Panos T. Xenokostas, President & CEO, ONEX GROUP, discusses the rise of ONEX S.A. in the Greek and international aviation market, ONEX in the United States, and how the Greek economy can be transformed.
Please tell us briefly about ONEX.
ONEX was founded in Greece in 2004 aiming to supply complex technological solutions in Aviation Support, Information and Telecommunications Technology and Enterprise support. “Born” during the economic slowdown after the Athens 2004 Olympic Games and “raised” through the hardships culminating in the current breakdown of the Greek economy, ONEX managed to develop a set of invaluable qualities, such as adjustability, flexibility and a realistic outlook on the global picture.
ONEX’s primary success ingredient is constant re-investment of profits into activities of ever higher competitive advantage. Within only nine years, during a recession period, the company’s creditability with Greek banks has increased 375 times, amounting to over $15M, while its outstanding long-term loans are almost zero. During that same time, ONEX has also laid the foundations to attract the investment capital necessary for its expansion into the wider EMEA region over the next decade. In 2013 we consolidated our presence in NYC, the economic center of the world, and Brussels, the administrative center of the EU.
In what sectors do you invest and what do you see as your next steps?
ONEX is active in:
- Nanotechnology: exporting nanotubes and intermediate materials;
- ICT: offering integrated solutions, upgrades and support to domestic and global clients.
- Aviation support: participating in international aircraft construction and support projects; producing nanomaterials used in aircraft coating.
- Partnering with 31 corporations and 11 universities globally, ONEX is involved in R&D projects worth $30M in 17 countries and appointed project manager/coordinator in the two largest of those (combined budget: over $10M) by the EU.
Thanks to its expertise in defense applications and its cost-cutting, productivity-enhancing solutions, ONEX has won several open international tenders for projects of the Greek State.
Over the next five years, our affiliate in the United States, Onex Technologies Inc, is implementing an investment plan of over $200M in aviation, new satellite technologies in aquaculture and nanotechnology.
How do you view the future of the Hellenic aviation industry, especially in relation to your company’s strategic plans?
Given that Greece is the country where the aviation idea was born when Daedalus built wings for himself and his son Icarus, the Greek aviation industry should have been among the top ones worldwide instead of fighting to survive. Nevertheless, I see this pathology as yet another symptom of the ailing Greek economy of yesterday. Today we are faced with an enormous opportunity for Greek aviation future and the Greek economy as a whole, as large funds are scheduled to be invested into enhancing Greek aviation infrastructure and integrating it into a global platform in aerostructures, aviation support, upgrade and innovation.
What is the role of U.S.-based ONEX, especially in relation to Greece?
Key advantages of the American company:
An expert Investment Committee that funds projects based on experience with technology companies
Collaboration with top sector-specific investment banks
Access to top institutional investors.
Exploitation of synergies with other American and multinational corporations in ΕΜΕΑ.
Close collaboration with the USA Greek Diaspora
All this serves as a bridge between EMEA and the USA at a time when strategic political choices are positioning Greece within the array of viable international investment choices.
Please discuss the challenging environment in Greece, the outlook for investment, and Greece in relation to EU and global economies.
Greece could achieve the highest growth rate in Europe within the next 2-3 years. This presupposes immediate state action towards modernizing public administration and enhancing partnerships with the private sector. Acceleration of structural changes, coupled with Greece’s geopolitical position, mineral resources, robust tourist industry, restored stability and competitive labor costs in the heart of the EU, can render Greece a business relocation venue.
The European administration should restore cash flows in the south and allow tax and insurance incentives to be instated so to attract foreign investment. Given that much will continue to be at stake in this part of the world in terms of mineral resources, security and geopolitical objectives, further weakening of the region’s economies would only lead to more Crimea-type incidents and weakening of the European ideal as a whole.
Greece has a huge amount of potential that is beginning to be unleashed. Can Greece, like Israel, leverage itself into a “Silicon Valley”?
Greece’s future can only be paved with a change in culture, education and growth paradigm. The choice is clear: the western model, whether of the U.S. or Sweden, has productivity, entrepreneurship and investment-friendliness at its core. The sooner we accept this, the sooner we will stop being our biggest enemy and start being our own savior.
The Greek State should stop acting like a (failed) entrepreneur and assume its proper role as a true western-type state, enforcing legality, fostering opportunities and focusing on new technologies. Greece should build on best practices so to best position itself on the world economic map, while also enhancing its ties with the Greek Diaspora, the most vigorous part of Hellenism worldwide.
You have achieved significant success at just 40 years old. Tell us about your approach to building companies and building value, at both a professional and personal level.
Professionally, I consider this only the beginning; a long way is ahead. While harmony permeates every activity I undertake, I also always take the long-term approach: not attracted to quick profit, I choose to build values, structures and prospects through Vision and Principles. RΟΙ comes as a result of coherent strategic planning and implementation.
Personally, I avoid the easy way out and sugarcoating and stop chasing a goal only when I’ve achieved it. I believe in the power of faith, family, friendship and in the predominance of vision over opportunism.
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