
- Industry Activities
- Operation and maintenance of airports and runways
- Air traffic control
- Aircraft refueling, taxi, parking and rental of hangar space
- Baggage and cargo handling services
4. Our Mission and Vision Statement
- Our Vision is to become the preferred choice of airport owners when it comes to airport management in the whole of the United States of America.
- We are established with the aim of helping airport owners effectively manage (operate, maintain and renovate) and maximize their airports.
Our Business Structure
Our company’s structure is not entirely different from what is obtainable in the airport operations industry, and we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to help us build a prosperous business. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
Purple Bloc® Airport Management Company is fully aware of the modus operandi in the airport operations industry, hence adequate provision and competitive packages have been prepared for contractors. Our marketing department will be responsible for managing this aspect of our business structure.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Airport Manager
- Company’s Lawyer/Secretary
- Admin and HR Manager
- Head of Construction and Renovation
- Business Developer/Sales and Marketing
- Accountant
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (President):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives and developing a climate for offering information and opinions.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Signs checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Airport Manager
- Manages personnel and operational activities in the airport
- Ensures that airport staff follow aviation and security rules
- Ensures customer complaints are handled and resolved in accurately and timely manner
- Follows government rules and regulations for airport operation
- Manages airport operational and maintenance personnel
- Assists in preparing annual budget for airport operations
- Reviews and revises airport safety and security plans as needed
- Develops and implements safety policies and practices for employees
- Inspects runway grounds and lightings on regular basis
- Ensures that airport facility is kept clean, safe and secure
- Ensures airport facilities and equipment are in good working order.
Company’s Lawyer/Secretary
- Responsible for drawing up contracts and other legal documents for the company
- Consults and handles all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
- Develops company policy and position on legal issues
- Research, anticipate and guard company against legal risks
- Represent company in legal proceedings
- Plays a part in business deals negotiation and take minutes of meetings
- Responsible for analyzing legal documents on behalf of the company
- Prepares annual reports for the company
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Head of Renovations/Construction
- Establishes and enforces company’s engineering and construction standards
- Ensures that construction work meets or exceeds standards
- Enforces and construction standards; ensures that construction works are within cost estimates; monitors quality of work in progress; supervises regional construction heads.
- Ensures that construction work in a particular product line, such as office buildings, meets or exceeds standards within cost estimates; provides technical input on the feasibility of proposed projects; monitors quality of construction work
- Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.
Business Developer
- Identifies, prioritizes, and reaches out to new partners and business opportunities
- Identifies development opportunities; follows up on development leads and contacts
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Front Desk/Customer’s Service Officer
- Receives Visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distributes mails in the organization
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
6. SWOT Analysis
The fact that airport management business is a very rewarding business does not mean that there are no challenges in the industry.
Starting an airport management business in the United States of America comes with its own challenges. Aside from the fact that it is pretty difficult to secure a contract to manage an airport, you would have to abide by the law and also compete with other investors in the airport operations business value chain.
In order to compete favorably in the airport operations industry as an airport management company we have been able to hire the services of a tested and trusted business and HR consultant to help us conduct a SWOT analysis. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Purple Bloc® Airport Management Company;
- Strength:
Some of the strengths that we will be bringing to the table in the industry is our robust relations with investment moguls who own airports in the whole of the United States of America. We have access to funding and also have a team of experts who have cut their teeth in the industry.
- Weakness:
As a newbie in the airport management industry, we might have some challenges competing with big time airport management companies that have been in the industry for many years; that perhaps is part of our weakness.
- Opportunities:
The opportunities in the airport operations industry especially as an airport management company in the United States of America is massive considering the number of airports in the country and we are ready to take advantage of any opportunity that comes our way.
- Threat:
Some of the threats that we are likely going to face as an airport management company are unfavorable government policies, and the presence of major players in the industry who are already determining the trends in the industry especially those managing international airports.
There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
Some of the latest trends especially within the next 12 months, is that airlines and airports across the globe will be tasked with identifying new and emerging technologies that have the potential to improve security, customer experience and enhance operational efficiency both on the ground and in-flight.
Another notable trend in this is industry is of course Technological advancements. The truth is that; technological advancement is also helping to bring about a revolution in the baggage space.
Self-service bag drop is now widespread but a new wave of development is starting to entirely redefine baggage handling as we know it. Airports around the world are having to process more passengers and bags than their terminals were originally designed to handle.
No doubt, the trends in the airport operations industry wouldn’t be complete without a mention of the Internet. As a matter of fact, the internet is what can tie together a number of the aforementioned technologies and help to create a simpler and more seamless end-to-end travel experience.
It looks more likely than ever that in the future all “things” will be connected – from airport assets to IFE systems and sensors integrated into seating – providing the industry with a constant stream of data which, if used correctly, could deliver new levels of operational efficiency and enable personalization like never before.
8. Our Target Market
If you are into airport management, then you should be aware that your target market is restricted to only airports. We have been able to put structures in place that will help us attract government and owners of international and local airports spread all across the United States of America to hire our services.
- Our Competitive Advantage
The ability to easily comply with government regulations, our superior financial and debt management and of course our ability to expand operations rapidly in line with market demand are part of the competitive advantage that we will be bringing into the industry.
Purple Bloc® Airport Management Company might be a new entrant into the airport operations industry in the United States of America, but our management staff and board members are gurus airport operations market. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Purple Bloc® Airport Management Company is established with the aim of maximizing profits in the airport operations industry. Below are the sources we intend exploring to generate income for Purple Bloc® Airport Management Company;
- Aeronautical services
- Parking and ground transportation services
- Retail stores and hospitality services
- Car rental services
- Industry Activities
- Operation and maintenance of airports and runways
- Air traffic control
- Aircraft refueling, taxi, parking and rental of hangar space
- Baggage and cargo handling services
10. Sales Forecast
The fact that the airport management market is indeed a booming market means that investors are always going to be attracted to the industry. No doubt it is difficult to see multi-millionaires who don’t have interest in investing in airports.
In essence, the more airports are built, the higher the chances of airport management companies to secure business deals. Also, as long as passengers and traveling by flight, there will always be business for airport management companies.
We have perfected our sales and marketing strategies, we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set target of generating enough profits from the first month of operation and grow the business beyond Los Angeles – California to other airports in the United States of America within record time.
Below are the sales projections for Purple Bloc® Airport Management Company. It is based on the location of our business and of course the wide range of airport operations that we will be handling;
- First Fiscal Year: $1.2 Million
- Second Fiscal Year: $3 Million
- Third Fiscal Year: $6 Million
N.B: This projection was done based on what is obtainable in the airport management line of business and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there is stiff competition in the airport operations market in the United States, hence we have been able to hire some of the best business developers to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our contractors.
Our goal is to become one of the top 5 airport management companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market. Purple Bloc® Airport Management Company is set to make use of the following marketing and sales strategies;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the aviation industry and also airport owners and potential clients
- Promptness in bidding for airport management contracts
- Advertise our business in aviation magazines and websites
- List our business on yellow pages (local directories)
- Attend airport operations related expos, seminars, and business fairs et al
- Leverage on the internet (social media platforms) and our official website to promote our business
- Encourage word of mouth marketing especially from government contractors and aviation experts.
11. Publicity and Advertising Strategy
We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the airport operations industry by storm which is why we have made provisions for effective publicity and advertisement of our company.
Below are the platforms we intend to leverage on to promote our airport management business;
- Place adverts on both print and electronic media platforms
- Place our flexi banners with our company’s logo and contacts in every airport that we manage
- Sponsor relevant TV shows so as to communicate our brand and what we do
- Maximize our company’s website to promote our business
- Ensure that all our workers wear our branded shirts and all our vehicles are branded with our company’s logo.
12. Our Pricing Strategy
Part of our business strategy is to ensure that we work within the budget of our clients. We will ensure that we set our pricing system to reflect what is obtainable in the airport operations industry.
- Payment Options
At Bloc® Airport Management Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.
Here are the payment options that we will make available to our clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will help us achieve our plans and we will also pay our contractors with same platforms.
13. Startup Expenditure (Budget)
Starting an airport management business is indeed capital intensive hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up an office structure for such business might not be expensive, but the running capital of the business is always the real deal.
You would need huge capital base to be able to operate, maintain and renovate airport facilities. Here are the areas we intend spending our startup capital on;
- The total fee for incorporating the Business in the United States of America- $750
- The budget for permits and license – $2,000
- The cost for hiring business consultant – $2,500.
- The cost for the purchase of computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro and other related software apps) – $7,000
- The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
- Cost for payment of rent for a suitable office facility with enough space in Los Angeles – California for 12 months at $1.76 per square feet in the total amount of – $105,600.
- The cost for office remodeling (construction of racks and shelves) – $20,000.
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost of launching our official website – $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000
Going by the report from our research and feasibility studies, we will need about $500,000 to set up a standard airport management company in Los Angeles – California.
Generating Startup Capital for Bloc® Airport Management Company
Bloc® Airport Management Company is a private business that is solely owned and financed by Pearson Wilberforce and his immediate family members. They do not intend to welcome any external business partners for the first 3 years which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Bloc® Airport Management Company is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to operate, maintain and renovate airport facilities a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Bloc® Airport Management Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if these are put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Renting of Office Facility in Los Angeles – California: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from the CEO/President: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (networking with owners of airports): In Progress