Jet Aviation (Booth R134) has made a âstrong startâ to 2017 with hangars full, especially in Europe and the U.S., company president Rob Smith told AIN just before EBACE. "The only slight weakness is MRO in Asia, but even thatâs started to pick up,â he said, adding that the managed fleet is âup year-over-yearâ and that Jet Aviation has âalready delivered two completions, a narrowbody and a widebodyâ thus far this year.
The strategic goal of Jet Aviation, which is a division of General Dynamics and a sister company to Gulfstream Aerospace, is âto be the preeminent business aviation service provider worldwide,â Smith said. âWith our new 'One Jet' initiative, we want to present ourselves as one company to customers globally and be more consistent, with a single customer offering. This will also allow us to grow by acquisitions and organically.â
Smith said that Jet Aviation now has 25 locationsâFBOs, MROs, completions and combined FBO/MRO facilitiesâin its network. âWeâre not looking to become the largest FBO chain globally but want to be strategic, to address locations; we just acquired one in the [Washington] Dulles area, and also have San Juan [Puerto Rico] as of early April. We have also opened up a âbrownfieldâ location at Van Nuys [California]âweâll take down the existing facility and put in a new FBO. Itâs been operating since mid-2016 but [the new one] will open in mid-2018.â
He added, âWe have been looking to expand our network, while rolling our One Jet in our 50th anniversary yearâthe start of a five-year plan to bring [all the companyâs sites] into better alignment.â
In the management/charter space Smith said, âWith our AOCs we can offer charter opportunities to customers [owners of managed aircraft]âthe Western U.S. has the best charter market from that perspective.â The company has âa fleet of almost 300 aircraft globallyâŚitâs a solid business, and when the charter market is weak it doesnât really have an impact,â he said, because that is not the primary purpose the owners have these aircraft.
âWe just rolled out One Jet in the last couple of monthsâweâre finalizing the organizational structure in the next month," Smith said. "Itâs a case of itâs a good idea, but letâs see it in execution. The jury will be out until we see if we can create a better, more aligned company. And weâre doing that to stay ahead of the competition.â
Turning to VIP aircraft completions, Smith said, âWeâve got several aircraft in the hangarâthat business has remained solid for us, and we have a decent pipeline especially with the A320neo and 737 Max coming online in 2018. It has been a good business for us and weâve enjoyed a good reputation for meeting our commitments. But we have to earn the trust of our customers every time.â
Asked about competition in completions, Smith responded, âWe certainly place Jet Aviation at the top, not just at the top end. Focused in Basel and Singapore and Dubai.â
He also said that the refurbishment, modification and upgrade business is going well. âWe are certainly well versed in this. We just refurbished the first BBJ we ever did a completion for. So weâre involved not only at the sale of an aircraft, and it can just be a modernization,â he noted.
Smith maintained that bizliners and large cabin business jets would remain the focus for the business, though the company would evaluate any opportunities within the business aviation domain it knows so well. âIâm a strong believer that youâre destined to fail if you go outside your competencies,â he said.
Asked about any holes in the business, its international presence or capabilities, he told AIN, âItâs probably more geographic. For example, weâre not in London and itâs somewhere weâd love to be.â
In relation to being Gulfstreamâs sister company, he reflected, âFrom a General Dynamics perspective, [Gulfstream CEO] Mark Burns and I both report to the CEO, Phebe Novakovic. âWeâre separate entities but there are synergies,â said Smith. âBut we have [as other customers] Dassault, Boeing, Bombardier, Embraer, CessnaâŚso itâs important for us to be independent and support all the OEMs. And the General Dynamics structure is very decentralized. But when General Dynamics acquired Jet Aviation nine years ago, the focus was top end and General Dynamicsâ philosophy is never to be a minor player in a sector.â
With this being Jet Aviationâs 50th anniversary year, "Weâre looking back over our history and the 50 years," Smith said. "Iâve had the pleasure of going through some of our archives and weâve been publishing our history in chapters on our website. And with our rebranding earlier this year we are really focusing on the future."