MONEY IN THE AIR
It just doesn't get any better than this. Booming sector, tightly held, ground floor investment opportunity in a start-up US airline.
Company: Baltia Air Lines Inc,.
Symbol: BLTA.OB Quote Chart
Current Price: $0.018 + 20.00%
Potential Price: $0.05
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Company Overview:
The continued prosperity of Southwest Airlines and the recent success of Jet Blue exemplify the lucrative and expanding market for new US niche carriers. Baltia Air Line's goal is to become the leading US airline in the tra ns-Atlantic market between the major US cities and the capital cities of Eastern Europe, including Russia, Latvia, Ukraine, and Belarus. With experienced management and a lucrative and growing travel market to the Baltic region Baltia intends to soar to success.
Market Niche and Potential
Baltia's objective is to provide high quality three class passenger service, and reliable and fast cargo and mail transportation. Baltia plans to start its flight operations in 2007, as the only US airline connecting directly two of the world's most prominent cities - New York and St. Petersburg.
Baltia's nonstop service from New York's JFK to St. Petersburg will be approximately 8 hours, as compared to European connecting flights by foreign airlines taking up to 12 or 18 hours. Only a US airline (as well as a reciprocal Russian airline) is entitled to fly nonstop. Third nation airlines, which are currently serving the market, can only operate connecting flights via their nati onal airports.
Management believes that the shortened flight time, elimination of a layover, elimination of the possibility of missing a connecting flight (it happens), and a high quality passenger service provided by a US flag airline will attract not only the American business traveler and high-end tourism but also travelers originating in Russia. During year one, Baltia plans to add additional airplanes and nonstop routes from JFK to Riga, Moscow, Kiev and Minsk. On the JFK-St. Petersburg route alone, management is projecting revenues for year one of operations at $60 million.
Corporate Snapshot
Baltia's senior management meets regulatory requirements and has been previously approved by the US Department of Transportation (DOT) to operate Part 121 airline.
Baltia has arranged a three year lease of a Boeing 747 aircraft. Baltia has leased space at JFK, Terminal 4 for its base of operations.
BUSINESS STRATEGY
Baltia Air Lines, Inc . has been organized by a team of US airline professionals with decades of airline experience. Baltia plans to start its flight operations with weekly nonstop flights between JFK and St. Petersburg and to expand its schedule to daily flights within a four months period. By the end of year one of operations, Baltia plans to operate a fleet of four aircraft flying nonstop from JFK to Riga, Moscow, Minsk, and Kiev.
Favorable Market Conditions
The New York-St. Petersburg route is a huge market directly connecting two cities with populations of 10 million and 6 million, respectively. The market is currently served by over 150 OAG (Official Airline Guide) listed flights per week, by a number of European airlines. These foreign airlines may not fly directly between the US and Russia; they have to operate with connecting flights through their countries. As a result, the market is presently served by foreign airlines requiring one or two stops and entailing a 12 to18 hour journey. C argo transport on connecting flights is even less efficient. From the trans-Atlantic leg cargo is offloaded mechanically from wide body jets. It is then manually loaded onto connecting narrow body jets. Nonstop service offered by Baltia will provide convenient eight hour travel, and efficient palletized/containerized cargo transport.
Typically, in the market served only by connecting flights, as much as 60% of the traffic migrates over to a new nonstop service when such service becomes available. Starting with one Boeing 747 in the JFK-St. Petersburg market, Baltia's business model calls for approximately 85,000 passengers during year one on that route, representing less than 10% of the market size. Thus Baltia can be expected have initial operations with a high load factor.
Despite the large number of stop-over flights currently offered by European airlines, passenger fares between JFK and St. Petersburg have steadily grown in the past years due to an even greater increase in traffic. Baltia has conservatively structured its nonstop fares consistent with those of foreign airlines providing connecting services.
Superior Baltia Service
Baltia plans to operate a high quality passenger service in a three class cabin layout, in addition to being the only direct flight. For cargo shippers, Baltia intends to offer "Baltia Courier" service – aimed at express letters and high value package market. Also, the company has begun negotiations with major express shippers and has strong interest in utilizing virtually all of its cargo capacity under block space arrangements.
Conclusion
With proven management, a unique market niche, offering superior service at a competitive price, solid relationships in the travel and courier industries, and a very lucrative and ever-growing demand for travel and shipping to and from St.Petersburg and the Baltic region, the Company has all the elements in place to become a soaring success.
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