To be successful they realised they needed a business jet charter marketplace to drive demand. So they decided to launch that as well. One of their professors suggested they focus on the marketplace and park the air taxi idea. The Avinode charter marketplace launched in 2002.

CAMP Systems this week agreed to buy Avinode and two smaller FBO software businesses – FBO One and Total FBO –  for $200m. The professor was right.

It is a good deal for World Kinect (the energy company formally known as World Fuel) which acquired Avinode in 2014. World Kinect will use the cash to pay down debt and focus on its core fuelling business. It has clearly made a good return on its investment. World Kinect took control in 2019 just before its main business was hit with grounded airlines.

“We are excited about the possibilities the partnership between our companies will bring to our customers,” said Oliver King, chief executive officer, Avinode Group.

The acquisition also makes a lot of sense for CAMP Systems, the aircraft maintenance tracking business. CAMP Systems is itself owned by Hearst, a 136-year-old private company. Hearst is best known for publishing regional newspapers like the San Francisco Chronicle (which it launched in 1887) and magazines like Cosmopolitan, Good Housekeeping and Harper’s Bazaar. But along with newspapers, TV and magazines it has three significant business-to-business data divisions: Fitch Ratings, healthcare and transportation.

The transportation division includes data that helps mechanics fix trucks and cars. This includes MOTOR, a magazine that Hearst has owned for more than 120 years. MOTOR has evolved from a print consumer magazine into a data business for car repair, parts and insurance. Aviation is just as significant to Hearst.

Hearst acquired CAMP Systems in 2016 from private equity firm GTCR. (GTCR is now an investor in JSSI and has supported it buying two aircraft maintenance tracking companies that are rivals to CAMP.)

CAMP Systems then bought Inventory Locator Systems, the spares marketplace, from Boeing in 2019. In 2021 it bought a majority stake in FlightBridge, a workflow system that connects business jet operators with FBO, car handlers, hotels, airlines and catering companies.

When the deal closes in May, Avinode will fit into CAMP’s Marketplaces Group along with ILS, FlightBridge and Amstat – the aircraft listing marketplace.

“This represents a complementary extension of our business and platform to bring exciting new opportunities to the market and better serve our expanding customer base,” said Sean Lanagan, president and chief executive Officer, CAMP Systems.

World Kinetic did not run a formal sales process, instead it contacted companies that had already approached it in the past. The business could have fitted well with Directional Aviation’s spin-off Tuvoli (which has FlyEasy, a rival marketplace and a payment system competitor). It might also have been of interest to Portside, the flight department software company which raised $50m in private equity from investor Insight Partners (and recently acquired the rights to Wheels Up’s AVIANIS software). The founders of Wheels Up had also tried to buy Avinode several times.

King and the senior management team have no plans to leave. This includes Per Marthinsson, one of the three founders, who is Avinode’s chief revenue office.

The other two founders are backing a European car charging start-up. It was branded before they joined, but is genuinely called ChargeNode.

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The firm has appointed João Caram to join Aroldo Rovero as the director of business development, South America, and Giuliano Donadio as the director of regional sales, LATAM. Caram will be responsible for supporting the hourly cost maintenance (HCM) team and Donadio the maintenance software team in their respective territories.

Francisco Zozaya, JSSI’s chief revenue office, said: “As a company with global reach and support capabilities, we remain focused on enlisting top-tier aviation professionals, and there is no better occasion to announce this significant milestone than at this year’s LABACE event. We are confident our team of all-stars is poised to provide the best experience to customers while effectively supporting this thriving market.”

David Caporali, senior vice president of Business Development, Americas, added: “Both João and Giuliano have an extensive network within the LATAM market, as well as deep industry experience. João comes to JSSI after a decade of working in the aviation sector. Following the announcement of his recent appointment, we are continuing to focus on Brazil, one of the largest markets outside of North America in terms of the size of its executive aircraft fleet. Giuliano’s proven track record makes him the perfect candidate to serve the LATAM area given his success working in the region. I am confident that both João and Giuliano will be an asset to the team.”

JSSI will attend the 18^th annual Latin American Business Aviation Conference & Exhibition (LABACE) taking place in São Paulo this week, August 8-10. 

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“Joining JSSI gives us the opportunity to grow the business faster than we can alone,” Miller tells Corporate Jet Investor. “We will have more access to capital and also can work with the salespeople across the whole JSSI platform to originate more deals.”

Shearwater rarely competes with banks. As an asset backed lender, it has always focused on the underlying aircraft more than the customer’s credit. A lot of its deals have been outside of the US for aircraft older than 10 years with an average deal size of about $5m-$8m.

JSSI Aviation Capital will have a similar strategy, but with a focus on the US market as well. 

Miller started in aviation in the US Marine Corps as an F/A-18 pilot. He launched Shearwater in 2014 after heading Guggenheim Partners’ Business Aircraft Investment Group (which was acquired by Stonebriar Commercial Finance). JSSI was also an early investor in Guggenheim Partners’ Business Aircraft and has invested in past Shearwater deals.

Shearwater worked closely with family offices and private equity to source cash. JSSI Aviation Capital is also keen to work with banks looking to syndicate deals or to be a quality alternative for a customer that may not meet their financing criteria.

“We have worked with Chris for over a decade and know the business well,” Neil Book, president, JSSI tells CJI. 

Backed by private equity firms GTCR and Genstar, JSSI’s business has transformed in recent years. Best known for its maintenance programmes, JSSI has acquired or created several businesses including Conklin & de Decker an information company, which went alongside the launch of JSSI Advisory Services (which offers appraisals, inspections and consulting). JSSI also acquired TRAXXALL and SierraTrax two maintenance tracking software companies.

One of its fastest growing businesses is JSSI Parts & Leasing, which sources parts and leases spare engines. It has also financed a few aircraft in special situations. “Our focus has always been on simplifying the complexities of maintaining an aircraft and providing a great customer experience. Who better to offer asset-based financing solutions?” says Book. 

“We help protect the asset value by providing maintenance tracking software, maintenance programmes and 24/7 AOG support,” he says. “It is a different product, but fundamentally all about protecting an aircraft’s value which is what our businesses do.”

Like Shearwater, JSSI Aviation Capital will expect borrowers to keep at least a third of the aircraft’s value in equity and require approved third party aircraft management.

The acquisition closed in early May with JSSI Aviation Capital closing is first deal – for a southeast Asian aircraft – today. Miller adds: “We are already growing the portfolio and there are a lot more deals to come.”

This is from Corporate Jet Investor’s One Minute Week email – you can sign up for free here

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Roger has more than a decade of experience in senior sales and business development roles. He joined Jetcraft in 2013 where he took on the role of director of Sales, Latin America for nine years, before being appointed as director of Sales, Europe in 2020. At the firm, he managed close to $1bn in aircraft transactions across Latin America, Europe and North Africa, with a focus on larger aircraft.

Speaking about Roger, Neil Book, chairman and CEO, JSSI said: “His approach to customer service, his ability to create strategic alliances with the right partners across every level of an organisation, and his deep understanding of local markets and cultures will be a real asset for us as we continue to enhance JSSI’s regional presence and service.”

Roger said: “Throughout my career in the business aviation industry I have been impressed by the unique value proposition and customer service JSSI brings aircraft owners and operators, with innovative tools backed by data and tailored to simplify the complexities of aircraft maintenance.”

In May, JSSI expanded its financial leadership team with the appointment of Tim Elberfeld as chief financial officer and Ken Goodman as chief underwriting officer.

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Genstar, with $35bn under management, has bought out some of GTCR’s stake in the company. This is Genstar’s first business aviation deal.

“Genstar invests in four areas – financial services, software, industrials and healthcare – and we are their only investment which touches on three of these,” Neil Book, CEO, JSSI tells CJI. “It also means they have expertise that we can use to grow.”

Terms are not being disclosed but GTCR, which is keeping a stake, is likely to have got a good return. JSSI has seen large top and bottom-line growth in the past two years.

Although it has acquired two maintenance tracking software companies – SierraTrax and Traxxall – most of this growth has come organically from its maintenance programme and parts and leasing.

“We now track 3,500 aircraft tails through our software platform, giving us fantastic visibility on upcoming maintenance events, feeding our hourly maintenance programmes and parts and leasing businesses,” says Book.

GTCR understands business aviation well. It bought FBO company Landmark Aviation in March 2008 at the top of the business aviation market and managed to sell it for a profit in 2012. (Landmark was later sold to Signature Aviation which was taken private last year for $4.5bn). GTCR also acquired maintenance tracking company CAMP Systems which was sold to Hearst in 2016. It is also an investor in connectivity company Gogo.

“Since our investment in 2020 we have worked closely with Neil to accelerate JSSI’s growth,” said Craig Bondy, MD, GTCR. “Genstar’s investment is a testament to the hard work of the JSSI team and the value proposition they deliver to customers.”

With more than $10bn of private equity invested in business aviation, 2021 was a record one. This year has not seen the same volume but is still set to be above average. In his excellent CJI Miami presentation Kenn Ricci, chair, Directional Aviation, said that there have been 92 private equity investments in business jet operators in the past five years (you can watch it here).

Book adds: “This investment from a top private equity firm demonstrates their confidence in the business aviation market.”

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It is a familiar problem for aircraft owners. One operator tried sourcing a replacement windshield in June this year and was told that he could have one shipped to him by October. October 2023. “How can you call an owner and tell him that?” he asks.

He is not the only one. “In mid-2020, there was a shortage of tyres. Windshields have been a massive problem this year, on the engine side some turbine blades and seals are a big problem,” says Timothy Ferrell, senior vice president, Technical Services, JSSI. “One OEM will get one problem fixed and then another one pops up.”

“It’s a game of whack-a-mole,” agrees Ben Hockenberg, president, Parts and Leasing, JSSI. Hockenberg says that as well as trying to source the components that owners may need early, they are also warning customers that they may need to be patient.

Like other industries, the business aviation supply chain is struggling. A significant number of smaller suppliers to business aviation OEMs failed because of Covid. While business aviation rebounded fast, many small manufacturers were more reliant on commercial aircraft manufacturing and ran out of cash. Manufacturers and their largest suppliers have worked hard to find new suppliers or moved production in-house, but it takes time. Problems were then made worse with sanctions against Russia making it harder to get raw materials like titanium and other metals. “We are spending a lot of time trying to get un-obtanium,” says the CEO of one engine company.

“OEMs are good at identifying an aircraft that is truly AOG and helping,” says Ferrell. “Generally, everyone is trying to come together, but it is hard for everyone.”

JSSI’s Hockenberg and Ferrell say that they are seeing maintenance shops building in extra time when quoting for jobs. But despite this, some aircraft are taking weeks longer to get flying when they need a part. “Advanced planning definitely helps and can make a big difference, but sometimes you can be unlucky and find you need a part that is very hard to get,” says Hockenberg.

Some large charter operators are taking parts from aircraft that are in shops when they are needed for aircraft that are flying. Engine monitoring is also helping manufacturers detect problems earlier.

Bombardier is another manufacturer adapting to the realities of changing supply chains. “We are working closely with third-party suppliers that specialise in aircraft teardowns to provide us with removed inventory,” says Jean-Christophe Gallagher, executive vice president, Services and Support and Customer Strategy, Bombardier. The OEM has increased inventories of both critical components and raw materials.

Gallagher remains optimistic that the supply chain challenges can be resolved with the help of Bombardier’s procurement department: “We have more than 30 people in the field working directly with our primary and sub-tier suppliers to ensure the supply chain finds the talent and parts they need.”

Manufacturers deserve credit for working hard to fix the problem and investing to fix supply chains. But it is an extremely complicated problem. Things are improving, but many believe there will still be some shortages until at least the middle of 2023. The good news is that owners understand that this is not just a business aviation problem.

The operator managed to secure a windshield last month by paying three times the OEM list price. “This current supply chain issue is not improving at all, nor do I see it any time soon,” he says.

And four months later, our friend is still waiting for a new steering wheel.

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*The move will allow JSSI to “rapidly scale” business said product’s new CCO, Mark Steinbeck

Jet Support Services, Inc. (JSSI), the leading independent provider of maintenance support and financial services to the business aviation industry, can now add software to its business description. JSSI has launched JSSI Maintenance Software, a new business unit to unite the company’s growing portfolio of technology-enabled maintenance products.

JSSI Maintenance Software integrates a range of aircraft maintenance tracking and maintenance, repair and overhaul (MRO) software solutions from industry leaders Traxxall and SierraTrax under one brand. These products will join the company’s other offerings: JSSI Maintenance Programs, JSSI Parts & Leasing, JSSI Conklin & de Decker and JSSI Advisory Services.

“Our approach is simple. We’re focused on integrating and expanding these innovative solutions to deliver enhanced value to our customers. With the addition of Traxxall and SierraTrax over the past 12 months, JSSI is uniquely positioned to connect a wealth of maintenance data that will enable us to create huge efficiencies for customers, whether they operate a single aircraft or a large fleet,” said Neil Book, chairman and CEO of JSSI.

Traxxall provides business-to-business (B2B) centric software offerings for aircraft maintenance tracking, inventory management, and MRO operations across all sizes of operator or maintenance facility. The company provides solutions for all makes and models of business jets, turboprops, and helicopters. SierraTrax serves as a business-to-consumer (B2C) offering for maintenance tracking software for customers looking for a simpler feature set at a lower price point.

“With more than 5,000 business aircraft supported by JSSI, Traxxall and SierraTrax, the decision to align these maintenance products will enable us to significantly enhance the service we provide customers and position us to rapidly scale the business,” said Mark Steinbeck, who has been appointed chief commercial officer of JSSI Maintenance Software.

“Our continued success is a testament to the dedication, passion, and customer-oriented mindsets of the respective teams who have worked hard to develop and deliver both products,” added Steinbeck.

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Both will report directly to company chairman and CEO, Neil Book. Elberfeld, with more than  two decades of finance and accounting experience, has also taken up the position of head of information technology at the Chicago-based firm. “Tim’s experience and leadership has already been felt across the organisation,” said Book.

Elberfeld previously spent 10 years at information, risk and fraud prevention solutions company TransUnion. Based in Johannesburg, South Africa, he held leadership roles such as chief accounting officer and chief financial officer working across  Africa. He also spent 12 years with professional services network PricewaterhouseCoopers.

“I look forward to working with my colleagues at JSSI to help drive the business into the future,” said Elberfeld.

Goodman has transferred to the new position of chief underwriting officer after serving as JSSI’s CFO for six years. Before joining JSSI, Goodman worked for 20 years as NetJets’ senior vice president of financial planning and analysis, He has  also worked at Victoria’s Secret’s real estate division.

Book said, “I am grateful to Ken for the tremendous job he’s done as CFO over these last six years. I’m excited to see him take on this new challenge and apply his industry knowledge to take our underwriting organisation to the next level.”

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The additional aircraft, which included long-range, super-midsize, widebody and midsize options, have been based at five locations around the US. They are: a Bombardier Global 6000 at Chicago, a Gulfstream G500 in North Dakota, a Falcon 2000LXS in Florida, a Bombardier Challenger 300 in Michigan and a Learjet 45 in Oklahoma.

Priester Aviation president and CEO Andy Priester said: “These additions advance our goal of delivering incredibly high-quality, responsive services in key markets.” Demand is continuing to grow, he added. “More and more people recognise the unrivaled flexibility and benefits afforded by aircraft ownership and private charter flights.”

Founded in 1945, Priester Aviation offers a range of services including jet charter, aircraft management and aviation consulting. During that time its fleet has grown from seven to 75 aircraft. The most recent fleet additions follow a new management programme launched last summer with Jet Support Services, Inc. (JSSI) Parts & Leasing serves to streamline procurement and boost efficiencies.

Priester’s new aircraft and their locations – at a glance

• *Bombardier Global 6000, Chicago
• *Gulfstream G500, North Dakota
• *Falcon 2000LXS, Florida
• *Bombardier Challenger 300, Michigan
• *Learjet 45, Oklahoma.

Andy Priester, Priester Aviation president and CEO: More people recognise the flexibility and benefits offered by aircraft ownership and private charter flights. Top: a Priester Aviation Gulfstream G500.

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The donation from JSSI offsets as much carbon dioxide (CO₂) from the atmosphere as approximately 70,000 trees would remove during a full year.

“What better way to wish our clients a happy holiday season than to build upon our efforts toward creating a more sustainable future for flying,” said Francisco Zozaya, chief revenue officer at JSSI. “Supporting over 20% of the world’s business jets through our suite of products and services, we have a clear, impactful opportunity to help realise our industry’s goal of carbon neutrality by 2050.”

JSSI’s partnership with Avfuel has given the firm’s clients access to an online CO₂ calculator to estimate emissions, carbon credits which allow clients to purchase carbon offsetting measures, and access to sustainable aviation fuel (SAF).

JSSI’s maintenance programme clients are also able to offset their carbon emissions through Avfuel’s Carbon Offset Program as a part of their JSSI monthly flight activity reports. Each carbon credit purchased offsets one metric ton of CO₂ emissions through direct investment in a selection of projects with a positive impact upon the environment.

Access a free CO₂ calculator and learn more about JSSI’s sustainability initiative here. [link to: jetsupport.com/sustainability].

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