Netz Capital Airline Turn Around into Profitability


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Netz capital is exploring an opportunity to take over an airline and turn it around by increasing its non aero revenues through licensing of its brand for lifestyle and common use products to leverage global revenue

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Netz Capital Airline Turn Around into Profitability

  1. 1. CONFIDENTIAL Airline Turnaround From $20 million loss to $20 million profit -:Presenter:- Atul Khekade Founder Airnetz Aviation Pvt. Ltd Airnetz Charter Inc.
  2. 2. CONFIDENTIAL The Problem
  3. 3. CONFIDENTIAL The Cause Outgoing Incoming • High Setup/Infrastructure Cost • Competitive and suffocating ticket – Aircrafts pricing – $107(Rs. 5164) avg. revenue per – Offices passenger – $124 (Rs. 5965) avg. Cost per • High Fixed Cost passenger – Aircraft Maintenance – Loss of $17 per passenger – Pilots Salaries – Technicians Salaries • Drop in passenger travel – Passengers decreased by 13% • High Operation Cost – Fuel • Ability to serve only a limited Geography – Only 2.59 million passengers can be served in a quarter
  4. 4. CONFIDENTIAL Understanding The Cause Case Study 1 Google Vs. A Budget Airline Infrastructure cost only at one location •Global market & customer reach •Revenues earned from all over the world •Revenues: $21 billion •Expenses : $15 billion •Profit : $6 billion
  5. 5. CONFIDENTIAL Understanding The Cause Case Study 1 Google Vs. A Budget Airline Infrastructure cost spread over the country •Only reachable to local customers and specific routes and locations •Immense competition in local market keeps pressure on pricing. •Revenues: $90 million •Expenses : $130 million •Loss : $40 million
  6. 6. CONFIDENTIAL Understanding The Cause Case Study 2 Telecom Operator Vs. A Budget Airline Infrastructure cost spread over the country •Revenues from calls made worldwide •Increased revenue from Value added services •Revenues: $5 billion •Expenses : $4 billion •Profit : $1 billion
  7. 7. CONFIDENTIAL “DEEP” Understanding The Cause Case Study 3 A Budget Airline Expenses go in creation of worldwide brand buying/leasing of expensive assets
  8. 8. CONFIDENTIAL “DEEP” Understanding The Cause Case Study 3 A Budget Airline Income only comes from highly competitive pricing, revenues from domestic market only
  9. 9. CONFIDENTIAL The Solution – Business Plan X Airways X Airways Lifestyle Co. $50 million Revenues $15 million Losses Add Revenue from Brand Licensing •Franchise Travel Agency •Car Rental Cross Selling •Coffee Shop Licensing $30 million profits •Private Jet Charter Brokerage •Food •TV Channel •General Aviation Sales and Services •Budget Hotels
  10. 10. CONFIDENTIAL The Solution – Business Plan 1. Franchise model with revenue sharing in travel agents who pay a yearly fee to use airline's brand. (5000 travel agents worldwide paying $3,000 per year = $15,000,000 ) 2. Cross selling Car rental through to airline's passenger to collect additional $4-$5 profit (For airline carrying 1,000,000 passengers a year, $5 million can be generated in profits on annual basis.) 3. Private jet Charter brokerage model under airlines brand to collect revenues. (We already have experience at generating $2 million in revenues with a start up, Generating $5 million of profits is easily possible) 4. General aviation aircraft management model to manage fleet for HNIs to generate $5 million in profits) 5. X Airways Themed coffee shop outlets franchising ($3 million) 6. X Airways brand on budget hotels who need recognition ($2 million)
  11. 11. CONFIDENTIAL Acquisition Plan • $30-50 million to acquire • Build profitability in less than 2 year • IPO after 2nd year • Exit at 50% profits.
  12. 12. CONFIDENTIAL Founding Team Co-Founder and CEO Co-Founder and Director Atul Khekade (27) Ritesh Kakkad (31) Flew Business Tourism Firm “Innovation Trip” from 0 to $200,000 Co-founded Indsoft Systems within a year and reached Rs. 40 crores Experience annual turnover Nominated by Businessweek as one of the top entrepreneurs in Asia under 25 Featured in Limca book (2006) records Worked as a Consultant for Citigroup via Featured in BBC as Bright I-flex playing key role in trillion dollar entrepreneur global transaction system. Worked as a consultant for Wells Fargo, Strategy, Business Responsibilities Bank of America via Smartstream Administration, Accounts, technologies in maintaining transaction Finance, Recruitments, HR, processing system. Facilitating Rapid growth Overall Strategy, PR, New Product launch, marketing, facilitating rapid Growth, Exploring overseas business expansion,
  13. 13. CONFIDENTIAL Interested? Contact us info at India Phone : +91 9930403019 US Phone : +1 608 554 0461 Airnetz Aviation Pvt. Ltd. F-220, International Infotech park, New Mumbai. India.
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