Full Transcript
https://www.youtube.com/watch?v=chufhnnT0uU
[00:10] Good day friends.
[00:13] Welcome to yet another edition of Conexio Corporate Explorer.
[00:17] We are today in Chennai to uh talk to the management of a theme bound IPO.
[00:25] Fly SBS Aviation Limited.
[00:30] This company is into private charter aircraft and arranges for passengers to be flown not only domestically but internationally as well.
[00:55] I have with me the founders and promoters of Fly SBS Aviation Limited.
[01:01] The three founders are Captain Deepak Persharam on my immediate left.
[01:06] Hi, >> Mr. Kanan Ramakrishnan
[01:10] Mr. Kanan Ramakrishnan uh here and I also have Mr. Ambash uh here and I also have Mr. Ambash Shankar the the third promoter.
[01:17] Let's Shankar the the third promoter.
[01:19] Let's understand from them three different individuals not necessarily connected to each other setting up this new venture.
[01:28] So I start with you captain because I believe you would be the common link between these three people and being the aviation hub.
[01:36] What brought this venture?
[01:39] Uh well sir there are two things as far as our association is concerned.
[01:45] me karnan and ambashankar go back 25 years okay family friends and uh associated for the last 25 years so we decided that now we should come and associate ourselves professionally as well as a business uh just to add to that you see while I come with an background of aviation both in private jets and cargo.
[02:05] karnan comes with a wealth of experience
[02:11] karnan comes with a wealth of experience in the luxury business and retail.
[02:13] in the luxury business and retail business while Ambash Shankar is very deep into the operational aspect of any business.
[02:18] So I thought it would be an ideal synergy for all the three of us to get together.
[02:24] So this was the foundation. Okay. Uh so you have a combination of somebody who dealt with luxury goods again catering to the same segment of people.
[02:37] captain who knew the nitty-gritty of flying aviation and the man who could control all the strings financially uh being the third partner.
[02:51] So this is a unique uh combination of three people with different skill sets but catered to the same industry.
[03:00] Captain uh carrying further carrying on further you you got together you started a business first it was uh cargo now it is passenger.
[03:13] is passenger uh is it yes there is a link between the
[03:16] uh is it yes there is a link between the two but what came uh first uh of course
[03:20] two but what came uh first uh of course I know you listed your uh cargo
[03:22] I know you listed your uh cargo adventure initially but how did the two
[03:25] adventure initially but how did the two of them happen so the idea was always
[03:28] that we wanted to We saw a big market
[03:30] that we wanted to We saw a big market opportunity both in the cargo in the
[03:33] opportunity both in the cargo in the Southeast Asian markets or the ASEAN
[03:35] Southeast Asian markets or the ASEAN region and this uh private jet was a
[03:38] region and this uh private jet was a growing market of high demand and
[03:41] growing market of high demand and underserved in India. This was the idea.
[03:44] underserved in India. This was the idea. So we started both parallelly almost at
[03:46] So we started both parallelly almost at the same time. The cargo airline needs a
[03:48] the same time. The cargo airline needs a lot more efforts because being an
[03:50] lot more efforts because being an international cargo a we have to set up
[03:52] international cargo a we have to set up a larger amount of infrastructure,
[03:54] a larger amount of infrastructure, manpower, resources and the rest which
[03:57] manpower, resources and the rest which also helped as a synergy for the private
[04:00] also helped as a synergy for the private jet operation. So we b we could bring in
[04:03] jet operation. So we b we could bring in what should I say huge amount of
[04:05] what should I say huge amount of resources. Uh we built a lot of
[04:08] resources. Uh we built a lot of infrastructure in operations in
[04:10] infrastructure in operations in engineering in maintenance and security
[04:12] engineering in maintenance and security control and the rest which could also be
[04:15] control and the rest which could also be used in the private jet segment and vice versa.
[04:19] There are certain specialized and niche activities in a private jet which is also of a great assistance to our uh cargo airline.
[04:28] So we found a synergy.
[04:28] We started it.
[04:31] Of course the uh FCOM cargo took a little longer to get off the ground because a much larger aircraft and a much larger market we are operating too.
[04:42] So that's how it started.
[04:42] Okay.
[04:45] And we are getting the synergies of both.
[04:47] And the idea of also doing the cargo while one is a very specialized niche market which is a private jets operation and the cargo is a volumedriven a larger what should I say size in terms of the business.
[05:04] Uh chapter one off the cuff question if I going to ask if somebody comes to you in an emergency how soon can you get him onto a charter flight and onto his
[05:17] onto a charter flight and onto his destination?
[05:19] destination? Two things if it is domestic emergency or otherwise we are
[05:23] domestic emergency or otherwise we are ready to get airborne maximum in 4 hours time and in the case of international
[05:28] flights it takes a little longer but in the event of a medical emergency 6 hours time we are ready to get airborne.
[05:34] Imagine flying unplanned emergency medical particularly in just 6 hours you can leave India for any part of the world that's what this service
[05:47] can come to uh let's let's carry on uh sir you have two types of leases available for aircraft one is uh dry lease one is wet lease uh there would be advantages disadvantages of one over the other.
[06:07] Uh what is it? If you could explain for our viewers uh what happens with one and the other?
[06:14] Well um you know um in the wet lease so basically the aircraft belongs to somebody else and we
[06:20] aircraft belongs to somebody else and we take that you know for using it for
[06:23] take that you know for using it for certain number of hours and then we
[06:25] certain number of hours and then we cater to the demand you know from the
[06:27] cater to the demand you know from the market you know what we generate.
[06:30] market you know what we generate. So here uh the the uh advantage is that you
[06:35] here uh the the uh advantage is that you know we don't need to go through the
[06:37] know we don't need to go through the cumbersome process of you know getting
[06:39] cumbersome process of you know getting the approval and you know getting the
[06:42] the approval and you know getting the registry done in our uh you know the
[06:44] registry done in our uh you know the company's name and the entire regulatory
[06:46] company's name and the entire regulatory processes.
[06:48] processes. However, it comes with the price that you don't have the luxury and
[06:51] price that you don't have the luxury and flexibility of using the aircraft to
[06:53] flexibility of using the aircraft to your requirement.
[06:58] your requirement. So it is curtiled you know within that boundaries for which we
[07:00] know within that boundaries for which we have taken it from the other person or
[07:03] have taken it from the other person or other operator.
[07:05] other operator. However when it comes to the dry lease it is as good as the
[07:08] the dry lease it is as good as the aircraft is yours completely with you
[07:11] aircraft is yours completely with you 247 365 days time.
[07:15] 247 365 days time. There are no restrictions you know put on to the
[07:17] restrictions you know put on to the usage of the aircraft and if the demand
[07:19] usage of the aircraft and if the demand is more we can use it more and if the
[07:22] is more we can use it more and if the demand is not you know that much you demand is not you know that much you know we can keep it parked.
[07:26] So it is purely the operation is in your control and that gives us the economics of you know the scale and the potential to leverage the assert to its optimum you know level of usage and that's what you know adds value to our business.
[07:42] So that's why we would like to have our entire fleet in dry lease.
[07:49] So is that the reason why as part of the object of the issue you are looking to acquire six aircraft under the dry lease?
[07:58] Absolutely. System. Absolutely sir. And uh one thing you know what uh right from the beginning of our business until today what we have seen this is a very emerging business and it's fast growing and the demand is every day you know we are witnessing the surge in the demand and the only the limiting factor is the number of assets available to cater to the demand.
[08:20] Now when we want to have the expansion done,
[08:24] when we want to have the expansion done, we were very clear that we would like to expand it with the dry model so that the assets will be completely available for you know its optimum utilization and we can cater to the emerging demand and we can satisfy the clientele instead of saying we don't have an aircraft to offer it to you.
[08:42] We will have the fleet completely under our disposal which can take care of the surging demand.
[08:50] Sir, going forward, today you are at uh Chennai as a base.
[08:54] Uh would there be a scenario where you park some of your aircrafts at other destinations in the country and offer that as a service to people or all your aircraft will always be stationed at Chennai?
[09:12] Uh not uh uh necessarily sir.
[09:15] I mean our base is Chennai.
[09:19] Uh and but the we already operate you know from different you know parts of the country depending upon you know the requirement and as we
[09:27] upon you know the requirement and as we expand our fleet we have plans of you.
[09:30] expand our fleet we have plans of you know uh uh parking uh you know few of our aircrafts into different you know locations which has got higher demand.
[09:39] locations which has got higher demand.
[09:40] Currently especially in the western region and also in the northern region there is a lot of demand and in addition to that there is a global demand also which is going up especially after postco postco.
[09:51] there is a lot of demand for the private jets once the awareness has been uh uh pretty much high amongst the public and there are a lot of firsttime private jet users who have come into the come and asked for uh you know inquired with us and they've also used our services.
[10:09] So virtually you have flown all over the world.
[10:13] I almost Yes.
[10:16] Uh maybe Antarctica is somewhere where we haven't had adventurous people wanting to go.
[10:22] Yes. Uh Mr. Kanan, you've seen revenues grow significantly for for you in FY23.
[10:29] You were at just about 35 crores and now you have added 100 to it and you're now you have added 100 to it and you're now at 137 and that two in 9 months.
[10:37] at 137 and that two in 9 months.
[10:37] uh what has led to this new aircrafts uh business getting established what are the drivers for this?
[10:46] the drivers for this?
[10:46] Yeah. Um couple of things happened you know during this period and uh between 23 FI23 and uh FIA 24 the significant change is that you know our dry aircraft you know we got it and uh we got the air operator's permit as well and we started operating this aircraft and plus we also expanded our fleet by with the help of you know couple of you know Whitley's aircraft during this period from 23 to uh 24.
[11:17] So this capacity expansion, additional assets being put into use has helped us to you know to grow the you know uh revenue and could cater to the larger number of you know the client.
[11:32] larger number of you know the client.
[11:35] So if I try to extrapolate what you have said uh post this IPO you'll have six more aircraft joining your fleet.
[11:42] uh this would lead to a further expansion in revenue and therefore profits and with that money you would be I presume able to add more aircraft certainly sir.
[11:55] so everything is firing for you on what multiple engines multiple >> on all cylinders sir we firing on all cylinders >> certainly one important factor you know I would like to place it here uh India as a country for its you know size And for its kind of you know economic growth the number of private jets available for uh the cliental you know to avail its service is very less.
[12:24] Just to give you a kind of an idea there are around 70 75 machines are only jet machines are only is available in the country okay
[12:33] is available in the country okay which can be you know availed on a commercial purpose.
[12:37] in comparison US has got more than you know 15,800 aircrafts okay a geography like middle east has got 900 plus aircrafts.
[12:49] and we are sooner going to be the showed you know largest economy and with the kind of you know the uh the length and breadth of our country and various uh opportunities for the cliental you know to travel to different destinations.
[13:08] the significant you know the increase in the fleet size is very important.
[13:15] So that is the whole idea and obviously when we add uh more aircrafts to our fleet that gives us an opportunity to grow our revenue obviously you know the profits as it.
[13:25] thanks thanks for that.
[13:29] Yeah, let's move on uh little further and understand
[13:33] understand uh sir you floated a company in 2024.
[13:38] uh sir you floated a company in 2024 you listed.
[13:40] you listed FCOM and now you're coming with fly SBS.
[13:44] FCOM and now you're coming with fly SBS and two distinct activities one cargo.
[13:48] and two distinct activities one cargo and the second uh passenger uh.
[13:53] and the second uh passenger uh uh passengers passenger traffic.
[13:56] uh passengers passenger traffic you have a lot of synergy G as you.
[13:58] you have a lot of synergy G as you yourself has said did the thought ever.
[14:01] yourself has said did the thought ever come to your mind that this could be a.
[14:04] come to your mind that this could be a division of the same company and not two.
[14:07] division of the same company and not two separate companies.
[14:08] separate companies.
[14:12] Uh the idea is uh very simple sir that these are two different businesses which.
[14:15] these are two different businesses which have a lot of commonality.
[14:17] have a lot of commonality. So it brings out a lot of what should I say support and synergy right while the.
[14:20] So it brings out a lot of what should I say support and synergy right while the per say the business is different.
[14:24] per say the business is different. So we decided to keep it as two separate.
[14:26] decided to keep it as two separate entities whereas the uh infrastructure.
[14:28] entities whereas the uh infrastructure the manpower the expertise and the.
[14:35] the manpower the expertise and the economies of scale are leveraged by both.
[14:37] economies of scale are leveraged by both the businesses.
[14:38] the businesses >> right just to add uh to captain's you.
[14:40] right just to add uh to captain's you know the version uh on the front end you.
[14:43] know the version uh on the front end you know the target audience for both the.
[14:45] know the target audience for both the businesses are totally different our.
[14:48] businesses are totally different our cargo business we are our our cliental.
[14:51] cargo business we are our our cliental are the freight forwarding community and.
[14:54] are the freight forwarding community and uh we cater to the B2B side of the.
[14:57] uh we cater to the B2B side of the business correct in the cargo when it.
[14:59] business correct in the cargo when it comes to the passenger in the private.
[15:01] comes to the passenger in the private jet you know we directly deal with the.
[15:03] jet you know we directly deal with the end user we cater to the B2C and so the.
[15:07] end user we cater to the B2C and so the demands are totally different the.
[15:09] demands are totally different the expectations are totally different and.
[15:12] expectations are totally different and uh here as captain was mentioning that.
[15:14] uh here as captain was mentioning that we cater to the uh you know uh very.
[15:18] we cater to the uh you know uh very specific and uh uh uh end user and to.
[15:23] specific and uh uh uh end user and to his requirements where uh everything you.
[15:26] his requirements where uh everything you know has to be meticulously planned and.
[15:28] know has to be meticulously planned and delivered. So that is the reason that.
[15:31] delivered. So that is the reason that you know we have kept you know both the.
[15:33] you know we have kept you know both the businesses independent but whatever the.
[15:37] businesses independent but whatever the aviation side of synergies we can take.
[15:41] which we have been doing it successfully.
[15:43] So friends, uh a thought or a question that could have been on your mind why two different companies has been well addressed by two different people on the subject.
[15:58] How does one look at your clientele?
[16:00] What are the kind of people who come?
[16:05] Is it the rich, super rich, uh corporates or you have different walks of life also who are you trying?
[16:11] Predominantly the usage of the private jets were only limited to uh the top cream dala cream dravage in the country.
[16:20] but that scenario is changing by the day changing by the month and year.
[16:27] of late you know a lot of first time uh users of private jets are coming into the business asking for uh inquiring about the costing and then they see it more affordable and they volunteer and they
[16:39] affordable and they volunteer and they use the services once tasted private jet.
[16:43] use the services once tasted private jet flying where they have the flexibility.
[16:46] flying where they have the flexibility of the time and the availability of the.
[16:49] of the time and the availability of the aircraft at their disposal.
[16:52] aircraft at their disposal uh visiting multiple cities within a day.
[16:55] uh visiting multiple cities within a day or together as a sector.
[16:59] or together as a sector.
[16:59] It gives them the added advantage.
[17:01] This is what people do.
[17:05] A lot of people uh use it for their business purposes where time is a.
[17:08] business purposes where time is a essential and a critical factor for.
[17:09] essential and a critical factor for them.
[17:09] They can't wait for the commercial.
[17:12] them.
[17:12] They can't wait for the commercial airlines waiting in the queues and stuff.
[17:14] airlines waiting in the queues and stuff like that.
[17:14] However, in a private jet.
[17:17] like that.
[17:17] However, in a private jet flying, the aircraft is available at.
[17:19] flying, the aircraft is available at their disposal and the moment they come.
[17:21] their disposal and the moment they come they get airborne.
[17:23] So that kind of advantages have brought in lot of.
[17:26] advantages have brought in lot of corporates.
[17:27] corporates uh in addition to the industrialists.
[17:29] A lot of celebrities also use for whom.
[17:32] lot of celebrities also use for whom time is a essential factor and uh lot of.
[17:37] time is a essential factor and uh lot of the IT companies and uh many people uh.
[17:40] the IT companies and uh many people uh have started using other services of late.
[17:42] have started using other services of late.
[17:46] Answer one more question.
[17:46] Uh late.
[17:49] Answer one more question.
[17:49] Uh people believe that the big big commercial planes are huge so they travel faster and they get you to your destination much quicker.
[17:51] commercial planes are huge so they travel faster and they get you to your destination much quicker.
[17:54] travel faster and they get you to your destination much quicker.
[17:57] destination much quicker.
[17:57] Is that a correct thinking or the speed of your uh smaller private jets is equal or maybe even faster?
[18:01] correct thinking or the speed of your uh smaller private jets is equal or maybe even faster?
[18:04] smaller private jets is equal or maybe even faster?
[18:06] even faster?
[18:06] Yeah to uh to I will answer this question in two ways.
[18:08] to uh to I will answer this question in two ways.
[18:11] question in two ways.
[18:11] uh one is speed, another one is an altitude.
[18:13] another one is an altitude.
[18:13] Both the altitude and the speed are equal or even higher in a private jet.
[18:17] altitude and the speed are equal or even higher in a private jet.
[18:19] higher in a private jet.
[18:19] In a private jet, they generally get the approvals to fly at uh the higher altitudes than what a commercial jets can fly.
[18:21] jet, they generally get the approvals to fly at uh the higher altitudes than what a commercial jets can fly.
[18:23] fly at uh the higher altitudes than what a commercial jets can fly.
[18:26] a commercial jets can fly.
[18:26] In addition to that, where you are beyond the weather and there is not much of traffic there and the speed is and the time is saved.
[18:27] to that, where you are beyond the weather and there is not much of traffic there and the speed is and the time is saved.
[18:29] weather and there is not much of traffic there and the speed is and the time is saved.
[18:33] saved.
[18:33] In addition to that, as the speed is concerned, yeah, these are all high speeded uh jet engines which are uh
[18:35] is concerned, yeah, these are all high speeded uh jet engines which are uh
[18:37] yeah, these are all high speeded uh jet engines which are uh
[18:41] speeded uh jet engines which are uh capable of flying in par or even higher.
[18:43] capable of flying in par or even higher than the regular commercial uh airlines.
[18:47] than the regular commercial uh airlines.
[18:47] Sir, just to add to what uh Amba said, there are two things that come here.
[18:53] Uh one is that a a private jet is a luxury jet.
[18:56] So basically the philosophy in making it is that it has to be better than your commercial travel right faster, higher, more comfortable, less noise, low vibration, uh better cabin comfort.
[19:13] There are private jets which have come today which can maintain the pressure of ground level.
[19:18] level.
[19:18] Right?
[19:18] So when you go from one place to the other, you never realize you flew the plane.
[19:24] They generally all commercial aircraft maintain a pressurization level of 8,000 ft.
[19:28] There are no aircraft which come where you maintain pressurization level of 3,000 and 4,000 ft.
[19:33] So virtually like ground level.
[19:35] like you are on ground you don't feel the jet lag.
[19:36] You don't feel the inertia.
[19:39] Uh the purpose of making it fly higher
[19:41] Uh the purpose of making it fly higher is that you fly above weather.
[19:43] You fly above weather, you fly above traffic.
[19:45] So you don't have to wait for anybody.
[19:47] So that is a philosophy on which it works.
[19:51] And contrary to a belief thinking that smaller airs are unsafe,
[19:54] these are as safe as any large commercial aircraft.
[19:58] Commercial aircraft.
[20:07] We have now moved from the office of uh fly SBS to their aircraft and we are somewhere in the skies above Chennai and I have the promoters which be so the first question to you captain Deepak.
[20:23] Uh aviation BGCA, there are lot of regulatory issues that keep on coming up.
[20:31] So your experience with running the flater part of the business and now the passenger there must have been lot of commonality.
[20:39] Commonality uh and certain benefits that you derived.
[20:44] uh and certain benefits that you derived by having such a business. Could you
[20:46] by having such a business. Could you share some experiences? Uh well yes uh
[20:49] share some experiences? Uh well yes uh when it comes to the regulatory aspects
[20:52] when it comes to the regulatory aspects they are uh large and strong but however
[20:56] they are uh large and strong but however the entire regulatory aspect is focused
[20:59] the entire regulatory aspect is focused towards your safety and security that is
[21:03] towards your safety and security that is a so when it comes to regulatory aspect
[21:06] a so when it comes to regulatory aspect it is a high bar
[21:09] it is a high bar uh it's not neither DGC nor operators
[21:13] uh it's not neither DGC nor operators ever play with it. So having said that
[21:15] ever play with it. So having said that it is extensive but it is essential. Now
[21:19] it is extensive but it is essential. Now coming to the commonalities yes there
[21:22] coming to the commonalities yes there are commonalities
[21:24] are commonalities the entire commonality arrives in terms
[21:27] the entire commonality arrives in terms of the common manpower.
[21:29] of the common manpower. The experienced people we have we have
[21:31] The experienced people we have we have experts in security we have experts in
[21:34] experts in security we have experts in engineering highly experienced examiner
[21:37] engineering highly experienced examiner captains. So these bring a lot of
[21:39] captains. So these bring a lot of strength for both the businesses
[21:40] strength for both the businesses together. So to put it in a in a lay
[21:44] together. So to put it in a in a lay man's way of asking. So whether you
[21:47] man's way of asking. So whether you dispatch an aircraft which is carrying
[21:49] dispatch an aircraft which is carrying passengers or cargo
[21:52] passengers or cargo a aircraft is an aircraft.
[21:53] a aircraft is an aircraft. >> So it is all the same.
[21:55] >> So it is all the same. >> Right. Thanks. Thanks for that uh
[21:57] >> Right. Thanks. Thanks for that uh simplification.
[22:00] simplification. Uh
[22:01] Uh sir what would be uh the company using
[22:04] sir what would be uh the company using the IPO proceeds for?
[22:08] the IPO proceeds for? Basically uh our idea and purpose of
[22:10] Basically uh our idea and purpose of going for a IPO is expansion of our
[22:13] going for a IPO is expansion of our fleet. When we have seen the market
[22:16] fleet. When we have seen the market demand is such rising. So we we thought
[22:20] demand is such rising. So we we thought you know it is uh imperative for us to
[22:23] you know it is uh imperative for us to make these machines available to meet
[22:26] make these machines available to meet out the market demands. So the entire
[22:28] out the market demands. So the entire proceeds are going to be used towards
[22:30] proceeds are going to be used towards the expansion of our fleet in multiple
[22:32] the expansion of our fleet in multiple segments large cabin size medium and
[22:34] segments large cabin size medium and small cabin sizes.
[22:37] small cabin sizes. So you you have targeted currently to
[22:41] So you you have targeted currently to use six aircrafts on the IPO proceeds.
[22:45] use six aircrafts on the IPO proceeds. Uh once the IPO is completed, I know you
[22:49] Uh once the IPO is completed, I know you cannot share things beyond the IPO. But
[22:52] cannot share things beyond the IPO. But if you could share a vision for what of
[22:55] if you could share a vision for what of the company, what do you aim to be say 5
[22:59] the company, what do you aim to be say 5 years down the line?
[23:02] years down the line? We want to become uh an operator a ban
[23:05] We want to become uh an operator a ban India operator in India and also we want
[23:10] India operator in India and also we want to make the private jet aviation
[23:13] to make the private jet aviation accessible and affordable for people.
[23:16] accessible and affordable for people. Today what is available only for the
[23:18] Today what is available only for the cream dala creing can be made available
[23:22] cream dala creing can be made available for
[23:23] for uh the next levels of people who are
[23:27] uh the next levels of people who are still thinking that you know owning or
[23:29] still thinking that you know owning or flying a private jet is not my cup of
[23:32] flying a private jet is not my cup of tea even for them to make them make it
[23:34] tea even for them to make them make it accessible and affordable. So if I could
[23:37] accessible and affordable. So if I could use a phrase which was used in the
[23:40] use a phrase which was used in the earlier days of aviation when Captain
[23:43] earlier days of aviation when Captain Gopinat came with uh Deken Airways and
[23:47] Gopinat came with uh Deken Airways and used Darke Latchman's common man. I'm
[23:50] used Darke Latchman's common man. I'm not saying getting down there but you
[23:52] not saying getting down there but you want to bridge the gap between the the
[23:55] want to bridge the gap between the the super super rich and the rich. So even
[23:59] super super rich and the rich. So even they could use a facility like this in
[24:02] they could use a facility like this in times of beef. Is that what you are
[24:05] times of beef. Is that what you are talking about? Absolutely. You're right.
[24:07] talking about? Absolutely. You're right. Today the awareness of the private jet
[24:10] Today the awareness of the private jet has come. However, the the costing and
[24:14] has come. However, the the costing and how economical it can it could be when
[24:17] how economical it can it could be when you compare to a first class or a
[24:18] you compare to a first class or a business class in a commercial airline,
[24:21] business class in a commercial airline, you know, the gap is not very big.
[24:23] you know, the gap is not very big. Correct. In addition to that the kind of
[24:25] Correct. In addition to that the kind of the facilities and the features and the
[24:27] the facilities and the features and the advantages that they would have while
[24:30] advantages that they would have while flying private. This is something which
[24:32] flying private. This is something which we want to take you to the market. We
[24:34] we want to take you to the market. We want to target not just the current uh
[24:37] want to target not just the current uh people who are using the private jets
[24:39] people who are using the private jets but also bring in new set of people into
[24:42] but also bring in new set of people into this private jet fly.
[24:44] this private jet fly. >> Right.
[24:45] >> Right. Sir sometime earlier you mentioned that
[24:47] Sir sometime earlier you mentioned that the market is Canadia is very very small
[24:51] the market is Canadia is very very small probably at Mason stage
[24:54] probably at Mason stage uh even though it is so uh what is the
[24:57] uh even though it is so uh what is the competitive landscape I mean how many
[25:00] competitive landscape I mean how many operators as a ballpark number would
[25:03] operators as a ballpark number would there be how many aircrafts would be
[25:06] there be how many aircrafts would be operating in this space in the country
[25:09] operating in this space in the country any sort of sense you could share well a
[25:13] any sort of sense you could share well a number of operators yes there are a uh
[25:17] number of operators yes there are a uh good number of operators in India but
[25:20] good number of operators in India but not enough to get into the market
[25:22] not enough to get into the market demands. Right? In terms of the number
[25:24] demands. Right? In terms of the number of the private jets which are
[25:25] of the private jets which are commercially available, if you actually
[25:27] commercially available, if you actually go to see there are not more than about
[25:29] go to see there are not more than about 50 or 60 aircrafts which are
[25:31] 50 or 60 aircrafts which are commercially available for fly. There
[25:34] commercially available for fly. There could be some private uses but keeping
[25:36] could be some private uses but keeping that apart what is available for
[25:39] that apart what is available for commercial usage it's very minimal
[25:42] commercial usage it's very minimal but the more the machines are available
[25:44] but the more the machines are available in India the demand is going to rise and
[25:47] in India the demand is going to rise and the more number of operators coming will
[25:49] the more number of operators coming will increase the pie. So if I do simple
[25:52] increase the pie. So if I do simple maths, IPO proceeds six aircraft,
[25:57] maths, IPO proceeds six aircraft, you say 60 50 60 is the uh the number of
[26:02] you say 60 50 60 is the uh the number of PE planes available in this country. So
[26:05] PE planes available in this country. So you are already talking of a doubledigit
[26:07] you are already talking of a doubledigit market share. Let's leave it at that on
[26:10] market share. Let's leave it at that on market share. We don't want to cross the
[26:14] market share. We don't want to cross the you know the dividing line between
[26:16] you know the dividing line between getting into forwardlooking but very
[26:19] getting into forwardlooking but very interesting thought.
[26:21] interesting thought. Sir you are talking of technology as a
[26:24] Sir you are talking of technology as a important factor. What is this
[26:27] important factor. What is this technology that you are talking about in
[26:29] technology that you are talking about in your business and what is the impact of
[26:32] your business and what is the impact of that?
[26:35] Yeah. uh any business you would
[26:37] Yeah. uh any business you would understand that you know from the
[26:39] understand that you know from the beginning to the growth stage when it
[26:42] beginning to the growth stage when it enters into and the scalability when it
[26:45] enters into and the scalability when it when we when we are aiming for the
[26:48] when we when we are aiming for the scalability of the business it can
[26:50] scalability of the business it can happen only with the technological
[26:52] happen only with the technological intervention
[26:54] intervention the technology becomes must in order to
[26:57] the technology becomes must in order to comprehend that growth and sustain that
[27:00] comprehend that growth and sustain that growth. So here also as our bleed grows
[27:04] growth. So here also as our bleed grows we clearly have envisaged uh some sort
[27:07] we clearly have envisaged uh some sort of technical uh uh uh intervention where
[27:11] of technical uh uh uh intervention where you know the client gets the benefit out
[27:14] you know the client gets the benefit out of it and the interface becomes more
[27:17] of it and the interface becomes more easier for them you know to communicate
[27:19] easier for them you know to communicate with with us as an organization. So that
[27:22] with with us as an organization. So that is what we have thought about it and we
[27:24] is what we have thought about it and we have you know began our journey. We are
[27:27] have you know began our journey. We are in the development stage and sooner we
[27:29] in the development stage and sooner we will be uh rolling it up and a technical
[27:33] will be uh rolling it up and a technical uh a technological intervention which
[27:35] uh a technological intervention which would make the entire private jet flying
[27:39] would make the entire private jet flying as well as booking much more easier and
[27:43] as well as booking much more easier and uh to talk more in detail uh I'm happy
[27:47] uh to talk more in detail uh I'm happy that we are joined with our CTO uh Mr.
[27:50] that we are joined with our CTO uh Mr. Smith Vakaria I request you know him you
[27:54] Smith Vakaria I request you know him you know to share little bit more insight
[27:56] know to share little bit more insight that you know what we are up to
[27:58] that you know what we are up to >> so Smith uh Mr. Kanan was talking about
[28:02] >> so Smith uh Mr. Kanan was talking about innovation technology. So could you tell
[28:05] innovation technology. So could you tell us a little more about what you are
[28:08] us a little more about what you are actually doing or planning or in the
[28:11] actually doing or planning or in the world?
[28:11] world? >> Of course sir. Hi. So yeah I mean as
[28:15] >> Of course sir. Hi. So yeah I mean as Kanans captain Deepak and Amba have you
[28:17] Kanans captain Deepak and Amba have you know expressed that we would like to
[28:19] know expressed that we would like to democratize the entire uh private flying
[28:22] democratize the entire uh private flying bring more people in and when we hit
[28:24] bring more people in and when we hit that scale it's going to be difficult to
[28:27] that scale it's going to be difficult to just emulate this with more people
[28:30] just emulate this with more people technology will help us immensely in
[28:31] technology will help us immensely in that area. So you want to build an
[28:33] that area. So you want to build an architecture that helps us you know
[28:36] architecture that helps us you know provide the same quality the same level
[28:39] provide the same quality the same level of finesse and you know give a seamless
[28:42] of finesse and you know give a seamless experience to our customers wherein
[28:44] experience to our customers wherein technology will enable that you know as
[28:46] technology will enable that you know as a back end or a supporting role make
[28:48] a back end or a supporting role make sure that it is giving a complete 360
[28:51] sure that it is giving a complete 360 towards how a consumer of private
[28:54] towards how a consumer of private aviation would experience when he talks
[28:57] aviation would experience when he talks to say captain work.
[29:00] to say captain work. Uh thanks M for sub to us for giving us
[29:04] Uh thanks M for sub to us for giving us a sense of what technology can do even
[29:07] a sense of what technology can do even in private jet travel.
[29:09] in private jet travel. >> Yes sir. And many more. Thank you.
[29:11] >> Yes sir. And many more. Thank you. >> Thank you.
[29:11] >> Thank you. >> The proof of the pudding is at the pie.
[29:14] >> The proof of the pudding is at the pie. Similarly in your business customer
[29:17] Similarly in your business customer delight is the final key to anything
[29:20] delight is the final key to anything being good, bad or ugly.
[29:24] being good, bad or ugly. uh you have mentioned uh in the document
[29:27] uh you have mentioned uh in the document that 95% of business comes from repeat
[29:31] that 95% of business comes from repeat customers.
[29:33] customers. If I understand that or read that
[29:36] If I understand that or read that correctly, it means somebody who's come
[29:39] correctly, it means somebody who's come to you has enjoyed the experience and
[29:42] to you has enjoyed the experience and therefore come back. What is it that you
[29:44] therefore come back. What is it that you bring on the table that gets the person
[29:47] bring on the table that gets the person the customer back to you again and
[29:50] the customer back to you again and again? Yeah, thanks for raising this
[29:53] again? Yeah, thanks for raising this question sir. In fact, when we uh began
[29:56] question sir. In fact, when we uh began this journey and uh we had you know we
[30:01] this journey and uh we had you know we were very clear in our mind that you
[30:02] were very clear in our mind that you know we would like to rewrite what has
[30:05] know we would like to rewrite what has been currently you know is the norm in
[30:08] been currently you know is the norm in the industry
[30:10] the industry and uh we have taken you know lot of uh
[30:13] and uh we have taken you know lot of uh initiatives in that direction and one a
[30:17] initiatives in that direction and one a very clear instruction from uh you know
[30:20] very clear instruction from uh you know uh Captain Deepak
[30:24] Private jet travel cannot be a one
[30:27] Private jet travel cannot be a one another experience for the client. It
[30:29] another experience for the client. It has to be completely a different one.
[30:33] has to be completely a different one. They should you know remember that
[30:36] They should you know remember that experience which should make them you
[30:38] experience which should make them you know to come back to us time and again
[30:42] know to come back to us time and again and that was a clear you know motive. So
[30:44] and that was a clear you know motive. So we have put in all the efforts to in
[30:47] we have put in all the efforts to in that direction in order to right from
[30:50] that direction in order to right from you know the clients understanding the
[30:52] you know the clients understanding the requirement of their travel structuring
[30:55] requirement of their travel structuring the travel plan making it very
[30:57] the travel plan making it very convenient for them and having the uh uh
[31:00] convenient for them and having the uh uh flexibility built in end of the day the
[31:04] flexibility built in end of the day the customer is preferring to travel by
[31:06] customer is preferring to travel by private jet for the convenience and the
[31:09] private jet for the convenience and the flexibility. So taking that into
[31:12] flexibility. So taking that into consideration creating the plan you know
[31:14] consideration creating the plan you know by uh accommodating their requirements
[31:17] by uh accommodating their requirements and we go to the final very minute
[31:20] and we go to the final very minute details of you know understanding their
[31:22] details of you know understanding their requirements for uh food and beverages
[31:26] requirements for uh food and beverages and just to tell you the uh and a couple
[31:30] and just to tell you the uh and a couple of examples
[31:32] of examples and uh we have gone to an extent of you
[31:34] and uh we have gone to an extent of you know searching for a particular uh
[31:38] know searching for a particular uh desert for one of our client when they
[31:41] desert for one of our client when they have visited in Delhi where our crew
[31:43] have visited in Delhi where our crew arranged that particular desert from a
[31:46] arranged that particular desert from a particular shop of you know the
[31:48] particular shop of you know the customer's choice and we have brought it
[31:50] customer's choice and we have brought it and which has really delighted the
[31:52] and which has really delighted the customer. So we go to that extent and
[31:56] customer. So we go to that extent and there are instances where the customer
[31:58] there are instances where the customer clearly specifies that you know what
[32:00] clearly specifies that you know what kind of beverages they want, what food
[32:03] kind of beverages they want, what food they want and all these things are
[32:05] they want and all these things are meticulously taken into consideration
[32:07] meticulously taken into consideration and delivered. So and beyond this uh
[32:12] and delivered. So and beyond this uh very genuinely and passionate you know
[32:15] very genuinely and passionate you know our staff member they communicate that
[32:18] our staff member they communicate that you know to the client that you know we
[32:20] you know to the client that you know we are very sincere in our approach and
[32:22] are very sincere in our approach and whatever you know we are offering it to
[32:24] whatever you know we are offering it to them and whatever we are doing in flybs
[32:27] them and whatever we are doing in flybs is is sincere and genuine to the best of
[32:30] is is sincere and genuine to the best of our ability and that's what makes the
[32:33] our ability and that's what makes the customers happy and probably that is the
[32:35] customers happy and probably that is the reason they come back to us again. So
[32:38] reason they come back to us again. So friends uh while I was talking to the uh
[32:41] friends uh while I was talking to the uh promoters informally not everything was
[32:45] promoters informally not everything was on camera I learned one thing very
[32:47] on camera I learned one thing very interesting you don't take a private jet
[32:50] interesting you don't take a private jet just to reach there faster you take it
[32:54] just to reach there faster you take it because that is the only alternative
[32:56] because that is the only alternative available
[32:58] available uh commercial flights fly between point
[33:01] uh commercial flights fly between point A and point B maybe point B to point C
[33:05] A and point B maybe point B to point C but if you want to apply fly from point
[33:07] but if you want to apply fly from point A to point C, you either take multiple
[33:11] A to point C, you either take multiple flights to get there or you spend the
[33:14] flights to get there or you spend the whole day reaching there which means you
[33:17] whole day reaching there which means you have wasted time. Just imagine flying uh
[33:21] have wasted time. Just imagine flying uh 500 kilometers 45 minutes and you are
[33:26] 500 kilometers 45 minutes and you are there in in that time you do your
[33:29] there in in that time you do your meeting come back and what you did was
[33:33] meeting come back and what you did was use the charter
[33:35] use the charter against taking three flights to reach
[33:37] against taking three flights to reach there three flights to get back and
[33:40] there three flights to get back and spending 2 and 1/2 days. So think about
[33:43] spending 2 and 1/2 days. So think about what this company offers, what is the
[33:46] what this company offers, what is the service it's offering and statistics
[33:49] service it's offering and statistics which were given to you. India has less
[33:52] which were given to you. India has less than 60 70 planes which are used
[33:56] than 60 70 planes which are used commercially for this higher service
[34:00] commercially for this higher service against the figure of around 17 to
[34:03] against the figure of around 17 to 19,000 which the United States of
[34:06] 19,000 which the United States of America has. Mind you, we are almost the
[34:10] America has. Mind you, we are almost the third largest economy in the world
[34:13] third largest economy in the world growing rapidly. We are a large country
[34:16] growing rapidly. We are a large country geographically as well. So the
[34:19] geographically as well. So the opportunity sees tremendous. Thank you
[34:23] opportunity sees tremendous. Thank you gentlemen for talking to us. Uh really
[34:26] gentlemen for talking to us. Uh really enjoyed your uh free and frank opinion
[34:30] enjoyed your uh free and frank opinion and more importantly the lovely weather
[34:33] and more importantly the lovely weather smooth flight that we are having.
[34:35] smooth flight that we are having. >> Thank you sir. Thank you so much. Thank
[34:37] >> Thank you sir. Thank you so much. Thank you.
[34:38] you. >> That ladies and gentlemen brings us to
[34:41] >> That ladies and gentlemen brings us to the end of yet another episode of
[34:43] the end of yet another episode of Conexio Corporate Explorer. This time we
[34:47] Conexio Corporate Explorer. This time we were in Chennai talking to the
[34:49] were in Chennai talking to the management of Fly SBS Aviation Limited,
[34:53] management of Fly SBS Aviation Limited, a company which would be tapping the
[34:56] a company which would be tapping the capital markets on theme exchange. Their
[35:00] capital markets on theme exchange. Their issue would be opening shortly. We met
[35:03] issue would be opening shortly. We met the promoters in their office in
[35:05] the promoters in their office in Chennai. Then traveled in their aircraft
[35:09] Chennai. Then traveled in their aircraft uh which they use as their service for
[35:12] uh which they use as their service for traffic and passengers. Uh flew over
[35:15] traffic and passengers. Uh flew over Chennai and have now come to the end of
[35:18] Chennai and have now come to the end of this episode. Uh do subscribe to our
[35:22] this episode. Uh do subscribe to our channel, comment on the same and a
[35:26] channel, comment on the same and a disclaimer that uh this is only for
[35:30] disclaimer that uh this is only for educational purposes and if you like to
[35:34] educational purposes and if you like to subscribe to this issue, please refer to
[35:37] subscribe to this issue, please refer to your financial advisor. Thank you.