Alarming levels

“Like many people, I got into this business by chance,” Manav confesses. But, having come so far, he understands that having taken the bold step there’s no better way of dealing with the challenges than to live in full conscience that they exist. Talking about the most important challenge, Manav divulges, “If the operating cost increases, it only squeezes the market further. High ATF price is also a big challenge with ATF prices further set to increase globally by about 30-40% from the already alarming levels!” There is also the fact that while dealing with high income customers, recessionary consequences hit your business hard. But, Club One will have to live with this cyclical monster. The company’s slow addition to fleets may also sound logical, but the sudden boom in HNIs during India’s economic boom period may also mean unfulfilled demand. Challenges apart, ‘fractional ownership’ (a concept that Warren Buffet introduced with his chartered airlines business in America) for Indian businessmen has worked well for him. “We made a huge difference as there were not many HNIs who owned aircrafts except a few like the Tatas, Birlas and Ambanis. We take care of everything right from aircraft requirement to safety measures. You call us, say you want an aircraft and get it,” he points out.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)