ISTAT Jetrader - Spring 2023 - 13

emigrate in search of work. GPA was a sort of beacon in this nascent industry called
aircraft leasing. From the outside, what I saw was a bunch of guys traveling the
world, doing deals and seeming to be making a lot of money. It was all very exciting,
and it was aviation. So, I got a job there with no business experience, but I badly
wanted to work for Tony Ryan. I literally talked my way in, starting in the mailroom.
After that, I moved up to the trading floor, and then I got tapped on the shoulder and
asked if I had ever been to South America and if I spoke Spanish or Portuguese. I
said, " No, no and no, " and they said, " Perfect. You're on your way, and don't forget
the Fokker 100 brochure! " These really were the pioneering days of aircraft leasing.
I took to it like a duck to water.
The rules were evolving as we went along, and there were only two or three
players globally in the market at that time. Aircraft leasing was seen as the poor
man's product. It was only for airlines that couldn't afford to buy their own aircraft.
We were building the rationale for why airlines should lease.
I was privileged to be part of the vibrant Latin America scene during the
1990s - a time of great change led by true aviation entrepreneurs. The likes of
Federico Bloch, the Cueto brothers and, of course, the irrepressible Captain Rolim,
the founder of TAM. They all had an ambition and vision for aviation in the region
that was compelling. It was a dynamic time.
Meanwhile, during the first five years of my career, 1989 to 1994, GPA would go
through turmoil. In 1992, the plan was to go public. It was going to be the biggest
IPO in the world that year, and it failed miserably. The company got into a debt
spiral; it couldn't refinance its bonds, and GE Capital, which had a very small aircraft
finance business at the time, said; " We like this business. We're going to buy the IP. "
The driving forces behind the transaction were Jack Welsh, Gary Wendt and Denis
Nayden. That became GECAS. That happened in November 1993.
GE said they wanted me out in the field, so I got the opportunity to open their
Miami office. I had become a bit of an expert in South America, so off I went to
Miami in January 1994 to open the GECAS office there, reporting to the inimitable
Michael Lillis. That was another fortunate moment of truth in my career, as Michael
would become my lifelong friend,
mentor and consigliere for 30 years.
But I had a legacy problem from
the GPA experience because I had
borrowed a lot of money in 1992 to buy
shares in GPA privately in advance of
going public. There was a very active
gray market, and the shares at that
point in time were trading at $20.
I decided I was going to become a
millionaire because the IPO was going
to be a huge success. That didn't
happen, and the shares ended up being
worthless. I ended up owing two Irish banks 1 million Irish pounds at 26 years of
age. It took a few years to pay that back!
So, what was the big lesson learned during the GPA period? Greed is not a good
thing. Hubris in organizations often leads to failure.
Jetrader: What inspired you to launch IAMG?
DS: It was in 1994. I'm in Miami, and a job came up, vice president of business
development, reporting to the then chief executive of GECAS. I thought I was
the obvious and only candidate for the job. I didn't have the experience nor the
competencies, but I had the chutzpah. I went up to Stamford to do the interview,
and at the end of the meeting, the
CEO said to me, " What happens if you
don't get this job? " I said, " I'm going to
leave. " And he looked at me and said,
" Well, it looks like you're leaving. " So,
my very first company, IAMG, was not
a grand plan. I didn't sit down and have
an entrepreneurial moment and say I'm
going to start an advisory company. I
over-played my hand, and I got called
out on it. Another lesson learnt.
Ultimately, the business idea
for IAMG was quite simple. I had a
number of airline relationships in Latin
America, and aircraft leasing was
the predominant source of aircraft
financing then in Latin America
because they couldn't afford to buy
aircraft. So, I decided to take all of my
knowledge and go to the other side
of the table and advise these airlines
on how to negotiate with lessors or
the manufacturers. Over the course of
the next seven years, from 1994 up to
2001, we would build that company into
a significant business operating globally.
At its core, IAMG was a family-size
business, with maybe 15 people. I say
family because my brother John worked
beside me in IAMG for a number of
Aircraft leasing was seen as the poor man's
product. It was only for airlines that couldn't afford to
buy their own aircraft. We were building the rationale
for why airlines should lease.
years and subsequently in the Royal
Bank of Scotland (RBS). Incredible to
think that he has gone on to have such
a remarkable career in aviation - our
time working closely together is some of
the happiest in my career.
IAMG was about startup energy; we
were likeminded individuals, and we
all wanted to build something. I used
to describe it as a boutique investment
* SPR I NG 2023 * 13
ISTAT Jetrader - Spring 2023

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