Aviation related investments

[4RNB]

If you have any insights into the following please share:

1. There is a jet charter business I have some interest in. They are trying to upfit/replace their fleet (maybe more than 100), have several locations. They are close enough I can do some drive byes to learn more about. On paper they seem to be a good value investment. Do you have any thoughts on the growth or profitability of this type of business?

2. I am startting to investigate companies that are drone and/or EVTOL related, yesterday dived a bit into Archer Aviation. There seems to be significant investments in these assets already from the likes of air carriers and companies like Amazon. They seem hot, sexy, easy enough to attract investors eyeballs. I'm not sure they are investable though...

3. I like to aim to invest in companies that might 10x as they change the world. Are there aspects of aviation that could 10x still? Where? How can I learn more about that part of the industry?

Thanks, I'll take my answers off the air.

 

[Piperonca]

https://ottoaerospace.com/aircraft/

 

[Bell206]

Do you have any thoughts on the growth or profitability of this type of business?

The turbine based fractional and small charter businesses have been growing at a steady rate. Its also been the driver behind Signature's and othe similar companies move to buy up certain FBOs, etc. to service that growing industry. For example, I had read somewhere more than 200 FBOs have changed owners in the past 5 years with Signature the leading buyer.

Unfortunately, the loser in these deals tends to be the Part 91 recreational owner who gets kicked to the back of the ramp or now has to pay turbine class ramp fees as we read in the Austin F1 thread.

How can I learn more about that part of the industry?

Look up Urban Air Mobility and Advanced Air Mobility. These are the concepts that the Archer and Joby were designed for and the reason behind the billions in corporate, institutional, public investment/partnerships in those concepts, both domestically and internationally.

UAM has been around for decades and as that concept matured, AAM was developed to incorporate UAM along with Regional Air Mobility (RAM). The only similarity between these concepts and the current aviation system is that they wil! share the same NAS but in areas existing aircraft are not permitted to fly. Had this industry been at this point 12 years ago when I retired, I would have made a different decision.

 

[FORANE]

What impact do you think a 2008 style correction would have on private jet charter?

 

[Bell206]

What impact do you think a 2008 style correction would have on private jet charter?

The same that happened to them and fractional companies during that period; if they were managed properly, they survived. Plane Sense is a fractional example. Now if you expand that question to the current level of FBOs who cater to that market, you'd probably see a number fail or similar if that were to happen today, unless they had other income streams like an airline fuel contract, etc.. Where I saw a business loss in the 2008 was with companies that owned aircraft like a Beech 200, then dropped them, taking my ad hoc gravy train with them.

 

[sourdough44]

How to have $1 million with your aviation investments? To do that, you start with $3 million.

I was watching a crime show the other day, the husband decided to watch over and ‘invest’ the $2 million inheritance they were given. That would be his job instead of a real job. In a few years his $2 million was at zero. He ended up in prison for almost killing his estranged wife.

In a related note we have the former supermodel Kathy Ireland out of $$, squandered by her managers, she says. I know, index funds are too boring for the well off, I get it.

 

[Doc Holliday]

How to have $1 million with your aviation investments? To do that, you start with $3 million.

I've actually done quite well investing in various aviation entities. But I don't invest based on feelings.

I was watching a crime show the other day, the husband decided to watch over and ‘invest’ the $2 million inheritance they were given. That would be his job instead of a real job. In a few years his $2 million was at zero. He ended up in prison for almost killing his estranged wife.

Inherited money usually ends up being squandered much like lottery winnings. These typically are people who never have seen nor managed a huge sum and suddenly spending money is a huge rush and in their minds it's so much it will never run out. Then they get the people selling them on the "investments that are going to hit big any time now" and the lure of even bigger money takes over.

I know a guy right now that has invested everything he has in a crypto company because he has been told it's the next bitcoin. He is convinced any day now he will be a billionaire. "A fool and his money.........."

In a related note we have the former supermodel Kathy Ireland out of $$, squandered by her managers, she says. I know, index funds are too boring for the well off, I get it.

Celebrities are not smart people, not by a long shot. A few were but they are in a small minority.