Plan OutlineDid you know?Business Plan Pro Table Wizards guide you step by step through the financials to produce solid numbers, charts and tables that are preferred by banks, lenders and the SBA. It even does the math for you, just plug in your numbers and the software will do the rest.
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Regional Airline Business PlanPuddle Jumpers Airlines, Inc.This business plan was created with Business Plan Pro software, the fastest way to prepare a complete business plan.
With Business Plan Pro, you can open this plan (or any of the 500 others included in the product) and quickly customise it to match your business. Or you can use the software's step-by-step wisard to easily create a custom business plan from scratch. Learn more »   Financial Plan7.0 Financial Plan Adequate financing is essential for a start-up airline. Our strategy remains a "seed" to "bridge" to "IPO" progression. This has served as a successful model for airline starts in the past. Because of the amount of capital required to start an airline management feels it is restricted to this funding path. Once four to six airplanes are up and flying the company can continue to operate profitably for an indefinite period of time in the event additional capital becomes unavailable on attractive terms. 7.1 Important Assumptions The financial plan depends on important assumptions, most of which are shown in the following table. They key underlying assumptions are:
General Assumptions
7.2 Key Financial Indicators In the airline business the most important measurements are cost per Available Seat Mile and the System Utilisation Factor. If seat costs are kept below 7 cents and utilisation is at 50% or better, the airline will operate profitably. 7.3 Break-even Analysis When we take out all operational costs for flying aircraft and include only fixed overhead and aircraft leases the company can break even on the first six airplanes by maintaining sales just over £2 million per month or approximately £24 million in year one. This is less than 25% of our expected sales forecast but it indicates that the company could survive without adding planes and routes for an indeterminate period with load factors of less than 15%. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000's). Break-even Analysis  Break-even Analysis
7.4 Projected Profit and Loss Our profits improve from approx. 1% of sales in year one to 10% of sales in year two and are expected to peak at about 16% in year three and thereafter. In gross numbers, we exceed £20 million in profit in the second operational year. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000's). Profit and Loss
7.5 Projected Cash Flow This business plan cash flows positively from the initial infusion of approx. £14 million and forward. It will continue to produce cash as long as sales targets are met. Borrowing may only be required if seasonal fluctuations occur or if expansion plans are further accelerated. The chart below illustrates the accumulation of first year cash during formative stage. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000's). Cash  Cash Flow
7.6 Projected Balance Sheet The projected balance sheet illustrates the growth of the net worth of the business and may also be utilised to estimate future stock values based upon industry multiples. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000's). Balance Sheet
7.7 Business Ratios The important business measurement ratios are presented here based upon projections for Puddle Jumpers. Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 4512, Air Transportation, Scheduled, are shown for comparison. Ratios
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