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AMS

About the Client

AMS has been servicing and maintaining over 380 general aviation and corporate aircraft since 1988 employing a staff of FAA certified technicians. AMS was founded by Darrell Tunnell, a certified mechanic, with the goal of provide top quality, safe and reliable aircraft maintenance.

Aircraft Maintenance

Business Impact

  • Doubled EBITDA
  • Reduced owner’s role from 10 to 4 hours/day
  • Reorganized service offerings to focus on larger, more profitable aircraft
  • Added 2nd hanger
  • Reorganized service offerings to focus on larger, more profitable aircraft
  • Create new, passive revenue via aircraft storage.

23%+ YoY Growth
110% Increase in EBITDA
6 Fewer Owner Hours per day

Approach toward Change

Dr. Jason Seibel and Darrell Tunnel met in 2018 to change how AMS operated. Darrell sought to expand his business and transition from small piston to jet aircraft while also creating new, passive income by storing and securing corporate aircraft.
PMG conducted extensive industry research coupled with multiple interviews with Darrell to identify a vision, mission and goals. Using strategile and other proprietary tools, PMG created a strategic plan to pivot his company using market, segment, competitive, service, PEST, SWOT and more analysis.

“PMG used a strategic planning process to develop our strategic plan to expand our aircraft maintenance into more complex & profitable service model..”

Challenges in the Aircraft Maintenance  industry:
The aircraft maintenance industry faces multiple challenges due to limited space, economic fulgurations, certified mechanics and liability.  Aircraft operators face the daunting challenge of finding a trust maintenance operator due to the catastrophic nature of mistakes.
Challenge #1 – Maintenance Space (limited to airports)
Challenge #2 – Lack of Certified Mechanics
Challenge #3 – Time Consuming Nature of Aircraft Services

Implementation

  1. A plan was created with milestones & outcomes was created to hold PMG & AMS accountable
  2. A financial analysis was conducted to understand the current state of the business; Q&A’s were held to appreciate the particulars
  3. A 2-day onsite strategic planning session was held and later presented to the owners
  4. Multiple actions were set into motion to implement early opportunity, quick hit improvements
  5. Post “quick hits,” the owner sold several “project” aircraft to improve cash flow and liabilities off the books
  6. Pricing was restructured to pivot toward King Air aircraft
  7. A parts management, margin and pricing strategy was implemented
  8. In 2020, a new location for a hanger was established; banks were solicited, and a general contractor was hired; COVID delayed the expansion, however the new hanger is expected in 2021

Future Efforts

  • Expand hiring initiatives
  • Expand bundling services
  • Expand technology to reduce the manual nature of record keeping / maintenance
  • Expand marketing

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