Story ID: 844JSSI
JSSI Targets Middle East Opportunities
By: Matt Thurber
Caption: JSSI spends more than $30 million per year on maintenance on behalf of its customers.
Word Count: 629
As part of its ongoing education process, Jet Support Services, Inc. (JSSI, Stand 435) is here at MEBAA 2016 to highlight the benefits of its tip-to-tail hourly cost maintenance programs and how these can help drive down aircraft operating costs.

Most of JSSI’s customers in the Middle East are operators of large-cabin aircraft, and they understand that maintaining the value of their assets is enhanced when their aircraft are covered under a JSSI program, according to Kevin Thomas, senior v-p of business development and strategic planning. “When they sell the aircraft,” he said, “being on a program is better [for the value of the aircraft].”

JSSI has more than 2,000 customers enrolled in its programs, and Thomas expects the company to sign on another 80 aircraft this year. The smallest aircraft enrolled is a Robinson R66 helicopter, and the largest are VIP airliners.

One of the common misconceptions about JSSI is that operators should wait to enroll until after a new aircraft’s warranty period ends, but that doesn’t make sense, according to Thomas. He said warranty coverage does not include normal maintenance, but only problems associated with manufacturing defects that arise during the warranty period. “We work hard to educate operators that warranty is not maintenance,” he said. “It is an education process. They need to be on the program from day one.” In this way, owners and operators are protected from unforeseen maintenance expenses and their assets retain more value.

Tip-To-Tail

It isn’t unusual for an aircraft manufacturer to recommend that buyers discuss options with JSSI when buying their aircraft, Thomas said. In some cases the manufacturer might not offer maintenance coverage, but in any case JSSI’s tip-to-tail programs cover the entire aircraft, including engines, avionics and components, to an extent that is more comprehensive than manufacturer programs. Some engine manufacturers, for example, might offer rental engines as temporary replacements, but if these aren’t available, the aircraft could be grounded. JSSI keeps engines in stock so it can provide the engine when needed.

A big part of JSSI’s work now is leveraging all the data that it collects by managing the maintenance for its customers, and a new team has been set up to put this data to work. One of the team’s efforts is the asset monitoring program that JSSI runs for financial institutions to help them keep an eye on their aircraft portfolios.

JSSI also publishes a business aviation index, which summarizes operational information generated by its customers’ aircraft. One piece of interesting information generated by the index was a large spike in flying time when oil prices dropped. The data showed, however, that when prices rose again, large aircraft operators were less sensitive to fuel prices, while operators of smaller aircraft began flying less. Another new service is JSSI’s maintenance advisory service, which is available for a fee to non-program members, or free for JSSI customers. “We see 250 to 300 engine overhauls per year,” he said. “That level of expertise you can’t find anywhere.”

More recently, JSSI launched its own parts business, and in its first full year this should generate revenues of $14 to 15 million, Thomas said.

As a massive user of maintenance services, which it arranges on behalf of its customers, JSSI is in a position to extract pricing concessions from maintenance providers. “There is no one better in terms of maintenance costs than JSSI,” Thomas said. “We spend $30 to $50 million with each vendor per year, and a total of $500-plus million in maintenance spend worldwide. We negotiate flat rates, and these are reflected in the prices to our customers. We pay the bills and we know the costs.”