Is It Possible to Make Money in Corporate Aviation?
The prevailing theory by many investors and businessmen is that they cannot make money investing in corporate aviation.
Speaking as someone who has achieved success in corporate aviation several times, I can say explicitly, that it is not only possible to make significant profits in corporate aviation, but that it is easy to do. The notion it is impossible to make money in corporate aviation is totally and completely wrong.
Corporate aviation floats in a sea of money. Billions of dollars pass through corporate aviation every year. Why then is the prevailing theory, “it is impossible to make money in corporate aviation,” so widely accepted?
Simple, most aviation companies do not make money operating jet aircraft, which begs the question, why not?
The number one answer to that question is the total lack of new and creative ideas. The number of successful operating companies in aviation outside of manufacturing can be counted on one hand, and I started two of them.
The majority of the current corporate aviation operators tend to run their operations based on old operational ideas. And since 99.9% of all old operating ideas were very bad ideas, it only follows that what passes as corporate aviation today is going to fail..
That failure is now built into the DNA of almost every corporate aviation operation today.
How is that allowed to go on? In my opinion it is because there are no original and innovative thinkers with the actual knowledge and experience to understand how to make money operating aircraft.
I recently read (in a newspaper article) that a so called business leader in the aviation industry has come up with a really new cool idea to rent out corporate jets.. The basic concept is to rent out jets by the hour…WOW! What an original idea is that? Ok, it is not cool and it is not new. The fact is that since 1963 renting jets out by the hour has existed and it has been called “On Demand Charter”, or “Charter” for all 51 years.
Note to above mentioned industry leader…There are a few pieces of information to consider. FYI #1, since 1963 the charter model has been a really bad and really broken/stupid business model. No one has ever actually made significant money from chartering. I guess the brilliant new idea is to give charter a new name in hopes that will fix the broken model…FYI #2, It will not!
Re-running old and really bad ideas over and over and expecting different results is still going to get you bad results every time. Yet every charter company and every new charter company that comes along does what? They operate the same old broken system, or worse yet, they come up with another rehashed version of that money pit called “Fractional.”
Attention investors, charter, and fractional operators. You really need some new ideas that will actually work and actually make money. If and when any of you ever reach that conclusion and want new ideas, call me and bring money. My associates and I will build what you need, a tour de force of efficiency and profitability with huge growth potential. Otherwise, charter on as you have been…or at least as long as your investors need the tax write-offs.
I am uniquely qualified to make these statements. I created several exceptional and highly successful aviation companies. For example, I am the person that originally created and co-founded Jet Support Services Inc. aka JSSI over 25 years ago. And I did that at a time when no one knew such a thing could even be done. But I saw how it could be done, I found the funding for it, and I did it. Today JSSI is the largest non OEM provider of jet engine maintenance programs in the world.
Seeing the possibilities is not a classified government secret; in fact the possibilities are right out there in front of everyone. All anyone needs are two things. 1.) The ability to understand what a real opportunity is, and 2) (and this is unfortunate) a real actual working knowledge of aviation is absolutely required. The true Achilles’ heel of all aviation business failures, besides the ususal lack of vision, is the lack of management personnel with actual and real expertise to make money in corporate aviation.
Free advice to investors…hiring MBAs with degrees in business is not going to make you money in aviation. If there is one thing that is going to distort and disable even a good crew of aviation veterans, it is the MBA who is bound and determined to make his name in aviation without knowing which end of the airplane the hot air comes out of. Aviation ain’t Wal-Mart or GM.
We at AC 360 have a box full of ideas, really good ideas, industry changing ideas, and we know what to do with them. We are willing to work with existing businesses or investors who really want to make serious money in aviation under the right conditions.
Read the material and blogs in this site to get a taste of the possibilities. Basically there is not one corporate related aviation system/company currently in financial free fall that we cannot fix. Give us a try; you’ll be surprised at just how easy it really is.
Erudite Solutions for Business Aviation