Business plan about cambata aviation

Business plan ab forth cambata gentle windBusiness PlanExecutive SummaryCambata Aviation Private hold in is a surreptitious sector leading plant intervention substance in India. Currently CAPL handles more than 30 internationalistic passenger airlines, more than 10 cargo airlines and number of non-scheduled airlines operations across India. Company management would wish well to expand the operations of the community in coming dickens-three years to become trailblazer in the maroon treatment industry. In order to succeed and become ground treatment colossus we involve to takeover domestic ground treatment grocery store which is growing very(prenominal) rapidly and also attract new international, private and non-scheduled airlines towards our keep company. We also lack to acquire new equipments to support our operations and plus productivity.Following plan will give an idea about how company is going to achieve the said objective. Cambata Aviations main strategy is to emphasize the fictional character of its captain serve.Since CAPL is the existing and head know ground handling representation we pass water a backup of our expert management team up that is always looks after(prenominal)ward the nurture of the company. Based on the size of our market, our sales projection for the next year will be $4,250,000.In order to acquire new equipments, complete exclusively the legal formalities and for merchandise we will need around $3,486,000 at start up. Company chairman raimented $600,000 and rest we will borrow from bank as a long term liability.Introduction-Cambata Aviation Private Limited (CAPL) started offering Ground Handling dos in 1967 at Mumbai International airport. British sortways (formerly known as British Overseas sortways Corporation) was the first customer airline company of CAPL. In sooner sidereal days Cambata exercising to provide yet beseeming and Assist services to certain airlines that includes wheelchair assistance, unaccompanied minors assistance, outflow crew clearance, CIP handling. Because certain airlines provide much(prenominal) meet and greet services to their premium customers. after CAPL started providing other functions like Check in, Baggage Tracer, Cargo acceptance and unitization, Flight Dispatch, Weight Balance, Ramp, Cabin Appearance, and Clearance of Company Stores Mail.Cambata Aviation is the member of the International dividing line Transport Association Ground Handling Council (IATA-IGHC) and approved ground handling company. At present CAPL is the only independent and private ground handling bureau in India with IATA-JAR-OPS Service Level Agreement. Currently Cambata handles more than 30 international airline operations across India.The objective of CAPL is to provide highest standard of services to entirely the international customer airlines and to attract new airlines towards company. The services provided at CAPL ar world class keeping in mind the sa fety and security in operation is the aim, which is the base of breeze industry.This business plan is about the expansion of the company to start ground handling activities for domestic airlines, private airlines and non-scheduled airlines as sanitary as to provide new and innovative value added services required by the international customer airlines and purchase of new own equipments like poking back tractors, belt loaders, cargo dollies and loaders, Ground Power Units, Passenger stairs, baggage carts, wheelchair lifts and Ambulift etc. to become pioneer in the ground handling services in India. The main purpose behind this expansion is to capture whole domestic market. Since we fix certain international airlines that operate double or thrice a week so we enkindle utilise our workforce for domestic operations as well. Day by day domestic airline market is hollow up, in the year 2006-07 there were 3 new airlines that started their operations.The Market SituationCurrently Avia tion industry is one of the fastest growing industries in the world, India is no exception. Earlier ms at airport, airline companies used to employ their own employees nevertheless now just about of the airlines ask the ground handling agencies to look after their each(prenominal) told flight movements. This is the court-effective basis for airline companies. Mumbais Chhatrapati Shivaji International Airport (CSIA) is Indias and South Asias largest and most of import hub, handling more than 25million passengers and 533,593 tonnes of cargo. Between April 2006 and February 2007, CSIA handled 180,000 landings and take-offs and over 20 million passengers with around 6.73 million international passengers and around 13.65 million domestic passengers. As comp atomic number 18d to the year 2005-06 passengers growth rose to 21.28%. From above statistics we can figure out that domestic sector of the Indian aviation is also coming up rapidly. Most famous domestic airlines are Jet Airwa ys, Kingfisher Airlines, Spice Jet, Go Air and Indigo. In case of domestic airlines there are only two ground handling agencies.At present in Mumbai there are 5 ground handling agencies namely National Aviation Company of India Limited (NACIL), Cambata Aviation, Air works India, National Aviation Services (NAS) and Globe Ground India. Among all Cambatas services is one of the best. This can be proved by the number of international airlines customers Cambata has. At Mumbai Airport Cambata handles more than 15 international passenger airlines, more than 6 cargo airlines and quite a few non-scheduled airline movements as well. Now Cambata will eye on the new entrants at Mumbai airport by introducing some new services along with ground handling. We can say that, at the time Cambata has a very goodly go under in the ground handling market in India. It can be seen by following figuresMission And ObjectivesEvery company has a vision and mission, basically mission means an exercise where all the employees of the company follows an organisational culture to work together to work towards the desired results. But I think vision is more important because it helps the company to determine the future. It serves as concrete foundation to the company.Cambata Aviation will be the most preferred Ground Handling agency in India. It will be the first choice handling agency for the international and domestic carriers, which other ground handling agencies will seek to match.Cambata Aviation will achieve this pre-eminent position by offering a high quality of service and safe, reliable and cost-efficient operations on behalf of the airline company.Cambata will achieve these objectives at the same(p) time ensuring consistent profitability, creating goodwill, satisfy employees and important of all satisfying customer airlines.Objectives1) To introduce ground handling for domestic, private, cargo and non-scheduled airlines in coming two years.2) claim new equipments to provide 100% own ground handling support at the airport.3) Provide better and innovative services to our international customer airlines.Keys To victory1) Thorough and stringent induction procreation for the employees to help them understand the responsibilities towards daily activities keeping safety and security as the motto.2) Improving established practises of the company.3) Maintain good relations with the customer airlines by providing best services all the time.Company SummaryAs mentioned above Cambata Aviation is one of the oldest ground handling agency in India. It started in 1967 at Mumbai. Later operations of the company spreads across India, in 1972 we started our operations in Delhi and then Chennai, Ahmadabad, and Pune. CAPL looks after different operations such as passenger handling services like check-in, baggage handling, aircraft cleaning, security, ramp handling, flight despatch operations, weight and balance etc. Further company is watershedd into five departments name ly accounts and marketing, Personnel, Passenger handling services and Human resources, cargo and ramp operations department. Accounts and marketing department looks after companys income and expenditure, bills receivables, bills payables, salaries of staff etc. and marketing of our services among new entrants. This department plays an important role in growth of company by controlling cost and increasing receiptss.Start Up ExpensesSince our company is well established company we dont require raising money to cover certain expenses but as we have to complete certain formalities we need some groovy. Following chart will give the description of Start up Expenses.Marketing PlanCambata Aviation is well established company but now we have to expand our business to provide ground handling facilities to domestic sector airlines, private airlines in coming two-three years. Also to expand the veritable functions we have to acquire new equipments. We need to use different strategies to expa nd our business to operate on domestic sector. Important thing is we have to retrieve permission from Airports Authority of India and Bureau of Civil Aviation Security (BCAS) to act as an authorized ground handling agent.Currently there are only two ground handling agencies operating at domestic terminal. Our agency is the oldest one so introducing ground services at domestic terminal would be light. As like international operations we can provide service to domestic giants. Our target customers would be emerging airlines, existing small airlines that lacks in passe-partout skilled workforce, and new entrants in the international and domestic markets. Basically new airlines lack in skilled workforce, equipments and they have to invest lot of money in training of employees and acquiring new equipments. Here we can use our goodwill and offer ground handling services to them. We have trained workforce with right experience and knowledge in this sector. We feel that our well trained employees will generate more goodwill by providing world class services with well maintained equipments.Market air division1) Unsatisfied AirlinesWe hope to obtain positive response from the airlines like commercial, cargo airlines that are dissatisfied with their current ground handling agency.2) New EntrantsWe can target new airlines that just started their operations.3) Non-scheduled , Private AirlinesWe can target non-scheduled aircrafts and most importantly private airlines. It will be very easy for them to adopt the services for particular time and number of private airlines is on rise which can provide us a good advantage. Market pieceationMarket NeedsDue to intense competition many airlines started reducing the fare prices and cutting off other expenses. By handing over the airline operations to ground handling agencies they can cut off some of their expenses on employees. There are several airlines flying to Mumbai that are not satisfied with either the quality of the service or the poorly maintained equipments provided by their ground handling agency. Flights which we handle with our well trained workforce at all aims and well maintained equipments will confirm their dissatisfaction with our competition and generate new business for us.Almost all the airlines whether international or national require high quality of professional services with well maintained equipments. Because most of the airlines are of turnaround type they depart back within 2-3 hours after the arrival, in that short time ground staff has to work very hard because lots of activities needs to be carried out right from aircraft cleaning, catering, refuelling, baggage loading and unloading etc. barely efficient workers can do these activities fast. Cambata Aviation is well known for its efficient and world class services and because of that it handles more than 15 international airlines operations at Mumbai. We hope this awareness will generate goodwill for us and generate bet ter opportunities as well.In short, demand for ground handling services agencies is increasing. So we should concentrate on our marketing activities, professional services and try to childs play the new contracts.Market Trends And Market GrowthThe cut throat competition among all the airlines resulted in the global fare cuts. Fare cuts are affecting airline companys revenues. It can be noticed that other expenses related to food and in flight service are decreased but ground handling expenses are steady. In order to cut off cost and raise revenue most of the airlines started outsourcing the major operations to the ground handling agencies. In short to cut off expenses such as training, acquisition of equipments, salaries of the staff at airport airline companies outsource the operations of airline to ground handling agency which helps to create immense demand for the ground handling agencies. Also most of the airlines know that efficient ground handling helps to improve aircrafts p roductivity and generate more revenues.Due to such cost cutting measures adopted by most of the airlines, ground handling providers market is growing day by day. New global ground handling agencies are trying to start their business in India. In earlier days there were only 3-4 ground handling agencies, and now number increased to around 10.Major Competitors1) National Aviation Company of India Limited (NACIL)We can consider NACIL as our main competitor, being a regimen possess company it gets lot of benefits. Although their quality of service is not good enough mute they handle around 10 international airlines and 2 domestic airlines. This is mainly because its a government owned company. NACIL has all owned equipments so they gain an stop number hand as compared to other agencies in the market segment.2) National Aviation Services (NAS)NAS has recently started their operations at Mumbai Airport. NAS has its base in Kuwait. Currently they are handling 3 international airlines a nd looking forward to start ground handling at domestic airport too.3) Air Works India LimitedAir Works India is also an old ground handling agency. They mostly look after operations of Private Charter flights, they are specialised in providing services to private aircrafts. They also have their own helicopter services.Strategy And Implementation SummaryIn order to gain good position in the aviation industry CAPL always try and use new strategies. CAPL always keep their staff updated with the latest technology and equipment knowledge. Cambata is well known ground handling agency in India, because of its professional and timely services.Competitive Advantages1) Professional WorkforceWe always kept our standards at high level our staffs undergo rigorous training after every 8 months. CAPL training modules aimed to ensure world class services and achieve the set safety and security standards in all our operations such as Passenger services, ramp handling, load control, flight operation s, mishandled baggage, aircraft cabin cleaning, cargo documentation. This helps our company to grow and reach soaring heights.2) Overall Handling Of An Aircraft MovementsThough we dont have all owned equipments we provide all the services to an aircraft from the moment aircraft touches down till airborne. Currently we have four push-back tractors, four ground power units, and important of all we have our own hanger which we can rent out in case if any aircraft needs to carry out maintenance activity.3) Flight calculate Control System (FRCS)Ours is the only ground handling agency that developed FRCS. It was developed with an aim to keep high level of productivity, vigilance and service standards. FRCS helps twain the airline company and our management to keep an eye on the level of service. FRCS has to be filled up and acknowledged by customer airline tariff manager. concern can use these flight reports in order to raise the standards of the company.4) Safety And Security Manuals Cambata has developed its own security manuals which we use for our security training sessions. Our security manual has been approved by Bureau of Civil Aviation Security (BCAS), India. This enables to reduce the frequency and severity of accidents causing personal injuries and aircraft ground damage. deck out AnalysisSWOT analysis means analysis of our companys Strengths, Weaknesses, Opportunities and Threats. SWOT analysis helps to uncover the opportunities which we are looking for. And helps us to understand the weaknesses by which we can eradicate threats. Strengths and Weaknesses are the internal factors and opportunities and threats can be considered as external factors. It is a useful tool which can be use to analyse the position of the company in the market. In case of our company, following is the SWOT analysis of Cambata Aviation.Strengths1) Strong Brand and Reputation Cambata Aviation was established in 1967 in Mumbai. It is well known ground handling agency in India wit h more than 30 customer airlines across India.2) Certification Cambata Aviation is the only independent and private ground handling agency in India with IATA-JAR-OPS Service Level Agreement. It is a member of IATA Ground Handling Council (IATA-IGHC) and also an approved ground handling agency.3) Good Relations after(prenominal) serving the international giants like British Airways, Qantas, Cathay Pacific, Alitalia, Air France etc we have very good relations with international airlines and domestic operators as well like Jet Airways for whom we look after ramp activities.4) Professional Management And EmployeesWe have a team of professional experts in the aviation industry. Also we provide boilersuit training to our employees in order to keep them updated with latest technological knowledge.5)LocationWe enjoy the benefit of our location as we have our base in Mumbai the economic capital of India. Being an economic capital people from different parts of the world visit Mumbai resulti ng in more international flight movements in Mumbai and we can use our professional expertise to get the contract for ground handling of most of the airlines.Weaknesses1) Absence Of International BranchWe are pioneer in the ground handling services in India. But we are missing the opportunities which are generating at the hubs across the world.2) Government RestrictionsBeing a private company we dont have exemption in certain areas. We have to obtain proper permission from government authorities in order to start the new activities at different airports.3) lean EquipmentsWe lack in ownership of some equipments, which we need to hire from other ground handlers.Opportunities1) Developing MarketAviation industry is growing at very fast pace. Lots of new airlines are coming into the market. We can grab the opportunities by approaching new entrants in the Indian skies.2) New Market SegmentIn India domestic aviation and private airlines activities are on rise. Domestic market is also gro wing very fast new airlines are set up their operations. We can expand our operations or services to become a giant in ground handling in both international and domestic airlines market. Airlines like Jet Airways and Kingfisher also looking forward to start international services if we provide ground handling at domestic level then obviously we can operate as their ground handling agent for international operations.3) Ineffective CompetitorWe can attract other airlines that are not happy with their ground handling agent, because of poor services.Threats1) New CompetitorNational Aviation Services (NAS) Kuwait based ground handling giant has entered in the Indian market. Because of its global presence airlines may attract towards NAS. NAS operates as a ground handling agent for some of the airlines in Kuwait.2) Price Wars by and by the economic downturn many airlines are discontinuing their services to cut the costs. Some of the competitors like National Aviation Company of India Lim ited (NACIL) a government owned agency have cut the cost to attract other airlines. This could be a possible threat.3) New Government PolicyAs per new government policy only three ground handling agencies can operate at Mumbai airport. Out of that one is government owned NACIL and other two are undecided. In such circumstances we can lose our separate entity and forced to merge with other agency.Project PlanWe will need period of two years to expand the operations. Also we are planning to purchase new equipments. We can assume that after two years we can increase our winnings by providing ground handling services to most of the airlines. As our main objective is to capture domestic airlines ground handling market and increase our market share in international airline ground handling market we will work hard in coming two years and grab the market share. We are expecting to achieve the said mission by proper vision in next two years. We have to invest more in our marketing and human resources for better and fast results.(Figure showing various activities carried out by Ground Handling Agency)Sales ForecastSales forecast shows our estimated ground and ramp handling, equipments usage, hangar usage revenue. We have a very good relationship with airline companies and many of them have expressed their interest in hiring our services.Management SummaryA strong management team is the heart of any business. Cambata is no exception we have a very strong management team with wide experience in aviation industry, working to raise the standards of our company.Our management policy is to provide better environment to our staff wherein they can be challenged and impact to provide effective and better solutions that meet our customer airlines needs.Promoters And DirectorsLate Mr. Kershi S. Cambata was the founder of Cambata Aviation. He was holding a Private pilot license and was ex-Royal Force personnel. He was also a pioneer in Aerial crop spraying business in India.Mr. N elson K. Cambata- He is a trained pilot holding private pilots license. He acts as a Chairman and Managing Director of the company. He has specialised experience relating to all aspects of ground handling and management.Mr. Sarosh J. Contractor- Mr. Contractor is an Executive Director for Operations. He is a finance graduate holding 36 years of experience in Banking, Airline and ground handling industry. He is responsible for the day to day affairs of India operations.Mr. Burjor N. Nicholson- Mr. Nicholson is also an Executive Director for Finance. He has completed graduation in accounts and finance field and holds 38 years of experience in aviation industry.Above mentioned management team is at highest tier. Further tier consists of Airport Manager, Personnel Manager, and Departmental Managers or head that controls day to day operations at airport. This entire team is highly experienced and qualified in the aviation industry.Management HierarchyPersonnel PlanAs Cambata is establish ed company shortly we have 3 personnels at Directors level. Under them we have 5 Airports manager. But in future we have to increase the number in order to divide the work properly.Our projected Personnel Plan is as followsCompanys success depends upon its employees. Now we want to expand our company so we will need more employees. Having professionals at particular place will help the company to form a solid foundation. Following data summarizes increase in our human resources. Year judicious increase in Human Resources (Projected)Financial AnalysisFinance department of the company acts as a watchdog over company expenditure. It makes sure that all our operational activities are funded. It may be possible for a company to fund all the activities from operations, but certain times company may need to turn to the capital market for finance. Company has certain outside sources of money like current debt, bonds, loans etc. For all these activities we need to raise around $5 million in loans.As mentioned above we have to expand our services and also to acquire new equipments which will require huge sums of money. To begin with we have to raise money through loans and some long term investments. There are certain assumptions on which we have to rely on.General Assumption issue Even Analysis And CostsBreak Even Analysis is calculated where total revenue received by a company is equals with the total cost associated with sales. Our fixed cost consists of term of a contract for our hangar to Airports Authority of India, equipments routine inspection and maintenance cost, monthly fuel cost.In order to provide better service we should have our owned equipments. There are number of equipments available in the market and behind one movement of an aircraft we require almost all equipments such as tow-bars, push-back tractors, unit load device, ground power unit, baggage loader, cargo dollies, forklifts etc. These equipments are very diverse in varieties and expensive. Cam bata handles more than 5 airlines at peak time so we require more equipment. It can be seen that we have to invest huge amount of money in equipments.Other costs include training activities conducted by our company. We provide training to our employees after every 8 months with updated topics. In order to get better productivity we have to invest some amount in training and development of employees.RevenueFollowing table gives an idea about Revenue generated from Ground handling of single aircraft, equipments rental and hangar rentalAs mentioned in the above chart, we provide ground handling services to more than 18 airlines out of those some airlines operate twice a day daily, some operates just thrice a week. Cambata operates around 1200 arrivals and departures a year with the help of these equipments generating millions of revenue. There are some other revenue sources such as equipment rent and hangar rent. Many a times other ground handling agencies require some of the equipment s so they can hire it from us at above mentioned price same in the case of our hangar.