Different airlines have different models for raising cash to commence operations. Most go to Banks or to fiscal institutions to raise the capital needed to start operations (such as equipment, aircraft, staffing etc)
Odyssey Airlines are startup trying something different, and going along the line of crowd-funding to help it get into the sky.
The aim of the crowdfunding project is to raise approximately £1 million through the site CrowdCube for 5% equity.
Odyssey Airlines crowd-funding page – http://www.crowdcube.com/investment/odyssey-15419#!
Currently Odyssey Airlines have 10 Bombardier C-Series aircraft (the CS100 variant) on order, to be configured in all business class configuration. The airline intends to operate from London City Airport, operating non stop to locations such as New York, Toronto and “other international destinations”.
Bombardier CSeries CS100 in Odyssey Airlines colour scheme – Rendering Bombardier
Honestly – I’m not sure about this as a way of raising the funds to start up an airline like this. Airlines are notoriously fickle businesses requiring a lot of cash to make them work. This is a novel way, but as a long term driver of cash, this isn’t adding up.
To quote a certain Richard Branson
“If you want to be a Millionaire, start with a billion dollars and launch a new airline.”
And I can’t help but feel there’s not the cash to drive this airline here. Let alone turn a Billion into a Million….
I wonder how they’re going to do it. According to the CSseries website, that plane cannot reach NYC from LCY without a stop.
This doesn’t appear to be the main fund-raise. The pitch on Crowdcube http://www.crowdcube.com/investment/odyssey-15419 makes reference to the main fund-raise later on. Seems as good a method as any to raise seed funds…and it engages them with a network/community which probably includes some potential customers.
Hyacinthe, the C Series website, like most manufacturer websites promulgate performance an range based on full aircraft in the highest capacity. Odyssey are proposisng to operate with nearly one third of a normal configuration and that makes a huge difference to the range circle.