Clockwork Operations for a Dynamic Industry

Q: What differentiates SAE from other companies operating in Toluca International Airport (AIT)?

A: SAE has a 25-year history of providing services for the private aviation industry. We began our operations as the first FBO at AIT then decided that to offer a more comprehensive service we had to begin maintenance operations. Through our MRO, we complement our FBO services and hangars for aircraft storage. Our air taxi services began with only one aircraft and we now have 14 units. SAE also offers aircraft administration services linked to the air taxi operations. We manage our clients’ aircraft on request and add them to our air taxi catalog.

SAE has the biggest FBO at the airport, with the greatest number of hangars and ramps. During the past five years, we managed around 15,000 operations per year on average, making the FBO the core of our business.

We occupy a strategic position in the airport next to governmental offices, which makes it easier for our international passengers to go through customs. The company is performing a gradual renovation of our facilities, balancing our investments. By upgrading our current facilities, we will increase our infrastructure and then work on the update of the passenger facilities.

Q: In which ways is the local aeronautics industry changing at AIT?

A: We have seen the aeronautics industry grow and we believe that the supply of FBO services exceeds demand. We have collaboration agreements with other FBOs but we do not wish to establish facilities elsewhere. The aviation industry is dynamic and therefore is constantly changing. The company has considered joining efforts with FBOs in the US but their business model is different from that used in Mexico. Unlike the US, we do not receive revenues from the sale of jet fuel. Nonetheless, we are open to alliances and co-investment projects with other FBOs.

Q: How do you balance the acquisition of new airplanes with the cost management you are performing?

A: Planes are bought either by our clients or by our investors. Once the plane has been acquired, we administer the aircraft. The company has no input in the decision to acquire a new plane and the operator chooses the model of the aircraft they buy. Our investors are working on buying a HondaJet, which we expect to arrive in the second quarter of 2017.

Most aircraft we manage in Mexico are worth about US$6 million to US$7 million. The bigger the airplane, the more expensive it becomes to operate and maintain. Our most requested planes transport eight passengers.

Q: What are your growth expectations for the rest of 2016 and the near future?

A: We do not wish to expand our operations. The FBO service offering in Toluca has surpassed existing demand. In the last five years, four new FBOs entered the state, absorbing an important share of demand. This makes us more cautious regarding growth expectations. SAE is focusing on improving its current facilities, having made an important investment in a 4,000m2 platform, and re- locating its offices inside the airport. Once the FBO and MRO renovation is finalized, a new hangar for our newest platform will be built.

Next year we will focus entirely on our clients. The FBO update will be inaugurated in 2017, with several meeting rooms designed to provide more comfort. We want to consolidate our client base and create customer loyalty. Therefore, we need to meet them to understand and suggest how we can help them. The company is renovating its work culture, to be more effective and to let our clients know that at SAE, our operations run like clockwork.