Sunday, January 10, 2021

Muncie Aviation acquires Des Moines Flying Service




MUNCIE, Indiana — The Muncie Aviation Company (MAC) and Des Moines Flying Service (DMFS), two of the longest-standing general aviation sales and service centers in the world, have merged.

The companies announced last week that MAC had acquired DMFS as of Jan. 1. The acquisition has been ongoing for about two years and was slowed down a little due to the pandemic, said Steve Thompson, executive vice president of MAC.

Thompson told The Star Press on Thursday the move was a natural fit for the companies, and that the stakeholders of the Iowa company didn't have much of a succession plan in place. Both started in the 1930s, the companies have similar sales territories, which determines what type of planes are sold and where. 

The Muncie Aviation Company expanded by recently acquiring Des Moines Flying Service. 

"It’s people that some of us who’ve worked here for a long time have known forever," Thompson said. "We know their employees, we know what they do. They’re a great company. It was a real natural fit."

According to a release, DMFS is an authorized Honda Jet dealer, and has been an authorized Piper Aircraft dealer for more than 75 years. As the longest-ranking Piper dealer in the world, MAC will further bolster its sales and service capabilities with the acquisition.

In 2019, Thompson said JETNET, the world leader in aviation market intelligence, reported that there were only three organizations in the country that sold more airplanes than MAC did.

The Muncie Aviation Company expanded by recently acquiring Des Moines Flying Service. 

"That wasn’t even a particularly good year. I think we’ll rank higher in 2020, but we don’t know that yet," Thompson said. "Obviously, with this acquisition, it will make us one of the top one or two sales organizations in the United States."

In 2020, Thompson said MAC sold about 51 airplanes, while DMFS had an average year, selling around 12. While he said it's a big difference, he hopes to help them boost sales.

"We’ll move that forward, that’s part of what we’ll do out there," Thompson said.

While DMFS was acquired, Thompson said the companies will operate separately, not just for liability, but also so the Iowa company can keep its image and reputation. Thompson will take on the role of president and DMFS, and Martin Ingram, who is president of MAC, will be chairman of the board.

“We would like to thank Don Jay and John Lowe of Des Moines Flying Services for making this win-win acquisition possible. We look forward to taking our common values and business drives and expanding on DMFS’s already considerable abilities,” Thompson said in the release. “The DMFS team has much to be proud of, and my teammates and I look forward to working with them as partners.”

Muncie Aviation was founded in 1932 by the Ball Brothers; the Ball family sold the company to the employees in 2004, according to the release.

A boost in sales during a pandemic

Despite the COVID-19 pandemic shuttering the airline industry in 2020, many smaller aviation businesses saw an increase in sales.

Thompson said MAC had a record year, with sales around $100 million. Since he started working with the company in 2005, sales have grown five times what they were 15 years ago.

Like RV and motorcycle dealers, aviation companies saw the same pattern in 2020, almost selling out of their inventory, Thompson said. At first, he thought it might be because buying a smaller plane allowed people to travel alone without risking getting on a plan with potential virus carriers. 

But in reality, what MAC is is expensive, Thompson said. His buyers typically already own an airplane and are looking to upgrade.

The Muncie Aviation Company expanded by recently acquiring Des Moines Flying Service. 
"It’s just people have some time on their hands, they’re interested in their hobbies," Thompson said. "It may be the component of, 'Life’s short and I’ve always wanted a new airplane, now I can afford one, I’m doing it.'  We got some of that, and hopefully it continues."

While in the middle of the acquisition, DMFS had more of a neutral year. The company is building an all-new facility at the Des Moines International Airport, and is on track to be completed by the end of March. 

"(DMFS) were great to deal with through the transaction, very encouraging, very kind," Thompson said. "They did a great job growing their business, and hopefully, we can take it to the next step."



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