Federal Aviation Regulation Certified Repair Stations have been a great business model that has been quite successful over the years. This is because airlines would rather outsource their maintenance to other companies that specialize in certain types of airplanes and certain FARs.
After oil prices hit their peaks a couple of years ago, Jet Fuel was so expensive that airlines were under extreme stress to cut costs, and most of them decided one of the best ways to cut costs was to outsource their maintenance facilities.
This caused the certified repair stations to ramp up quickly and hire as many airframe and power plant mechanics as possible, along with airframe inspection mechanics. You would think with the economic global slowdown that airlines would continue to outsource to all these facilities. And they do, however airlines have also cut out quite a bit of capacity taking airliners and parking them in the deserts.
Why the deserts? Due to the hot dry conditions that make it less corrosive on the aluminum fuselages and wings. But with fewer airplanes in the system, less maintenance is needed.
With the incredible growth of these types of companies, they have also been forced to lay off individual mechanics. Although, as the economy returns we can expect these FAR certified aircraft maintenance facilities to ramp back up to full force.
The temporary slowdown, or slow growth of profits in this sector should not be thought of as the death nail. Just like the entire travel industry, airlines, and auto industry this global slowdown and economic crisis hit every industry. This one included. Please consider all this.
Lance Winslow is a retired franchisor – Lance Winslow’s Bio. Lance Winslow is formerly the CEO of WashGuys family of franchises for instance one of Lance Winslow’s favorite companies on the team; http://www.windowwashguys.com/links.shtml.Mail this post