“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.
There is another interesting take from the man who goes against the concept that widely held companies make for better business models. According to him, “When you are a private company, you can take decisions in a second. When you are a public company, you have all kinds of regularities to take care of. You therefore lack the flexibility and there are constant delays in executing ordinary decisions…” But ask him about the financials of his company, and while Singh flatly refuses to reveal details, he nonetheless openly expresses his desire to go public soon. “We’re doing very well and hope to go public soon.” Now, whether Club One will remain a closely held public company is a question for another day perhaps.
There is also the well-accepted truth that going international is the manna for ailing domestic carriers. And does the Club One chief know about this? “Well, of course! We already cater to international customers and serve them all over Middle East and South East Asia …” In fact, international flights have solved the high fuel prices in India dilemma for this chief executive, as international ATF prices are lower. Surely, there are lessons to be learnt by the domestic air captains from Singh’s success and his niche-flying philosophy. Who says, being conservative and cautious does not pay. For Manav Singh, the proof of the ‘aviation’ pudding has been in the eating.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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.There is another interesting take from the man who goes against the concept that widely held companies make for better business models. According to him, “When you are a private company, you can take decisions in a second. When you are a public company, you have all kinds of regularities to take care of. You therefore lack the flexibility and there are constant delays in executing ordinary decisions…” But ask him about the financials of his company, and while Singh flatly refuses to reveal details, he nonetheless openly expresses his desire to go public soon. “We’re doing very well and hope to go public soon.” Now, whether Club One will remain a closely held public company is a question for another day perhaps.
There is also the well-accepted truth that going international is the manna for ailing domestic carriers. And does the Club One chief know about this? “Well, of course! We already cater to international customers and serve them all over Middle East and South East Asia …” In fact, international flights have solved the high fuel prices in India dilemma for this chief executive, as international ATF prices are lower. Surely, there are lessons to be learnt by the domestic air captains from Singh’s success and his niche-flying philosophy. Who says, being conservative and cautious does not pay. For Manav Singh, the proof of the ‘aviation’ pudding has been in the eating.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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