The Challenge:
To create direct connections between the Canary Islands and the United States of America. High-volume connections from the main large catchment areas in the United States of America on the backdrop of high costs for startup and high investment for new wide-body aircraft.The Solution:
Cost-effective soft-start through aircraft full rental with crews – operation of several high-capacity Airbus A340-600 aircraft on first routes between the United States of America and Las Palmas. Adding cash-cow transit destinations, -such as Cape Town or Abuja- which are interesting for US travelers, initially on a twice weekly basis. Resulting in the opportunity to build the new brand name whilst already operating profitably and in parallel allowing for recruiting professionals and completing the own AOC;
-thereby building the new airline step-by-step.
Following this first stage -so during revenue operations- the next step would be purchase and reactivation of proven, high-capacity aircraft such as Boeing 747-400’s at the fraction of the cost of new aircraft; -resulting in much lower equity pressure on operations and improvement of sustainability through strategic re-purposing of perfectly good used aircraft.
Benefits:
Soft start-up with less risk and initial investment requirements whilst proving the conceptual and especially economic success of the new routes, based on increasingly high passenger capacity – 2 million pax plus 60,000 tons cargo capacity annually.
Of this cargo volume, CanAm maintenance will require some of the aircraft’s large cargo volume for aircraft spares from the United States whilst CanAm Catering will occupy a substantial share for the import of special foods from South Africa and CanAm Cargo will have a large share of these exotic foods for the Rungis in North Ameraica.
State of the Project:
Highly detailed calculations available, showing the extremely high potential of the business plan. Connections with airline professionals have resulted in a positive feedback. Local government bodies show strong support for cooperation to market the Canary Islands internationally. Very fast start-up and subsequent ramp-up possible through an ACMI charter partner and excellent availability of aircraft in combination with motivated, experienced crews by offering an attractive home base.
Unique Selling Points (UPS):
Lowest travel times available on the market at relatively good pricing. Only competing airline with home base on Las Palmas in Gran Canaria, -all-business class- with excellent on-board service and comfort. Most comfortable travel route between the United States and Cape Town -with a short half-way leg-stretching stopover. Excellent on-board dining with emphasis on healthy, but very tasty meals and other amenities focused at shortening travel time.
Many more highly interesting final destinations for U.S. tourists over the LPA hub. Future highly interesting routes and connections with the Russian Federation and the Unkraine are conditionally possible after a return to peaceful coexistence -ultimately also connecting them to the Canary Islands and South Africa.
Customer Values:
Less quality time lost for travel through smart scheduling late departures in the US and afternoon arrivals on return. Very high cabin travel comfort, excellent food and in-flight entertainment reminiscent of the old days of air travel at relatively advantageous ticket pricing through good economics through large-scale transport scheme employing remanufactured used aircraft.
Market Penetration:
Nine major North American destinations identified with direct transit interconnection to South Africa plus 3 Canadian destinations to follow. Plus options for future connections to the Russian federation and the Ukraine.
Program Value and Revenue Model:
Low start-up costs with first revenues already in spring 2026 by ACMI chartering aircraft and creating revenues to cover extensive pre-operative period up to obtaining the Air Operator Certificate (AOC) and first operative aircraft own by 2027. Through steep ramp-up of aircraft coming into service and subsequent more destinations the curve to full revenues is possibly reached as early as 2031. Model calculations show annual profits of up to 1B at full program maturity with 12 operative Boeing 747-400 aircraft.
Investment Opportunities / Investor Groups addressed:
1. ACMI Operations scheme including purchase of two A340-600 from Lufthansa
(≈ €150 m – 200 m)
2. Airline-related start-up costs for setting up the airline, staffing & training
for obtaining AOC., plus airline operational costs for crews, operations,
maintenance and fuel during ramp-up (≈ €450 M)
3. Subsequent Aircraft purchase (12 A/C) including complete overhaul
(high-capital assets) (≈ €562 M)
4. Local Airline Infrastructure projects in the Canary Islands. (≈ €200 M)
plus a multitude of non-airline- related investments
5. Transparent access and first right to local tourism-related Investment projects
on the Canary Islands (> €2 Bn)Investment Opportunity:
Equity in & Dividends from CanAmAirways™ LLC.
(Las Palmas/Spain / Canary Islands Special Economic Zone (ZEC)).