Out of Office

OUT OF OFFICE JAHID FAZAL-KARIM

“Competitiveness is in our DNA”

JAHID FAZAL-KARIM

In the first of a new series, here’s how business leaders’ private passions pay off in their professional life. Crossing the starting line is Jahid Fazal-Karim, owner and chairman of Jetcraft. Words: Mike Stones

“Competitiveness is in our DNA”

JAHID FAZAL-KARIM

THE NOISE, smells and raw excitement of the motor-racing track seem a world away from the calm, considered boardroom of one of business aviation’s biggest aircraft brokers. But for Jahid Fazal-Karim, owner and chairman of Jetcraft, there is a bridge between the two. That bridge is the overwhelming desire to win; and its structural support comes from teamwork.

“Competitiveness is in our DNA,” Fazal-Karim tells CJI. “Whether it is on the racetrack or in business, you want to be the best at what you do – there’s a compelling desire to win. Racing really helps you keep your edge, because when you're in that car you’re trying to be the best at what you do, then you apply the same principles to business.”

Second place, in a business deal or a race, is of little interest – other than to learn lessons which promise to help deliver a win next time. “I want people to think of Jetcraft as being the number one company that acquires and resells and acquires private jets. I always tell my team: ‘We want to be the best.’”

And there’s the t letter for team, which he mentions a lot. It’s a powerful, indeed essential force, in both racing and business. “You can compare a business to a race team,” he says. “You can have the best driver in the world, but if the team is not good, then the driver isn’t going to win races. Similarly, you can have the best team in the world, and if you don't have a good driver, you're still not going to win races. It’s the team and the people that make a successful company.”

It's an analogy Fazal-Karim often uses in business to stress the interdependence of sales, support staff and other team members. “Salespeople are at the forefront of our business – the ones finding buyers and getting deals done – they are the drivers. But without the team behind them, without the tools that we provide them and the sales support, the legal, the technical, the marketing, all the data, all the tools needed, they would not be able to win. So, it's very similar to a race team.”

Slipping behind the wheel of a racing car brings other powerful benefits to his aviation business, according to Fazal-Karim. Those include the discipline, indeed the luxury, of concentrating on something other than work, highlighting the importance of detail and an introduction to a community of like-minded entrepreneurial drivers.

“When you have a busy life, your brain is working all the time thinking about deals, the next meeting and how to improve your company. It’s hard to focus on one thing and only one thing only for a long time.”

But all that changes in a race car. “When you're racing, you have no choice – you can't afford to think about anything else,” he says. “You can think only about your next quarter [of a mile], your next braking point [before a corner], your next gear shift. So, for the 30 or 45 minutes you are in the car, you cannot afford to lose concentration. It forces your brain to focus on one thing.”

At first, he was surprised that the deep concentration demanded by racing is, ultimately, relaxing despite its challenges for mind and body. “It's exhausting to drive these cars for an hour,” he says. “When you come out of the car, you’re dead. Your arms are hurting, your abs are hurting – you have to be in good physical condition to be able to race.”

Pole position: Skills forged in the cockpit of GT4 (and GT3) race cars pay off in the boardroom, says Jahid Fazal-Karim. (Pictured is the Mugello Circuit, Italy).

Also, racing helps him understand how to make split-second decisions under pressure. “That is something that’s incredibly useful for aviation advisers in high-stake transactions,” he says.

It’s not difficult to see why he would welcome a distraction from work. Off the racetrack, running a business the size of Jetcraft – with its international team of more than 70 aviation professionals spread across 70 offices worldwide – requires more than his full attention. Over the past 10 years, Jetcraft has completed more than 950 transactions with a value of about $16bn (£12bn). Over the next five years, Jetcraft forecasts 11,202 pre-owned aircraft transactions worldwide with a combined value of $73.9bn.

Highlighting the contribution of data is another power lesson to be drawn from motor racing. “There’s an amazing amount of data and technology that goes into racing, where you can really track everything – especially in Formula 1 [F1] racing,” he says. “Everything is so calculated. This use of technology is something any business should try to emulate. So, at Jetcraft, one of our big initiatives is to become better at using data.”

Analysing data has already helped the broker detect shifting buyer demographics. The share of buyers under 45 has nearly doubled in the past decade, reaching 29% last year. Also, large jets, much like GT racing’s high-performance cars, are becoming the dominant force – accounting for 20% of all pre-owned aircraft sales.

Precision matters in racing and business aviation. In racing, small margins can determine whether you win or lose a championship. Similarly in aircraft sales, the smallest details can make or break a deal, according to the Jetcraft boss.

Analysing data has proved particularly useful when probing the reasons behind Fazal-Karim’s two race crashes in which both cars were destroyed (one resulting from colliding with a wall on a Barcelona racetrack), he tells us casually. This unlocks a powerful insight into his approach to driving. “If you race, you have to accept that you must go to the limit and that you may lose the car at some point. Otherwise, you’re not racing – you’re just driving, you're on cruise mode. You have to get an edge against your competition – I find that very inspiring about racing.”

Fast mover: Jahid Fazal-Karim pushes the pace in a Radical SR3 car at the Misano World Circuit Marco Simoncelli.

Risk-taking is essential but it must be calculated, he says. “Knowing when to push a deal forward for a client and when to hold back is something I apply in business.”

The sense of community is something else the Jetcraft boss finds and values on the racetrack. “On the race circuit, I find myself expanding my network. The racing world is full of ultra-high-net-worth individuals [UHNWIs] who also have a presence in aviation. The connections I’ve made often lead to interesting business discussions. Also, you share a common passion, you become friends.”

Towards the end of our conversation, another connection between motor racing and business comes to mind. This is the absolute priority to perform at the highest level. “I’m racing on an amateur racing basis, so it’s fun. But in an F1 team, they are ruthless. There is an understanding [as in business] – every driver knows that if they don't perform, they are going to be out and replaced.”

Perhaps surprisingly given Fazal-Karim’s obvious love of racing, it was not his first passion. That has always been aviation, followed closely by golf. Backed by a degree in aerospace engineering from ENAC (Ecole Nationale de l’Aviation Civile) in Toulouse, he realised that passion in the cockpit of a Mudry CAP 10 two-seat aerobatic aircraft. (He has held a French Private Pilots Licence since the age of 19).

But both aviation and golf proved difficult to fit into his hectic business schedule and personal life. Then he discovered motor racing. “I have always loved speed,” he tells us.

“I have raced karts and always followed racing and, as part of my business, I’ve long had a good relationship with a lot of the F1 team owners,” he says. During his seven years at Bombardier – culminating in the role of senior vice president, Worldwide Sales – he became close friends with the F1 racing legend, the late Niki Lauda. “Since 2000, I’ve been going to F1 races races regularly and racing became part of my business.”

So, what persuaded him to swap the cramped cockpit of a CAP 10 for the slightly roomier one of a GT3 saloon racing car? As part of a business deal about five years ago, Jetcraft sponsored a GT4 race team. After a test drive, Fazal-Karim became hooked.

“Knowing when to push a deal forward and when to hold back is something I apply in business.”

Racing affords Jahid Fazal-Karim a welcome distraction from leading Jetcraft. It forecasts 11,202 pre-owned transactions, valued at $73.9bn over the next five years.

“I really loved it. The car was an Aston Martin GT4 – a beautiful car. I had a coach and that’s how it started. It’s so very interesting – especially the first time you drive a proper race car. You have to really push yourself.” (GT4 (Grand Touring) cars are production-based road vehicles modified for racing – think fast, low-slung saloon racers).

But race driving is a world away from normal road driving. “Everything is different; it’s the opposite of how you drive a car in normal life. Unlike on the road, where you accelerate and brake slowly, on the race track you accelerate and brake very quickly. Either you are full on the gas [accelerator] or braking really hard. It’s a completely different mindset.”

Fazal-Karim recalls an early lesson from his coach on braking. This was “the first thing we need to change”, according to his coach. While his coach braked the car at a rate of about 100 bars of pressure, initially the Jetcraft CEO could mange only 30 bars.

That’s one of the reasons that motor racing is an unexpectedly physical sport, he says. The whole body is engaged in every aspect of driving the car as fast as possible.

Fazal-Karim is speaking to us from Dubai, where he is sharpening his driving skills for a Radical Series race the following weekend. These competitions feature exclusively Radical sportscars and include a range of drivers, from beginners to experienced racers. He has raced both entry level GT4 cars and GT3s – their more powerful and aerodynamic brothers, which are more complex to tune.

“The GT4 is a production car that is modifed to become a race car, whereas a GT3 is a race car,” he tells us. “The aeros [aerodynamic design] of the GT3 provide more downforce making it much faster – especially during cornering. So, when approaching a corner in a GT3 you can take it full speed or lift a little off the gas – unlike in a GT4 where you have to brake.”

For this summer’s racing season, he expects to focus on GT3s – both on track (practice) days and on race days. One of his goals is to win a race – having tasted success with a podium position at the Misano Adriatico racetrack in northern Italy. (“Race success is like closing a deal – it gives you the same thrill”). And, one day he is determined to realise every driver’s ambition – to take part in the Le Mans 24 Hour Race.

But for now, Fazal-Karim is enjoying the challenge of consolidating his racing skills. Skills which also pay off in his business life. “You can take a lot of lessons about leadership from racing,” he says.

“Ultimately, it’s the competitiveness, which is so important in businesses like mine. In racing, you need to anticipate what’s ahead, understand your competition and adapt quickly to stay ahead. It helped sharpen my focus and improve my ability to plan for a complex marketplace like business aviation.”

Perhaps the racetrack and the board room are not so very different after all.

Mike Stones, Reporter, Corporate Jet Investor