We will always try our best not to lose money!
It will always be our endeavor to base our airline model to
address the two major concerns of every lender or investor:
- The probability of default and
- The severity of loss
We will strive to provide risk mitigants in both areas that will convince skeptical lenders
that we have a much more resilient business model that attacks the weaknesses of other
airlines and truly protects both the lenders and investors against loss.
RISK MITIGANTS
- STARTING VERY SMALL: We will mitigate the risk of major financial loss, by starting our
operations with the smallest aircraft operation possible, and with the smallest aircraft
types, Viz. feeder cargo aircraft.
- SLOW GROWTH WITH HIGH PROFITABILITY: We intend to gradually develop and
perfect a tested and scalable profit model with these smaller aircraft, before moving up to
narrow bodies, medium wide bodies and finally larger size aircraft. (See pyramidical fleet
structure)
- ASSET RISK: We will very slowly but steadily diversify our aircraft portfolio into other fleet
types, to reduce our exposure to a single type of aircraft operation, all along keeping in
mind the need to remain flexible and liquid to react to dynamic market situations.
- CUSTOMER RISK: To reduce the risk of customer cancellations, we will seek to work with
multiple “blue chip” customers, insuring that no more than 15-20% of all our revenues
come from a single customer.
- LENGTH OF CONTRACT: Though widely accepted in the passenger regional jet
segment, but not accepted yet in the cargo market, we will seek to promote 10-12 year
contracts between ourselves and our customers to help introduce modern aircraft,
provide a reliable product and insure a measure of stability and predictability in the
business.
- GEOGRAPHICAL RISK: To reduce our exposure to a single geographical market, we will
seek to steadily diversify our customer base to different geographical markets in the world.
- AIRCRAFT FINANCING: To reduce our financial exposure, we will use a judicious
combination of operating and finance leases.
- NEW BUILDS & CONVERSIONS: With a view to promoting fuel efficiency as well as
environmental responsibility, while also controlling aircraft ownership costs, we will seek a
fine balance between newly built production aircraft and late model converted aircraft for
our fleet.
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