Barrett purchased Texas Air Transport in 1928 and appointed C.R. Smith secretary and treasurer.

The next year, Barrett launched Southern Air Transport (SAT), which absorbed Texas Air Transport, and retained Smith as vice president and treasurer.

Later that year, SAT became part of the Aviation Corporation (AVCO). Although AVCO had bought SAT for its air mail routes, C.R. Smith would prove to be the company's most valuable and durable asset.

In January 1930, AVCO's directors created American Airways and appointed C.R. Smith vice president for the Southern Division.