Custom Airline Programs

As major airlines have consolidated and regionals focused on capacity purchase agreements, a void has been created, leaving many communities without air service. Or, if air service exists, it is limited to one or two major hubs; not specifically to where demand exists. Many of these smaller point-to-point routes cannot be served using traditional air service – it conflicts with the larger network carrier’s business strategies.

Building an Airline Designed for a Community or Resort

Embark has created an innovative new air service concept that connects the skill and expertise of Embark’s team, and the operational excellence of an independent regional, to provide customized air service programs to Resorts and Communities. Embark works closely with these partners to create a program that fits the community or resort’s specific needs. This includes our full suite of services, including: market development, revenue management, GDS distribution, scheduling, and marketing support. Embark then leverages an airline partner to manage all the operational components of the air service.

It’s very like the Regional CPA model used today:

  • Proposed model relies on operating partner (similar to a major airline with regional affiliate) and Embark to provide airline commercial functionality
  • Embark develops the product specifically suited for the Community or Resort partner
  • Leveraging Minimum Revenue Guarantees, Small Community Air Service Development Grant Program funds (SCASD), or other funding mechanisms, the Community or Resort partner would provide financial support, marketing support, and if available, call center or distribution support

Managing the Program from Planning to Execution

 

 

First Phase – Determining the Best Air Service Solution for the Community/Resort Partner

Embark evaluates each option from a financial, operational, commercial, and timing perspective

Options could include:
•       Wet-lease / Charter an existing operator
•       Secure aircraft and leverage certificate of another operator
•       Acquire or develop independent airline certificate
•       Leverage partnership with existing airline

Second Phase – Select Optimal Solution and Begin Implementation Plan

After evaluating the best air service fit. Embark then thoroughly analyzes options based on immediate need, resources, and consideration for long term strategy. Then, a plan is built to successfully implement that strategy

Notable Steps:
•       Develop project timeline
•       Capital, P&L, and cash flow forecasts for operation
•       Secure necessary partnerships, vendors, and certification (if necessary)

Third Phase – Manage Operation for Optimal Results

Embark is positioned to manage the operation to maximize return for the Community/Resort partner.  This includes financial management, commercial management, and operational oversight

Elements of Operation:
•       Commercial Strategy and Execution: Schedule, Pricing/Yield, and Marketing Strategy
•       Develop and oversee operational structure
•       Maximize return through revenue and cost initiatives