AIRONE

AIRSUPER

Part 02

THE BUSINESS

2.1 BUSINESS SUMMARYBangladesh, officially the People's Republic of Bangladesh, is a country in South Asia. It is bordered by India on all sides except for a small border with Burma (Myanmar) to the far southeast and by the Bay of Bengal to the south. Its capital and largest city is Dhaka.

Bangladesh has 3 international airports, 5 domestic airports and 7 STOL (Short Take-off and Landing) ports, with 1 new domestic airport under construction. It also has several airstrips, some built during the World War II.

Shahjalal International Airport

Official full name Hazrat Shahjalal International Airport (formerly Zia International Airport) (IATA: DAC,ICAO: VGHS) located in the capital Dhaka, is the largest airport in Bangladesh. It started operations in 1980, taking over as the country's sole international airport from Tejgaon Airport. It is the home base and hub of all airlines of Bangladesh, including Biman Bangladesh Airlines, GMG Airlines, and United Airways.

The airport has an area of 1,981acres (802ha). Nearly 52% of the country's international and domestic arrivals and departures occur through this airport, while the country's second largest airport, Shah Amanat International Airport in Chittagong, accounts for about 17% of passengers. Approximately 4 million international and 2 million domestic passengers and 150,000 tons of freight and mail pass through the airport annually.

Shahjalal International Airport connects Bangladesh with many major cities of the world; Biman Bangladesh Airlines flies internationally from the airport to 13 cities in Europe and Asia.

LocationThe airport is located in Kurmitola, 11NM (20km; 13mi) north of the capital Dhaka.

2.2 OBJECTIVESThe proposed airline will have as its primary objectives the following elements:

1. To establish and operate a new regional airline aiming specifically at linking with the rapidly expanding markets of Asia.

2. To provide service and absorb unmet demand in three key traffic categories: unserved and under-served routes on which high demand currently exists or can be developed; serving key niche markets where demand is either unmet or poorly served; and meeting peak traffic demands on certain key regional, seasonal, and variable routes where very high load factors can be predicted despite existing, but lower-quality, competition.

3. To implement an organizational and marketing strategy that will, beginning in the first year of flight operations, achieve average passenger load factors in the 65-85 percent range, depending on route and season, and increasing thereafter to the 75-90 percent range, thereby maximizing revenues and return on investment while minimizing risk.

4. To achieve net operating profits within the first 12 months of flight operations and steady growth enabling rational expansion of the airline thereafter.

5. To gear operations, and present a professional, serious, growth-oriented image from the outset, that will set the stage for reasoned, planned expansion, mirroring growth rates projected for the first year of operations, and that will enable the airline to extend its regional scope and, in future years, to transition from its initial regional status into a larger continental and intercontinental carrier.

6. To become the carrier of choice for locals, expatriates and foreigners traveling to or from Bangladesh.

7. To embark on strategic cost containment programs and process efficiencies by introducing quality management systems into the Companys processes.

2.3 MISSIONThe proposed new airline's mission, simply stated, is to fill a niche in the growing air-travel and cargo markets linking Asia; to achieve high, and profitable, load factors by identifying and serving key routes and city pairs currently unserved, under-served, or poorly served, and where significant unmet demand exists; and to set a new standard for air service and professionalism both within the target market region and beyond. To be the most preferred airlines of Bangladesh.

Airsuper has a mission to provide safe, efficient, low-cost consumer air travel service. Our service will emphasize safety as its highest priority. We will operate the newest and best maintained aircraft available. We will never skimp on maintenance in any fashion whatsoever. We will strive to operate our flights on time. We will provide friendly and courteous "no frill" service.

By utilizing the latest aviation, electronic, and informational technologies, and by designing effective and efficient systems and building in quality control from the outset, we aim to ensure the highest level of service, operations, and safety, all based around the needs, wants, comfort, and convenience of the passenger and the cargo client.

In short, this airline wants to be known by its proposed guiding motto: "We've got a job to do, and we do it every day - for you!"

2.4 KEYS TO SUCCESSIn descending order of importance, the five critical keys to success for the proposed new regional airline are:

Employing an experienced, highly professional management team that combines vision; realism; financial ability; solid knowledge of the aviation business; familiarity with, and belief in, the utilization and benefits of the latest aviation, electronic, and informational technologies; on-the-ground knowledge of the region and markets to be served; realization of the crucial importance of an organization's personnel to its success; and a total familiarity with, and commitment to, the overall mission and goals of the proposed new airline.

Intelligent, progressive, and aggressive marketing that identifies the airline as a different kind of player, one that is sharper and smarter, and with a higher level of professionalism and operational standard than is the norm in the target region. Concentration on safety, with highly trained, dedicated, and professional personnel, caring for the passenger and the passenger's needs and wants, the advantages offered by advanced technology, and straightforward, understandable, highly competitive tariffs and fare pricing, all will form key pillars of the marketing strategy.

Identification, through careful market research, of unserved or under-served routes and city pairs in the target market area with sufficient passenger demand to enable high load factors and profitable operations utilizing the category of aircraft envisaged.

Use of an all-jet fleet of newer, modern aircraft that offer a high level of comfort, safety, and fuel and operational efficiency and flexibility, which meet all normal aviation standards, and which offer sufficient, but not excessive, passenger and cargo capacity on the envisaged routes.

Use of advanced electronic and information technology to reduce staffing and other operational costs; expand the potential market base; readily capture sales opportunities; simplify and speed passenger, baggage, and cargo handling; and enhance customer convenience and satisfaction.

Additional important, though less critical, keys to assuring the airline's success include the following:

Identifying, negotiating, and entering into, in the pre-operational stage and early on, beneficial associations, cooperation, and partnerships with larger, more established, highly regarded carriers. Establishing a high level of operational oversight and quality control. Avoiding the temptation to go head-to-head with established carriers Maintaining flexibility that enables the airline Identifying, developing, and quickly and cost-effectively exploiting opportunities Looking to combine the core aviation business with ancillary marketing concepts and activities Avoiding growth for growth's sake2.5 DESCRIPTION OF THE BUSINESS

Airsuper, the idea behind its creation is to take advantage of a specific gap that existing in the Bangladesh Air Transport industry for quality oriented local airline but with a global reach. The repeated failures of the national carrier and the even enhancing shares of foreign air carriers in Bangladesh market only made the country, its intelligentsia and its business community more determined than even before to have an air carrier of Bangladeshi origin, free of state interference that could challenge the hegemony of foreign airlines and help the country to gain its rightful place on the global air transport map.

The allocation of more slots for the private airlines was due to a change in the government policy, as it seeks to inject competition in the aviation industry. The government is now very liberal. Government encouraging the private sector to have its share of the growing market and local airline must be ready to face competition and should improve their service quality. Bangladeshs air traffic grew 7.3 per cent on 2008, making it one of the fastest growing aviation markets in the region, but decades of poor performance by the other airlines has enabled foreign carriers to snatch almost 80 per cent of the market. Government decision proves that it wants a level playing field in the aviation industry. Airsuper Aviation Private Limited is an integrated aviation company. The company aims to bring new concepts and approach to efficiently expand travel and tourism Industry in the country. Airsuper starts working with few Domestic and International clients.

Airsuper comprises a team of dynamic talented Bangladeshis who are fully committed to make this vision successful. Involvement in this airline is an opportunity to be a part of a unique venture that will have a significant impact on national economy. The Company has been formed with the intention of operating, managing and eventually owning several commercial aircrafts that will utilize Bangladesh as its base of operations.

Location:

Besides its Head Office at UTTARA and other sales offices at Dhaka, the Company has airport offices at Dhaka's Shahjalal International Airport, Chittagong Shah Amanat International Airport. Airsuper has been operating different types of freighter in the Domestic & International Sectors.

It is anticipated that most routine maintenance will be performed at the base location, with some more minor maintenance and repairs relegated to other locations in the route network. In both cases, most of this routine maintenance and repair work will be contracted out to established and experienced service providers, reducing the need for the new airline to maintain its own extensive maintenance and repair teams and facilities.

The airline will, however, perform its own normal line maintenance at home base and will utilize locally available services away from home. Aircraft also may be based at key airline hub locations away from the home business base as well.

As the fleet expands over time, additional parking and storage space will be needed either at the main base location or at regional hubs in the airline route network. Additionally, sufficient office space, preferably in one central location at or near the base airport, will be required to house the airline's main administrative offices and its central reservations system.

While the airline may consider establishing its own sales offices in key market locations, in general sales will be handled through a combination of Internet marketing utilizing the airline's own website as well as other Internet travel websites, designated general sales agents in given locales, and regular travel agencies everywhere.

Domestic

Bangladesh

Dhaka - Shahjalal International Airport (Base) Chittagong - Shah Amanat International AirportInternational United Arab Emirates

Dubai - Dubai International Airport India

Kolkata - Netaji Subhash Chandra Bose International Airport Thailand

Bangkok - Suvarnabhumi Airport Malaysia

Kuala Lumpur - Kuala Lumpur International AirportAirsuper will start with a fleet of two B-737 aircraft to operate in the Regional Destinations such as Kolkata, Jaipur, Bangkok and Kunming; Domestic Destinations like Chittagong and Sylhet. The second phase will include Far-East, Middle-East by using Wide Bodied Aircraft.

2.6 FLEETThe Airsuper fleet consisted of the following aircraft: Air One Fleet

AircraftTotalNotes

Boeing 737-2001Stored

McDonnell Douglas MD-832Operated by Trans Global Airways

Total3

2.7 WHY AIRSUPER?

Full Service airline focusing on high quality service at a competitive price.

Best domestic Airline in Bangladesh will on a rapid expansion plan to international destinations.

Named as the second designated air line by the Civil Aviation Authority of Bangladesh to serve Dubai, in Middle East; India in Indian sub-continent; Thailand, Malaysia.

Online in 4 international sectors with a plan to double its international network of

destinations by 2018.

Professional & Qualified Management Team from all corners of the world.

Aiming to be the NUMBER ONE airline in Bangladesh within 2025.

2.8 AIRSUPER AIRLINES WHY DIFFERENTWe have gone through AirSuper positioning factors, to see how they have differentiated themselves among the other competitors. It refers to any aspect of its product, service or the organization itself that differentiates it from similar objects. It is either a uniqueness of the brand or a claim not otherwise made in that particular field by others. However, AirSupers business Class is designed to give passengers comfort, combined with great service, for an all-round better flight. Here is the area where AirSuper has differentiated themselves among the competitors with some diverse characteristics. Like-

Elegance of AirSuperAirSuper is highly exclusive in terms of products and services with the elegance. This will make passengers the ultimate in flight comfort and luxury. Starting from their flight attendants, their approach, and dress up, the generous seat pitches, the entertainment systems all give the long flights a royal look. Seating Arrangement

In order to give an experience of comfortable journey, AirSuper contour seats with 32-34 inch seat pitches or a 3-4-3 configuration, rather than the customary 3-3-3 configuration. Each seat boasts lumbar support, wonderfully spacious, and comfortable with adjustable headrest, recline facility, flexible side flaps, personal seat-back entertainment system with power and USB connection. Considering the spacious comfort, in Airbus A380 they limit their seats into 500+ only, whereas they have the capacity of 800 seats there in economy class. Comparing to other airlines, Emirates has been most conscious about the seating comfort of passengers of economy class.Communication & EntertainmentPassengers get to enjoy the award-winning Information, Communication and Entertainment (ice) system. Over 600 channels of on-demand entertainment with personal digital TV screen, makes the hours slip for the passengers. Plus, high speed internet is also available in-flights, which enable to be in touch with the ground with in-seat satellite telephone, e-mailing, text messaging, and laptop recharging facility. Apart from that, it also includes 130 on-demand films, 15 video on-demand channels, 60 pre-recorded channels, 350 audio channels, and about 50 video games, available in 7 languages. Direct data link with BBC news, and IPods integrated with the system to control and play video and music, are also available there.

Seating Arrangement

In order to give an experience of comfortable journey, AirSuper contour seats with 32-34 inch seat pitches or a 3-4-3 configuration, rather than the customary 3-3-3 configuration. Each seat boasts lumbar support, wonderfully spacious, and comfortable with adjustable headrest, recline facility, flexible side flaps, personal seat-back entertainment system with power and USB connection. Considering the spacious comfort, in Airbus A380 they limit their seats into 500+ only, whereas they have the capacity of 800 seats there in economy class. Comparing to other airlines, Emirates has been most conscious about the seating comfort of passengers of economy class.In-flight catering facilityAirSuper will offer in flight catering facility which is most modern and integrate perfectly cooked, absolutely hygiene, and totally fresh food production with thoughtful preparation and automated equipment handling. The kitchens add in preparation areas for Chinese, Japanese, Asian Sub- Continental, Arabic, Middle Eastern and Continental meals. AirSuperwill also range foods according to medical, dietary and religious special meals. However, despite the varied range of dishes produced, no pork or pork products ever enters there and all food products are halal. Every foods serve on AirSuper are planned and prepared with the same care and the same high-quality ingredients, Emirates claims.Flight AttendantsFlight attendants of AirSuper are highly distinguishable for their style and elegance. AirSuper have been recognized for having the best-looking flight attendants and uniforms in the industry. They are from various background and multilingual, which helps to have effective communication with the passengers. AirSuper ensure that every passenger enjoys the same high standard of service from their attendants with polite, knowledgeable and sophisticated presentation.Hi-tech AircraftsAirSuper are outstanding for aircrafts with superior technology. In spite of being so powerful, the engines are comparatively quite enough. Other Airbus and Boeing are also enriched with powerful engine and security. These will make AirSuper one of the fastest growing airlines as well as safest flights in the sky compare to others.2.9 AIRSUPER GETS A FACELIFTAt Airsuper Airlines, we are turning over a new leaf to deliver international standard service. That means on the dot time management, state of the art aircraft and service that we would want ourselves. Imagination with hopes, with dreams of something better, something greater, something more grand than grand itself we have redesigned our organizational structure and our management to bring our offerings on par with the leading standards of aviation.

2.10 AIRSUPER SERVICESAs demonstrated throughout this business plan, it is clear that a strong growth potential exists for the future, and the airline will gear itself toward sensible, well-based growth and solid financial and business planning. The proposed new airline has the potential to become a strong, well established, and as the numbers indicate extremely profitable carrier, starting from now.

2.11 IN THE AIRAt Airsuper Airlines we believe in simplicity, and giving our passengers outstanding value for money- because you're special to us All Airsuper Airlines passengers are offered a lip-smacking full hot meal. Safety and comfort for our passengers is a top priority. We always use the highest safety precautions on every flight, and we make sure passengers always have blankets and pillows for extra comfort. Because we know that not everybody out there is a fan of things like eel, squid, or long green beans, we make sure that our on-board food caters for everyone's tastes. If you have special dietary requirements (like an irrational fear of carrots), simply inform us when you make your reservation, and we'll make sure it's not a part of your meal. Airsuper launches flight-shuttle bus service between Hazrat Shahjalal Internal Airport in Dhaka and Chittagong offering its passengers the option to take a direct route to the port city.

The new service is aimed to greatly enhance convenience for passengers who will be travelling or lives outside Dhaka.

In reviewing the planned services to be offered by the proposed new airline, this plan will divide services into two main categories: passenger services and cargo services. Within each category, the service strategy as well as general services to be offered are presented and reviewed.

2.12 START-UP SUMMARYMost of the planned start-up costs are apportioned to the following six areas, in approximately declining value:

1. Dry leasing or purchasing three (followed by two more by the end of the first year of operations) mid-to-large-size regional jet aircraft.2. Provision of a sufficient cash reserve to assure timely payment of the leasing or finance payments and operating costs of the aircraft through at least the first six months of operations.3. Marketing, advertising, and public relations costs, including costs of setting up a website capable of offering flight and fare information and making online sales and reservations, and related Internet marketing, as well as conventional print and broadcast advertising, and public relations activities.4. Costs associated with recruiting, training, and certifying flight and ground operational crews.5. A reserve to cover overall operating costs, aside from aircraft operating costs, over at least the first six months of operations.6. Administrative and legal costs incurred in setting up the business and the airline operations.2.13 SPONSOR:

Our sponsors are the total investment. The rest 100% of the capital was invested equally by the principals. The following table summarizes the investment scenario:

Accounts required and contributed Total RequirementAmount in TK.

(approximately)Percentage

100%

Israt Jahan Tama135,297,10022.55%

Thuhin Roy135,295,40022.55%

Amjadur Rahman 29,057,4004.84%

Morshed Alam300,000,00050%

Mehedi Hasan350,1000.06%

TOTAL600,000,000100%

2.14 TECHNOLOGY:

All equipment and systems that will be utilized by Airsuper has been carefully and diligently evaluated. Management feels that it is an advantage to be starting an airline today vs. using many of the systems that burden even the largest domestic carriers with extra cost due to outmoded technology.Flight may be based on aerodynamics, but the proposed airline will be based on technology, and lots of it. Efficiency and convenience through use of the most up-to-date informational and electronic technologies, in addition to modern aviation and navigational technology, is guiding principal of the proposed new airline. Technology will alsobe a cornerstone of the new airline's marketing strategy.Airsuper will start with a fleet of three B-737 aircraft to operate in the Regional Destinations such as Kolkata, Jaipur, Bangkok and Kunming; Domestic Destinations like Chittagong and Sylhet. The second phase will include Far-East, Middle-East, Europe and USA by using Wide Bodied Aircraft.

Airsuper has also developed a strong base in the total Aviation Business and offers a varied range of Aviation Services including Aircraft Sourcing, Emergency Evacuation of Patients and VIP Aircraft Mobilization. Among the technological features the new airline will offer are: Internet marketing and online reservations (e-reservations) and sales (e-sales) that will provide quick and easy access to airline schedules, flight availability, reservations, and ticketing to a wide range of customers worldwide. This eliminates payment of agency commissions and keeps costs low - savings that can be passed on to the customer. Electronic ticketing (e-ticketing) which will enable passengers to obtain their tickets online and avoid the need to obtain paper tickets from airline offices, travel agencies, or at the airport. It also frees the airline from having to stock, track, and issue tickets and maintains paper trails of them. Again, more savings for both the airline and the customer.

Electronic check-in (e-check-in) that will virtually eliminate waiting in line to check-in for e-ticketed passengers, enabling them to confirm their identities, obtain their boarding passes, and check-in their baggage (and even purchase tickets upon check-in) utilizing a user-friendly kiosk that eliminates those last-minute frustrating waits to get to the counter. And it also greatly reduces the airline's needs to staff check-in desks, control long lines, employ local contract ground staff, and expend money and resources on an antiquated system that only adds to the traveler's inconvenience and frustration. Another win-win situation for both airline and passenger. Electronic baggage tracking (e-baggage tracking) which will enable the airline to track any piece of baggage from check-in to final pick-up and claim. If courier services can track parcels as they move around the world, and enable customers to track their parcels using tracking numbers and online tracking systems, then why can't the same system be used to assure that no passenger will ever again have to wonder where his or her baggage might be? There may still be contingencies (such as late check-in, lack of space, security restrictions, late connections, and so forth) that cause baggage not to be placed on a given aircraft, but at least both the airline and the customer can be assured that they both know exactly where the given item of baggage is at any moment, and when it might be expected to arrive at the destination. This could well be an exclusive feature of the proposed new airline since no other airline appears to be utilizing it at present. Electronic cargo tracking (e-cargo tracking) is the same basic idea as e-baggage tracking, and will use the same basic system, only for tracking cargo and parcels. Electronic quality control (e-QC) is another innovation that will enable technology to create a far better flying experience for the customer, give airline management and staff greater control over airline operations and performance, and save time, effort, money, and staff resources in the process. What is envisaged is a central electronic matrix that controls and monitors scheduling of aircraft, equipment, personnel, supplies, and support materiel, and responds to problems, excesses, and deficiencies.

It also will track all elements of a given passenger's or customer's transactions and interactions with the airline, from initial flight inquiry through reservations, ticketing, check-in, flight, connections, and final baggage pick-up, claim, and check-out, as well as any standing preferences, follow-up comments, inquiries, or problems. It also will monitor things like weather conditions, flight delays or projected delays, gate jam-ups, and other contingencies, and will automatically notify appropriate airline personnel as well as passengers and customers of any advisories, warnings, or changes.

Electronic financial control (e-finance) will enable complete electronic financial control and monitoring of the airline's finances, clear advantages.

Additional technological features will be incorporated on-board the aircraft to provide flight crews with the latest navigational and communication technologies to assure the highest level of passenger safety and also airline reliability and punctuality. Included in this technology, in the case of the Avro aircraft, is all-digital ARINC 700 avionics with advanced Cat IIIb low weather-minimal landing capability to permit landings under the poorest permissible approach and visibility conditions.

Part 03MARKET ANALYSIS3.1 MARKETING ACTIVITIES:Marketing is a process of finding out what the customer wants also gathering those requirements. Because an efficient marketing program needs every company to fulfill customers' needs. Within the company, the marketing group has to consider customer values and customer satisfaction before considering offering a service.

Other definition of marketing is the "selling of products or services: the business activity of presenting products or services in such a way as to make them desirable. However, the formal definition of "marketing is an organizational function and a set of processes for creating, communication, and delivering value to customers and for managing customer.

3.2 TARGET MARKETInitially the first and the most important part of marketing activities is the target market. Target means set up a goal. For our Air line business the first target market is the businessman. We will provide superior personal services to buyers. Our customer service philosophy is unique. Our target countries are Asian Country like India, Malaysia, Thailand and United Arab Emirates.

3.3 MARKET SEGMENTATIONA complete market analysis and segmentation will require a specific passenger and destination survey, the cost of which is included in the Start-up Costs for the airline.

Preliminary analysis (based on a variety of methods, including observation, interviews with travel- and airline-industry professionals, economic segmentation, future projections based on marketing plans, and experience with the region and market) for planning purposes, however, indicates the following approximate market segmentation overall (considerable variations, of course, would be anticipated depending on route, season, and other factors):

Business - 15%

Government and International Organizations - 10%

Regional Resident Personal and Leisure Travelers - 20%

Diaspora Personal and Leisure Travelers - 10%

Western European Personal and Leisure Travelers - 5%

Seasonal Holiday Travelers - 10%*

* The seasonal/holiday travel segment of the market to some degree distorts the overall market percentages, but might initially be anticipated for two reasons: first, it compensates for the drop in business and government travel that can be expected during the peak summer holiday travel season; second, a significant portion of this traffic is likely to be carried on flights employing specially chartered or wet-leased supplemental aircraft.

The accompanyingMarket Analysis chart belowshow total potential markets based on estimated population in each segment, as well as potential growth rates in air travel in the new airline's target market region within those segments, but do not reflect the anticipated passenger demand from those markets. Overall make-up of the airline's anticipated passenger loads by market segment are presented above.3.4 4P Analysis: AirSuper

===================================== As per our objective of the report, we will mainly focus on the marketing strategies of AirSuper and therefore starting with finding 4Ps which will only cover the Product/ Service, Price, Promotion and Place/ Distribution strategy of Emirates Airlines. Product Service

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------For any marketer to implement any marketing strategy it is vital to start with the analysis of the Ps staring with product or service. But before that marketer need to find out the effective customer segment and also based on that need to position the product or service. In this report we have come up with the effective market segment of AirSuper Airlines.

As AirSuper Airlines is the service providing company, the product will be the service. AirSuper Airlines is the other synonym of high quality service. We will position ourselves in the market as the high quality service provider among all other competitors. Their service is not only blend with quality but also touch of royal feelings, warm hospitality and also technology. In our assessment we have found out some services that are claimed to be their strength and uniqueness. Price--------------------------------------------------------------

Perfect pricing is one of the most important parts for any marketer as it has direct effect on the level of service and also the profit for any business. Here in Air Super Airlines for the business classes we have analyzed the price of ticket for few locations and found out its pricing behaviors those are described here in a gist.Pricing Strategy

We determined the price of our fair based on value based pricing method which does not depend on the cost rather depend on the value of the service that we are offering. Firstly we determined how much money our customers will be willing to pay to get the service that we are providing and then accordingly we determined our cost budget to match that price and have a profit. For pricing the foods of our food corner we will charge One Taka more than the market price.

Like everything else about it, the new airline's pricing strategy will alsoset it apart from the pack and will form a key aspect of its overall marketing strategy.

It is almost a stock joke, the unwieldy and impenetrable forest of airline tariffs and fares and promotions (often available for something like three seats on a flight - and that is meant to win customers) common in the industry today. Few things have garnered the notoriety and degree of customer suspicion and dislike that airline pricing has, and yet there are few moves afoot to improve the situation.

We intend to change that, and will not only make our business more predictable and "user-friendly" to the passenger, but also will help fill our planes and make our financial direction more predictable and clear to our management and our bankers as well.

The game plan is simple enough, offer customers good service to places they want (or need) to go to, and at a fair and predictable price. Competition on the basis of price alone has spelled disaster for more than one carrier, and once down that slippery slope it is hard to turn back. And while price is clearly an important factor driving the marketplace, it is by no means the only one. It will not be our aim to be the lowest-priced competitor in the market (though we may be on occasion). Nor will we seek to be the highest priced, either. Fairness, clarity, and a rational fare basis, combined with better service and greater convenience than offered elsewhere will be our guiding principles.

Essentially, we will work from only two sets of fares (existing for market segmentation purposes) for our service:

Weekday fares, in both Value and Premium (aimed primarily at business travelers who are willing to pay a higher price to be able to go and come back during the week).

Stay-over weekend fares, in both Value and Premium (aimed more at the personal or leisure traveler for whom price is more important than traveling mid-week).RouteAmount of TK.

Dhaka to Chittagong2000

Dhaka to Sylhet1500

Dhaka to Dubai60000

Dhaka to India20000

Dhaka to Malaysia25000

Dhaka to Thailand15000

The only variations on those fares will be these:

Set, publicized discounts for early reservations and purchasing tickets in advance.

Set, publicized discounts for reserving and ticketing online, electronically.

Seasonal and certain peak-period adjustments to the basic fare or adjustments due to spikes in fuel prices and the like.

Infant and child discounts based on the original fare (up to free in the case of infants).

Given our stress on electronic reservations and ticketing, most tickets will be paid for in advance of the departure date, which means the new airline - again, as part of its marketing strategy and offering a higher level of concern for the traveler - should avoid the common and much detested practice of overbooking. This also is where stand-by can help fill any voids that may occur.

In addition, fares for the most part should be based on some rational system that is calculated on distance and actual costs, and not simply what the market will bear.

Place-------------------------------------------------------------- For making the product or service available near to consumer door, distribution or product placing plays an important role. It can be in direct forms and indirect distribution. AirSuper Airlines uses both the form, for example tickets are available at their head office or regional office or ticket counter. In indirect distribution they uses different travel agents. Apart from that passenger have the flexibility to book the ticket through internet using their web site www.AirSuper.com.

Besides its Head Office at UTTARA and other sales offices at Dhaka, the Company has airport offices at Dhaka's Shahjalal International Airport, Chittagong Shah Amanat International Airport. AirSuper has been operating different types of freighter in the Domestic & International Sectors. AirSuper will start with a fleet of two B-737 aircraft to operate in the Regional Destinations such as Kolkata, Jaipur, Bangkok and Kunming; Domestic Destinations like Chittagong and Sylhet. The second phase will include Far-East, Middle-East by using Wide Bodied AircraftPromotion-----------------------------------------------------------

The overall concept and design of the airline sets the stage for its promotion. Marketing and promotion will stress the unique qualities of the airline and the points that set it apart. Strong public relations combined with well-placed, well-designed, distinctive advertising appealing directly to people who are the airline's prospective customers will help get the word out.

Special effort must be made to develop and operate a highly functional, fast, rock-solid, and user-friendly website for online information, reservations, and e-ticketing. Internet marketing, combined with conventional non-Web marketing, will steer people to the website. The more customers use the website, the easier and more pleasant the experience will be for them, and the more economical and efficient, and predictable, will be the process for the airline.

Special attention will be made at the outset to reach the trend-setters and opinion-leaders in our various target markets, even going so far as to arrange personal meetings between airline executives and marketing directors and those opinion leaders, particularly either in Asia who deal or otherwise have a close connection to the target region.

While in general, special promotional fares and the like will be limited, the airline may consider launching with a special promotion simply to get known and to "get off the ground" with planes that are not mostly empty, as is often the case with new airlines. Overall, management and the sales and marketing department will coordinate closely and will employ outside consultants as need be to assure the most positive possible launch.AdvertisingMarketing is one kinds of valuable property for every company. Although often there is the misconception that marketing is advertising only. There is in fact from reality advertising is just one step of marketing. So we will follow the all steps of the marketing activities. So we will design and use new marketing mix vehicles to convey our existence. We promote our Airsuper service we will give advertisement in different media. Since the objective of giving our ads will be to inform and persuade people to buy our service we will chose television, newspaper and to some extent billboard media to give ads.

Communication Tools:

Broadcasting Media: TV and special Show.

Printing Media: Current Newspaper, magazines and Poster.

Direct Mail: subscriber lists.

Others Media: Banner, Internet, Billboard, workshop etc.

Others Communication tools: Fair, Leaflet, Brochure, Dairy, Calendar, Moneybag, CD Web site, Email list, SMS.

From our website buyers will know about:

I. Company

II. Annual Turnover.

III. Numbers of employees.

IV. Total number of Aircraft.

V. Total capacity of seat planning.

VI. Name of Airlines.

VII. Address of ticket office.

VIII. Types of facilities offer.

IX. Quality control.

X. Sample.

XI. Telephone.

XII. Fax.

XIII. E-mail.Timing: The T.V ads will be telecast at night and preferably after and before the news and the daily soaps that are aired on screen. Newspaper ads will be given on Fridays and billboard ads will be given throughout the year only for the first year of inauguration of our Airline service. The sales promotion techniques will be applicable during particular holidays and festivals. The sales techniques and networking system will be implemented throughout the year until they are changed. The airline's strategy has already been adequately explained elsewhere in this plan: target unserved and under-served markets, seek out niches and unmet demand, and offer a higher level of service and a higher standard than the competition. The airline will utilize technology to reduce costs and offer better service and greater convenience to the passenger.

In this section we'll examine how the new airline will go about cutting out its niche through its marketing strategy.

3.5 MARKETING STRATEGYThe proposed new airline intends to cut out new territory as it goes about marketing itself. While it will clearly serve the target markets of Asia, it will just as clearly be a different kind of player on the field, and will seek to be known not only as an Asian airline. The airline's emphasis on the latest information and electronic technology, and its stress on comfort, convenience, safety and customer service, will be cornerstones on which the marketing strategy will be built.

The airline will utilize a combination of methods to achieve the recognition that it both desires and needs. A fairly large advertising budget is planned to buy the space and time to get its name and message in front of the largest possible group of potential customers that it can. Given the crowded field of Asian regional airlines, it is better to come on like a lion than a lamb, or you may be lost in the herd.

The airline will also utilize public relations to good advantage to extend and supplement its advertising budget.

There are a number of "hooks," aside simply from its newness, that the airline can utilize to get the media's attention. The airline is opening up new markets, and it also is transcending the technological barrier with the latest technology in the business in Asia, or anywhere. It has big ambitions, but knows that it needs to serve the customer first to realize them. And it wants to know and serve its markets better than anyone else.

3.6 SALES STRATEGYThe airline's sales strategy will flow from its overall concept and marketing approach. Mass marketing, but with a personal touch utilizing airline employees as spokesmen will aim to steer as many people as possible either to the airline's website, or to its telephone-based customer-service representatives. While clients are free to utilize their own travel agents, and the airline may also want to be accessible through general travel sites the more customers that can be encouraged to use the airline's own reservations and ticketing services, the less revenue will have to be shared in the form of expensive commissions.

E-reservations and e-ticketing, combined with e-check-in, make the most sense for any customers who have online access, and also for the airline itself. But nonetheless, the airline must not lose sight of the fact that many people do not have access to the Internet, or do not care to use it to arrange their travel, or perhaps just prefer a more personal touch, and so other means of access must always be readily available.

The regional and specialized sales and marketing managers, as explained in the section on Personnel, will concentrate their effort on targeting specific clients that have the potential to offer corporate or group travel or who are potential air-cargo customers. The airline will not have the resources to field a large sales team, and so these regional managers must target their efforts, and the airline must effectively utilize its mass marketing methods as well as the Internet to attract individual travelers who, once they experience the new airline, hopefully will feel a close affinity toward it and will become loyal and happy customers.

3.7 SALES FORECASTThe company is forecasting very encouraging annual sales in year one of flight operations. Year two of flight operations sales are forecasted to more than double. Assumptions made for load factors are: 55% in year one, 62% in year two.

The company has also prepared five-year projections that are based upon expanded service to additional market areas. This five year plan is a part of our due diligence package. These sales costs consist of travel agent commissions, credit card discounts, and federal excise taxes.3.8 SWOT Analysis of AirSuperStrength

Royal Touch of Middle East.

Multi lingual flight attendants from various backgrounds.

Aircrafts are with superior technology.

Seating arrangement, Entertainment, and Internet facilities.

Discount facilities on special occasion

Weakness (Based on others experience) Delay of connecting flight and getting luggage.

Food Standard will varies with location. .

Only one Bangladeshi flight attendant for all Bangladeshi passengers, in one flight.

Service standard of economy class is lower in Bangladeshi flights.

Threat

Multiple competitors from the same region (like Etihad, Qatar, Saudi and Gulf Airways) and splitting down of customers due to this reason.

Lack of Air Port management system and necessary facilities in Bangladesh (Like- Lighting problem, air traffic etc).

Rising fuel price.

Price sensitivity of Bangladeshi people. Opportunity

British Airways, one of the major competitors of AirSuper, has turned off their business in Bangladesh.

Availability of Cheap labor here.

A huge number of Hajjis at Hajj time provide a large number of customers at a time.

Bangladesh is the country of worlds largest sea beach, which can act as a major influencer to bring customers.

3.9 OPERATING PROCEDURE:

The company will be organized into five major operational areas:

1. Flight Operations.

2. Maintenance.

3. Financial.

4. Marketing.

5. Customer Service.

3.10 OUR ROUTS OF OPERATION:

Airsupers current schedule covers 7 destinations both domestic and international. Dhaka is the hub of the airline and also the largest gateway for international air traffic into and out of Bangladesh. Dhaka is expected to serve approximately 3.8 million passengers in 2010-11 as per data from MIDT. The biggest single country for traffic from Bangladesh is Saudi Arabia which is home to approximately 2 million expatriate Bangladesh nationals. United Arab Emirates, other GCC countries, Malaysia, Singapore, Thailand, United Kingdom, United States of America are other major destinations from Bangladesh.

The schedule can be divided into three categories

1. Domestic

2. International narrow body services

3. International wide body services

Airsuper currently serves two domestic points Dhaka and Chittagong. With the return of all Dash 8s currently in the fleet back to service after their respective checks, services to one more key domestic point Sylhet is expected to resume.

International services with narrow-body aircraft include operations to India and the Far East.

Kolkata is served twice daily from Dhaka and seven times a week from Chittagong. Total 21weekly services with Boeing 737-200aircraft.

Kuala-Lumpur is served daily with McDonnell Douglas MD-83.

International services with wide-body aircraft include operations to Dubai

Dubai thrice weekly with McDonnell Douglas MD-83.

Dubai is expected to be operated four times weekly.

Abu Dhabi is expected to be served thrice weekly.

Airsuper has the target to operate the following routes*:

From Dhaka

Domestic (with 2 aircraft)

Chittagong 32 per week

Sylhet 14 per week

International (with McDonnell Douglas MD-83)

From Dhaka to

Kolkata 14 per week (with Boeing 737-200)

Kuala Lumpa 7 per week

Bangkok 3 per week

Dubai 3 per week

Abu Dhabi 2 per week

From Chittagong

Domestic

Coxs Bazaar varies depending on season

International

Kolkata 7 per week

Bangkok 3 per week

* Routes and frequencies are subject to change as per market demand.

3.11 LIST OF AIRLINES OF BANGLADESHThis is a list of airlines which have an Air Operator Certificate issued by the Civil Aviation Authority of Bangladesh.

AirlineIATAICAO CallsignHub Airport(s)

Best Air5QBEA BEST AIR

Biman Bangladesh AirlinesBGBBC BANGLADESHShahjalal International Airport

Bismillah Airlines5ZBML BISMILLAH

GMG AirlinesZ5--

Royal Bengal Airlines4A--

United Airways4HUBDUNITED BANGLADESH

Zoom Airways3ZZAWZED AIR

3.12 REQUIREMENTS FOR INTERLINE ARRANGEMENTSIn order for the new airline to be able to obtain the interline arrangements such as code-shares, interline fare agreements, frequent-flyer mileage sharing, and so forth, that will be so important to its competitive posture and overall success, it must:

Meet the standards to have a two-letter airline code.

Meet the highest standards for safety, reliability, and service.

Be accessible through normal reservations and ticketing systems.

Meeting these requirements, and negotiating the desired agreements, will be priorities from the outset in setting up the new airline. Additionally, partnering and interline arrangements will be carefully identified and sought that will offer the new airline strategic partnerships that will help give it the "cover" of larger, more established carriers, and also the status and service and growth potentials it will need to grow beyond its initial stage and to become a true presence in the aviation world. Operation of a single type of aircraft will have significant cost, maintenance, and training expense reduction. So we have a expense of this mandatory cost.3.13 AIRCRAFT SELECTIONSeveral potential fleet aircraft and manufacturing sources are being considered and evaluated, including the following:

Boeing 737-700

McDonnell Douglas MD-83 Also, in an all-freighter configuration, the BAe 146-200QT** and BAe 146-300QT**

* QC = "Quiet Convertible" version allowing quick-conversion from passenger to full-freighter configuration; only five of these - the complete production run - currently are in service worldwide.

** QT = "Quiet Trader" all freight version, of which in service there are 13 in the 200 version and 10 in the 300 version.

A number of key factors have mitigated toward the probable aircraft of choice for the new airline. Among those factors are the following:

1. Relatively low per-seat acquisition cost.2. Four-engine configuration which gives it an added safety factor (while also increasing operating costs, however).

3. Spacious, comfortable cabin interiors that offer the only seat, aisle, and overhead bin dimensions available in a regional jet that are equivalent to those on standard-size jets.

4. The option of flexible cabin and seating configurations that allow for varying the number of seats provided for various classes depending on demand, the number of seats abreast, types of seat coverings, the number of seats provided on a given flight, and so forth.

5. Availability of the aircraft from various sources on both lease and purchase bases.

Seating capacity is an important consideration both from the point-of-view of capacity, load factors, and per-passenger-mile costs, but also from the point-of-view of "scope clauses" in pilot union contracts.

There are trade-offs with both series to consider: The 100 series offers greater capacity without the need to go to six-abreast seating and lower per-passenger-mile costs at higher capacities, but it also offers somewhat less range and requires a longer takeoff roll than the 85 series.

3.14 AIRCRAFT ACQUISITIONAnother issue still being evaluated and which will be decided is the question of how to acquire the aircraft. For a variety of reasons, including the ease with which the leases can be cancelled by the lessor and the lack of "ownership" of the aircraft, wet leasing has been ruled out except for short-term acquisition of aircraft that would be employed in meeting peak demand-type services as outlined elsewhere in this business plan.

The two remaining options both need to be examined from cost, flexibility, and finance points of view: Dry leasing the aircraft (generally on a five-year lease), or outright purchase. Both provide long-term control over the aircraft, and while both options tend to restrict changes in the fleet that might be preferred after the initial years of operation, market conditions and high demand for aircraft indicate that it would be relatively easy to be released from the leases, or to sell or lease the aircraft to new owners or operators, or to return them to their sources.3.15 MAINTENANCE:

All regular "A" and "B" maintenance will be performed by Airsuper personnel at our own leased facilities at each airport served. We will also have tools and parts inventory at each site.

Ground Handling:

Airplane parking services, baggage loading and unloading, and baggage and freight handling services will be outsourced at all airports other than the Any country hub where these services will be performed by Airsupers personnel.

Food Service:

All condiments and beverages served on Airsuper flights will be purchased from in-flight food service providers.

3.16 CREW RESOURCE MANAGEMENT:

It is a formal training program which is set up to concentrate on the human factor in aviation. Airlines were noticing that although pilots were technically competent, their people skills were deficient. In other words, the captain could fly a perfect, but could not work in a synergistic environment to effectively accomplish tasks. This can create a potentially dangerous situation. Our training managers teach pilots how to improve communication, prioritize tasks, delegate authority, and monitor automated equipment.3.17 THE TAKEOFF BRIEFING:

The takeoff briefing is one of the most important briefings during the course of a flight. This just means that we are going to do what we said you would do. A crew briefing is not limited to reviewing an instrument approach procedure, or detailing aspects of the flight to the flight attendants.3.18 OPERATIONAL ADVANTAGES:

Over-all operations will be seamless from area-to-area of Airsuper management information systems as a whole. Most systems utilized by the major carriers today are put in place more than 20 years ago. Thus, there is a constant need for each operational area to "talk" or "re-transmit" essential data to one and other. Not only will Airsuper's information systems operate "seamlessly" but they will also greatly enhance the ability to conform to all compliance requirements.

Part 04

Management 4.1 PERSONNEL

We all know that for being a good work we always need a good person. So making a good business we always need a good person. So personal is one of the major parts of the business plan. In operating our business efficiently in every step, we have to hire some qualified employee. More than in most businesses, management is critically important to an airline, and especially an airline envisaged as this one is. To reiterate a point made early in this plan, the right management team is seen as the first and foremost key to the success of the overall venture. We endeavor to have such a team.

In here we will show our official person by category wise. The levels of organization (reflected in the personnel and salary chart in the Personnel section of this plan) are as follows:

President and chief executive officer (who reports to the Board of Directors of the airline company).

Vice president and general manager.

Functional vice presidents for the core areas of commercial activities, finance, and operations.

Directors covering sales and marketing, communications, human resources, flight safety, flight operations, ground operations, maintenance, and information systems.

Managers in sales and marketing, as well as in station management functions.

Professional, engineering, ground handling, service, and other support personnel.

On the flight side, which reports to the director of flight operations and also responds to the director of flight safety, there are only three levels of personnel:

Captain;

First officer;

Flight attendant.

Salary scales and levels of authority have been simplified and based on a rational scale allowing for similar levels, though of different natures, of functional work to be compensated at the same pay levels. The overall objective is to foster an atmosphere of cooperation and shared responsibility to the overall mission, which is to provide the customer and client with the best possible, safest, and most satisfying experience with the airline. Cross-training and cross-functioning are important parts of the organization plan, as explained in more detail elsewhere in this document.

4.2 MANAGEMENT TEAMA complete management team, covering the elements of administration, aviation, and finance, is being assembled. This team brings together a wide range of skills and backgrounds covering the key areas needed to form, launch, and operate the airline, and from a range of national origins.

4.3 MANAGEMENT TEAM GAPSIt is premature to speak of management team gaps until a core management team is named. The individuals who will play leading roles with the new airline will need topossess the widest possible range of the requisite skills.The current project team believes investors in the airline will want to play a key role in helping formulate core management. Once primary investment is established, that step can be undertaken, and it is anticipated that the core team will be finalized quickly.

The new airline will need people with skill, experience, energy, and vision to head up and serve in such areas as information management, flight safety, aviation operations, aviation maintenance, ground operations, sales and marketing, communications, and human resources management. Also good pilots, co-pilots, cabin crew members, and ground staff, and administrative staff.

4.4 PERSONNEL PLANAlong with aircraft acquisition and operating costs, personnel costs represent one of the two largest cost factors faced by the new airline. Additionally, the airline's personnel will largely determine the success of the venture. Therefore, it is crucially important to develop and implement an effective personnel operations and compensation plan.

The Personnel Plan for the new airline reflects the stress on the use of technology to reduce staffing and costs, and the concomitant stress on customer service. Consequently, staffing is heavier in such areas as information technology and oversight of such functions as human resources, flight safety, flight maintenance, and ground operations than might otherwise be the case with a smaller regional airline. On the other hand, functions such as sales and marketing, bookkeeping and finance, and personnel management are reduced, with the assumption being that the effective use of advanced, cost-efficient informational technologies in these areas will make up for the reduced staffing, resulting in significant cost savings while providing superior results at less effort.

Staffing in the sales and marketing area is aimed at targeted customer contact to generate corporate and group business, rather than individual sales, and to develop special marketing programs designed to generate significant increases in both passenger and cargo business. Responsibilities will be divided along both regional and functional lines, with three regional sales and marketing managers and two targeted, global sales and marketing managers (one responsible for special sales aimed specifically at the peak traffic/special flights/holiday travel/charters market, the other for air cargo sales), reporting to one director of sales and marketing. Additional personnel will answer customer inquiries and take reservations on the telephone at central headquarters, with phone calls forwarded to them from throughout the airline market area, and also will respond to e-mail/website-forwarded inquiries.

All key functional positions throughout the airline, including in the sales and marketing area, are backed up by professional support personnel, most of whom will be cross-trained in different areas, so there will always be coverage of all key functional areas as well as back-up support when work demand requires it.

In the ground-service area, the airline will utilize its own personnel to the extent practical in order to assure a more consistently positive experience for the passenger. All major destinations will be staffed by airline personnel, while at some smaller and more remote destinations, or where local practice or requirement dictates it, ground handling and service may be contracted out to local service providers.

Even in such cases, efforts will be made to utilize spare flight crew personnel to assist with oversight of ground services and respond to customer needs, again stressing the airline's focus on cross-training. Finally, as revenues and passenger demand increases, the Personnel Plan can be expanded to provide additional ground service personnel at key locations and to expand the number of locations where the airline provides its own ground-service staffing.

Again through the use of e-ticketing, e-check-in, and e-baggage tracking, ground-service staffing requirement will be very light compared with a more traditional organization. Particularly given the fairly light flight scheduling at most locations and the convenient size of the projected aircraft, check-ins should be quick and easy, with little waiting in line or fighting with crowds - major marketing advantages as well.

Finally, the proposed hierarchy and salary structure is designed to be both economical as well as sufficiently attractive and competitive to enable the airline to recruit good, qualified personnel. At the same time, in keeping with the overall ambience of the airline, it also stresses relative equality and fairness in its structure. A good benefits package, consistent with, and perhaps better than, available elsewhere in the industry or related industries, and the more abstract benefits of being part of a well-respected, well-functioning, professional, winning team, also will be elements attracting good employees to the new airline and keeping them on the team.

One other issue worth considering, though it is not included in the current plan, is the possibility of offering a bonus to all employees, as a specific percentage of their pay, when the airline shows a particularly profitable year to encourage additional "pride of ownership" and esprit de corps.Part 05

REGULATORY REQUIREMENTRegulatory requirements are in every business. Before starting our business we have to collect legal documents which are necessary for our Airline Business. Those are given below:

Regulatory Issues

AirSuper Airlines, establish as a private company, under the Companies Act, 1994 to carry on the business of Air Transport Services including Passenger, Cargo, Mail, Air Ambulance, Charter, Ferrying, Rescue Evacuation and Training of Pilots, Technicians, Engineers, Ground Handling handling of Ground Support Equipment etc. During the first six months we have undergone both a Civil Aviation Authority of Bangladesh (CAAB) operational review and inspection and an International Air Transport Association (IATA) one. These inspections resulted in us taking actions to enhance the performance of the Company and to improve its operational systems. To this end the Company has purchased the proprietary Aircraft Resource Management System (ARMS) operational suite of software programs which will aide operational efficiencies and performance improvements during the Remainder of 2011 and 2015.

Trade license At first we have to collect trade license from government to do business. Registrar Joint Stock of Companies (RJSC) will give the certification for formation of our company. City Corporation Taxation Rules, 1983 is applicable for the Trade License Rules:

1. A license shall be issued exclusively in the name of the license and such license is not transferable.

2. The license issued shall contain the amount paid, the nature of profession, trade or calling for which it is granted along with location and duration and it shall be deemed to be properly signed if it bears facsimile of the signature of the Mayor stamped thereupon and the signature of the person delivering the license at the time of receiving payment.

3. The license issued by the City Corporation shall remain valid for the financial year and it is renewable annually on payment of the tax.Certificate from (FBCCI)

We will collect export oriented establishments with documents certified by Federation of Bangladesh Chamber of Commerce and Industries (FBCCI).

Tax identification number certificate

We have to collect TIN (Tax Identification Number) certificate.

Environmental Clearance

Environmental clearance must be obtained from the Department of Environment. The process takes 15 days for projects with low levels of potentially adverse impact and 30 days for projects with significant.

ENVIRONMENTAL IMPACTWe are doing the business of Airline service. So from our business there will be less harmful elements which can create negative impact on environment. They are:Noise pollution: Aircraft noise is a serious concern around all airports and under flight paths notwithstanding the adoption of quieter aircraft and engine technology. Aircraft noise is a controversial matter. It is frequently asserted by the aviation industry that the number of people exposed to noise problems.

Ground level air emissions: Aircraft continue to emit more ground level ozone precursors. Aircraft emit their exhaust gas pollutants directly in the upper troposphere and lower stratosphere. These emissions interact in these sensitive parts of the atmosphere and are responsible for climate changes.To reduce this pollution we will take some steps. We dont create a harmful situation for the local people.

Part 06MARKET INFORMATION

Market Information means to know about the product supply, demand and competitive information of the market. Market information is very essential part for our business.6.1 COMPETITIONCurrent Market Situation & Competitor Analysis

A large number of company increase competition because more companies must compete for the same customers and resources. Competition is volatile and can be intense. The competitors intensifies if the service have similar market share, leading to a struggle for market leadership. Among the other competitors the most popular is GMG Airlines. There are some weak competitors in this industry at present but many are willing to join in the growing sector. But since the larger portion of the market is untapped and un-reached, we think we do not need to engage in any aggressive competitive strategies.

6.2 MAIN COMPETITORSWhen we run the business in the market our first challenge will be the competition in the market. There are a lot of competitors already in the market who are giving service in Bangladesh for last few years. These are our direct competitors. Among all direct competitors existing in the market, we have identified our main competitors and below there is a brief description about our main direct competitors:

The New GMGGMG Airlines today took the delivery of its second Boeing 767-300 aircraft. The newly inducted aircraft with 250 seating capacity would be used to operate flights to the Middle Eastern countries. With induction of this new aircraft, the fleet size of GMG now reaches to eight. The company plans to add more aircraft in its expanding fleet to introduce new routes and destinations to become most preferred airline in the region.

Mr Shayan Fazlul Rahman, Chairman of GMG Airlines, Mr. Shahab Sattar, MD of GMG Airlines received the aircraft at the Hazrat Shahjalal International Airport in Dhaka amid presence of Mr. GM Quader, MP, Honourable Minister, Ministry of Civil Aviation and Tourism, senior government and company officials.

United Airways (BD) Ltd

United Airways (BD) Ltd, a public limited company by shares, is founded by an expatriate airline pilot, Capt. Tasbirul Ahmed Choudhury along with a group of professionals, business people, entrepreneurs united together in a shared vision to develop a world class airline in Bangladesh. The Company has been formed with the intention of operating, managing and eventually owning several commercial aircrafts that will utilize Bangladesh as its base of operations.

Best Air

Best Air was a domestic private airline of Bangladesh, a subsidiary of Best Aviation. Best Air was the favorite airline for the people of Bangladesh due to its excellent customer service. The company formed in 2007 as a joint venture between Best Aviation and a Kuwait-based company, Aqeeq Aviation Holding which controls a 70% share of the airline. It started operations in January 2008 from Dhaka's Shahjalal International Airport. Best Air suspended its operations in 2009, due to extra ordinarily high fuel costs. Best Air has recently announced that they have received a large investment from Destiny Group LTD of Bangladesh and will restart operations on the 26th of March, 2011. They intend to re-enter the domestic market with 3 brand new ATR-72 aircrafts. Plans call for the acquisition of 3 A320 aircraft later this year, followed by the A330 or B777 for long haul routes in the near future.

6.3 USERFor our airline service the first target user is the businessmen who use to go many places for their business purpose. Our second target user will be the Government and International Organizations who also use to go many places for their working purpose. Our last target market will be seasonal Holiday Travelers.6.4 SALES CHANNELSWe have decided that at first we will select only one office for our sales channels. And the branch will in Uttara.6.5 DISTRIBUTION CHANNELSales of airline tickets have historically been either direct from the airline itself or through various travel agents. Modern computer technology and communications capability are changing the mix dramatically. Travel agents once accounted for 80% of ticket sales. This channel of distribution has been one of very high cost to the airlines. Travel agent commissions at one time became the highest individual cost item to an airline. The airlines found themselves held hostage. The physical cost of printing and distributing tickets is also substantial. Travel agents estimate that it costs them an average of 2000 TK in total cost to originate an airline ticket. Many of them have begun to add their own service fees to the actual cost of a ticket. 6.6 FUTURE DEMANDThe demand for our service is expected to increase in future. Because, as time is passing more and more people of our country is getting education and doing jobs. Moreover, the sense of independence is also increasing among the people. Apart from the economic and emotional reasons the demand for our Airline service is also expected to increase because in future the population of our country will be even higher. So, it is possible that the government of Bangladesh will allow more people to have a job in abroad in order to decrease the unemployment rate. 6.7 AIRSUPER STRATEGIES AGAINST ITS COMPETITORSCompetitor Analysis of AirSuperIn formulating marketing strategy of AirSuper, we will consider the strategies of the firm's competitors. While in highly fragmented airlines industries the moves of any single competitor may become a vital part.

AirSuper Competitor analysis has two primary activities,

1) Obtaining information about important competitors, and

2) Using that information to predict competitor behavior over the airlines industry

Competitor Analysis Framework of AirSuper

AirSupers framework for analyzing competitors like Saudi, Qatar, Kuwait, Gulf, Etihad etc is based on the following four key aspects of a competitor:

Competitor's objectives

Competitor's assumptions

Competitor's strategy

Competitor's capabilities

Finally AirSuper believes that by using Total Quality Management (TQM) it can enhance its ability to maintain quality services and become a well-run airlines company in Bangladesh in the long run.

Further Competitive Moves of AirSuper

In pursuing an advantage over its rivals, AirSuper pursues several competitive moves:

(a) Changing prices - raising or lowering prices to gain a temporary advantage, e.g. discounts with its class packages, hajj periods, and discounts for labor companies etc. (b) Improving service differentiation - improving features, implementing innovations in the service and enhance the ease flying with Emirates, e.g. technological innovations in the flight.

Part 07FINANCIAL DATA

This section of the plan offers the core elements for evaluating the financial viability of the proposed new airline.7.1 BACKGROUND:Airsuper Airlines Ltd., establish as a private company, limited by shares to carry on the business of Air Transport Services including Passenger, Cargo, Mail, Air Ambulance, Charter, Ferrying, Rescue Evacuation and Training of Pilots, Technicians, Engineers, Ground Handling (own & third party) handling of Ground Support Equipment etc. The Company presently has 03 (three) domestic and 04 (four) international destinations.

7.2 NATURE OF BUSINESS:

The principal activities of the company are to provide all kinds of airlines services to customers at home and abroad.The financial Statement prepared by the Management of the Company present fairly its state of affairs, the result of its operation, cash flows and changes in equity. The company is seekingto raiseof 1508157296 taka for the purpose of financing the acquisition of the aircraft, facilities modifications, equipment, and funding operating expenses. Another 600000000 taka will be invested in the company by its five co-owners. The project cost of the business plan is 1508158000 taka.

This financial projection is based on sales volume at the levels described in thesales forecastsection and presents, to the best of management's knowledge, the company's expected assets, liabilities, capital, and revenues and expenses. The projections reflect management's judgment of the expected conditions and its expected course of action given the hypothetical assumptions. The company's expenses are primarily those of salaries, utilities, and insurance costs. Other expenses are based on management's estimates and company averages.

7.3 SIGNIFICANT ACCOUNTING POLICIESBasis of Accounting:The financial statements have been prepared on a going concern basis under historical cost convention on accrual basis and in accordance with Generally Accepted Accounting Principles (GAAP). The accounting polices have been consistently followed.Basis of Preparation and Presentation of the Financial Statements:

The financial statements have been prepared and the disclosures of information thereof have been made in accordance with the requirements of Bangladesh Accounting Standard (BAS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) and other the applicable laws, rules and regulations.

7.4 PROJECT COSTWe initially invest to our company 150 core 81 lack 58 thousand taka in our total business. Project cost is one of the important parts of business plan. For starting a business it is mandatory to identifying the project cost of the business. Because Project cost cover all the sectors of investment that we provide for our business. In our investment we identify our debt to equity ratio and that is 60 % long term and short term loan with 14 % interest. And we are the owner Contribute 40% for in this investment of the project.7.5 SOURCES & USES OF FUNDSOur sources of fund are our sponsors. They are initially our well wisher and relatives. We take long-term and short-term loan from banks that we previously mentioned. We also have others sources for investment. 7.6 ASSUMPTIONS FOR SALES FORECASTS AND COSTS FORECASTSThe company is forecasting very encouraging annual sales in year one of flight operations. Year two of flight operations sales are forecasted to more than double.

The year two numbers are based upon adding more flights and more airplanes to the routes already served. This will enable us to maximize profits within the market we have created without incurring the additional expense of opening new markets. It also allows for more controlled growth and eliminates the risks, early on, of the loss of control of operational procedures that can occur either with de-centralization or growth that is too rapid.

The company has also prepared five-year projections that are based upon expanded service to additional market areas. This five year plan is a part of our due diligence package. These sales costs consist of travel agent commissions, credit card discounts, and federal excise taxes.

7.7 PRO FORMA INCOME STATEMENTSales:

Sales of passenger tickets are recognized on operating revenue after these are availed of / flown by the passengers within the period of their validity or on the average basis where validity of such tickets has expired. Tickets sold but remaining unused represents a liability and are shown as provision for unavailed tickets or unearned revenue. Beginning sales forecast based on capturing 5% of the market share and capacity utilization rate at 75%. First year our sale is 2,908,066,425 taka and after five years our sales will be increased in 46,529,062,800 taka.Costs of goods sold: COGS are estimated to be 45% of the sales according to industry averages. Analysis of industry COGS costs are attached in the appendix.

Gross Profit:

In first year Gross profit is 1,599,436,534 taka and in last year gross profit is 25,590,984,540 taka.

Salaries:

Salary and wages are included in direct expenses. We get its information in the forecasts and associated salaries. It depends on the basis of the personnel. First year our salary expense is 48,660,000 taka and after five years our salary expense will be increased in 65,868,000 taka.

Rent: We rent for our office in the area of Uttara because the area is suitable for our business communication. We rent 1400 square area and per square is 60 taka and for our air shed we rent 100000 square area and per square is 20 taka So first year our cost is 25008000 taka and last year will be increased 53,808,000 taka because then need additional area of 50000 square at Tk. 22 per square foot.Insurance: The Company operates unfunded Group Insurance Scheme. Provision for Group Insurance is being made annually for the companys permanent employees of the age group less than 65 years. Its range of costs to be 0.035% on sales. In first year insurance is 1,017,823 taka and in last year insurance is 16,285,172 taka.

Utilities: It means various types of bills like electricity, water, gas that we use for our office purpose and service process. Its range of costs to be 5% on sales. In first year utilities amount is 145,403,321 taka and in last year is 2,326,453,140 taka.

Telephone:

Its range of costs to be 0.2%. In first year telephone bill is 5,816,133 taka and in last year telephone bill is 93,058,126 taka.

Advertising: We use media for our advertisement like newspaper, television, web site, market research, direct mail, internet and tradeshows. In first year advertise expense is 15,010,000 taka and in last year advertise expense is 13,450,000 taka.

Entertainment: Its range of costs to be 0.2%. In first year entertainment is 5,816,133 taka and in last year entertainment is 93,058,126 taka.Operating Profit: In first year operating profit is 1,225,424,206 taka and in last year operating profit is 22,201,908,830 taka.Interests: Our interests will be calculated at 14% on short term and long term loan. First year our interest is 0 taka and after five years our interest will be 535,703,440 taka.

Taxes: AirSuper is the private limited company dealing in Airline Business. Company is to pay income tax @ 35%. Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet liability method.Net Profit:In first year Net profit is 796,525,734 taka and in last year Net profit is 14,083,033,504 taka.Dividend: The Board of Director has recommended Cash Dividend at the rate of 25% amounts to taka 569,200,000 of profit after 4 years of our business.

7.8 PRO FORMA BALANCE SHEETThe projected balance sheet illustrates the growth of the net worth of the business and may also be utilized to estimate future stock values based upon industry multiples. In our business Assets and liabilities & owners equity amount is fluctuate in every year. We have no loss in any year.

Assets:

Cash: Cash and Cash Equivalent include cash in hand, cash at banks, which are held and available for use by the company without any restriction.

Account Receivables: Our accounts receivables are increased over the years. It is 5.31% on sales. In first year it is 154418327 taka and in last year it is 2470693235 taka.Inventory: Inventories are stated at the lower of cost and net realizable value. Cost is determined on a normal average basis for consumable stores, Aircraft spares and catering items. Cost comprises the aggregate of purchase price plus other related expenses incurred to bring the inventories to our present condition and locations. Our inventory is 247185646 in starting and 3954970338 taka in ending at 8.5% on sales.Liabilities & Owners Equity:

Accounts Payables: Liabilities are recorded at the amount payable for settlement in respect of goods and services received by the company. Our accounts payables are increased over the years. It is 1.2% on sales. In first year it is 34896797 taka and in last year it is 558348754 taka.

Long Term & Short Term Loan: We are taking almost 40% short term loan. Rest of the 60% loan we are taking as long term loan.

Accrued Expenses: Our accrued expenses are increased over the years. It is 0.2% on sales. In first year it is 5816133 taka and in last year it is 93058126 taka.7.9 PRO FORMA CASH FLOW STATEMENTStatement of cash flows is prepared principally in accordance with cash flows from operating activities, investment activities, financing activities, net cash flow and cumulative cash flow. Net increase in cash is also fluctuated in total business years.

7.10 PRO FORMA STATEMENT OF RETAINED EARNINGSAs earlier we mentioned that we have distributed 8% of ownership into capital market. So we are give dividend to my share holders only in the 5th year.

7.11 INVESTMENT SCHEDULE FOR NEXT FIVE YEARSWe have provided a planned investment schedule for our 5 years business plan. This covered the entire sector that we invest in our business.

7.12 DEPRECIATION SCHEDULE In respect of all other assets, the quantum of annual depreciation charge is calculated over their estimated useful lives using the diminishing balance method of depreciation. All the assets acquired or disposed off during the period have been depreciated for the period of its use. The rate at which the assets are depreciated per annum depended on the nature and estimated useful life of each assets are consistently applied since the inception of the company which are given below:

The applicable rates of depreciation for each type of assets are as follows:

i) Building & Constructions, Automobiles 20%

ii) Electrical Equipment, Renovations & Decoration, Office Equipment, Ground Support Equipment 15%

iii) Technical Manual, Computer Reservation System, Furniture & Fixture, Crockerys & Cutleries 10%

iv) Aircraft tools and Equipment 4%

The air crafts and handling equipment acquired as a finance lease basis, have been capitalized, charging depreciation and interest, instead of lease rental. The whole amount of depreciation has been charged off partly to cost of sales and partly as expense in consistent with practice.Part 08Conclusion

Airsuper, the idea behind its creation is to take advantage of a specific gap that existing in the Bangladesh Air Transport industry for quality oriented local airline but with a global reach. Airsuper Aviation Private Limited is an integrated aviation company. The company aims to bring new concepts and approach to efficiently expand travel and tourism Industry in the country. We embrace both domestic and international markets and efforts will continue to ensure that Airsuper becomes and is recognized as market leaders in both sectors. I am therefore confident that Airsuper has an exciting and profitable future ahead. The new Board, the management and all our employees are committed to driving the Company forward for the reward of its shareholders, its employees and for Bangladesh itself. First year we are going to recruit 83 employees and it will be increased by 96 in last year. The salary of the all employees will vary depends on their position. We select several potential fleet aircraft and manufacturing sources are being considered and evaluated, that are Boeing 737-700 and McDonnell Douglas MD-83.Another issue is Aircraft acquisition still being evaluated and which will be decided is the question of how to acquire the aircraft. The company is seekingto raiseof 1,508,157,296 taka for the purpose of financing the acquisition of the aircraft, facilities modifications, equipment, and funding operating expenses. Project cost is one of the important parts of business plan. Finally a Company depends for its success on its assets and one of our most valuable assets are our employees. Without their unstinted efforts the Company would not be in the favorable position its finds itself today. In conclusion we would therefore like to wish that the business plan is successful because our plan is very realistic and positive sight of the airline business. We will become the airline of choice for people traveling to and from Bangladesh.Pictures of AirSuper

AIRSUPER AIRLINES

CHAIRMAN

Israt Jahan Tama

DIRECTOR OF MARKETING AND SALES

Morshed Alam

DIRECTOR, HR & R&D

Thuhin Roy

CHIEF FINANCIAL OFFICER AND TREASURER

Amjadur Rahman

MANAGING DIRECTOR OF OPERATIONS

Mehedi Hasan

Business Plan on AIRLINE BUSINESSPage 1