STUDY OF WHITE TAIL AIRLINE SCHEME FOR N219 AIRCRAFT OPERATIONS
The air transportation industry has always been known as a capital-intensive industry and also one that is highly regulated. This condition limits the ability of individuals and groups that aspires to provide air transportation service without the necessary investment and also the capabilities to su...
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| Format: | Final Project |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/57846 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The air transportation industry has always been known as a capital-intensive industry and also one that is highly regulated. This condition limits the ability of individuals and groups that aspires to provide air transportation service without the necessary investment and also the capabilities to surpass the standard set by the regulations. In this study, a new air transportation scheme referred as the white tail airline is proposed to tackle this issue. The white tail airline is an Air Operator Certificate holder that operates their aircraft on behalf of a second party based on an operating contract agreement. Numerous literatures were reviewed to define the model of the white tail airline starting from existing air transportation schemes, categories of aircraft operating costs, governing regulations, and also specifications of the aircraft in use, the N219 Nurtanio. Certain elements of the Business Model Canvas were used to better define the white tail airline characteristics and financial metrics such as NPV and IRR were used to compare the performance of the white tail airline to the performance of the conventional airline. The end results concluded that the white tail airline scheme gives individuals or groups with minimum capital and minimum of expertise in aviation an opportunity to enter the air transportation industry, is suitable for individuals or groups who wishes to operate underdeveloped origin-destination pairs, and being the second party is desirable if desired operational period is equal to or less than five years.
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