If you compared Precision Aviation Group’s (PAG’s) strategic plan when it launched in 1996 to its expansion plans for today, tomorrow and a decade from now, the documents would align almost perfectly.
The scale and pace of PAG’s growth have escalated since those early days, and the company’s international footprint now makes it one of the largest maintenance, repair and overhaul (MRO) firms in the world. But the overall strategy hasn’t changed.
“Our goal is always just to grow at a consistent rate–not to have crazy expectations, but have consistent, solid growth,” said David Mast, the company’s president and chief executive officer. “And we’ve been doing the same exact thing . . . the playbook we put in place in 1996 has not deviated much at all.”
PAG strives to become a better company every day, providing industry-leading customer service and quick turn times, with local support in locations around the world.
That simple philosophy led PAG to launch new facilities (in Singapore; Brisbane, Australia; and Sao Paulo, Brazil) in recent years, along with several expansions to existing facilities. It’s also the principle guiding further expansion plans in 2020 and beyond.
“Our focus is always not a specific number in terms of capabilities, expansion or revenue growth,” said Mast. “It’s really focused on just adding to the number of products and services, and adding to our support capabilities; growth comes along with that.”
PAG has enjoyed a compounded annual growth rate of about 14 percent over the last 19 years, and in 2019 the company enjoyed the most successful year in its history. That achievement is thanks in part to several new MRO contracts with the United States Department of Defense, as well as the acquisition of Momentum Services Corp. (MSC), a leading aviation display repair company.
PAG finalized the MSC deal on Aug. 31, 2019, its sixth acquisition in a short timeline.
MSC’s founders established the first third-party liquid crystal display (LCD) repair process in 1995. Through MSC, their innovations and experience now serve customers in the helicopter, commercial aircraft and business jet sectors.
“We’ve effectively doubled their revenue since we acquired the business,” said Mast.
“Momentum is one of a few companies in the world that has LCD repair capability.” Plus, Mast said the founders of MSC have been doing LCD repairs for 27 years, previously in their own consumer electronics business. “So, they have a vast depth and breadth of knowledge.”
Given that many helicopter operators have transitioned from cathode-ray-tube displays to LCDs, PAG sees LCD repair as a significant avenue for long-term growth.
“Finding that niche and really focusing on the rotary-wing side is where we see a lot of opportunities,” said Mast.
Despite significant headwinds, including the political climate in the United States, an ongoing trade war with China, a depressed oil-and-gas sector and the consolidation of emergency medical services markets in North America, PAG picked up several significant wins in 2019.
The company’s Singapore facility, which focuses on helicopter MRO, saw prolific output last year and continues to yield unique opportunities to reach customers in the Asia-Pacific region.
Add to this the continued success and expansion of Precision Aircraft Services, a PAG subsidiary in Peachtree City, Georgia, that is an authorized Airbus Helicopters, MD Helicopters and Robinson Helicopter service center.
“We’ve enhanced their capabilities to have a full suite of services, not only for ADS-B [Automatic Dependent Surveillance-Broadcast] support but for the component repair side of our business, as well,” said Mast.
PAG also expanded its relationships with several important original equipment manufacturers (OEMs), who have been attracted by the company’s US$45-million parts inventory and its global footprint.
“We recently secured a five-year MRO agreement with two of the largest OEMs in the helicopter space, which includes about 180 components,” said Ketan Desai, vice-president of sales and marketing at PAG. “So, we’re seeing a lot of growth in that sector, and I think we’re going to continue to see that growth beyond 2020.”
While OEM partnerships have been a key success story, contracts with large operators have also increased. In the oil-and-gas sector alone, PAG has doubled its revenue from rotary-wing operators in that market over the last four years, said Desai.
“We provide a level of service to our customers that they don’t consistently get anywhere else–that’s what customers remember.”
In the year ahead, and in the next decade, PAG will continue to pursue an aggressive expansion plan, guided by a commitment to serve its customers. The company’s tagline and motto, Global Presence, Local Support, remains the same.
“If I were to say one thing to people reading this article, it would be, ‘Thank you for trusting PAG to support your operations,’ ” said Desai. “And if you haven’t, allow one of our 54 customer-focused sales representatives to be the next voice you hear when looking for a component. I think you’d be impressed with what we have to offer.”
