Financing Needed
| DC Code : | 000113 |
| Type of Funding Needed : | Add a Partner |
| Purpose of Funding : | Business Other |
| Annual Net Operating Income : | $334,000 |
| Type of Collateral Offered : | None |
| Value of Collateral : | N/A |
| % of Project Funding Needed : | >90 |
| Credit Score : | 850 |
| Upload Apraisal : | Download |
| Amount Of Investment : | $15,000,000 |
| Equity Percentage Offered : | 35% |
| Capitalization Rate : | 100% |
| City : | Bendigo |
| State : | Victoria |
| Country : | Australia |
| Description : | Air bendigo pty ltd. (trading as air bendigo) is registered at c/-rsd accountants, 32 garsed street, bendigo, vic 3550, australia.\nair bendigo is a planned new regional airline that will serve the small communities around melbourne with regular air services, where none exists today, and where demand has gone unnoticed.\nphase 1 of the start-up covers the first 4 years of operations, where the airline will start year 1 with a single 19 passenger aircraft serving 2 routes, bendigo and shepparton to melbourne (essendon airport) with up to 21 round trips per week.\nto start, we are seeking $usd 1.5 million, of which $usd 800,000 is for the start-up (securing aircraft and crew, reservation system, marketing and all authorizations and approvals) and the other $usd 700,000 (in approx. 3 months) is for working capital once operations begin, to cover any early short fall in revenue.\nwe are able to start very quickly, within 4 months as we want at least 3 months of marketing and sales before first flights.\nthe airline’s very low start-up cost is due to a new business model, called a “virtual airline” where the operation of the aircraft is totally outsourced to a third party under contract but under the control of air bendigo which will commercialize the airline by offering the service, marketing and sales.\nin year 1, we expect revenue to reach $usd 4.7 million and an operating profit of $usd 334,000. by year 4, the airline is expected to have 4 aircraft and 8 routes with a revenue of $usd 23.2 million and a net income of $usd 4.0 million (17.2% net margin), and an accumulated 4 year net income of $usd 7.7 million (npv –net present value of $usd 6.0 million).\nthe 35% owner shall be able to recoup the initial investment by the end of year 2 and by year 4 have made an additional $usd 1.5 million in shareholder equity, a 100% roi (return on investment) in 4 years.\nby the end of phase 1 in year 4, air bendigo value based on industry valuation multiples should be between $usd 13. 9 million and $usd 20.0 million.\nphase 2 calls for a further expansion and capital, and at that point it is a good time for either end by the 35% owner or continue and seek new investment to expand the airline beyond the state of victoria, with possibly larger aircraft in the 30-50 seat category.\nthis a very unique airline investment offering a very high roi, with minimal risk as start- up is low, no aircraft acquisitions and all routes would be currently unserved monopoly routes where demand to melbourne is high, and where local councils will be more than eager to support our services to drive their local economic development, which a regular schedule air service does to a community. |
| Percent Accepted : | 0.00% |