How to Make a Billion Dollars Annually in Business Aviation | Part 3

How to Make a Billion Dollars Annually in Business Aviation | Part 3

Assuming you had an aviation charter company and you really wanted to make money, what would you need to do? There is a solid and completely logical answer to that question but first, you would need to understand what is wrong with your present model and why it does not make any money. I know you want me to give you the answer, so I will give you a hint.

Logic and facts…that’s it, that is the magic formula. Logic and real facts, not the kind you hope for or want. “If” and “What if” is neither a fact or is it a logical concept.

Assuming the people who run the business aviation businesses that consistently lose money sincerely, and factually looked at what they were/are doing, they would be alarmed, outraged, and terrified all at the same time. Why? The “facts” of how their models are designed and how they operate do not support any kind of “logic,” and as a result, they always lose money.

To be clear, I am not talking about the wannabe musician “Logic.” I am very specifically talking about logic based on reasoning conducted or assessed according to strict principles of validity. Unfortunately, as we see in almost every environment, real logic and facts are not readily or willingly accepted. But that does not make them any less true.

700 years ago, the accepted/known theory was the earth was flat, and as we know, that assumption was proved wrong. Nevertheless, there still are flat earthers today that will argue that the earth is flat. Even with iconic NASA pictures readily available which logically imply to anyone that can see, the earth is round. That is not logical, that is denialism. Even with conclusive and over whelming evidence, there are still naysayers who believe in the archaic theory that the world is flat.

Yet, the same flat earthers will get in their cars, turn on their GPS’s, drive to the airport, fly to south America or Africa, and get on a cruise ship to Antarctica. But to them the earth is flat. Go figure.

In the business aviation environment, I would suggest the equivalent of the flat earthers mentality is in thinking a business aircraft flying 400 hours a year will some how actually make money in the charter business. Or that selling 4th, 8th, 16th, or 32nd ownership shares on one jet will somehow actually work in the fractional industry.

It is not that I am so smart, but I understand business aviation at its root levels. I have operated aircraft, and I have created and co-founded two successful international business aviation operations. Something that very few if anyone else can say. I did that by questioning the accepted reality and improving the accepted reality by creating a new genuinely workable reality.

Logic and facts are the real genii of change. Hope and change are for politicians. If you want to make money operating aircraft, then take a hint from Einstein. Albert would tell you to learn and to understand why something does not work, and stop repeating the same mistakes and hoping for a different result.

I have been writing these posts with the idea that maybe I can help someone in business aviation. Someone curious enough to wonder what I was talking about, how could they benefit from what I know?

But instead, I get inane and confused comments eluding to the fact that everything is fine in business aviation.

It is not! In fact, it is anything but fine! And making the same mistakes over and over again is not going to make it fine. The prevailing theory is the old ideas are great, and there is no way to improve anything…so even suggesting changing to a new paradigm means I must be nuts.

Well maybe, maybe not!

114 years ago, it was a well-known fact that heavier than air flying machines could never fly. But they can, and they do.

In 1961 and executive at Decca Records wrote a letter to Mr. Epstein saying they did not like the boys in his band or their sounds and were not interested. The Beatles signed with EMI Records.

In 1876, an investor approached William Orton, President of Western Union. In 1876 the Western Union had a monopoly on the telegraph, the world’s most advanced communications technology. The investor wanted to sell Mr. Orton a patent for a new invention he had help fund, Orton treated it like a joke, he was asking for $100,000!

But Orton was not done with this. He took it upon himself to write to the inventor directly. So he wrote the following; “Mr. Bell after careful consideration of your invention, while it is a very interesting novelty, we have come to the conclusion that it has no commercial possibilities. What use could this company make of an electrical toy?”

A year later Mr. Bell and his investor founded AT&T.

There is always a better way. There is always a better system and learning that the hard way can be costly. But it need not be. When someone has a better way, the smart thing to do is to listen, learn, and profit.

Now comes the ‘Billion” dollar question. Knowing that business aviation is mired in the 1960’s and 1990’s with the current charter and fractional models as I have explained in prior posts and knowing that the current charter and fractional do not make money and will continue to be failures, does anyone have the vision to see that change is needed and that change is available?

Are there any existing aviation companies out there that have the curiosity to want to know how to make a billion dollars annually, or any companies or investors for that matter?

Can you and your company make a billion dollars a year or more in business aviation with a little innovation? Absolutely! Can I make your business into a “billion dollar a year plus company” in five years? Absolutely!

What does it take to make that happen? Contact me.

Rick Eriksen at 702 994 4491 or email me at rick.eriksen@cox.net. I will be glad to talk to you or meet with you anytime. But please, no gate keepers or yes men.

 

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