JSSI is the leading independent PBH provider. Can you provide us with an overview of the JSSI market share and the latest market trends?
Across JSSI’s portfolio of products, we support ~20% of the global business jet fleet. We are focused on business aviation and offer programs and services for virtually every make and model of business aircraft. This gives us the unique ability to offer coverage for a mixed fleet and clients can enjoy a single point of contact across multiple aircraft and assets.
Through our scale and breadth of service offerings, we have early visibility into trends and work proactively to help our clients plan and prepare for maintenance. 2022 was a year of challenges, impacting shop turn time and maintenance costs. With material and labor shortages, increased parts lead time, lack of rental assets and low slot availability in maintenance facilities – many operators were affected. Inflation on parts and labor also drove up costs.
While it has been difficult for the whole industry to return aircraft to service quickly in this environment, we saw increased demand for our core three product lines: Hourly Cost Maintenance Programs, Maintenance Software, and Parts & Leasing. Operators are looking for a partner in tracking and overseeing their maintenance requirements, ensuring slot availability, procuring parts in advance, and minimizing downtime. JSSI has been well positioned to advocate for our clients, helping plan for maintenance events well in advance, and leveraging our scale and breadth of services to find creative solutions.
JSSI has developed a comprehensive Engine & Parts solution. How is JSSI performing in this capital-intensive business?
2022 was a challenging year to stock parts, however we had historic growth, and our inventory position grew to 50,000+ lines of stock and we increased our lease engine portfolio to 50+. We also expanded our presence by opening our third warehouse in Florida, responding to the rapid growth of business aviation and demand for maintenance services in the region.
Today we have three warehouses located around the US, and inventory to support ~80% of all business aircraft in operation. Our breadth continues to be an asset for our diverse client base.
JSSI Parts & Leasing has grown organically from supporting our HCM client base, to a powerful sourcing platform, leveraging our inventory and strong global vendor relationships. As parts sourcing remains a challenge in the current supply chain, we continue to mine our data and find the best opportunities to pursue teardowns and stock assets to meet our clients’ needs.
JSSI is heavily investing in maintenance software with the recent acquisition of SierraTrax and Traxxall, what drove this acquisition decision, and how JSSI is planning to integrate these tools with their PBH offering?
Aircraft owner demographics are changing a lot, as younger and more diverse UHNIs enter the business aviation market. As a result, expectations of technology and visibility to transparent data have changed. The industry is lacking some innovation in this space. At JSSI, we strive to make tools, data, and information easier to present, use and digest through our software offerings Conklin & de Decker and Maintenance Tracking Platforms, and our Parts & Leasing Portal.
We are constantly looking at improving our data and systems’ integrations to provide a combined solution for our customers. For example, boosting the accuracy of our maintenance intelligence tools to see which parts are most likely to fail, by inspection type and AC model. Through mining our historical data, we can anticipate maintenance, accurately forecast, and better serve our customers with real, actionable information. Access to accurate data is a huge part of providing superior customer service.
Throughout our product portfolio, we strive to minimize surprises, reduce downtime, and bring efficiency to operators. This is achieved when data and technology within our Maintenance Tracking Software is paired with the experience and expertise of our technical experts. Our technical representatives and advisory services team are utilizing our shared market intelligence, dedicated to advocating for our clients throughout their ownership experience and every maintenance event.
As Chief Revenue Officer, Francisco provides leadership to the global business development organization. Additionally, he oversees the suite of Conklin & de Decker digital and consulting solutions. Prior to joining JSSI, Francisco served as Pre-Owned Director at Aerolineas Ejecutivas, managing its pre-owned aircraft sales and acquisitions business unit. He facilitated several key industry alliances and memberships for Latin America’s largest business aviation company and has established an extensive network with the global broker community, financial institutions, OEMs and MROs.