Outward appearances dont give any hint that Absolute Aviation Services Inc. is an enterprise on the rise.


The 2-year-old Spokane company, which repairs flight instruments and other electronic equipment for airlines, occupies a modest 2,300 square feet of space in a World War II-era building at Spokane International Airport thats slated for demolition.


The main entry to the business is a locked delivery door where visitors must ring a buzzer to alert someone who can let them in. To get to the companys recessed administrative offices, visitors must pass through a foyer that doubles as a storage space for large aircraft engines and then through part of a big hangar thats used by Coeur dAlene-based Empire Airlines Inc., which occupies most of the 22,000-square-foot structure.


What isnt apparent from that physical setting is the opportunistic mindset of Absolutes owners, Randy Julin and Al Garr, who have steered the company into the specialized repair of components that the original manufacturers regard as unrepairable.


Those components include everything from cockpit gauges and pocket-sized power-supply units to wing-tip strobe light assemblies and even the hard-wired coffee makers used by airline attendantsbasically anything that can be put in a box and shipped.


Airlines love us because were saving them a ton of money by providing an alternative to buying expensive new replacement parts, claims Julin, the companys general manager. Thats kind of our niche, if you will. Thats where we see our future.


Absolute expects its revenues to top $1 million this year, up from $400,000 last year, with about half of its revenues currently coming from such specialty work. In five years, we would like to be at $5 million, Julin says.


The company employs 11 people, and expects that to increase to around 18 by the end of this year and to about 35 after five years, he says.


The company expects to move next spring from its current location at 3406 S. Davison Blvd. on the east side of the airport into part of an 18,500-square-foot building that Spokane International Airport hopes to begin building shortly for it and Empire Airlines. The envisioned $1.7 million structure is to be located southwest of the companies current location, along the north side of recently extended Pilot Drive.


That project is contingent, though, on the airport receiving a $750,000 low-interest loan and a $250,000 grant from the Washington state Community Economic Revitalization Board.


The board was expected to make a decision on those funding requests this week.


Julin says Absolute would occupy about 5,500 square feet of space in that new building initially, but has informed airport officials that it wants to be able to expand to 10,000 square feet if continued growth warrants it.


The building that the two companies currently occupy is one of seven that will be torn down to provide an unobstructed view of two taxiways from the new $23 million air traffic control tower the Federal Aviation Administration is developing farther to the south along Electric Avenue.


Julin and Garr say the added space at Absolutes new location would alleviate cramped conditions at the companys current facility, where it has expanded from one shop to three following its opening of an instrument shop about six months ago.


The company does instrument and component repair work for all sizes and types of airlines, from regional carriers such as Horizon Air and American Eagle to major ones such as American, Delta, and United, as well as for cargo carriers, including Empire.


Branching out


Julin and Garr estimate that 90 percent of Absolutes revenues come from outside of Washington, and that percentage appears likely to grow.


They say the company is taking preliminary steps now to expand into helicopter, military, and more international work. Theyre exploring some business opportunities in Canada that they hope will bear fruit soon, and they say the company already has a representative based in Toulouse, France, who is seeking to help it build business there. Airbus, the big European jet aircraft builder, is based in Toulouse.


They plan to travel in July to the huge annual Farnborough International Airshow, in Farnborough, England, where Absolute will share an exhibit booth with Empire and a British company, and they say theyll stay in Europe an extra week to market the companys repair services to prospective customers there.


Although Absolute works only on components that can come off of an aircraft, and the long shipping distance presents a challenge in attracting foreign airline customers, Julin says confidently, If theyre saving $10,000 on an item, theyll ship it.


Domestically, Absolute has an advantage over many other FAA-certified repair stations, he asserts, because it is a low-overhead operation that can charge lower rates and its specialty of repairing the unrepairable gives it an added marketing tool.


That piques the interest of the airlines. Its going to get us in the door, not only to do such specialty work, but also to garner the more routine repairs that can help fill the time in between bigger jobs, he says.


Absolutes typical charge to a customer for a repaired component is about $900, but can range from around $135 to $3,300, and its typical turnaround timedictated by customersis two weeks, Julin and Garr say.


The key to its future growth lies partly in establishing relationships with airlines that allow it to handle repairs of certain parts on a continuous, or higher volume, basis, they say.


It began developing its specialty for repairing parts that manufacturers consider disposable after Garr, during a discussion with a prospective customer, realized there was potentially strong airline demand for that type of service.


Many component manufacturers arent motivated to treat their products as repairable, since selling replacement parts is simpler and more profitable, yet most airlines these days are looking for ways to cut costs, he and Julin say.


Because new aircraft parts tend to be hugely expensive, the potential margins on repairs can be substantial if trustworthy methods can be developed for restoring used parts to like-new condition, they say.


Absolute can repair a $10,000 power-supply unitpartially rebuilding it, for example, with some new subcomponentsfor less than half what it costs new, Julin says, and the same is true of regularly replaced $450 strobe-light assemblies.


Reverse engineering


The catch is that getting into such work requires spending considerable front-end time and expense on research and development, and Garr says that effort doesnt always pan out.


A lot of times these repairs are for a particular airline, he says. Absolute will reverse engineer a component, developing a detailed set of schematics for it, then create a repair manual that the customers engineering department must approve. After that, it can begin repairing the part using the approved methods.


If Absolute wants to begin marketing a particular repair procedure that it has developed to all airlines, though, it must first get FAA approval.


Of going through that process, Garr, says, Weve gotten one done, involving a subcomponent of a strobe-light power supply, and were working on a couple more.


Julin says, Some stuff, it might take a year to develop a repair for it. But if youre willing to take the time, the rewards for us and the airlines are enormous.


Absolute was incorporated in January 2004, but didnt open its doors until seven months later, when it received its FAA-certified repair-station license after completing a rigorous application process.


Julin and Garr, who met in Milwaukee, Wis., had been working together for FAA repair stations since 1993 before becoming business co-owners here and, combined, have about 57 years of experience in the aviation industry.


Garr comes from a sales background, but has a degree in electrical engineering. Julins expertise, meanwhile, is more on the production side. He has a degree in aeronautics and is a licensed airframe and power plant mechanic.


Julin moved here nine years ago to be closer to his parents, who lived in the Suncrest area northwest of Spokane, and particularly to spend time with his father, whose health was ailing and who since then has died.


Julin actually founded Absolute and got it up and running. Garr joined the company in April of last year, working from his Milwaukee home, and then moved here last October.


Of their decision to go into business for themselves, Julin says, We knew what worked and what didnt work. He notes, though, that, We started it on a shoestring. Al and I committed everything to this.


He says Absolutes ability to settle into a modest, affordable space at the airport just kind of fell into place, partly because of his acquaintance with Empire Airways President and CEO Tim Komberec, and he adds, It was luck that as they were leaving (some leased space there), we were growing.


The company also was fortunate, he and Garr say, in that its been able to attract some talented engineers. It even makes a lot of its own test equipment.


The two men are excited about the companys growth prospects, and Julin says because of the financially struggling airline industrys increasing fixation on reducing expenses, It was an ideal time for us.


Contact Kim Crompton at (509) 344-1263 or via e-mail at kimc@spokanejournal.com.