ABS Jets Harnesses MRO Focus to Enhance Aircraft Management Strategy

In an exclusive interview with ch-aviation on the sidelines of EBACE in Geneva, CEO Jan Kralik of ABS Jets, a prominent Czech operator, outlined the company’s strategic approach to aircraft management, emphasizing the integration of Maintenance, Repair, and Overhaul (MRO) services as a core component of their business model. Located at Prague Václav Havel and Bratislava airports, ABS Jets has developed a business structure that not only manages aircraft but also provides substantial MRO, line maintenance, and ground handling services.

Kralik explained that pure aircraft management on its own does not generate significant profit margins. Therefore, ABS Jets has crafted a unique selling point by backing its management services with a robust MRO ecosystem. “It makes sense to focus on some types only—when one is focused on the MRO, the more units of a certain type of aircraft in the fleet you have, the more revenue it brings on the MRO side,” he stated.

Currently, ABS Jets is certified to maintain several specific aircraft types which form the backbone of its fleet: Embraer Executive Jets’ E500 Phenom 100 and E505 Phenom 300, as well as Gulfstream Aerospace’s G550, G650, and GVII-G500. This selective certification approach is cost-effective and aligns with the company’s streamlined fleet management philosophy.

The operator maintains a cautiously adaptive approach towards expanding its managed fleet types. Kralik noted that while ABS Jets is open to diversification, it often rejects clients with entirely new aircraft types due to the complexities and costs associated with integrating new models into their operations. “If it’s a niche aircraft, it doesn’t bring that much revenue compared to the troubles of operating a single aircraft of a type. The goal is not to have 40 aircraft of 25 types—the goal is to have control over our business,” he explained.

ABS Jets collaborates closely with customers on fleet acquisitions, advising on the best aircraft selections based on preferred routes, passenger numbers, and estimated annual utilization. Should an owner opt for a new type, they would also need to finance the necessary training and maintenance expansion.

Despite challenges such as the closure of the Russian market following 2022 sanctions—which heavily impacted ABS Jets’ maintenance business—the company has successfully pivoted to focus on projects in Western and Central Europe, offsetting the lost Russian demand.

Operating with a single Czech AOC, ABS Jets faces the stereotypical view of Eastern Europe as having lower standards, a perception Kralik firmly contests. He asserts that the Czech Civil Aviation Authority (CAA) is professional and that the country offers a favorable business environment for aviation, negating the need for additional AOCs.

ABS Jets’ current in-house fleet includes aircraft like the Challenger 605, Citation XLS Gen2, Falcon 7X, and several models of Gulfstreams, all reflecting the company’s strategic focus on types that complement its MRO capabilities. This focus not only optimizes operational efficiency but also ensures that ABS Jets remains a key player in the European business aviation sector.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com