The Only Way to Make Money in the Charter Business w/ John Matthews

Operating airplanes is a TOUGH business! Complicated machines, delicate financing structures, ever changing asset values, and other complexities that can tank even the best run operations. This is why it’s impossible to democratize business aviation. Because owning a business jet company is sexy, it is easy to become overly emotional and focus on what makes you look good. But, it is a numbers business and operators who don’t stay disciplined will often find themselves in a lot of trouble. The secret according to AirX’s founder, John Matthews? Take let data drive your decisions. How do you set a charter business up for success? What are some of the mistakes jet operators are making? In this episode, John talks about the journey the company has taken, from their fascinating beginnings, to picking routes and building a very unique fleet and what it takes to survive and thrive in a tough business. I became extremely analytical when I started to lose money, and that’s how we started making money . -John Matthews Three Things You’ll Learn In This Episode -Why AirX stopped flying to America The routes you fly are critical to your success in the charter business. What are the differences between the American and European marketplaces? -The only way to survive and thrive The asset market is going to soften and we’ve seen a sharp rise in the charter jet global inventory. What approach does AirX take to expanding their fleet? What are some of the creative aircraft they’ve assembled? -Data-driven decisions only In an industry like charters, it’s really easy to make decisions based on emotion. Why is it critical to be analytical instead? Guest Bio John Matthews is the Chairman of AirX. Beginning at the age of 17, John Matthews managed the operations of a 20-plane flying school. At the age of 18, He started a twin piston engine aircraft charter business for the executive charter market. John also earned a contract with Caledonian Airways to manage 13 Tri-Stars and two DC10s around the world, providing all technical ground support and flying critical spare parts to Caledonian in AOG circumstances. By the age of 19, John had advanced his career by starting his own operation with 10-seater twin engine aircraft. Healix, the UK's largest repatriation company, also hired him to fly medical relief flights. AirX was founded because a family-run business purchased the wrong assets during the boom. John took over operations, and within months of his leadership, the company was brought back from the brink of bankruptcy, building a new tier in Malta as the company's new HQ, which began in 2010 since then the annual turnover increased from €8 million to €150 million, with zero EBITDA to €25 million and cash generation of roughly €8 million in 2023, a record year. AirX has grown its clientele to include over 250 notable international celebrities, the majority of whom are return customers, including royal families, politicians, government flights, music tours, sports teams, and mission flights. For more information, go to https://www.airx.aero/ . Learn More About Your Host: Co-founder and Managing Partner for Northstar Group, Craig is focused on recruiting senior-level leadership, sales, and operations executives for some of the most prominent companies in the aviation and aerospace industry. Clients include well-known aircraft OEMs, aircraft operators, leasing / financial organizations, and Maintenance / Repair / Overhaul (MRO) providers. Since 2009 Craig has personally concluded more than 150 executive searches in a variety of disciplines. As the only executive recruiter who has flown airplanes, sold airplanes, AND run a business, Craig is uniquely positioned to build deep, lasting relationships with both executives and the boards and stakeholders they serve. This allows him to use a detailed, disciplined process that does more than pair the ideal candidate with the perfect opportunity and hit the business goals of the companies he serves.