The Embry-Riddle Company created the Aviation Corporation in 1928 as a holding company tasked with acquiring small airlines. By the end of 1929 it had acquired interests in over 90 aviation-related companies, and in the ensuing years it developed these into American Airways, the predecessor of American Airlines. The company was required to divest American in 1934 due to new rules for air mail contracts. The Aviation Corporation later changed its name to Avco Manufacturing Corporation, and then, in 1959, to Avco Corporation. In 1986 Avco was purchased by Textron.
Avco's affiliated company, Avco Financial Services, was spun off to Associates First Capital in 1998 , which itself was acquired by Citigroup in 2000.