Home > Boards > US OTC > Delisted > Baltia Air Lines Inc. (fka BLTA)
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Friday, October 17, 2014 2:20:55 PM

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Baltia Air Lines (BLTA) Info & Fact Sheet












Caveat: Do not take the term Fact Sheet literally. Be aware this info is from 2007 or 2008. Some info is outdated, no longer valid, most numbers and figures have changed (I did just now update the Pro-Forma numbers). However, still provides a lot of insight and perspective into the birth of Baltia Air Lines (BLTA) and well worth posting.









St. Petersburg
- St. Petersburg- second most important gateway to Russia
- St. Petersburg - 4th largest city in Europe
- St. Petersburg's population 6MM+
- Over 51 Billion USD in cargo sent to St Petersburg annually
- Over 1 million US passengers travel to St. Petersburg annually
- Greater than 35% of total US-Russian traffic landed in St. Petersburg
- Large immigrant population from NY to Russia
- Substantial US business travel - virtually all major US corporations have offices in St. Petersburg, Ford. CocaCola, etc
- Evolving Russian business travel to US
- One of the seven leading tourist destinations in the World, a new hotel goes up every month
- Leading industrial center with thousands of factories, many with western partners
- Leading transportation center with two airports, five major rail terminals, Russia's leading seaport, interstate road hub
- Major scientific center with over 400 research institutes. 40 colleges. 780 libraries
- Major software development center, with hundreds of companies working for the West
- Summer and winter tourism attractions - unique to St. Petersburg
- World renowned cultural institutions, Hermitage, Matinsky Theater, Petrodvorets, etc.
- Venice of the north, with hundreds of canals, unique bridges
- New elegant restaurants and cafes
- Arrangements in St, Petersburg - hotels, car rentals, tickets to performances, available through Baltia Reservations


New York
- New York, is Baltia's base and home town
- New York, needs no introduction, it is the largest port of entry in the US, commercial and cultural center
- New York is the origin for more than 1/3 of all traffic to and from Russia
- More that 1MM Russians live in New York and surrounding areas (VFR traffic)
- Arrangements in New York - hotels, car rentals, performances, etc. available through Baltia Reservations


Aircraft
- Purchased a Boeing 747 aircraft from Kalitta Air
- Aircraft Maintenance and Storage provided by Kalitta Air in Oscoda, Michigan
- Engines Leased on an Hourly Basis
- Boeing 747-200 series, delivered fresh from check C, with all Air Worthiness Directives completed
- Aircraft will be delivered fresh from Check C (maintenance inspection/overhaul) as required for Air Carrier Certification
- Gross takeoff weight - 800,000 Ibs
- Av payload -110,000 lbs (approximately 45,000 Ibs passengers, 65,000 Ibs cargo)
- Av fuel bum - 34.000 gal ( approximately 230,000 Ibs)
- Av flight time - 7.5 hours Eastbound. 8.5 hours Westbound (under prevailing wind conditions)
- 747 operating advantages: not subject to ETOPS twin engine limitations, easy maintenance, inexpensive parts
- 747-200 is one of the most reliable aircraft at 98% dispatch reliability
- 747 is the single most efficient aircraft per passenger seat mile and per ton mile of cargo
- 747 is the preferred choice for comfort by passengers on Trans-Atlantic routes
- 747 is the only aircraft whose cabin layout permits true 3-class passenger service
- Baltia will implement an exclusive first class service with a first class lounge on the "Captains Deck"
- 747 has largest cargo capacity, cargo bay accepts full-size containers (unlike b767)


Competition
- Currently there are no direct flights to St, Petersburg, only 1 or 2 stop connecting services from US via FRA, HEL, etc Baltia will fly directly Nonstop from JFK to St. Petersburg (flight time eastbound 7.5 hours) Return flight to JFK is 8.5 hours (based on prevailing wind pattern)
- Delta operates nonstop between NYC and Moscow
- Delta reports 89% average load factor
- Aeroflot can operate from the Russian side only. Baltia can fly nonstop from JFK to all the other destinations
- SAS US to Copenhagen to St. Petersburg 12 hours (2.5 layover)
- SAS St. Petersburg to Copenhagen to US 18 hours (overnight)
- Lufthansa US to Frankfurt to St. Petersburg 14 hours (4.5 layover)
- Lufthansa St, Petersburg to Frankfurt to US 18 hours (overnight)
- Finnair US to Helsinki to St. Petersburg 11.5 hours (1.5 layover)
- Finnair St. Petersburg (o Helsinki to US 14 hours
- Lufthansa report 30% increase in 2004
- Lufthansa reports all flights to St. Petersburg sold out months in advance
- Even during Russia's economic crisis of 1998, Delta continued to report 89% average load factor for JFK-Moscow


- Smart question; If this is such a good route how come the big airlines aren't flying?
- Answer: Why are big airlines in bankruptcy, while new airlines are making profit?


Fares
- Baltia's nonstop fares are mainstream in the "stop-over" market. Baltia does not intend to be a discount carrier.
- Baltia's nonstop fares are; first $2,715, business $1,595, full fare coach $1,193, and various discount fares (very old data, needs updating)
- Approximately 45 days prior to inaugural flight Baltia will be authorized by the DOT to sell tickets and cargo
- At the start of flight operations Baltia will have approximately $3 mm from advance sales
- Baltia has a comprehensive frequent flyer program "Freeloaders", seewww.baitia.com
- Hotels, car rental, tickets to performances, special accommodations will be available through Ballia Reservations
- "Prepaid tickets" is a unique Baltia program for frequent flyers, see "Freeloaders" under www.baltia.com
- Attractive "Fare Rules", see "Reservations" under www.baltia.com
- First and business class fares include complimentary limo service, also available in coach for a reasonable fee


Operations
- Operations Center functional at JFK, Terminal 4
- Check in, ticketing booth, first class lounge and boarding gate arrangements in place at - Terminal 4
- Ground handling, including cargo delivery to/from aircraft to facility, and passenger luggage processing in place
- DOT awarded Baltia this route in competition with 12 major US earners
- DHL, UPS. Airborne Express, Emery Worldwide have stated they will purchase significant Baltia's cargo capacity
- Cinderella Travel will host initial 24/7 Reservations Center for Baltia, with agents experienced in the market
- Airline Software Inc. software package for operations
- Worldwide CRS access by travel agents
- Ability to purchase Baltia tickets on www.baltia.co.rn and other internet outlets
- Crew training at PanAm International Flight Academy
- Airline insurance coverage up to 1 billion (DOT requires $800,000,000 minimum coverage)


Captive Market Segment
- "The Fly America Act" mandates that government funded travel has to fly on US flag airline when service is available
- Virtually all State agencies follow the Fly America Act, as well as many national organizations and foundations
- US Government Agencies reported sending more than 15k passengers to Russia. US carrier required
- US Consulary diplomatic traffic/cargo must fly on a US carrier
- US mail bound for Russia must fly on a US Carrier where service is available



Future Service
- Riga - Capital of Latvia, access 5MM population, hub of the Baltic States and beyond.
- Minsk - Capital of Belarus, access 1QMM population, industrialized nation.
- Kiev - Capital of Ukraine, access 50MM population, industrialized nation.
- Moscow - Capital city and the most populous federal subject of Russia. The city is a major political, economic, cultural and scientific center in Russia and in Eastern Europe



Charter Flights
- Additional non-scheduled revenues - to maximize aircraft utilization when the aircraft is off from scheduled service
- Special group charier flights, business charter arrangements (Ex: serving cruise lines like Oceana), oil companies, etc
- Military contracts - company intends to qualify its aircraft for military contracting



Experienced and Forward Thinking Management Team
- Baltia's management has been found qualified by the DOT and FAA to operate a US airline Operations management has decades of major US airline experience
- Marketing staff has direct experience in the US-Russia market - both, passenger and cargo



Company Objective
- To become the leading air carrier flying directly from JFrt to the capital cities of the nations of the new free Europe
- To implement very high service standards, for both passenger service and cargo shippers
- To implement efficient, reliable, and profitable operating standards
- To expand future operations into advantageous markets



Pro Forma – End Year One JFK-LED (for one aircraft)
- Estimated passenger load factor - 67% (49,000 roundtrip JFK-LED passengers) conservative projection
- Estimated passenger revenue - $87,000,000 one plane ( $348,000,000 with four planes, four destinations)
- Estimated cargo load factor- conservative 40% projection
- Estimated cargo revenue - $25,000,000 conservative projection
- Estimated operating costs (including overhead) - $82,000,000
- Estimated profit BIT - $30,000,000
- Break-even load factor - 47% (approximately 32,000 roundtrip passengers)
- Av estimated revenue per flight - $786,483 conservative projection
- Av estimated expenses per flight (with overhead attributed) - $605,322
- Av estimated profit per flight - $90,580 ($181,160 roundtrip)
- Av passengers per flight – 200
- Seats -316
- Blockhours - 3.900
- Flights- 217 roundtrip
- Baltia's year one proforma previously accepted by the DOT as realistic and conservative


Launching Revenue Flight Operations -FAA Air Carrier Certification
- Regulated industy/ - all launching aspects, except marketing, are included in the FAA Air Carrier Certification
- Air Carrier Certification consists of documentation period, training, facilities, evacuation test, proving flights
- One airplane startup - today's successful airlines started with one aircraft, Virgin flew for more than a year with a 747
- Starting with one airplane allows for a rapid certification, inexpensive launching, and ability to improve standards
- In a unique public statement of confidence the FAA has stated that it does not expect any difficulties certifying Baltia
- Baltia's launching budget previously accepted by the DOT
- Transition from 1 to 3 to 5 flights allows for a uniform crew training, marketing to take effect, and service improvement



Fuel
- Fuel cost is not the airline killer as legacy airlines try to portray it, in order to divert attention from their inner problems Discount SouthWest Airlines just released operating results of 41% profitability during this "fuel price crisis"!!! For the initial 4 to 6 months after launching Baltia will have a set price by fuel supplier - safest strategy during startup Following the initial period, Baltia plans to use standard industry hedging strategies like futures contracts Regarding future increases, Baltia will follow the larger airline policies, which likely will be in the form of fuel surcharge Baltia's nonstop service is fuel efficient to operate than stop-over flights which consume significantly more fuel to transport the same payload of passengers and cargo


Airfreight

- Stop-over services have to unload cargo from the trans-Atlantic leg at their transit points, cargo is then manually re-loaded on narrow gage airplanes for the connecting leg or, in the case of FinAir trucked from Helsinki Baltia's nonstop cargo will arrive in 8 hours unbroken, secure, just as it was loaded (and there is no chance of missing a connecting flight)
- Baltia will also operate its own unique "Baltia Courier' service, available between New York and St. Petersburg metropolitan areas. Pickup and delivery by Baltia van -within hours of landing (with customs pre-clearance).



Baltia's web site contains considerable additional information. Please visit: http://www.baltia.com















BLTA

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