National West Airlines is a new regional airline in its formative stages. It is being organized to take advantage of a specific gap in the short haul domestic travel market within the western United States. This gap has been created by Southwest and Allegiant Airlines using only Boeing 737’s and MD-80 aircraft. They can not service the rural cities with these large aircraft. National West Airlines can fill this gap by offering air service in and out of these cities to a popular destination with smaller, more efficient aircraft. The consumer demands to fly nonstop and save hours of travel time and money on our selected routes. This indicates that our new airline could be expected to capture a significant portion of current and needed air travel business.
The National West Airlines plan has the potential for a more rapid start-up than any other due to the nature of the routes, the demand for travel currently in the targeted markets, and the lack of having to compete for gates and landing slots at a major airport. Investment capital is needed by private placement for the airline certification process with the F.A.A. and D.O.T. “Seed’’ capital will include the cost of moving into facilities, aircraft required for F.A.A. certification, all the employees and their training necessary prior to start-up. “Bridge” capital is needed to cover the first quarter of formative operations. This is due to the organizational and regulatory obligations of a new air carrier. Bridge capital will handle the expenses of this phase of the business and will meet the D.O.T. financial-fitness criteria.
National West Airlines has analyzed the mistakes of other airlines and has developed a superior plan. We will use the same model Southwest & Allegiant uses, but on a smaller scale with smaller aircraft. National West Airlines will not compete directly with those airlines and, in fact, will have little or no competition at all. Our business model will allow us to ride the ups and downs of the economy. We can do this by not being bound by any contractual agreements with a major airline and we have planned for the volatile cost of fuel.
National West Airlines will fly modern aircraft that have high dispatch reliability, are cost effective for the routes we fly, and will allow us to have access into hubs that will provide convenient connections to mainline carriers. To keep air fares attractive to our customer base, we will keep employee and management numbers low, and our business costs under control, along with seeking out other sources of income for the airline. These additional sources of revenue will come from hotel/casino partnerships, car rentals, on-board advertising, and on-demand cargo operations.
National West Airlines has listened to the cry for help from its market cities/airports and we have received the commitment from them for our future service. We will receive concessions from them in return for the needed air service. Our profit model will not be steered by EAS (Essential Air Service) government funding which has interrupted the viability of air service into so many communities.