The conclusion of Gama Aviation’s sale of its Jet East U.S. MRO business to West Star Aviation in November has established the combination as one of business aviation’s most broadly capable maintenance providers. The merger, worth some $100 million to Gama, serves to reinforce West Star’s growth trajectory while broadening Jet East’s well-established focus on the support of fractional and managed fleets around the U.S.
Gama Aviation, which has provided MRO services in the U.S. since 2012, purchased Jet East for $11.9 million including the assumption of debt in January 2021. “Jet East has subsequently performed strongly, benefitting from a highly committed management team, a complementary nationwide network of operations, strong customer relationships, and cost savings from rationalization of operations,” according to Gama Aviation. “There has also been considerable investment totaling some $25 million to enable growth, including setting up new facilities in Millville [New Jersey], Las Vegas, and Statesville [North Carolina].”
In 2022, Jet East’s revenues totaled $118.2 million and its adjusted EBIT stood at $1.3 million. For the first half of 2023, Jet East reported revenues of $70.7 million, which equates to growth of 27 percent compared with its performance in the first half of 2022. Adjusted EBIT for the first half of 2023 amounted to $900,000.
“As a combined entity, we will be able to provide unparalleled service and support to our collective customer base with greater depth in providing maintenance solutions,” said Jet East CEO Stephen Maiden of the sale to West Star. “The combination enhances opportunities for our talented workforce as our capabilities increase in size and scope.”
Solon, Ohio-based Jet East now operates MRO facilities in Dallas; West Palm Beach, Florida; Millville and Teterboro, New Jersey; White Plains, New York; Chicago; Statesville, North Carolina; Las Vegas; and Van Nuys, California. It also maintains a growing mobile repair teams (MRT) operation and a component repair shop in Solon.
The most recent addition—the Statesville facility—opened in April and already employs 70, and the company plans to add another 40 in the next 12 months.
“The business predominately started in AOG services,” said Maiden. Now the AOG mobile teams encompass 125 employees and recently added engine teams add to that number. “The engine MRT is something the industry typically has not had,” Maiden explained. “It’s a significant advantage, customers can call one number for airframe, avionics, and engine support at a time of crisis in very remote areas.”
Jet East will eventually be able to offer engine services for Honeywell, Pratt & Whitney, Rolls-Royce, and GE engines. It currently holds Honeywell authorization for TFE731 turbofans and GTCP36-150/100 APUs.
To drive growth, Jet East is investing in hiring more technicians and making the company a place where people want to stay for their careers. “They want to be somewhere where they’re valued,” Maiden said. “As long as we’re providing great service, the ability to recruit great people will propel us into the future.”
The Jet East leadership’s “family-oriented, people-centric” culture “breeds a lot of positivity,” he added. Add to that profit sharing and health benefits without out-of-pocket expenses and industry-leading wages, and Jet East hasn’t encountered much trouble attracting new employees.
Investments in training help propel career advancement for Jet East employees. “We’re focused on personal development,” he said. “And that’s a huge advantage to coming to work for Jet East.” Year-to-date, Jet East has added 235 new team members in technical roles and other departments.
For customers, a well-trained and treated workforce helps improve quality, service, and communication, Maiden explained. Some of the Jet East facilities remain open 24 hours a day, which helps improve on-time delivery, he added, especially where aircraft utilization presents a premium consideration.
“Fleet operators are flying primarily during the day and not as much on the third shift,” Maiden said. “This has been a focus of ours.”
Rounding out the skillset of the MRO operation are the parts people, who face challenges as supply-chain shortages continue. “We’ve got a strong materials and supply chain team,” Maiden said. “They’re very experienced at working with our partners and providers and they know where to find those difficult parts. We’re struggling through it, the same as others, and it has created a significant amount of delays that the industry is seeing.”
But, with the right people, a 24/7 supply chain operation providing coverage in each time zone, and leveraging relationships with manufacturers, Jet East has managed to minimize disruptions.