JSSI – Aviation support and service evolution

There’s no doubt that 2020 has been a challenging year for aviation. COVID-19 has had a fundamental impact on all aspects of the industry and business aviation has not escaped unscathed.  

Jet Support Services, Inc. (JSSI), is the leading independent provider of maintenance support and financial services to the business aviation industry. With a global footprint strengthened by more than 30 years of experience, the company knows better than most how to weather the storm of a crisis. For CEO Neil Book, the focus during the early phases of the pandemic was to support customers through adversity. “We moved very quickly in March to offer tangible financial relief to clients by holding 2019 hourly rates, reducing flight hour minimums, and offering extended payment terms.”

It is this customer commitment and service mentality that’s seen JSSI grow to support the maintenance needs of approximately 10% of the world’s business jets. JSSI hourly cost maintenance programs (HCMPs)—available for engines, APUs and airframes—give customers comprehensive, flexible and affordable tools for managing the unpredictable costs of operating and maintaining aircraft.

Buying power

At a time when budgets are under pressure, HCMPs help individual owners and large fleet operators achieve greater economic flexibility, improve maintenance budget stability, assert more control over their fleet and make it easier for them to secure maintenance shop slots.

Unexpected events are inevitable during the lifetime of an aircraft and, over time, maintenance accounts for as much as 35% of an aircraft’s annual operating budget. JSSI introduced the pro rata concept to the market to provide operators with an option to avoid the large upfront “buy-ins” their competitors require.

“The operator pays the hourly rate and, at the time of the event, JSSI and our customer each pay a pro rata share of the total event cost,” says Mark Winzar, JSSI senior vice president, business development for EMEA & APAC. “This means customers directly benefit from JSSI’s terms with the MRO, and the economies of scale that come with our supplier buying power.”

Support throughout the aircraft life cycle

For its first 25 years, JSSI solely provided maintenance programs to the business aviation industry. But the last five years have seen the firm expand organically and inorganically with the acquisition of additional operating businesses, designed to deliver a new level of market intelligence to the aviation community, and drive savings and efficiencies.

Today, the JSSI portfolio of companies leverage more than 30 years of technical knowledge, experience, buying power and data to provide support at every stage of the aircraft life cycle; from the aircraft acquisition decision, through major maintenance event management and finally to aircraft teardown and part-out.

“We’ve worked very hard to become a multifaceted business that can create value for operators,” says Book. “We have targeted companies that have developed solutions we know will benefit our customers and improve the service we can offer. Our acquisitions all have a common value proposition, which is to complement our core maintenance program business.”

In 2021, JSSI will further enhance its appraisal, consulting and data services offerings to bring additional value to customers, through its Conklin & de Decker and JSSI Advisory Services brands.

Your consulting partner

One of the first companies that JSSI acquired was Conklin & de Decker, synonymous with delivering quality operating cost data to aircraft owners and operators.

“Buyers use the Conklin & de Decker Report to conduct in-depth comparisons between aircraft to ensure a given jet meets their unique operational requirements,” says Joy Nebel, president of JSSI Solutions, which encompasses the company’s consulting and digital services offerings. "Once purchased, JSSI supports customers through its HCMPs, providing parts for non-covered events. Then, when it is time to sell, the Advisory Services team will appraise the aircraft and watch it sell with a higher residual value as a result of the HCMP.”

Another acquisition was Tracware, which enables vertical integration by offering a service of significant interest to JSSI’s supplier network of MROs. Tracware’s Aerotrac MRO process control software optimizes planning and forecasting, tracks maintenance, and improves business performance by managing workflow. Every year, JSSI works directly with over 500 MRO facilities, so this software provides an ideal opportunity to offer additional value to these operations.

In 2021, JSSI will be integrating Aerotrac within its suite of Conklin & de Decker digital services alongside JSSI Advisory Services; which offers asset inspections, aircraft appraisals, maintenance cost planning and maintenance event management. A significant increase in the buying and selling of aircraft in recent months has boosted business for Advisory Services as individuals seek appraisals and asset inspections as part of the buying process.

Nebel adds: “JSSI’s decades of data, knowledge and expertise across almost every make and model of business jet, turboprop, and helicopter uniquely positions the company to provide this cross section of services to aircraft owners, operators and financiers seeking guidance on complex matters.”

The first stop for aircraft parts support

More than 70% of maintenance costs are related to parts and components. Thus, building a parts procurement business was a natural extension for JSSI. Today, it’s much more than that. JSSI Parts & Leasing supports more than 10,000 aircraft maintenance events annually for JSSI HCMP customers and leverages JSSI’s scale and data to offer rapid solutions for third-party aircraft parts and leasing requirements worldwide. It also provides engine and whole aircraft leasing into the market.

“The growth of JSSI Parts & Leasing has been extraordinary,” says Neil Book. “In round numbers, it’s become a $100 million-per-year topline business in six short years. Our focus now is on continuing to scale. We are uniquely positioned for growth and aim to become the first stop for operators looking for aircraft parts support in the aftermarket.”

This fall, the division announced the appointment of Ben Hockenberg as president, with Jim Sellers moving to the position of chief commercial officer. In his role prior to joining JSSI Parts & Leasing, Hockenberg was focused on investing in the aerospace sector with prior experience in public market credit investment. With this wide cross section of trading experience, Hockenberg has his eye on taking the aircraft parts and engine leasing business through its next generation of growth.

“We’ve launched a service called Supply Chain Solutions, which has been very successful. Essentially, we allow operators to outsource their procurement function to JSSI,” says Hockenberg. “Our clients can reduce their costs and improve turn time, while leveraging JSSI’s buying power, systems, tools, inventory and talent. We understand how to get the right part to the right place at the right time.”

Hockenberg notes that keeping connected to the pulse of the market throughout COVID-19 has been vital. “For example, we have seen retirements of jets where the maintenance cost outstrips the value of the aircraft. This drives teardown activity and an increase in used serviceable material entering the market. The increase in available parts will help operators and MROs keep repair costs down. It should therefore not be a surprise to see parts providers pursuing the opportunity for strategic bulk inventory purchases at attractive prices in the months ahead.”

Looking ahead

JSSI reports quarterly on the global flight activity and utilization for more than 2,000 business aircraft enrolled on its HCMPs, including jets, turboprops and helicopters. In April 2020, the company reported the lowest monthly flying hours since the 2008 global financial crisis, with utilization down almost 75% versus the prior year.

Fast forward to the close of 2020, and the business aviation industry has demonstrated incredible resilience, proving its value to global economic recovery. From the Q2 tipping point, utilization has bounced back, recovering in Q3 to 78.4% of 2019 levels, according to the JSSI data.

The need to reduce touchpoints and reduce risk of exposure to COVID-19 has led to a whole new generation of entrants flying privately for the first time. New platforms building on existing charter, fractional and block hour solutions are continuing to make business aviation more accessible.

For Book, it’s important these industry gains are not lost. “We want to ensure these new entrants have a good experience, so they don’t run right back to the airlines the second it’s a feasible and safe alternative. At JSSI, we are committed as a company to bringing data democratization to the market so operators can make informed decisions and pricing is kept transparent.”

After an unprecedented year for the aviation industry, JSSI is proud to note that it has not had to reduce headcount for reasons related to COVID-19. “We’re back in growth mode,” adds Book. “We’re starting to hire again and focus on opportunities to expand the business. 2021 is going to be exciting to watch.”

About Jet Support Services, Inc.  

For more than 30 years, Jet Support Services, Inc. (JSSI), has been the leading independent provider of maintenance support and financial services to the business aviation industry. The company provides hourly cost maintenance programs to manage the often unpredictable costs of operating and maintaining virtually all makes and models of aircraft, engines and auxiliary power units (APUs). JSSI is responsible for maintaining in excess of 2,000 business jets, regional jets and helicopters across the globe and serves customers through an infrastructure of certified technical advisors.

JSSI’s portfolio of companies leverage its technical knowledge, experience, buying power and data to provide support at every stage of the aircraft life cycle; from aircraft acquisition to aircraft teardown and part out. Other JSSI services:

• JSSI Parts & Leasing provides aircraft parts, leasing and supply chain solutions. From a single bolt to a complete engine, customers gain access to a vast inventory of aircraft parts, engines and APUs and a global vendor network to source assets for anything that flies. All backed by the buying power and expertise of one of the largest purchasers of parts and maintenance services in the aviation industry. For more information, visit jssiparts.com
• JSSI Advisory Services utilizes JSSI’s technical expertise and global network to inspect aircraft and facilities, perform ASA-accredited on-site and desktop appraisals, assist with maintenance cost planning, manage maintenance events, and provide insurance claims management. JSSI’s dedicated Asset Monitoring Platform (AMP), is available to aviation lenders as a tool to assist in the mitigation of risk and the management of financed aircraft.
• Conklin & de Decker is a leader in aviation research and digital tools. The mission of Conklin & de Decker is to enable the general aviation industry to make more informed decisions when dealing with the purchase, operation and disposition of aircraft by furnishing objective and impartial information through an extensive range of software offerings, including the Conklin & de Decker Report, Life Cycle Cost, State Tax Guide and Aerotrac MRO software.

For more information, visit www.jetsupport.com.