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

1. CONFIDENTIAL
http://www.netzcapital.com
Airline Turnaround
From $20 million loss to $20 million profit
-:Presenter:-
Atul Khekade
Founder
Airnetz Aviation Pvt. Ltd www.airnetzcharter.com
Airnetz Charter Inc.

2. CONFIDENTIAL
The Problem

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. 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. 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. 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. CONFIDENTIAL
“DEEP” Understanding The Cause
Case Study 3
A Budget Airline
Expenses go in creation of worldwide brand
buying/leasing of expensive assets

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. 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. 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. CONFIDENTIAL
Acquisition Plan
• $30-50 million to acquire
• Build profitability in less than 2 year
• IPO after 2nd year
• Exit at 50% profits.

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. CONFIDENTIAL
Interested? Contact us
info at airnetz.com
India Phone : +91 9930403019
US Phone : +1 608 554 0461
Airnetz Aviation Pvt. Ltd.
F-220, International Infotech park, New Mumbai.
India.