Transitioning from the military

[Matthew Spence]

Hello, first time posting here. I am a few years from retirement in the Army. I’m a helicopter pilot by trade and fixed wing pilot for fun. I’m looking into what to do after retirement. I have no desire to join the airlines if I can avoid it and want to get opinions on starting my own 141 or 135 operation. I taught flight school for a number of years and I’m leaning towards growing a cfi business into a 141 operation to help my co workers making their jump from rotary to airlines. My certifications are
Rotary Wing Commercial, Instrument, CFI,CFII. Fixed wing ratings are in progress. Will have same as rotary wing plus ATP prior to retirement. I’m also an A&P with experience on both piston and turbine aircraft, rotary and fixed wing. Jack of all trades I suppose. Any thoughts on starting off in civil aviation. Starting out I would be drawing a $60k annual retirement from the army so I can weather start up years of no profits.

 

[paflyer]

I have no idea, but thanks for your service to our great country! And welcome to the zoo!

 

[hindsight2020]

The field is saturated. Growing a 141 operation will most likely require affiliating with a college and establishing a curriculum. I'm sure they'll expect you to cough up the capital for the airplanes,MX and dispatch. I've seen one here in my home field, the guy sold it after no kidding having a heart attack due to stress running that thing 24/7. The new owners sold the multis and are starting from scratch as part 61. Part 141 can be more lucrative because the income stream is more secure by virtue of the clients loan money.

As to 135 certificate. Yeah buddy. That's a whole ball of wax. It's involved and requires a lot of homework on your part in order to understand all the management aspects of upkeeping with a part 135 certificate. Most small fry folks tend to go the part 91 route and just manage private airplanes for the owners, and skim a percentage for yourself as the manager after you pay your contract pilots. At least that's how a family friend does it, though I believe he does hold a part 135 cert. He may be sitting on it these days and just running the gig on a part 91 basis.

I'd say the biggest thing if I were ever interested in doing such a thing, is doing an honest market survey for the geographic area you plan on setting up this business. Good luck.

 

[Tom-D]

I think I love you, and wish you the best,..we need every one of you we can get.

 

[Warlock]

The 64 in your Profile tells me all I need to know...I think this is perfect time...the economy and need for new blood in Aviation to fill commercial pilot slots will drive this. I started a flying club for fun but we get a couple of enquirers a week looking for flight school which we are not...we do not advertise and although we have club members who are CFI’s they don’t want the business...

 

[Velocity173]

I agree with H2020 in that it’s somewhat saturated on the training side right now. Your market will obviously be urban areas but for the most part, flight schools are already well established there. Maybe something on the outskirts of the city for those that don’t want to deal with the hassle of going downtown? Might be a market there.

The “mom & pop” part 61 stuff has been struggling for some time. Went to a 61 school outside of the city to get my multi earlier this year and while it was a well run operation, you could tell profit margins were tight. Owner was stressing his aircraft sitting on the ramp and not making money by being in the air. He’s trying to go 141 soon though and then he’ll be able to compete with the big guys (ATP pros) for govt money. I think that’s the right path to take, I’m just not sure our “pilot shortage” will support his operation in his particular location.

I think if it were 2009 with the wave of vets using Post 9/11 GI Bill for flight school, I’d have a much more positive outlook for a new school start up. We had AVOTEC money back then as well and part 61 flight schools sprang up out of nowhere. Once that dried up, they all shut their doors. So, my recommendation would be to stick to Part 141 and also, fixed wing. From what I’ve seen on the helo side, there’s a bottleneck from all the enlisted vets that got out and used their GI Bill. I think most were under the impression that they’d go to school, get 300 hrs and a Comm, then there’d be a job waiting for them. Now they’re out competing for CFI slots that are few and far between. The airlines are pulling from the senior guys on the helo side now, so some of that bottleneck will filter up into openings.

Good luck to ya. I think if you do get capital for a start up, 141 would be the way to go. Should be stable for some time.

 

[cgrab]

Congrats on your career so far, the Army has invested a lot in you and may dangle a big re-up bonus so don't go too far out on a limb. That said, were I in your shoes, I would get one of those business planning books and write out a clearly defined business plan. As was said before, you have something worth selling but you need to find buyers and that requires market research. BAMIS-you know what it means. It works in this case for sure.

 

[Tarheelpilot]

Sounds like to much work for retirement years.

 

[TCABM]

Think in increments. Grow CFI business - low cost, high return. Start Pt-141 operation - high cost, long time to recoup ROI. How do you get from point A to point B? Operating model is different, overhead costs are different, markets and segments are completely different.

Fully understand the available market; identify and define all the segments in the market.

Determine how your different enough to be competitive in just one segment of the market.

Position your offering perfectly for your target market.

Lather, rinse, repeat.

 

[bobmrg]

That monthly retirement check eases the pain of the low CFI pain. Instruct because you enjoy it, not for the bucks....forget about the 135 and 141. BTDT.

Bob Gardner LCDR, USCG (Ret)