Just as the engine companies are moving into services, so is Gulfstream Aerospace. The manufacturer of business aircraft has embarked upon a twin strategy to boost its revenues through maintenance and overhaul, while leveraging that booming operation to generate more sales of its own top-of-the-line business aircraft.

"We will do more than 3,000 aircraft this year -- closer to 3,500," Larry Flynn, senior VP aircraft services, told Show News. "We will work on 800 here in Savannah alone." The totals represent the number of visits to the maintenance shop, whether for a major overhaul or a minor repair.

Gulfstream has long had a policy of offering factory support at its own service centers in Savannah, Ga., Long Beach, Calif. and Brunswick, Ga. Then last year, it paid $250 million for K-C Aviation, the industry's leading independent provider of aircraft completions and services with its three facilities at Appleton, Wis., Dallas, Texas, and Westfield, Mass. Gulfstream bought K-C primarily to increase its desperately needed completion capacity for G-Vs, but with the buy came shops skilled in Challengers, Falcons and Hawkers, engine overhaul (TFE731, ALF502 and CF34), and every Sundstrand and AlliedSignal APU.

The purchase also gave Gulfstream strategic coast-to-coast coverage, filling gaps in the Northeast, the South, and the Midwest.

"We already had a 40% market share for maintaining Gulfstreams; buying K-C Aviation brought it up to 65%, and since then we've added another 10% for 75%," said Flynn. "That means we service three out of four Gulfstreams out there" -- a far higher total than any other manufacturer for its own fleet.

Revenues at Aircraft Services jumped 40% last year to $281.8 million (or 11.7% of Gulfstream's total revenue of $2.4 billion), and are expected to grow another 20% this year.

Investment in Aircraft Services continues at a fast pace as Gulfstream seeks to service more of its competitors' jets, especially targeting contracts to maintain fleets of aircraft that might also include Gulfstreams. Over time, Gulfstream expects to use its expanded capacity to provide paint and refurbishment services to mid-size and large cabin operators, a feature it expects will help it attract large maintenance contracts.

More than 2,000 people work for Aircraft Services, and expansion has included adding several hundred technicians as its facilities work three shifts, seven days a week. Currently 170 openings are unfilled. "We've just added Hangar F in Dallas, and leased additional hangars at Long Beach in the last couple years," said Flynn. "The whole focus is on reducing turn times."

The second part of Aviation Services' strategy is to help sell new Gulfstreams. "There's no doubt that working on other aircraft helps us sell Gulfstreams," said Flynn. "We get to know those customers and they get to know Gulfstream; that gives us the opportunity to sell new aircraft as they move up the scale."

Earlier this year Gulfstream improved its support programs with extension of ServiceCare to include all G-IV, G-IVSP and G-V aircraft, providing "the industry's most comprehensive, nose-to-tail guaranteed hourly cost maintenance program" according to Flynn. Previously it covered only new G-IVSPs.

ServiceCare covers virtually every part, component, assembly and system on the aircraft, as well as costs associated with engine midlife inspections, overhauls and loaner engines, for up to 10 years. Parts and labor are covered for both scheduled and unscheduled labor. The program is managed and administered by Jet Support Services, Inc.