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How Midcoast Aviation Adapted to Tough Times

The U.S. economy, as well as economies around the world, still struggles to grow, and that goes double for the business jet market. But this bizjet maintenance firm has made adjustments, weathered the economic storm and appears poised to benefit from the anticipated recovery.

BY JAMES CARELESS

Aviation, in Cahokia, Illinois, just as it did other companies in aerospace. But as a support facility for business jets, Midcoast was hit especially hard, what with companies reducing their purchasing and use of private jets. The numbers tell the tale: JP

T

Morgan says that new aircraft deliveries (large and small cabin) dropped 39 percent in 2009, and are expected to drop another 19 percent this year. Meanwhile, the U.S. Federal Aviation Administration’s (FAA’s) March 2010 Business Jet Report says total global business-jet operations

he recession and the previous year’s anemic economic growth affected Midcoast

dropped 19.6 percent in 2009, compared to the year before. The drop in the United States was worse, down 20.4 percent. “The downturn hurt our new jet

completion business,” says Skip Madsen, Midcoast’s vice president, MRO sales and service. “However, our MRO side has held up pretty well.” So well, in fact, that when the

company found itself forced to layoff 100 employees and 50 contractors, they came primarily from the completion division. Midcoast’s MRO division survived relatively unscathed. Today, although completions are

still down, Midcoast Aviation now has a growing backlog in MRO service appointments. In addition,

44 Aviation Maintenance | avmain-mag.com | April/May 2010

the company has been able to divert some of its completion resources into refurbishing already-owned aircraft. “Things are certainly going better

than they were a year ago,” Madsen tells Aviation Maintenance.

A Bizjet Business

Founded in 1971, Midcoast Aviation began as a small, all-around general aviation FBO. But the growing demand for business-jet services soon convinced the company’s management to put their energies into that market. The decision paid off. As corporate

jet travel grew, so did Midcoast Aviation’s business. As a result, the company kept expanding. In 2006, Jet Aviation acquired it, adding to its Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64