Feasibility study for the establishment of a new airline company in Cyprus

Abstract

This master thesis aims to discover if a newly-established airline carrier in Cyprus would be viable and, ultimately, suggest the best airline business model suitable for the Cyprus passenger aviation market. Of course, the choice of a particular business model greatly influences the financial feasibility of the company. In order to come into conclusions, the thesis examines the contemporary external environment of the Cyprus passenger airline industry, the internal business environment of the new airline, and the environment of the global passenger airline industry. The examination was carried out by using some powerful marketing tools, such as market analysis, competitive analysis (Porter’s Five Forces) and a combination of SWOT and PESTLE analysis. Finally, the master thesis comes to the conclusion that a new airline company established in Cyprus, at the time the thesis was written, would most likely be feasible. The most suitable business model for the airline to succeed would be the low-cost model.