JBL: Span the Globe

Editor's Note: To view John Layfield's video take of this 'Celebrity Investor' column, click here.

There's something about family-run businesses and entrepreneurs. Today I have a couple of stocks of family-run companies in sectors that are not very popular. Both are revolutionizing their respective areas of the transportation industry.

Brazilian Beauty

On Dec. 17, 1903, Orville and Wilbur Wright, a couple of bicycle mechanics from Dayton, Ohio, showed the world man could fly. Since the Wright's maiden flight more than 100 years ago at Kitty Hawk, N.C., the so-called legacy carriers have shown the world companies can go bankrupt flying.

I have flown more than four million miles traveling to more than 60 different countries because of my job with the WWE (WWE). I certainly know something about the consumer side of transportation.

This is a besieged industry, and rightfully so. The big carriers couldn't make money at a lemonade stand if they were given the lemonades, sugar and water for free.

Even with soaring oil prices, the discount carriers have been making money. If you want to learn how to make money running an airline, then you should follow their lead. This is what Constantino de Oliveira Jr. has done in Brazil.

Mr. Oliveira Jr. grew up working at his parents' bus companies. He wondered why it was too expensive for Brazilians to fly. By opening his airline, Gol Linhas Aereas Inteligentes (GOL), in January of 2001, he provided Brazilians an option to the bus system. In less than five years, he has built one of the most profitable and fastest-growing airlines in the world, and arguably the best.

Here are some highlights:

On Oct. 31, Gol said its third-quarter earnings per share grew 71%. In a world of shrinking airline margins, Gol increased its profit margin 1.1 percentage points to 19.8%.

The airline's system-wide passenger traffic increased 70% year over year in October. Brazil's passenger-traffic growth is the second-fastest in the world behind China's.

Gol has increased its fleet this year from 27 to 39 aircraft. The company plans to double it by the 2010, expanding its routes throughout South and Central America.

Gol's labor costs make up just under 10% of total expenses, compared to more than 40% for most U.S. carriers. Its pilots earn between $30,000 to $55,000, which is $10,000 to $15,000 less than competitors. Yet Gol is a meritocracy with a generous profit-sharing program; I believe this is the best way to run a business.

Oliveira Jr. has patterned his airline after Jet Blue (JBLU), Southwest (LUV) and Ryannair (RYAAY). It certainly appears he has positioned Gol to replicate the success of those discounters.