When small jets can mean big business too

THE word aviation conjures up lofty images of wide- bodied airliners, jetsetting travellers and the global acclaim for Changi Airport.

But there is a humbler facet of the industry that tends to fly under the radar.

Keeping the hundreds of single-propeller aircraft piloted by flying enthusiasts up to speed might not command the attention of those servicing big jets.

But it can be a lucrative enterprise in its own right.

Local firm MAJ Aviation identified the need a year ago and will soon become a high-flyer in offering many of the services plane owners need, such as aircraft maintenance.

'We have been in the aviation industry for quite some time and we know the quality and engineering systems well so we were willing to take up the challenge,' managing director Khoo Beng Keat said.

Mr Khoo, 50, was previously a senior engineer with the Republic of Singapore Air Force, involved in key operations support and aircraft acquisition.

That kind of knowledge and the technical experience involved are priceless in a competitive game like aviation and Mr Khoo made sure that he had partners with equally good credentials.

His partners - executive directors Teng Kim Hai, 46, and Christopher Wong, 56, - both have solid industry backgrounds, allowing the three men to boast a combined 70 years' worth of experience in aviation.

That unparalleled insight into the industry's needs was initially directed at setting up a manpower company in 2003 to provide skilled technical workers.

But MAJ Aviation has since diversified into the more sophisticated avenues of ground support equipment maintenance and aviation training.

It even runs a flying club to allow aerospace engineering students to take to the skies with a certified pilot at their side.

The firm, like almost every one in the sector, was hammered by the global downturn, which has been particularly cruel to aviation.

Revenue dipped last year to $7.5 million from the $10 million average in previous years but Mr Khoo hopes sales will hit $20 million within three to four years due to the increased range of services the company is providing.

MAJ Aviation's next goal is to be the first small- and medium-sized enterprise here to set up a one-stop general aviation centre providing services such as refuelling and general upkeep for smaller planes.

It is intending to build a hangar at Seletar Airport - fast becoming a second aviation hub - to house the centre.

MAJ Aviation recently inked a five-plus-five year contract to maintain the Singapore Flying College's new fleet of aircraft.

The two moves are crucial to the company's aim of being the dominant firm servicing the entire light aircraft community.

Mr Khoo said: 'At the lower end - where people fly planes as a hobby - the willingness to pay for services is less than for those flying corporate jets.

'For now, the cost tends to be higher than expectations, as the larger aircraft maintenance companies are used to catering for business jets and are unsure how to charge smaller aircraft.'

Owners of such planes, however, are looking for cheaper and complete services - not just maintenance, repair and overhaul (MRO), but also assistance like concierge services, valet parking and washing and waxing of aircraft.

So they need a service centre that is thoroughly flexible, Mr Khoo said.

'Our pricing is more appropriate to the aircraft we're servicing. We are designed to support smaller aircraft so our investments are smaller in terms of manpower, equipment and facilities, and our charge rate can also be more reasonable,' added Mr Teng. He was involved in the Defence Ministry's aircraft acquisition programmes and also dealt with fighter fleet operations and support.

If a complete set of services can be provided, not just to business jet users but to light aircraft owners as well, people who are parking their planes in Malaysia and Thailand due to lower maintenance costs there might just come back here, he said.

'One of the key aspects in flying is maintenance. If the cost for maintaining (the aircraft) is too high, it will not be sustainable and so very few aircraft are maintained here.

'But we see a gap because if we come in at an appropriate price, we believe that the Singapore branding will be able to pull them back,' Mr Teng added.

But obtaining certification for MRO is not an easy task. Firstly, there is the high investment cost in equipment and manpower development - almost half a million dollars. Secondly, there is the industry's highly legislated nature which involves much documentation.

MAJ Aviation - thanks to Spring Singapore's help of more than $100,000 - expects to obtain its accreditation by early this month.

The firm is also participating in the Singapore Airshow, which ends on Sunday. The company will showcase its involvement in general aviation and its role as a service provider in the community.