Investor Blog

Look Up!!

What if we told you there’s a business sector which was valued at $2.96 billion in 2022 but which will grow to over $20 billion by 2029? Wowzers, 32% compound annual growth (CAGR)!! You might think it’s that hot artificial intelligence (AI) stuff but it’s not. (Source: Fortune Business Insights)


What if we told you it’s a business where 50% of it’s key personnel will have retired in the next 15 years? Nope, it’s not a Premier League football club.(Source: US Global Investors). 


What if the biggest manufacturing company in the sector thinks 790,000 of these key personnel will be needed globally? (Source: Reuters)


Would you be surprised to hear recent pay deals concluded with these key employees in the US market resulted in a whopping 46% pay rise? (Source: Bloomberg) 


If this business is a mission-critical service to a global industry estimated to spend $15 trillion per annum in the next ten years (Source:WTCC) you’d think there would be monster amounts of money being thrown at this opportunity? But you’d be wrong…


The airline business has never been blessed with big cash piles and most of its investment is committed to new aircraft and IT systems. However, the shortage of pilots is becoming a major global problem and, in Europe alone, the shortfall will be a whopping 42,000 pilots by 2027. As an illustration of the limited firepower of airlines, check out recent announcements by BA and Aer Lingus to on-board 150 candidates for pilot training. One…hundred…and…fifty pilots. Now, consider that BA and Aer Lingus combined have almost 5,000 pilots on their roster. These initiatives won’t even meet existing rates of attrition. And, that’s before US airlines and others start poaching talent.   


So, if you’re a well connected manager of a training platform for pilots on track to deliver 2,500 commercial pilots by 2027 and generate revenues of over €6m per annum, what’s that worth to the industry and investors?  Let’s go back to that 32% annual growth rate to 2029 (CAGR) referenced by Fortune Business. 


With those levels of revenues and profit margins over 30%, a platform (like Pilot Path) would be valued at well over €25 million. Now, consider the opportunity to buy into the Pilot Path business as an investor with an entry valuation of €3 million, or a tantalising €1.8m after EIIS rebate. Then, before you think about 14-15x returns on your investment, check out the following headlines screaming big problem……. and big big opportunity.

Some recent headlines:

  • Pilot Training Market to Hit $20.21 Billion by 2029 | At a CAGR of 31.55%  - Fortune 
  • American Airlines pilots approve new contract that boosts compensation by more than 46%  - Reuters
  • The global pilot shortage is a challenge to the world's airlines  - CAPA
  • Boeing Forecasts 20-Year Demand For 2.3M Pilots, Technicians, Crew
  • Texas-based American Airlines grounding 150 planes due to pilot shortage
  • Travel Will Represent a $15.5 Trillion Economy by 2033  - Bloomberg
  • Portuguese Flight School, Sevenair Academy, Completes Acquisition of Flight School and Expands Maintenance Capabilities
  • Skyborne Aviation Group Completes Acquisition of Vero Beach Flight Academy, Florida
  • American Airlines boosts pilot contract offer by $1 billion after United deal