Expert: Capt Paul - 7/24/2004

Question
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Followup To
Question -
 Hello.  I'm hoping you can give me a general idea of how to go about forming/licensing a new airline.  It would be a primarily cargo based, domestic regional flight type of thing.  So far, I've had quite a time trying to get a sound source of information about how to properly go about this.  Anything you could tell me would be vastly appreciated.  Thanks for your time!
Answer -
Hello Ashton,
To answer your question, I need you to answer some questions for me.

First, which country are you planning to locate your airline?

What types of aircraft are you planning to purchase?

How many "Flight Operations Staff" are you planning to hire?

Will you need "All Weather" capability?

Will you need extended range (ETOPS) and/or long range navigation capability?

Let me know, and I'll guide you along.

Cheers

  Hello again!
  In reply to your questions, here's a slightly more detailled description of what I plan...  The airline will be based and operated in the western U.S.  Primarily in Washington, Oregon, Idaho, California, Montana, and New Mexico.  I'll be based in Washington, at either Auburn Municipal or Boeing Field.  I plan to start with just one aircraft, most likely a Beech Twin Baron or possibly a Fairchild F27.  For staff, I'm looking at about 4 people.  Since this is the pacific northwest, I'll definitely need all weather capability, but i'm not sure whether ETOPS is really justified or not.  It will be a cargo only airline to start, but at some point I'd like to add a couple of commuter/vacationer flights.  So, in a nutshell, there's the idea.
   I look forward to hearing from you again.   --Ashton

Answer
Okay.  First you will need to obtain a US FAR 135 certificate.  You can also go FAR 121, but I don't see the need to do it.

Under FAR 135 you will need to hire some folks with specific types of experience.  They include:

A qualified Flight Operations Manager;
A qualified Chief Pilot;
A qualified Maintenance Manager (Director of Maintenance).

If you require assistance with determining qualification, or with finding the right people, I can assist.

Next, this group of people will have to construct your required manuals.  Some of these will include:

Company Operations Manual;
Training Manuals and Programs;
Safety Procedures Manual;
Flight Standards Manuals (SOP);
Approved Inspection Program (Maintenance Manuals)

Then, you will file your applications for the Air Operating Certificate (AOC).  This application will include the basics, and any Operations Specifications, ie:

Lower than Standard Take-Off Visibility (A must have!);
Alternate Airport Weather Minimum (another must have);
Aircraft Maintenance - CAMP authorizations;
Weight and Balance control (Authorizatoin for Tabular data);
And the list can go on, and on, and on...


Next, you will have to secure a business site.  This will be the place that you  designate to the FAA, as the place where you conduct business.  Here, you will keep your company library, and all required records, documents, personnel files, and training & checking reports, AND you'll have to obtain (Lease or purchase) at least one aircraft.  Some might choose to go with the Baron first as it may be the easier to obtain certication with.  Then, you can add the F27 once you have the AOC.  However, nothing should stop you going forward with the F27 first.  T F27 will be easier to market to your  customers.  Personally - based on my experience - I'd go with the F27.

By this time you should be ready for the various inspections that the local Flight Standards District Office (FSDO) will require.  They will assign you a Principle Operating Inspector (POI), who will oversee your company (Get on his/her good side quick).  

Although this may seem like a lot, it is something that can be completed in a short a time - a few months.

In all aspects of the process, I can provide assistance and would be happy to entertain establishing the processes for you.  

Please let me if you require any additional assistance, and I wish you the best of luck with this venture.

Ciao

Capt: P. Jeeves