Retired USMC Col. Allen E. Weh attributes the success of his charter air company to Corps business strategies. When airline deregulation limited travel options and left special commuters stranded, Weh came to the rescue.
By Lisa Manafian
Very few passengers have enjoyed the privilege of a chartered flight, and experienced the luxuries of specialized flight attendants, gourmet food served on exquisite china, an open bar and customized logo headrests. But on the occasion when Universal Studios needed to fly an indigenous tribe from Venezuela to Hawaii for a movie production, CSI Aviation Services coordinated all of the details—like how to transport villagers to a tiny airstrip hours from their village and still make certain they enjoy all the additional amenities. CSI has extended its business to meet the far-reaching needs of the charter industry. From Madonna’s Blonde Ambition Tour to post-September 11th, when the Department of Energy requested standby aircraft to act as terrorist response teams, their planes have been fueled and ready to service any aircraft needs twenty-four hours around the clock.
Allen E. Weh, US MARINE - President and CEO of CSI Aviation Services, Inc.

Very few passengers have enjoyed the privilege of a chartered flight, and experienced the luxuries of specialized flight attendants, gourmet food served on exquisite china, an open bar and customized logo headrests. But on the occasion when Universal Studios needed to fly an indigenous tribe from Venezuela to Hawaii for a movie production, CSI Aviation Services coordinated all of the details—like how to transport villagers to a tiny airstrip hours from their village and still make certain they enjoy all the additional amenities. CSI has extended its business to meet the far-reaching needs of the charter industry. From Madonna’s Blonde Ambition Tour to post-September 11th, when the Department of Energy requested standby aircraft to act as terrorist response teams, their planes have been fueled and ready to service any aircraft needs twenty-four hours around the clock.

It is the nuances; the timely flight departures; and the emergency response readiness, that are all part of what makes CSI a success. In the late 1970’s, when Allen E. Weh decided to explore the charter air industry, he would have never imagined just how his leadership experience in the U.S. Marine Corps combined with an entrepreneurial mentality would serve him in his greatest personal endeavor—becoming the president and CEO of a world-renowned charter air company—CSI Aviation Services, Inc.

Like all entrepreneurs, Weh spent time investigating new avenues, and discovering new services. He found a creative approach to marketing, and targeted the right audience. As a true entrepreneur, he knew how to recognize an opportunity and capitalize on it before competition locked him out of the market. He also knew when to ask for help and was smart enough to know that he didn’t know everything. But most of all he understood his product. He figured out what his customers wanted and what services he needed to offer. As the seller of charter air flights, Weh knew that the indigenous Venezuelans had never seen an ocean or an airplane for that matter and would need interpreters to ease their fears and discomfort. This attention to detail and desire to accommodate the unique needs of each client established his reputation as an air charter mogul.

Over the last 30 years, his small start-up company based in Albuquerque, New Mexico, has grown from 3 employees to a 22 person staff. It was the 2002 fiscal year that marked CSI’s most lucrative year yet, earning profits in the $42 million range. His aircraft empire is burgeoning, and with a potential new contract underway he will be able to add two more employees within the next few months.

Transitioning Out of the Military

“Everybody has to face a transition. You can’t go from being a unit commander to being a president over night.” It took nine years after leaving active duty before Weh’s entrepreneurial endeavors began. From 1971 up until 1979, when CSI Aviation started, the young Weh was still learning a few crucial lessons.

Transitioning into the civilian work world became an uncertain time for Weh. Not sure of a career, he decided to continue his education. He says, “My first step in the transition was going to graduate school for my masters.” As noteworthy advice for other transitioning military personnel, Weh suggests, “when you don’t know what you want to do, get a credential that will help you when you do figure it out.”

Graduating from the University of New Mexico, Weh earned his master’s degree in counseling with a concentration in business. The degree was tailored to make him an ideal director of personnel, which he pursued for two years as the Director of Public Affairs for a major mining company. Although he learned a great deal from graduate school and from working as an HR manager, he insists that it was the United States Marine Corps that taught him how to run his own company.

The Early Day’s of Charter Air

Previous to 1979 there was a government entity in the Department of Transportation, called the Civil Aeronautics Board (CAB), which controlled airline routes, structure and fares—just like a state public utilities commission controls the water rates and the electric rates. “For example,” Weh says, “if an airline company wanted to fly to a new city they were required to apply to the CAB for permission, and prove that the existing flight service in that city was inadequate. Or, if airlines wanted to raise their prices they had to justify a need for the increase.”

To combat the CAB’s limitations on expansion and capital growth, most of the airlines gathered additional revenue through their large charter fleets—and most airlines took advantage of the big business created through their charter air flights.
“When the CAB was dismantled in 1979 it became a free-for- all in the airline industry,” recalls Weh. “All the major air carriers wanted to exploit their new freedom to fly to any city in the United States, and expand their system. Virtually over night all the big boys reached down and took airplanes out of their charter fleets and repositioned them into scheduled service.” It was then that the demand for chartered service exceeded the supply of available lift, and the charter market in the United States was open for business.

Groundbreaking Steps

At the time, Weh was uniquely positioned to provide the service and encountered someone who needed a chartered flight. He says, “I engaged in helping that entity arrange for an airplane and discovered this absence in the marketplace. I simply asked myself the question, ‘maybe other people need chartered airplanes too?’” After exploring the possibility he learned of even more organizations with the same need, and discovered an open market. His sound advice: “If you talk to enough people, you figure out what the problem is, and I figured out that there was a whale of a problem. By virtue of the large-scale change in the market, a vacuum had been created over night, and I realized that sooner or later that vacuum would get filled. Somebody will always step forward to fill a business vacuum, and this time I stepped in.”

Obtaining the initial start-up capital to enable his business required a persuasive networking strategy and a connection with an old military buddy. Weh recalls, “I had a friend, a Marine Corps Reserve buddy who owned Albuquerque National—the largest bank in the state—which is now Bank of America, and he gave me a sum of money that I wouldn’t have otherwise gotten. He called it a ‘character loan.’”

CSI’s prospects were beginning to emerge. Weh’s second big break in the airline industry came when a local athletic director took an interest in his business. He volunteered to tell Weh about college athletic departments that were struggling to hire chartered flights; and he gave Weh a few insights into the business of charter air. Like many others, college athletic teams had fallen victim to the dismantling of charter flights by the major airlines. Weh recalls, “This sports director arranged for me to speak at a convention for athletic managers. After meeting several big names, I walked out of that expo with business cards all over me.” Weh’s networking know-how paid off. He says, “Within about four months we sold enough business to ensure the success of CSI for the next year. That money was like fuel in our gas tank—it enabled us to hire more staff, get focused and figure out the next step for our business.”

As an Entrepreneur

As an entrepreneur one must be willing to struggle with the tides of business. It was nearly five years before CSI made a name of its own. Weh says, “It’s always tough at the front end for anyone establishing a business. Start-up companies are typically flat poor because they’re spending money and not making as much money as they’d like, or as much as they need—so they’re constantly trying to do more with less.”

When opening a company, Weh believes that it’s okay for an entrepreneur to invest a little of his or her own equity. He counsels, “If you are starting a new venture, banks typically won’t lend you one hundred percent of the initial capital. However, if you put in some of your own money the bank might view your personal investment as a sign of faith.” Weh understands that every entrepreneur is apprehensive about taking money out of the piggy bank and risking it in a new business. In his case, the risk was mediated by an absolute market need, but even this investment took time. He maintains, “Everyone wants to see a return on their investment, but don’t be disheartened if it doesn’t happen right away, sometimes it can take years.”
Once CSI hit the five-year mark it witnessed a steady economic incline, and was able to expand due to the increased income and stability. As a result, CSI Aviation started to become a recognizable entity. Weh imparts, “We built the business one inch at a time.”
Following the simple business strategy of diversification, the product is packaged to appeal to a broad range of needs. “We do a variety of things,” he explains, “and that variety is one of the operative maneuvers that ensures our success.” With access to over 5,000 aircraft, CSI provides domestic and international charter planes for both passengers and cargo. Options range from ad hoc flight missions to multiple flight contracts and long-term leases. The list of clients includes: Fortune 500 companies, government organizations, the Hollywood film industry, incentive companies, and athletic teams. He says, “20 percent of our business is in the athletic market, and that’s a thin margin sector.”

“Spread your eggs out,” he advises, “so in case something goes south in one particular market area you won’t have all your eggs in one basket.”

Business Today

Weh claims that CSI hasn’t faced any dramatic obstacles in all 23 years of operation. He says, “other than one downturn during a recession period the graph has been a nice curve up. I don’t like dramatic curves up; they’re hard to deal with.”
As a conservative company, Weh says the objective of his business “is to take care of people, make money and grow steadily and surely.” He believes in building a business with long-term prospects. He expressly states, “We’re not growing our business to sell. Some people think short term. They want to grow a business to a certain point and then go yachting the rest of their lives. That’s not what we’re about.” He adheres to the rule of steadfastness, and is dedicated to training the next generation of CSI to manage with the same principles long after his retirement.

Weh is also an affirmed advocate of hiring veterans because they most often exemplify responsible, hardworking people. Currently, he employs three veterans—two Reserve officers, and a former Air Force captain, ex- helicopter pilot Vincent Nulk. As the manager of special operations, Nulk oversees one of CSI’s sensitive contracts. With aircraft flying around the clock, Nulk’s duties can carry into the weekend, but his overtime hours never go unnoticed by his boss. Weh assuredly says of Nulk, “He will work a 60-hour week and won’t have any problem getting up at 2:00am to bird-dog a maintenance issue. It’s a special kind of guy like that who leans forward to take responsibility and get the job done.”

As a businessman, Weh says his greatest achievement is “creating a business that has demonstrated its success. CSI has been successful if one looks at it monetarily, which is not the only way to gauge a company, but more than that we made it fairly. We offer our customers a service at a fair price, and we take care of people—we take care of them all the way, giving them service for what they paid for. It’s not just what you gain out of your business, it’s what you put into it and what you do for others as well.”

The Colonel’s New Line of Work

Col. Weh’s long list of accolades has earned him a new title. He was sworn in on May 9th, 2002, after Secretary of Defense, Donald Rumsfeld appointed Weh the national chairman of the National Committee for Employer Support of the Guard and Reserve (ESGR). ESGR is a Department of Defense organization responsible for gaining and maintaining active duty military support from all public and private employers. The men and women enlisted in the Reserve make up half of our nation’s uniformed military forces.

Part of Weh’s reform efforts include creating an advisory board to advocate for favorable employment policies. He says, “I’m in the process of recommending other board members to create a 25-member advisory board, which will be made up of accomplished people with diverse backgrounds from all walks of life, and all parts of the employment sector.” The policy reform he is developing will allow Guard and Reserve members to serve the nation and keep their civilian sector jobs. He says, “We intend to be advocates for favorable personnel and employment policies both in the public and private sectors. This will allow our Guard and Reserve members to lead two lives without penalty.”

Looking ahead to the possibility of protracted conflict with terrorism, Weh says, “it’s going to take drawing on these Reserve and Guard assets on a regular basis. In order for workers to leave their family and serve willingly and comfortably, the ESGR wants employers to mitigate their absence and any financial impact that they may cause as best they can.” As an example of pay deferential, upon being called into active duty, the salary of an employee earning $40,000 a year could be reduced to $20,000. He concludes, “It’s important to serve the Republic. Nobody is trying to get rich serving the Republic, but it is necessary for us to minimize the punishment one must take for serving. So that’s my mission and I’m hard after it.”

After two tours in Vietnam and serving in the Reserve, Weh’s military career earned him several awards. In 1988, Weh was promoted to the reputable rank of colonel. He was also recommended for the Navy Cross; awarded the Silver Star and the Bronze Star with “V” for heroism; three Purple Hearts; and five Air Medals. As a former member of the Marine Corps Reserve, Weh has been recalled to active duty twice to command combat replacement training for the Persian Gulf War, and to serve with the U.S. expedition forces in Somalia for Operation Restore Hope. He retired in July 1997.

For more information visit www.airchartertravel.com or call (505) 761-9000


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