JSSI’s George Kleros, Senior Vice President for Advisory Services, and Ron Garis, Manager for JSSI Software – Conklin & de Decker, recently spoke with Elite Wings Magazine in its inaugural ‘Pre-owned Guide’ issue about aircraft acquisition planning. 

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Founded in 1989 and headquartered in Chicago, Jet Support Services, Inc. (JSSI) is the leading independent provider of hourly cost maintenance (HCM) programs to the business aviation industry. Over the last decade, JSSI has constructed a portfolio of complementary business lines that support owners, operators, and maintenance teams across the entire lifecycle of ownership – including parts procurement, maintenance tracking software, advisory services, and aircraft financing. JSSI’s trusted aviation advisors draw on decades of technical knowledge, experience, and real-world data to help buyers make informed aircraft ownership and operating decisions. 

In 2018 JSSI acquired industry research firm Conklin & de Decker (C&dD), the most trusted source foraircraft cost and performance information – now part of JSSI Software. JSSI also launched its AdvisoryServices division shortly before, in 2017. Can you give us a quick overview of these offerings and the vision behind these product lines? 

JSSI’s Software and Advisory divisions were both born from a vision to increase cost transparency and provide objective, independent advice and data intelligence to the broader industry, owners, and operators. 

Today, JSSI’s Advisory arm offers a wide range of consulting services: from engine and airframe maintenance event oversight (helping drive cost savings on a project basis) to objective appraisals, asset inspections, and acquisition planning. The expert technical team behind these products includes Aviation Suppliers Association (ASA) – accredited appraisers, product line specialists, data analysts, and regional tech representatives globally. 

JSSI’s Software division includes Conklin & de Decker’s Aircraft Operating Cost & Performance Guide, as well as JSSI’s maintenance tracking suite of products (Traxxall and Aviator). C&dD has been around for 40 years (celebrating 40 this year!) and continues to be a trusted resource for benchmarking cost and performance across virtually any make and model of business aircraft. Since the acquisition, JSSI remains committed to invest in the platform to modernize the tool and further enhance the data, methodology and cost assumptions. 

C&dD subscribers have access to the most representative aircraft information directly through the latest digital platform – empowering more informed acquisition decisions. The portal allows users to compare up to 3 aircraft side by side, loaded with over 500 makes and models of business aircraft – including jets, helicopters, turboprops, and pistons. 

What are some of the costs that are often overlooked by first-time buyers? 

Many first-time buys can be taken back by the many costs and considerations that go far beyond acquisition price. The right broker can make a big difference in the process, guiding the new buyer through the purchase. In the transaction stage, costs are often straightforward as defined in the Aircraft Purchase Agreement (APA): including purchase price, legal fees, escrow costs, title fees, etc. 

However, post-transaction costs are not always thoroughly considered during this phase, and first-time owners can find themselves not fully understanding all the costs associated with owning and operating an aircraft. Engine and airframe repairs or component failures can all be very expensive events, and it’s important for buyers to understand where the aircraft sits in its maintenance cycle – especially when buying pre-owned as large inspections could be right around the corner. JSSI recommends looking ahead for the next 5-7 years (typical ownership cycle) to make sure any larger upcoming inspections are understood and accounted for. 

Once the aircraft changes hands, any maintenance program coverage can be transferred to the new owner; it is in the best interest of the new owner to fully understand their maintenance program options and cost exposure. Maintenance costs can account for up to 35% of the aircraft’s operating budget over its life in operation, a surprise to many first-time buyers. 

As the first-time buyer becomes a first time owner, it is critical to select the best fit management company – which oversees day-to-day operations of the aircraft, financial management, maintenance and repair, and crew management. Choosing the right management company and financial maintenance program partner helps keep costs predictable and ensures aircraft airworthiness and regulatory compliance. 

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Read the full article here – pages 34-36.