MCCOY ANNOUNCES NEW AVIONICS SERVICE COMPANY



COLUMBUS, Ohio, Dec. 13, 2000 -- J. Phil McCoy, a veteran avionics industry executive, has announced the formation of a new avionics service company -- TransContinental Avionics Corporation.

The company plans to offer aircraft owners a coast-to-coast network of qualified avionics repair and installation facilities by forming a national chain of independently-owned and operated avionics shops under a common, nationally recognized service mark - "TCA".

McCoy, who founded McCoy Avionics Corporation in 1986, said the TCA concept is not new. "It has just never been applied to the avionics industry before," McCoy said.

"TCA is structured like other successful national chains composed of groups of independent store owners operating under a common service mark," he explained. "Excellent examples of this type of operation include IGA Food Stores, True Value Hardware, NAPA Auto Parts, and Radio Shack. In each case, stores are independently-owned and operated under common signage and service marks.

All we’re doing is applying this same concept to the avionics shop market," McCoy continued.

"TCA offers participating avionics shops the benefits of association with a nationally advertised chain of shops whose combined purchasing power and inter-communications will provide each shop with greater ability to serve the needs of the flying public," McCoy said. "We are adding a new twist to the formula," McCoy continued, "by linking all participating dealers with a web site (www.tcaavionics.com)."

"The TCA concept," he continued, "when fully implemented, will be the best of all possible worlds for the avionics shop as well as the aircraft owner."

No stranger to start-up companies, McCoy who is president and CEO of TCA, founded McCoy Avionics, a company which designed, manufactured and marketed the MAC 1700 digital modification of the King KX 170 VHF Nov/Comm Transceiver, in 1986. In 1997 he left McCoy Avionics and sold his interests in that company to concentrate his efforts on the development of TCA.

Dennis P. Stoll is vice president of Shop Operations for TCA. He presently owns and operates East Kansas City Avionics in Grain Valley, Missouri. "Stoll’s participation assures that procedures, systems and the operational aspects of TCA will reflect the needs of most shops," McCoy stated. Stoll also owns Automated Records, a computer-based bookkeeping and consulting business.

"Most avionics shop owners know they must change the way they’re doing business to survive in the new century," McCoy explained.

"Our initial market research with over 200 avionics shop owners indicates that many would welcome the opportunity to become part of a national chain. However," he explained, "they are reluctant to give up too much of their independence."

"TCA has therefore been structured to provide a package of services that accommodates the shop’s needs while affording them the independence they value," he said.

TCA’s Internet web site, which is the heart of the TCA concept, will provide services and various documentation resources for access by dealers and their customers. In addition to proprietary TCA services, the web site will offer links to approved vendor web sites and applicable governmental agency sites, where allowed by that agency.

The web site database will include such things as products, parts, accessories, transactions, customer, and aircraft records. TCA will also provide a system to facilitate prepaid order processing at the web site using credit card services and select financing plans. A quotation system will allow dealers to develop standardized quotations for the sale of products, installations, and services.

In addition to gaining competitive advantages, TCA participating shops will realize benefits in the areas of administrative services, regulatory compliance, marketing services, and "value-added" services.

Although a number of benefits are listed in the administrative package, perhaps the most important is purchasing. By representing a number of shops, TCA will have significant volume purchasing power, which generates significant discounts for participating shops. Another important administrative function is the standardization of forms for its dealers. This will be achieved by going directly to the FAA in Washington and obtaining FAA approval for all forms, procedures and processes used by the chain.

Other administrative benefits include an accounting/MIS package, training in both administrative and technical areas, employment services, standardized systems, insurance packages, inventory control, and benefits packages.

In the area of regulatory compliance, TCA plans to offer shops a standardized Repair Station Manual approved at the Washington, DC level. It will negotiate Supplement Type Certificate (STC) licenses with various STC holders and will develop proprietary STC’s for the chain. It will also provide drug testing and an anti-drug program; provide DER/DAR services with on-staff personnel and attempt to innovate a new class of FAA designee--Designated Avionics Inspector to supplement FAA Avionics Inspector’s roles and serve as a liaison with the FAA; and provide technician training.

TCA is structured to provide dealer shops with a host of marketing services. The communications program will include national advertising, newsletters, direct mail, trade show participation, dealer signage, parts locator service, and web site and employee sales training. TCA expects to enter into fleet maintenance and group sales contracts on behalf of participating TCA shops. Other marketing services will include purchasing, merchandising, developing quotes, order administration, and MasterCard/VISA services.

Affiliated shops also enjoy certain "value added" services. These include centralized record maintenance on a customer’s avionics and a warranty away from the customer’s home base.

"By packaging duplicated services," McCoy said, "all participating dealers will realize greater efficiency and operational savings that will contribute to their profitability and efficiency. Who knows?" McCoy concluded, "it may even make operating a shop fun again."
 
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