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MARCH 2015

2. BUSINESS AVIATION
44 MARCH 2015 AIRCRAFT MAINTENANCE TECHNOLOGY
AT THE BEGINNING OF THE RECESSION, MANY BUSINESSES
were downsizing their operations, laying off employees and, in
some cases, closing their shops all together. Threshold Aviation
Group (TAG), based at the Chino Airport in Chino, CA, is an
example of an aviation business that not only kept their shop
open, but continued to grow, despite the recession.
TAG is one of the largest maintenance and management
facilities in Southern California, with more than 150,000 square
feet of hangar and office space and a 7,000-foot runway. It’s a
member of the National Business Aviation Association (NBAA)
and its charter company, Threshold Air Charter Inc. is Gold
Rated by ARGUS International, Inc. TAG also operates an
FAA-approved Part 145 repair station, and is authorized to
maintain and repair nearly any aircraft.
TAG’s full-service aviation business services includes execu-
tive terminal facilities, fuel services, hangar storage, aircraft
maintenance and interior shops, aircraft management and
operations, as well as aircraft charter services. The group con-
ducts business jet completions, modifications, interior repairs,
and avionics upgrades. TAG has an active aircraft acquisition
and sales department as well.
During the recession, TAG grew its operation due to its
low-cost structure. Compared with its competitors located in
the Los Angeles and Orange County areas, TAG’s always less
than other operators. TAG’s focus and emphasis on its cus-
tomers has made it the premiere aviation service provider in
Southern California.
HOW TO SURVIVE A RECESSIONThreshold Aviation Group not only kept its facility open but continues to grow
Though TAG pays the same for fuel that everyone else
does, the FBO keeps is fuel costs lower — as much as $2 a
gallon lower —than the competition. “It’s simple — we try to
support the flying public,” says Doug Crowther, director of
business development. “It’s tough these days for folks to fly
their airplanes because fuel is so expensive.”
In order to keep the cost of its aviation fuel as low as pos-
sible, TAG utilizes a narrow yield model to stimulate sales.
The company sells over 1 million gallons of avfuel each year,
demonstrating the validity of its business model.

3. www.AviationPros.com | www.AMTSociety.org 45
ALL IMAGES COURTESY OF THRESHOLD AVIATION GROUP
Crowther says this philosophy pays off in spades because
it brings more airplane owners to the facility, which in turn
brings more work to the maintenance facility. “It gives us
access to customers who already think positively of us, so that
we can sell them services in addition to fuel,” he says.
One of the unique aspects of TAG’s operation is its business
model that includes the flipping of aircraft. Over the last 15
years, it has purchased more than 50 aircraft from around the
world, brought them to its facility, completed any required
maintenance and repairs, refurbished the interior, and given
the aircraft a fresh coat of paint. And then sold the aircraft
at a significant profit.
“That’s been a real help to us during the recession,” he says.
“As airplane owners sold their planes, we purchased them,
performed whatever work they needed, and resold them.”
Crowther says it helps that the facility offers full-service
upholstery and wood shops in addition to the maintenance
side. “We can repair pretty much anything, even a replace a
small piece of scratched up wood,” he says. “And it’s cheaper
to do it with us than with other FBOs.”
EMPLOYEE FOCUS
TAG employs 65 people, including maintenance technicians,
upholstery, and wood artisans as well as customer and line
service personnel. Recently, the company has been consistently
hiring one to two new workers a month. The trend is expected
to continue as the workload continues to grow.
Little turnover takes place because working conditions
favor the employee. Employees are compensated well, as
pay is based on experience. All employees receive benefits,
such as full medical and dental. Overall, employees enjoy
the management who are constantly bringing in new aircraft
and projects that improve their current skill set and teach
them new skills.
“We treat our employees like family,” says Mark DiLullo,
founder and chief executive officer of TAG. “We strive to make
our operation a better place by listening to our employees,
our customers, and our neighbors.”
In order to find highly skilled, qualified mechanics, TAG
partners with two local colleges to train new technical people.
Once new mechanics are trained, the company provides them
employment while they gain hands-on experience.
TAG manages several aircraft. As part of the aircraft man-
agement, the aircraft fall under TAG’s fleet insurance policy.
TAG manages, maintains, stores, and operates the aircraft for
the aircraft’s owners. At the owner’s option, Threshold Aviation
Group can place the aircraft in its charter department, which
generates revenues for the owner when they are not using it..
TAG has completed high-profile work for government
agencies, including NASA’s Glenn Research Center, located in
Cleveland, OH. TAG and its contract partner were contracted
to heavily modify one of TAG’s Gulfstream aircraft, with
the installation of wing-mounted pylons carrying scientific
instrumentation, as well as radar units on top and bottom of
the aircraft. TAG was to operate it for NASA for a three-year
period. After 18 months modifying the aircraft, sequestration
cancelled the program.
COMMUNITY MINDED
Because of their successful operation, TAG has been courted
by cities in other states that desire Threshold to relocate its
operations.
“Even though we could have relocated to another state, like
Nevada, we chose to stay in Chino. All of us at Threshold are
Continued on page 47
TAG’S FULL-SERVICE aviation business services include
executive terminal facilities, fuel services, hangar storage,
aircraft maintenance and interior shops.

4. BUSINESS AVIATION
46 MARCH 2015 AIRCRAFT MAINTENANCE TECHNOLOGY
WITH A SLOW RECOVERY FROM THE
Great Recession, aviation firms were
forced to seek new and more creative
ways to complement their business.
Threshold Aviation Group (TAG) was no
exception. In order to survive in a tough
business environment, TAG began
purchasing jets and other aircraft that
needed repair, with the idea of flipping
them for a profit.
We found aircraft in Europe, pur-
chased them and brought them back
to our fixed based operation (FBO)
and repair station located in Southern
California at the Chino Airport (KCNO).
Our maintenance team has success-
fully worked on repairing these aircraft
and returning them to a near original
condition. Once the 0002074-aircraft are
repaired and refurbished, they are sold
to interested buyers at very attractive
prices.
One jet our team flipped was a
CJ-3 from Germany, which had a blue
juice leak that was suspected to have
migrated through the fuselage to the
wing. When the original owner took the
CJ-3 to be repaired in Europe, the repair
station estimate included removing the
wing, in order to gain access to the belly
of the aircraft. The estimate included a
substantial amount of repair and reme-
diation work, including the possibility
of replacing the wing. The estimated
cost of the work order was quoted at $3
million, mainly due to corrosion. After
debating whether or not to repair the
aircraft, the owner finally decided to sell
the CJ-3 and collect the insurance for
the damage.
Threshold Aviation Group pur-
chased the jet and ferried it to its
100,000-square-foot maintenance facil-
ity at the Chino Airport. Eight full-time
mechanics worked to repair the wings
and belly of the plane for four months.
Because no repair facility other than
Cessna had previously completed this
type of repair, we had to create the tech-
nology and tooling to support the wings
and the fuselage. Our shop created
jigs that allowed the fuselage to rest,
while another set of jigs held the wings
intact. Care and precision were needed
to ensure the fuselage remained intact.
Any small slip up could lead to damage
to the wings and the fuselage, leading to
an expanded repair time and additional
costs. It would also make reassembly
almost near impossible.
During the wing removal, we found
unexpected damage that was unrelated
to the blue juice staining: The doubler
near the back of the wing had a 13-inch
crack in it. Our maintenance technicians
believe this transpired because the
doubler was installed incorrectly at the
factory. When the manufacturer initially
installed it, the doubler was overtight-
ened, placing a heavy load on the dou-
bler, resulting in the crack. Our mechan-
ics replaced the doubler and engineers
at Cessna were notified of the finding.
Verifying whether or not corrosion
existed was a top priority of our team.
Once the wings were removed, the
mechanics used Q-tips to get into every
tiny nook and cranny in order to ensure
the blue juice stains were removed. It
took eight full-time mechanics 2,000
hours to ensure every square inch of the
fuselage was carefully inspected. To our
surprise, very little corrosion was found.
On the areas where corrosion was
found, our team utilized a number of
techniques to remove the corrosion. We
started with the largest pockets of cor-
rosion and carefully removed the corro-
sion with a power sander and by hand.
The Threshold Aviation team reas-
sembled the aircraft and installed a new
set of landing gear. It took six mechanics
to slide the wing back under the belly of
the jet. Once the CJ-3 was reassembled,
our in-house FAA inspector inspected
the jet. Thanks to the skill and expertise
of our team, the CJ-3 passed the inspec-
tion with flying colors. With the aircraft
in pristine condition, Threshold Aviation
Group was able to quickly sell the CJ-3
and earn a profit.
Of course, we didn’t stop there. This
past year, Threshold Aviation Group
purchased seven “maintenance chal-
lenged” business jets in Europe, brought
them to our facilities and completed the
required repairs. Over the past 15 years,
we have bought, repaired, refurbished,
and sold a total of 50 aircraft. On top
of completing the required repairs, we
also refurbished the interiors, touched
up the jets’ paint and sold them, again,
at a substantial profit. Whenever our
team flips an aircraft, we go above and
beyond the repairs that are needed. We
also make sure the aircraft is cosmeti-
cally and aesthetically pleasing; after all,
owners want more than a jet that flies.
Threshold Aviation Group began
acquiring aircraft for repair and resale
as a means of keeping the business
afloat. Flipping aircraft was a means to
keep our valued employees busy and
employed. It even allowed us to increase
our maintenance staff. Although we
began flipping aircraft with a short-term
business mindset, it has become a per-
manent part of our business model.
After the success of the CJ-3 project,
finding new flipping opportunities has
now become one of my favorite aspects
of the business. Finding new aircraft to
OVER THE past
15 years, TAG
has bought,
repaired,
refurbished,
and sold a total
of 50 aircraft.
FLIPPING ISN’T JUST FOR HOUSES; IT’S FOR AIRCRAFT TOO
How one aviation group is revitalizing the aviation business
MARK
DILULLO,
chief executive
officer of
Threshold
Aviation Group.

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www.AviationPros.com | www.AMTSociety.org 47
repair has given the members of
our maintenance department a
welcomed variety and flexibility
in their schedules, provided them
the opportunity to expand their
respective skill sets, and allowed
them to work on challenging proj-
ects. Furthermore, it has allowed
me to find projects and repairs
outside of our normal scope of
work. Having to be creative and
innovative is what sets TAG apart
from other FBOs and repair sta-
tions in the area. Our clients know
that no task is too big or too small
for our team.
Our FBO and repair station is a
leading provider of maintenance
and maintenance related services
in Southern California. Because
of our outstanding reputation in
the region, aircraft owners from
around the country have sought
out our maintenance and repair
expertise. Our services encompass
private jet management, charter
aircraft, aircraft maintenance,
inspections and overhaul, aircraft
on ground (AOG) services, busi-
ness jet completions, modifica-
tions, avionics, fueling services,
and aircraft acquisitions and sales.
Each year, TAG sells over 1 million
gallons of aviation fuel, supplied
by Avfuel, and contributes an
estimated $15 million to the local
economy. Because of this incred-
ible range of services, we are more
than equipped to flip aircraft – but
smaller FBO facilities can flip air-
craft, too. If you are an FBO that
has a smaller range of services,
your facility can flip aircraft on a
smaller scale.
Like many other aspects of the
aviation industry, flipping jets can
be a goal that is achieved after
starting out with a smaller ven-
ture: flipping small, single engine
planes, for example. Every FBO has
to do what makes sense for the
scale of its services.
— By Mark DiLullo
highly invested in our commu-
nity,” says Tom Bressan, chief
operating officer. “Our staff
works and lives in the Inland
Empire. We pay taxes here.
Some have lived here their
whole lives. We are extreme-
ly happy to contribute to our
community.”
In December, TAG signed
new leases with the County
of San Bernardino to con-
tinue renting the facility at
the Chino Airport. The lease
agreement is for 10 years, but
can be extended for an addi-
tional 10 years.
As a general rule of busi-
ness, the company keeps all
vendors and employees local,
which helps stimulate the
local economy via tax dollars.
TAG contributes an estimated
$15 million annually to the
local economy.
The company has been
recognized for its Christmas
Hope, Love & Charity event,
where it provides an annual
Christmas dinner for families
in need. TAG partners with
the Chino Police Department,
Chino Valley Fire Department,
and Mooney International to
make this event possible.
Along with the Christmas
dinner, organizers make sure
every child leaves with a toy,
books to read, and crafts to
complete.
“This is an event Mark and
I look forward to every year,”
says Lisa DiLullo, president
of Threshold Aviation Group.
“The Hope, Love & Charity
event allows my family, friends,
and staff to give back to the
community we serve. We are
blessed and grateful to be able
to help out our neighbors in
their time of need.”
This past year, more than
3,000 meals were served, 2,000
of which were to children.
Each family left with boxes of
canned food for future meals.
Over 2,000 books and toys
were given away to children
and 75 bikes were raffled off.
Kids were also able to take
pictures with Santa and Mrs.
Claus.
TAG CREATED jigs that
allowed the fuselage to rest,
while another set of jigs held
the wings intact.