New Business Startup Firms Provide Alternative Air Travel Options
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Wednesday, May 20, 2015.
Demand in any market raises the potential for profits to be made by meeting this demand for services or products. This is what a few business startup companies are looking to do within the airline market in California and other states. The new companies are attempting to provide alternatives to traditional commercial air travel. In particular, the new firms are looking to target business and first-class fliers by providing the serenity and convenience of flying a private jet but at a fraction of the usual cost.
One company based in California, Surf Air, sells monthly subscriptions for an all-you-can-fly service for customers. For $1,750 per month, one will have unlimited access to a turboprop plane that can seat eight people. The startup company began by flying business people between Southern and Northern California. However, Surf Air is now planning to expand its services into at least two other states.
Another startup firm has a different business model. The company, HoboJet, partners with charter jet companies in order to sell discounted seats on private planes. The deals are usually last-minute and are often available when private planes are flying empty to pick up chartered passengers at a specific location. The flights offered are one-way tickets with significantly steep discounts.
On the other hand, operating a successful business startup company in California is more than simply identifying a demand in the market and then supplying the need of the market. New companies will also need to make sure to properly form a new business entity. Failure to have all of the proper legal documents in place and submitted to the correct agencies can cause significant legal problems in the future, which can be quite costly to a new company's finances.
Source: skift.com, "A New Group of Startup Airlines Attracts Fancy Flyers With Subscription Fees", Roya Wolverson, May 18, 2015