Expert: David A. NewMyer - 8/16/2003

Question
David
I am looking into changeing careers in mid life after being caught in the current downturn. I have had an interest in flying for years but always seemed that the time or money was not right.

I would like to look into what opportunities are available for someone if they have a pilots license and maybe a small plane.

Thanks for your input.

Steve Ray

Answer
Hi, Steve:

Nice to hear from you.  I will try to assist.

First of all, the downturn has hit aviation as it has hit every other part of the economy.  The industry is showing signs of a rebound and, in fact, some parts of the aviation industry never really slowed down too much.  This is especially true at low-fare/low-cost airlines, many regional airlines, fractional ownership operations just as Netjets and others.

Second, getting into the aviation industry requires a good understanding of the REGULATIONS (federal, state and local--on airport) that affect the aviation industry since they can really affect the bottom line in any aviation-related company.  For example, if you come into the industry with an aircraft and intend to fly charters (that is, for hire flights to carry passengers and/or cargo on a non-scheduled basis) with it, you will have to be specially certificated as an FAR 135 Air Taxi and Commercial Operator, over and above any sort of certification that you may hold as a pilot.

Third, another key piece of information that you will need to have a good grasp of will be the costs of your operation, beyond the costs of your initial certification by the FAA as an FAR 135 Air Taxi and Commerical Operator.  For example, INSURANCE costs are key and have been going up since the 9/11 attacks.  Small piston twins have been hit very hard and, if you do not have much of a history in the business, your insurance costs will be quite high initially until you have some sort of operating history.  Another key cost is FUEL and a third is MAINTENANCE AND OVERHAUL of your aircraft.

Finally, we get to the OPPORTUNITIES for your business, once you are properly certificated and ready to fly.  This will depend quite a bit on where you plan to locate your business.  I would recommend doing a market study to determine where you would want to base your air taxi operation....if that is what you intend to do with your aircraft.  The air taxi business can be quite competitive in some markets, especially in bigger cities.  But, there is room for more operators that have a sharp eye for customer service and for providing a type of service that no one else is providing.

There are a couple of really good aviation organizations that might be good to check into if you really decide to get into an air taxi or other related aviation business.  They are:

The National Air Transportation Association. Their website is:  http://www.nata-online.org/

The National Business Aviation Organization.  Their website is:  http://www.nbaa.org/

I wish you the best in your pursuit of aviation opportunities.  If you have follow up questions, please let me know by asking another question.

Sincerely,

David A. NewMyer, Ph.D., Professor and Chair
Aviation Management and Flight
Southern Illinois University Carbondale
http://www.aviation.siu.edu