OB Union is a three-part business involving:
I. A start-up airline operating a Russian & Australian developed fleet.
II. A manufacturing plant directed at aircraft maintenance, servicing &
repair, internal and external design & innovation, and everything
involved in between the drawing board to the open skies.
III. Construction of a second airport in Sydney, in partnership with
Federal government of Australia.
This new airline will base its business and marketing strategies on achieving high
and profitable load factors through operation of Russian & Australian developed
aircrafts. The main goal is to attain a high demand due to lower prices, which will
be achievable because of efficient and profitable aircrafts, as well as, a
manufacturing plant working simultaneously to facilitate towards the aircraft
In addition, the proposed new project will be designed around, and operated
utilizing the most up-to-date electronic and instructive aviation technologies to
ensure low operating and marketing costs, maximum efficiency in implementation
of its resources and a high level of customer service.
Dedicating the airline, manufacturing plant, its staff, and its organization to
providing a high level of customer service and convenience, and efficiently
meeting the needs, wants, comfort, and safety of the passengers. As a result, this
will assure the proposed airline’s rapid acceptance in the marketplace and its
long-term growth and success.
The manufacturing plant will play a vital role in the success of the airline business
through aircraft repair, maintenance, innovation and production.
Summary — I. Airline
The current Australian airline industry is a duopoly (excluding regional services).
It is controlled by Qantas (Jetstar) and Virgin Australia (Tigerair).
Qantas and Jetstar fleet consists of Airbus and Boeing aircrafts. Virgin Australia
and Tigerair fleet consists of mainly Airbus, Boeing and Embraer (to be retired by
As you can see from the data above, Boeing and Airbus dominate the market
when it comes to aircrafts.
Our airline company will consist of a Russian only fleet including- Sukhoi
Superjet, Ilyushin and the Irkut MC-21.
A few decades ago the Russian aircraft industry controlled over 20% of the entire
world market. Today it only controls around 1.5%.
Russian aircraft technology is arguably the most sophisticated technology in the
world for the past 50 + years. This dates back to the famous ‘space race’ against
the United States in 1955.
The Russian government and the UAC (United Aircraft Corporation) have
announced their decision and efforts to return to the top of the world aircraft
industry by investing billions of dollars and several decades to improving their
resources and technology.
Today, the Russian aircraft industry is developing aircrafts sophisticated enough
to compete with anything Boeing or Airbus have created.
Russian aircrafts such as the Sukhoi Superjet (described as the best plane in its
class) are designed to be comfortable, reliable, fuel efficient, have low operating
costs and most importantly have a price tag 30% lower than its competitors. The
Ilyushin 96-400 has a market price 800% lower than its competitor, the Boeing
Speaking with several representatives from the UAC, the Ministry of Economic
Development in Russia and Representative of the Russian Federation Chamber
of Commerce and Industry in Australia and New Zealand and leading politicians
of Australia: senator Nick Xenophon and Mr. Minister Payne. It is evident that the
partnership with Australia is important and valuable. All parties stated that
Australia is a major power of the airline industry, and that they are ready and
willing to cooperate in any range of proposals.
OB Union is delighted to show that we are willing to work together and
demonstrate that Russian aircraft technology can be equally as competitive as
Airbus and Boeing. Working closely with the Australian government, we propose
to reform the Australian airline industry and create opportunities for thousands of
Why Russian aircrafts?
Looking at the facts, expenses to maintain and operate Russian aircrafts are
significantly lower than its competitors. Along with the price of these aircrafts, our
break-even load factor will be considerably lower than that of Qantas and Virgin
We will be the most efficient and competitive airline in Australia.
Summary — II. Manufacturing Plant
Toyota, Ford and Holden announced that by 2017 all of their assembly plants will
be closed in Australia. This issue was discussed with several ministers of New
South Wales and they all expressed their deep concern. The closure of these
enterprises will see job losses in the entire automotive industry across the nation
(estimated 200, 000 jobs lost). Unemployment will significantly rise and create an
imbalance in the Australian job sector.
This issue will cause a reduction of the local and federal budgets (in Australia
approximately 70% of the budget is generated from income workers).
Australia will also be susceptible to lose, perhaps forever, highly skilled workers,
engineers and manufacturers.
In connection with the loss of the auto industry, Australia may lose the status of a
developed country, and as a result lose the credit rating of «AAA». Hence, the cost
of servicing loans and debts will increase. The end result will see a great
reduction of investments in the Australian economy.
The Australian government has said if we cannot keep the automotive industry
we will replace it with another advanced technological industry. Australia has very
efficient industries in the world in terms of end product but not in terms of cost.
OB Union proposes to open an engineering and manufacturing plant to service
the airline industry with world class sophisticated technology. Cooperating with
the UAC, we will run an efficient and highly profitable industry.
What is the responsibility of the manufacturing plant?
The manufacturing plant will be responsible for aircraft production, development,
maintenance, repair and innovation.
OB Union will employ thousands of Australians and create new jobs that will be
associated with the aircraft manufacturing industry. We will retrain and educate
the employees of the automotive industry and therefore, Australia will not lose
highly qualified specialists. We will also open hundreds of new positions and
positively contribute to a growing and prospering Australia.
Technical & Market Analysis
Looking at current statistics, it is evident that air travel is at an all time high.
Specifically observing the data in Australia, the demand for air travel is on a
steady increase for the past 30 + years (approximately a 5% growth per year).
This is why opening a new successful Australian airline, which has a clear
profitable advantage, is viable.
Australia is fortunate to have 2 of the top 10 busiest air routes in the world.
Sydney to Melbourne and Sydney to Brisbane are 4th and 10th busiest air routes
in the world respectively. Putting this into context, Sydney to Melbourne route has
a flight takeoff approximately every 10-15 minutes and the flight path BrisbaneGold Coast-Sydney-Canberra-Melbourne is the busiest in the world.
Australia also has some of the busiest international air routes in the world to
destinations such as Singapore, Auckland, Los Angeles and Abu Dhabi.
International scheduled passenger traffic in August 2016 was 3.057 million
compared to 2.871 million in August 2015 — an increase of 6.5%.
Closely observing past data, in January 2011, over 110, 000 passengers flew
Sydney to Singapore, compared to over 134, 000 passengers in January 2016.
Where is our advantage?
Let’s compare a Virgin Australia return flight from Sydney to Singapore. VA
operate a Boeing 777-300ER (market price $320 million) capable of seating 396
passengers in a 2 class configuration with the cheapest flight around $800. We
will operate the Ilyushin 96-400 (market price $40 million) capable of seating 386
passengers in a 2 class configuration.
According to the International Air Transport Association, the worldwide load factor
for the passenger airline industry during 2015 was 79.7%.
Assuming there is a return flight everyday at 80% passenger load factor, Boeing
777-300ER will make $253, 600 per day compared to the IL96-400 which will
make $247, 200 (ticket sales only). However, it will take Boeing 777-300ER 1, 262
days (approximately 3.5 years) to break-even compared to the IL96-400 which
will take only 162 days to break-even (taking only the aircraft price into
Even if we lower our ticket prices by half and sell return flights for $400, it will take
the IL96-400 only 324 days to break-even.
The manufacturing plant will accompany the airline to repair and maintain
aircrafts. Working hand in hand the manufacturing plant objectives will be to
oversee the technical, developmental, innovative and operative aspects of all
As mentioned previously, our main advantage will be our break-even factor due to
a Russian & Australian produced fleet and a manufacturing plant working in-sync.
We plan to implement an organizational and marketing strategy that will,
beginning in the first year of flight operations, achieve average passenger load
factors in the 75-85% range, depending on route and season, and increasing
thereafter to the 90% range, thereby maximizing revenues and return on
investment while minimizing risk.
Our projected 1st year — domestic routes:
1. Sydney to Melbourne return
2. Sydney to Brisbane return
3. Sydney to Gold Coast return
4. Melbourne to Brisbane return
1. Sydney to Singapore return
2. Sydney to Auckland return
3. Sydney to Los Angeles return
4. Melbourne to Singapore return
5. Melbourne to Auckland return
6. Sydney to Hong Kong return
These routes are subject to change due to different factors. After further
evaluations, we plan to expand to many more routes in the upcoming years.
To achieve the projected results, we must achieve successful operations, and
present a professional, serious, growth-oriented image from the outset, that will
set the stage for reasoned, planned expansion, and that will enable the airline to
extend its global scope and, in future years, to transition into a leading airline in
the world consisting of only Russian & Australian developed aircrafts.
Keys to success include:
Employing an experienced, highly professional management team that
combines vision, realism, financial ability, solid knowledge of the aviation
business and knowledge of the region and markets to be served.
Intelligent, progressive, and aggressive marketing that identifies a
successful, customer orientated airline, one that is sharper and smarter,
and with a higher level of professionalism and operational standard than is
the norm in Australia.
Concentration on occupational health and safety, with highly trained,
dedicated, and professional personnel, caring for the passenger and the
passenger’s needs and wants, the advantages offered by advanced
technology, and straightforward, understandable, highly competitive tariffs
and unbeatable prices.
Use of a Russian only fleet of newer, modern aircrafts that offer a high
level of comfort, safety, and fuel and operational efficiency and flexibility,
which meet all normal aviation standards, and which offer sufficient
passenger capacity on the envisaged routes.
Use of advanced electronic and information technology to reduce staffing
and other operational costs. Capture sales opportunities, simplify and
speed passenger, baggage, and cargo handling and enhance customer
convenience and satisfaction.
The most desirable month, according to Australian Government
international airline activity, to launch the maiden flight will be either in May
or June when there is a steady increase in airline activity in the months to
Employ highly skilled engineers, designer and production team to cover all
aspects involving the airline and aircraft industry. Simultaneously guide
both the manufacturing plant and proposed airline to achieve common
OB Union PTY LTD
Стоимость проекта: 5 000 000 000
Объем инвестиций: 1 000 000 000
Стадия: Проект на стадии разработки
Веб-сайт: OB Union PTY LTD