For Pilots Only: March 23, 2024

Connecting the Dots

Folks, if there's one thing I've learned in my years in the aviation industry, it's that a single event can send shockwaves through the entire system. And right now, the epicenter of that earthquake is iAERO Airways.

Picture this: it's October 2023, and iAERO finds itself staring down the barrel of a 29-million-dollar judgment in favor of Private Jet Services Group (PJS). The reason? A partnership deal from way back in June 2020 that went sour. Suddenly, iAERO has two options: either drum up 216 million in cash for a sale, or take the bankruptcy route and pray for reorganization.

Now, despite their best efforts to find a white knight, iAERO's future is looking pretty abysmal right now. The PJS claim, plus a bunch of other unsecured creditors knocking at the door, has put the company in one heck of a cash crunch.

Sure, they've got plenty of folks sniffing around – 80 inquiries and 33 NDAs, last I heard – but the current stalking horse bid from Eastern 737 Asset Holding? It only covers the metal. We're talking planes, engines, APUs... but no certificate, no supplier contracts, no leased aircraft.

If iAERO can't find a buyer ready to swallow the whole enchilada, they could be forced to pull the plug as early as the first week of April. And that, my friends, is where things get spicy.

You see, if iAERO does go belly up, it would dump around 44 Boeing 737s (a mixture of -300's, -400's, and -800s) and 150 pilots onto the market. For airlines scrambling to get their mitts on a Boeing, this could be a once-in-a-lifetime chance to bulk up their fleets. Ultra-low-cost outfits like Avelo could scoop up these birds and spread their wings, while the big guys might be tempted to add these slightly more "experienced" planes to their lineup.

But the real bombshell? The flood of seasoned pilots hitting the job market. With the well-known drought of direct entry captains, these iAERO folks could be the key to unlocking the regional airline treasure chest. As they get pushed into those Captain seats, it starts a domino effect that cracks open doors for low-time pilots, CFIs, and even lower-time military pilots looking to trade camo for polyester.

So, what does this mean for you?

If you're a flight instructor who's been waiting to get a job, that job might come sooner.

If you're a Captain at a regional airline that's being overworked and not spending enough time at home, your quality of life could be increasing substantially soon.

If you're a pilot that's in a flow program and has been waiting to flow up to a major, as they get those direct entry Captains, the flow rate could start picking up.

If you're a higher-time military pilot, the major airlines can afford to take you and send those other guys to a regional.

If you're a legacy airline pilot who has been flying for a major for the past 10 years, it's not going to really impact you at all. But if you've been trying to pull a buddy up from the regionals, military, or corporate, now's the time to make it happen. Set up a meet-and-greet, pen a glowing letter of rec, or at the very least, shoot them this post so they can link up with us and get the ball rolling.

The iAERO saga is still being written, but one thing's for sure – the aftershocks from this legal slugfest could rearrange the industry in ways we never imagined.

Because when it comes down to it, in the world of aviation, one company's nightmare can be another's field of dreams.

If any of this sounds relevant to you click here to set up a free strategy call.

Fly safe,

James

For further reading, check out these articles and the memo below.

✈️ Court filing lists nearly 30 737s as part of IAero asset sale linked to US carrier Eastern

‌✈️ iAero MEC Alert