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It started, as many startup journeys do, somewhat by accident. An aeronautical engineer, fresh from stints at government research organizations and international bodies like the UN, was contemplating a PhD when a friend called with a seemingly simple request: help navigate the permissions for a drone survey near a major airport's landing corridor in Chennai.
"I'm the tech guy and also the government guy in my circle," the founder explained in a recent chat with Misfits.
That call led to a meeting with the airport's General Manager for Air Traffic Management. The drone survey was a non-starter – too close to the runway. But the conversation didn't end there. The GM began lamenting the daily challenges, mentioning a recent "runway incursion" – a dangerous situation where an aircraft lands while the runway is still occupied.
Intrigued, the founder started asking questions based on his technical background. "Do not you have this data from this system?"
"...there are certain things that are possible however you know these things are super expensive we always have to import them..."
...the GM explained, listing complex radar, GPS, and positioning systems, often sourced internationally at high cost. A tour of the air traffic control facilities followed, sparking an idea. Could existing data streams be fused, with custom rulesets built locally, to solve some of these operational headaches?
The idea resonated. The next day, the GM called back, suggesting a meeting with the airport's technical head. This led to more conversations, introductions to industry consultants (one of whom would become a co-founder), and a growing conviction on both sides that a homegrown solution was feasible.
From Pilot Project to Product Puzzle
The airport couldn't just hire them directly. Instead, they pointed the budding entrepreneurs towards a government startup initiative focused on airport security and operations. They applied, competing against over 800 companies, and eventually emerged as one of the final four selected.
"We did apply and of the 800-plus companies that applied, we came out in the top four. This went on for a long time."
This initial success, secured in late 2019, was quickly followed by the global pause button: COVID-19. The formal purchase order, for a significant proof-of-concept contract at Chennai airport, didn't arrive until February 2021.
The pandemic, while delaying the start, provided unexpected breathing room to refine the plan. Supply chain issues post-COVID further complicated things, but by March 2023, the initial solution was delivered.
The project focused on optimizing runway and taxiway usage for the Airport Operations Control Center (AOCC) – the nerve center managing resource allocation like parking bays and gates to maximize efficiency and billables. Large airports need to squeeze every second out of their infrastructure.
The founder identified a core tension between Air Traffic Control (focused on safety, maximizing spacing) and the airport operator (focused on revenue, minimizing spacing to fit more flights). Their system provided analytics to benchmark aircraft turnaround times, identify delays, and ultimately help the airport operator potentially add more flight slots.
Being embedded within the airport during development was crucial. "Frankly, sitting outside an airport and building something like this is actually not even possible," the founder admitted. This immersion gave them unparalleled access to data streams and a deep understanding of airport operations.
The success at Chennai built credibility and led to interest from major private airport operators. Pilots and discussions are ongoing, but the team quickly realized the inherent challenge with focusing solely on large airports: long sales cycles (often 8-10 months), high integration costs due to legacy systems, and a limited global market (only about 6% of airports worldwide fall into this large category).
It could be a good consultancy business, but hitting a scalability ceiling seemed inevitable.
Pivoting to the Pyramid Base: The SaaS Opportunity
The deep dive at Chennai, coupled with visits to smaller regional airports, revealed a stark contrast and a much larger opportunity. While large airports wrestled with complex optimization, smaller airports were often drowning in manual processes.
"Everything at a small output is just manual right from your receiving flight plans Your rostering allocation of your fixed resources your aeronautical billing your non aeronautical billing data sharing [...] everything you can imagine is either an excel sheet or a microsoft You know access DB [...] or WhatsApp groups."
These smaller airports (representing the vast majority globally, around 94%) didn't need fancy optimization tools; they needed basic IT enablement and automation to reduce errors and administrative burden.
They handle fewer flights, lack specialized staff (relying on generalists), and face less pressure on infrastructure capacity. However, they still need to manage permits, inspections, wildlife hazards, billing, and generate numerous compliance reports for regulators – often juggling these tasks manually.
This insight sparked a pivot. The vision shifted towards creating an "Airport OS" – a comprehensive SaaS platform offering modular solutions tailored for the needs and budgets of small and medium airports.
These airports are more receptive to cloud-based solutions due to lower upfront costs compared to the on-premise systems favored by larger hubs. Selling a modest monthly subscription is far more scalable than landing large, custom projects.
The goal isn't necessarily direct revenue generation for the small airport initially, but rather reducing operational friction and the high "cost of mistakes" inherent in manual processes. Showing inaccurate flight information on display boards or messing up compliance reports can damage reputation and lead to penalties.
"What our solution, in fact, really focuses on is reducing this cost of mistakes for airports. [...] by adopting [our] solution [...] They can spend 60, 70 percent less time in the task that they were usually doing."
This SaaS approach is gaining traction. A pilot is set to begin with an airport in Western Australia, focusing initially on just two modules: hangar management and compliance management. Several other Australian airports have expressed interest.
In India, a regional airport is serving as a sandbox environment, leveraging the startup's existing relationship with the national airport authority. This pivot allows them to target a market of roughly 4,000 airports globally.
Interestingly, the focus on building robust, scalable modules like compliance and inspection management has opened an unexpected door. A major national petroleum company selected the startup for their own initiative, recognizing the potential to adapt the system for managing compliance across their vast network of retail outlets.
A pilot across dozens of outlets is imminent, potentially leading to a significant, stable revenue stream outside of aviation – a calculated move to build a sustainable company beyond just venture funding.
The journey, sparked by a drone request, has navigated government procurement cycles, deep operational challenges at a major hub, and a strategic pivot towards a scalable SaaS model for the underserved majority of the world's airports.
Key Takeaways:
- Immersion Breeds Insight: Solving a complex problem requires deep immersion. Being physically present at the airport was critical to understanding the nuances and identifying further opportunities.
- Segment Needs Differ Dramatically: Large, resource-constrained airports need optimization; smaller airports need basic automation and error reduction. Assuming a one-size-fits-all solution is flawed.
- Government/Large Enterprise Sales are Slow: While potentially lucrative, securing contracts with large bodies like airport authorities involves long cycles, persistence, and often, navigating specific initiatives or tenders.
- Build Credibility, Then Scale: Solving a difficult, high-value problem for a major client (even if less scalable) can build the credibility needed to approach a broader, more scalable market segment later.
- Look for Adjacent Opportunities: Core competencies developed for one vertical (like compliance management in aviation) might be applicable in unexpected adjacent markets, potentially providing valuable revenue diversification.