The financing for the business would be derived through the initial public offering IPO for the shares and stock of the company with 20,000,000 common stock. The launch of an airline company requires a significant amount of investment, which is why the company is going to be launched with 5 BA609 initially and then the fleet of the aircrafts would be increased by 1-2 aircrafts every year based on the revenue being earned by the company. In the face of the current recession taking place, a conservative financial plan has been adopted which will prolong the active period of the company with a sound financial backing in the form of investments form the shareholders.
It is predicated that the sales of the company would be maintained at about 2 million dollars a month with 5 aircrafts or 24 million dollars a year. The projected profit and loss for the company indicates that the company would be going for a gradual and slow growth for its profits. In year one the percentage of sales is going to be relatively low with it increasing consistently in the following years.
The cash flow of the company would be such that in the initial years, the company would require significant investment for the set up facilities, hiring of the management and the technical staff as well as for purchasing and renting aircrafts for its fleets. These will compose of the main items for cash outflow. The cash inflow for the company will be through the sales made by providing the shirt hall service to the clients.
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