Fly Orion Airways | Operational Planning
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Operational Planning

For the first three years of operations, Orion will be fully covered in terms of demand for its charter services, as it has already entered into agreements with major tour operators in Europe.

While Orion is already booked for the first three years (charter services), the airline initially wants to focus on keeping costs down and maximizing profits through ancillary activities (such as advertising on board, selling duty-free items).

KEEP THE COST LOW

The company has negotiated significant discounts on landing and handling fees with the airports.

MILESTONES – ORION IS READY TO FLY!

Companies

  • Orion Airways was founded as a LTD company in Cyprus.
  • Launched an advertising campaign for the recruitment of pilots and other personnel in the Cypriot and European media.
  • Received more than 1,000 applications for all positions.
  • 5 crews per aircraft preselected.
  • Air operator certificate (AOC) application submitted to the Cypriot Civil Aviation Authority.

Processes

  • Already recorded contacts with aircraft and engine manufacturers.
  • Notable discounts on landing and settlement fees
  • Negotiated in Larnaca, as well as some other benefits, e.g. Free parking for passengers and a marketing budget to promote the airport in Europe.
  • We are in the screening process to select from:
    aircraft maintenance, aircraft insurance and pilot training organizations and fuel suppliers.

THE HIGH COST STRUCTURE OF ESTABLISHED AVIATION COMPANIES IN EUROPE

The success of a low-fare airline relies on maintaining a low cost structure. We believe the cost advantage of a low-fare airline is underpinned by the following points compared to traditional airlines:

Simplicity:

A traditional airline is trying to cover many different market segments with a single flight. This means that there is usually a first-class and / or a business class, which causes significant additional costs. In addition, other service packages such as meals, frequent flyer programs and airport lounges are offered. Although this offer adds value to some customers, low-fare carriers do not seek to compete in this market, but rather offer a base offer, ensuring lower costs and high system reliability. However, as we offer charter flights, we are ready to accommodate any requests our customers might have, such as various meals on board, VIP service throughout the flight, etc.

Higher utilization of the aircraft:

A low-fare airline achieves much higher aircraft utilization than a traditional airline by operating with an optimized fleet (easyJet operates only Airbus 320 family aircraft, Southwest operates B737 aircraft), by keeping the service offered simple and targeted avoids congested airports. This reduces piece costs and capital tie-up compared to competitors.

Most low-cost airlines and charter flight operators are willing to use smaller airports to keep costs down.

Lower distribution costs:

Traditionally, sales of flights were handled by GDS (Amadeus, Worldspan, Galileo, Saber), and currently this item accounts for 10 to 15% of the cost base of traditional airlines.

With our online reservation system, our company will save the above costs. The booking system will be designed to give our customers the freedom and flexibility to make as many changes as they want, even up to 2 hours before departure; just before the check-in at the airport is opened.

ORION AIRWAYS – COSTS / ASM / $ CENTS-2011 Source: U.S. Department of Transportation

Low Item Costs:

The decisive cost advantage is the constantly high utilization of the aircraft and the minimization of intermediaries between the customer and the airline. Although different accounting and disclosure practices, as well as different network structures make the comparison of different cost bases inaccurate, the graph below shows the cost per passenger at British Airways, Ryanair and easyJet.

The low-fare companies have a big cost advantage per passenger compared to the traditional airlines due to shorter route lengths and higher capacity utilization. This clearly suggests that traditional airlines should not even try to compete with the low-fare companies for the majority of customers traveling on low-cost flights.