From Pilots to CPAs?

Mergers, acquisitions, consolidation, expansion, American aircraft built in China, Russia, and elsewhere, our military buying Airbus tankers—what is the world coming to? I’m not sure, but one thing seems evident, big time. All of a sudden (not really, but it seems that way) the entire world seems to be interested in aviation. There was a time when it seems that only aviators were interested in aviation business. Famed pilot Eddie Rickenbacker built Eastern Airlines, pilot Bob Six built Continental. Delta grew out of a cropdusting outfit and pilot Paul Braniff started Braniff. My first job in aviation was with National Aviation Underwriters, which was started by Dave Kratz, an FBO owner and pilot. My next job was with Montgomery (AL) Aviation, built by Bob Hudgens, himself a pilot and FBO owner. Hangar One, the famed chain of Beechcraft FBOs, was owned by Frank Hulse, a pilot who also started Southern Airlines. That was normal back then. The industry was owned and managed by people who loved aviation, and sometimes good at business. As the industry matured, the industry went for business education, as evidenced by the growing importance of aviation colleges such as Embry-Riddle, Parks college, and other schools that combined aviation, education, and business (I used to teach aviation management for Southern Illinois University, Carbondale). In my time, the sons of both Bob Hudgens and Frank Hulse earned MBAs at Harvard. Banks and other financial institutions learned that aircraft finance was good business (most of the time). Then capital moved into aviation. Investors bought in at every level. These people were often interested in profits, not flying, and read P&L statements instead of POHs. They often made the industry more efficient and more business oriented. They also sometimes bombed out totally. Today we may be seeing the end results of all that industry maturation. Everyone is now interested in aviation at every level. Manufacturing, retailing, services—you name it—somebody is studying it. I can’t help but think this is a good thing. We’d love to post your comments. Please click the comment tab at the top.