BUSINESS

Club One Air? You can own it

Source:PTI
August 10, 2005 18:58 IST
Club One Air, India's first airline based on fractional ownership model, on Wednesday announced its launch allowing top executives who pick up a stake in the venture to fly wherever and whenever they wanted.

The firm, which now has a fleet of five Cessna Citation business jets, would grant financial and legal rights commensurate with the share of the fractional owner, Club One Air's managing director, Manav Singh said.

He said so far six corporate houses had picked up shares and the target was to have 60 "high net worth" individuals and corporate owners by the year-end.

Besides the flying charges, the fractional ownership costs between Rs 50 lakh and Rs 2 crore (ranging between one-eighth and one-fourth of an aircraft cost), he said, adding that the concept, which was popular in the West would enable the owner to own an aircraft at a fraction of the cost.

Singh said so far about Rs 100 crore (Rs 1 billion) has been invested in the venture and the same amount would be invested in the next 12 months as debt-equity and fractional deposits.

On the company's fleet plans, he said it would add another five to its fleet next year, besides two helicopters. The company was looking at different business jets to further expand its fleet.

"This judicial capital expenditure incurred by the part owner could range from as low as Rs 2 crore to Rs 12 crore (Rs 20 million to 120 million) depending on the number of hours and type of aircraft they choose," he said, adding that fractional ownership meant that the owner would only pay for his share of monthly management cost and the direct operating cost as and when he flies.

Source: PTI
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