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Bluestar Proposal

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AIRCRAFT UPGRADE

A PROPOSAL TO
INTRODUCE THE BOEING 737-900ER TO OUR FLEET

B l u e – s t r
A i r l i n e s

APRIL 29, 2011

Presented by:

Mike Boehnel, Chris Hector, John Moran

Current seating offered on the 737-500. Flight crew of two; Typical two class seating for 108 (eight first-class and 100 economy), or max single class seating for 132 @ 30 inch pitch.

Blue Star
Examining the Past, Looking toward the Future.

The original Blue Star Airlines was founded on October 13, 1992 by investor I. Gotta Lottabucks. Recognized as a post-Deregulation start-up, the airline commenced operations in 1992; quickly became known for its friendly employees and attentive service.
Blue Star's bright blue-starred tail Boeing 737-500s served various business and leisure destinations on the eastern US Coast.
The airline purchased a hub operation at Raleigh-Durham International Airport in 1993. Blue Star's arrival at RDU coincided with the closure of the American Airlines hub there. Blue Star undertook major growth plans at RDU, taking over many of American Airlines' former hub routes, and hiring large numbers of new employees, the majority of who resided in the RDU area. At the height of its operations, Blue Star offered almost 200 flights daily from RDU to 25 destinations on the East Coast, was used by many passengers travelling between the Northeast and Southeast, and began RDU's first nonstop flights to U.S. West Coast destinations. Blue Star was popular with flyers thanks to its friendly and enthusiastic flight crews, new aircraft, easy connecting flights at the RDU Hub, leather seating and its signature "hot towels and mints for everyone." Blue Star began with a fleet of 20 aircraft almost 20 years ago, and over the years, we have added to our fleet, and now operate with 50 aircraft.
For our 20th anniversary, it is time to re-evaluate where we came from, how we are doing, and look towards the future.

The Classic Series
The 737-500 (originally known as the 737 Lite and the 737-1000) overall length is 101ft 9in, with a Max-Take-Off-Weight up to 133,500lb. The 737-500SP is a winglet equipped retrofit we added when this became available in 2007. The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models. Our 500 series has the capacity to accommodate up to 149 passengers; 122 to 149 in the single-class configuration; and eight first-class, 100 economy class in the two-class configuration. Currently, Blue Star’s primary configuration is the passenger single-class configuration.

Continue proposal text here. Continue proposal

Airlines spend on average of $870 in direct maintenance costs for every flight hour according to the Maintenance Cost Report. Our average costs for the 737-500 are approximately $640 per flight hour, below the national average. However, the average lifespan of the 737-500 is 15 years, and we are nearing our 20th year of operation. We can expect maintenance costs to increase with each future year of operation, and predict costs to meet and exceed national averages within 3 years.

B l u e – s t r
A i r l i n e s

The Next Generation
The Boeing 737-900ER is the newest member of the Next-Generation 737 airplane family, the world’s best-selling jet airplane family. The longer range of the 737-900ER will connect distant cities across continents, in a generous two-class configuration. With the 737-900ER, Blue Star will be able to expand its current routes from more than just an east coast airline. With the addition of the Boeing 737-900ER Blue Star will be able to open routes from coast to coast, and possibly venturing into the overseas market.
The addition of the 737-900ER will allow Blue Star to increase passenger carrying abilities, and profit margin by essentially adding a new and improved aircraft, without a detrimental effect on the maintenance aspects of Blue Star Airlines. The 737-900ER is a drastic upgrade from the 737-500, however, because it is still a member of the 737 family, a large majority of our current 500 series parts inventory will be readily available for use on the new 900 series aircraft. This move eliminates the costly initial stocking of new parts, for a comparable aircraft outside of the 737 family. Additionally, maintenance crews will feel little impact, and will require minimal re-training on the new 900 series aircraft.

Boeing 737-900er

APRIL 29 2011

B l u e – s t r
A i r l i n e s

Blue Star Airlines

Phasing Into The Future
Brining our company into the 21st century is not a passing thought it is necessary for this company to remain competitive.
With today’s economy, and a cost of $75 - $80 million for each aircraft, the best option is to phase-in the new aircraft, as we retire and sell the older aircraft (currently eagerly purchased by Eastern-Bloc countries, like Russia). Fortunately, due to the country’s recent decision, to allow companies who invest in new equipment to deduct the full costs on this year’s taxes, now is the perfect time for Blue Star Airlines to make a substantial investment in its future.
The benefits of the new Boeing 737-900ER as compared to our current fleet could not be clearer, it is our recommendation that a full prospectus be generated and distributed to stockholders for evaluation, and a vote is scheduled for the June 2011stockholders meeting.

Current seating offered on the 737-900ER.
Upgraded seating to 180 passengers in a typical 2-class configuration or up to 215 passengers in a single-class layout. Seatbacks equipped with personal video monitors as standard equipment.

737-900ER

A Step Ahead
Today’s operator’s fly 737’s that are 5% more efficient than the first Next-Generation 737’s delivered in 1998 and additional improvements are on the way.
The 737-900ER has substantial economic advantages over competing models including 6% lower operating costs per trip and 4% lower operating costs per seat mile than the A321, which is 9,550 pounds heavier.
The 737-900ER shares the same performance attributes of the other Next-Generation models (-600, -700, -800, and
-900) such as reliability, lower maintenance costs, lower operating costs, and state-of-the-art flight deck systems, such as the Heads-Up Display (HUD), Global Positioning Landing System and Vertical Situation Display.
The 737-900ER also shares the same advanced-technology wing design that helps increase fuel capacity and efficiency. The advanced wing airfoil design provides an economical cruise speed of .78 Mach – compared to .74 Mach for earlier 737 models – with a sprint capability of .82 Mach.

Customer Satisfaction
The 737-900ER is the perfect airplane to replace older, less efficient aircraft because it has one of the lowest fuel burns per mile we can add to our narrow-body fleet, and provides a superior passenger experience. With the new Boeing Sky Interior, the airline will welcome travelers into a cabin featuring modern, sculpted sidewalls and window reveals. Customers will appreciate the modern and spacious design of the new, larger stow bins that retract into the ceiling, and allows them to accommodate more bags than before.

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2008

B l u e – s t r
A i r l i n e s

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Place logo or logotype here, otherwise delete this.

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Delete text and place photo here. company name S | M | T | W | T | F | S | | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | | | | | | | | | |

2008
january

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