On February 2, 2016, TCR International USA, Inc. and Aeroservicios USA, Inc. established a joint venture company called TCR Americas, LLC that will act on behalf of both parent companies to develop the ground service equipment (GSE) full service rental market in North, South and Central America (the Americas). TCR International USA, Inc. and Aeroservicios USA, Inc. will each own 50% of TCR Americas.
TCR International USA, Inc. through its Belgium based parent company, TCR International NV, has substantial experience in leasing GSE and providing repair and maintenance services to European airlines and airport ground handling companies on a full service rental basis. TCR International has established a strategic initiative to expand its offerings in the Americas to many of the ground handling companies its services in Europe.
Aeroservicios USA, Inc., based in Miami, FL and owned by Gabriel Serrano, is an established worldwide provider of high quality new and refurbished GSE. Aeroservicios operates from an 110,000 square foot maintenance facility with an additional 150,000 square feet of outside storage space and employs well-trained, skilled mechanics dedicated to the repair and renovation of equipment. Aeroservicios has extensive relationships with domestic, international, regional, commercial, cargo, and charter airlines, including major ground handling companies and fixed base operators (FBOs). Aeroservicios holds a large inventory of equipment and supplies it through direct sales, lease plans, and short term rentals. Both companies enjoy a solid reputation for providing quality GSE and related maintenance services.
TCR International’s GSE leasing expertise and Aeroservicios’ GSE repair and renovation expertise and its large repair and maintenance facility in Miami provide the necessary expertise to rent and maintain GSE on a full service basis in the Americas.
TCR International USA, Inc. and Aeroservicios USA, Inc. will procure the motorized GSE that will be leased to TCR Americas who will in turn rent the GSE to customers. TCR Americas will procure the non-motorized GSE and will perform the repair and maintenance services on both the motorized and non-motorized GSE rented to its customers.
Approximately 50% of the world’s top 50 airports are in North America, out of which 26 airports have annual passenger volume greater than 20 million. These airports rely heavily on 14 major U.S. carriers. As compared to the rest of the world, the American market is unique in the sense that relatively only a small proportion of handling is still done by independent companies. However, more and more airlines are realizing that they can use business outsourcing to achieve cost efficiency and optimize benefit structures. As a result, the market share of independent ground handlers is increasing.
The US airline industry is riding a five-year wave of profitability. IATA calculates 2014 net income of North America airlines, fueled largely by US airline performance, at more than $12.0 billion—fully two-thirds of the projected net income for the entire global airline industry. And, the region's airline profitability is expected to increase an additional $1.0 billion in 2015 as lower fuel expenses provide a further boost in earnings.
The 2015 FAA forecast calls for U.S. carrier passenger growth over the next 20 years to average 2% per year. By 2035, U.S. commercial air carriers are projected to fly 1.71 trillion ASMs and transport 1.14 billion enplaned passengers a total of 1.44 trillion passenger miles.
The operational leasing concept in GSE sector in U.S. is not yet as popular and widely accepted as it is in the Europe because there are very few companies that offer similar rental solutions as TCR Americas in U.S. at the moment and no companies in U.S. that offer ‘one-stop’ shop fleet management solutions like TCR, therefore no real direct competition for TCR Americas.
Below is a picture of Marc Delvaux, Gabriel Serrano and Donald Meulebroek at the Aeroservicios headquarters in Miami.