This chapter will focus on airline new entrants (start-ups) and exits, most resulting in bankruptcy. Many of the most recent start-ups have been from existing airlines, the ‘new’ airline being a subsidiary of an existing carrier (e.g. IAG, which added 13 new airlines under the holding company). Many start-ups exist on paper but do not start operating. Thus, the start-up business plan looks good to the founders, but the final steps to up and running meet obstacles:

Cannot meet safety requirements

Funding is not sufficient to pass governmental regulations (see Section 1.1.1)

Traffic rights are not available

This is an unexpected economic downturn

There is an unexpected change in fuel prices, which affects choice of aircraft