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Friday, September 5, 2025

Is Starting a New Airline Even Possible?

The Rise (and Stall) of Global Airlines and Its Airbus A380 Dream Launching a new airline has always been one of the riskiest bets in business. Even before COVID-19, the average airline profit margin worldwide hovered at just 2–3%, and most new carr…
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Is Starting a New Airline Even Possible?

By Magari Poa on 06/09/2025

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The Rise (and Stall) of Global Airlines and Its Airbus A380 Dream

Launching a new airline has always been one of the riskiest bets in business. Even before COVID-19, the average airline profit margin worldwide hovered at just 2–3%, and most new carriers failed within a few years. Yet in 2023, a start-up called Global Airlines attempted the unthinkable: bringing back the world's biggest passenger jet, the Airbus A380, as the centrepiece of its transatlantic service.

The idea was bold. The execution? Much less so.


Why Global Airlines Chose the Airbus A380

The Airbus A380 is aviation's crown jewel: two decks, four engines, seating over 500 passengers. Airlines like Emirates turned it into a flying palace with onboard bars and showers. But for most, the A380 was a financial headache.

  • Airbus stopped production in 2021 after just 251 aircraft.

  • Only a handful of airports can handle its enormous size.

  • Twin-engine jets like the Boeing 787 and Airbus A350 proved far cheaper and more flexible.

Still, Global Airlines wanted the PR magic of flying the "superjumbo." A second-hand A380—12 years old—became its flagship.

Sidebar: Wet Lease vs. Dry Lease

  • Dry Lease: You rent the aircraft only. You need your own crew, license, and operations.

  • Wet Lease: Aircraft + crew + insurance + maintenance = higher monthly costs, payable even if the plane doesn't fly.
    Global Airlines relied on a wet lease from Portuguese carrier Hi Fly.


"Gamer Class" and the 5-Cabin Dream

To stand out, Global promised five classes of service, including a futuristic "Gamer Class" where passengers could play video games in pod-like seating. The concept drew attention on social media and tech blogs.

The airline promised the glamour of air travel's golden age—luxury plus affordability. Influencers were lined up for the maiden flight, and headlines declared Global as the "next disruptor" in the London–New York corridor.

But big promises often set up bigger disappointments.


The Harsh Reality

Global Airlines never obtained its own Air Operator's Certificate (AOC)—a legal must-have to fly passengers. Instead, it outsourced everything to Hi Fly. That meant high fixed costs with little operational control.

The first flight, heavily hyped in the media, turned into a reality check:

  • Low passenger numbers despite months of PR.

  • Mixed reviews: cold meals, slow service, worn-out seats.

  • Wrong route choice: London–New York is already the world's most competitive long-haul corridor, served by British Airways, Virgin Atlantic, American, Delta, and budget newcomers like Norse Atlantic.

Just a few months in, Global's A380 was sent for maintenance, leaving many to wonder if the project had stalled permanently.


Why Start-ups Struggle With the A380

The A380 is an engineering marvel—but a financial nightmare for new entrants.

4 Reasons the A380 is a Start-up Killer:

  1. Fuel Burn – Four engines guzzle fuel compared to modern twins.

  2. Airport Access – Only select airports can accommodate it.

  3. Maintenance Costs – Even parked, upkeep runs into millions.

  4. Seat Fill Rate – To break even, you need nearly full cabins—every single flight.

History has shown this before. Baltia Airlines spent decades trying (and failing) to launch with a Boeing 747. By contrast, La Compagnie, a French boutique airline, has succeeded by flying small A321neo aircraft with just 76 business-class seats.


The Industry Context

  • Emirates: The only true A380 success story, thanks to Dubai's mega-hub model.

  • Qatar Airways: Tried A380s but has struggled to keep them viable.

  • Norse Atlantic (2022 launch): Uses efficient Boeing 787s for low-cost long-haul and is slowly finding its niche.

The lesson? Scale matters. But efficiency matters even more.


Can Global Airlines Save Itself?

To survive, Global Airlines must pivot:

? Downsize to fuel-efficient aircraft like the Airbus A321XLR or Boeing 787.
? Target underserved routes rather than slugging it out on London–New York.
? Focus on customer experience, not just PR hype.

Otherwise, it risks being remembered less as a disruptor and more as a case study in aviation overreach.


Final Call

So, is starting a new airline even possible today? Absolutely—but not with old playbooks and giant aircraft designed for a different era. Success in 2025 and beyond will favor lean fleets, niche strategies, and digital-first customer service.

Global Airlines tried to dream big with the A380. Unfortunately, in aviation, the bigger the plane, the bigger the risk.

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