CNBC-TV18’s Ronojoy Banerjee interviews the founder of VistaJet Thomas Flohr to discuss a host of issues including the benefits a shared economy brings and the regulatory challenges for VistaJet.

The key message here is how much your true hourly cost is. If you buy an airplane, let’s take Global Express as an example it costs you somewhere between USD 50-55 million per airplane.

So, you have to calculate the capital cost. Interest and depreciation will cost you approximately USD 6 million per year. If you fly 300 hours per year that is USD 20000 per hour before you have started your first flight. So, if you fly and you truly calculate the cost of capital, your infrastructure, the pilots, the fuel, the maintenance reserve, at about 300 hours per year, your hourly cost is USD 30000. You can fly VistaJet anywhere between USD 16000-18000 occupied hour. You don’t even pay for the empty lag. That is the business model I created.

I have a global infrastructure of 61 identical planes, anywhere in the world. Even if you go commercial from here to the US, you can use the VistaJet in the US. If you buy an airplane you only have it in one location. If your chairman is flying with it and your CEO needs it, you still need to charter. With us you have double usage, triple usage, you can use it in Mumbai, you can use it in London, New York anywhere in the world and that is really the benefit.

Thomas Flohr, VistaJet Founder and Chairman