FBOs Can Learn from Previous Crises and Prepare for New Reality

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No one can truly predict the future of the FBO industry, certainly not in these unsettled times.

Everything looked very rosy just a few short months ago. In our Annual FBO Fuel Sales Survey, published at the end of January, FBO operators were predicting another good year in 2020 following the growth and success of their businesses in 2019. The biggest problem the industry faced was finding and retaining good employees.

Now, the COVID-19 pandemic has presented a new business reality for which FBOs must prepare. No one knows exactly what it is going to look like. Reflecting on relative recent history can give us a potential barometer by which we can gauge and draw some conclusions.

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Reduce Fuel Spills by Mitigating Risk

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Eliminating fuel spills in the FBO environment is virtually impossible; however, they can be reduced by mitigating the risk. Learn what FBO ownership and management can do, and review best practices to include in your SOPs.
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NBAA-BACE Roundup: FBO Industry Upbeat on Reports of Positive Fuel Sales for 2019

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As 2019 winds down, the mood of FBOs attending the annual NBAA Business Aviation Convention & Exhibition (NBAA-BACE) held Oct. 22-24 in Las Vegas was upbeat with many reporting positive fuel sales for the year.
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Ongoing DEF Fuel Contamination Problem Sparks Safety Alert from NTSB

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In response to several incidents within a 19-month period, last week the National Transportation Safety Board (NTSB) issued a Safety Alert warning providers of jet fuel to take measures to prevent diesel exhaust fluid (DEF) contamination.

In a related news release, the Safety Board says it wants fuel providers to keep all chemicals in labeled containers and to add a label to all DEF containers that reads, “NOT FOR AVIATION USE.”

We also recommend that FBOs use this NTSB poster in their operations. Post it in the line service area as well as where any chemical, fluid or lubricant is stored.

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Handling of Dangerous Goods: Be Aware

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Operating an FBO certainly has its challenges, especially when a customer wants you to handle dangerous, hazardous, irregular or unusual goods. For the most part, we recommend that FBOs have a policy of not handling these types of goods or materials. However, all employees must have awareness training to identify what constitutes dangerous and hazardous goods and what to do if they encounter any.
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Speeding on the FBO Ramp Can Be a Costly Proposition

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Every year more than 27,000 ramp accidents are reported worldwide. Collectively, they cost an estimated $10 billion. The causes run the gamut from carelessness to not following standard operating procedures (SOPs), such as obeying ramp speed limits.

That is why it is important to follow established FBO industry best practices written in a user-friendly and teachable SOP format. Your SOPs are your standard for excellence and should cover all procedures in detail.

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Eight Best Practices to Prevent Hangar Rash or Worse

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Hangar rash sounds nasty and is the bane of all FBOs.

We’ve all seen it. A line service technician gets in a hurry repositioning a GIV in a hangar and bangs the tail into another Gulfstream.

Say the estimated cost to repair the damage is $175,000. Assume the FBO’s insurance deductible is $25,000. That $25,000 is a big hit to the bottom line.

How does an FBO reduce the risk of this kind of incident? The answer is having a strong safety culture that invests in proper training of line personnel with a defined set of hangar and ramp movement practices as part of standard operating procedures (SOP).

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Six Tips for Hiring and Retaining FBO Technicians

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One of the biggest problems facing the owners and operators of FBOs is recruitment and retention of skilled technician personnel, both line service and A&Ps. Try these six tips, including conducting a discovery interview, creating a clear path for advancement, and rethinking reviews and compensation.
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Annual FBO Fuel Sales Survey: 75% of FBOs Report Positive Fuel Sales in 2018

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Results of our Annual FBO Fuel Sales Survey are in, and we are happy to report that 75 percent of FBOs responding to the survey experienced positive — increased or the same — fuel sales in 2018 compared to 2017.

This is the third consecutive year we have seen an increase in fuel sales by more than half of FBOs responding.

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Get Ready to Post Fuel Prices and Other Fees

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Six aviation associations are encouraging FBOs and aviation service organizations to be more open and transparent about fuel prices, fees and charges. Visibility and openness in the FBO business are industry best practices. These qualities come with the realization that FBOs and aircraft owners and operators need each other in the best possible way. It is very much a symbiotic relationship.
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Replace Wooden Chocks with Rubber Chocks

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Invest in rubber chocks. Yes, they cost more, but with so many aircraft movements involving expensive aircraft, an investment in rubber chocks can help you diminish risk, lower your exposure to accidents and possibly reduce insurance premiums.
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Best FBO Industry Practices: Don’t Give It Away!

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Beginning with this blog post, we are embarking on a new series that will highlight the best practices we have encountered over the past two decades in working with numerous FBO enterprises.

Included in the mix will be our personal file of best practices garnered from operating and managing a 21-base FBO chain, Mercury Air Centers, along with 11 insightful years of conducting the popular NATA FBO Success Seminars and, recently, the NATA Certified Customer Service Representative (CCSR) program.

We will cover almost every area of an FBO operation. We’ll discuss best FBO industry practices for two dozen topics. Read the full list.

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Aviation Leaders Can Learn from the Legacy of John Rahilly

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For us in the aviation industry, modeling our leadership style after that of veteran industry executive John Rahilly would be a recipe for success. The carefully measured ingredients would include honesty, frugality, kindness and fairness.
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Strategic Fuel Purchasing: Time Your Fuel Purchase to Maximize Your Margin

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Time your fuel purchase to maximize your margin. We teach strategic fuel purchasing at our NATA FBO Success Seminar. The technique is a process of knowing how aviation fuel is priced in your region and when to make the fuel purchase.
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FBO Operations Tip: Managing Your FBO Fuel Prices in a Volatile Market

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No doubt you have noticed the increase in fuel prices. Since the beginning of year, Jet A has increased by more than 20 cents per gallon.

The impact on your FBO can be felt in cash outlay. For instance, if you recently purchased an 8500-gallon load of Jet A, you probably paid $1700 more than in early January.

If you haven’t been diligent about tracking fuel prices and adjusting your posted price along the way, a $1700 hit to the bottom line is substantial. What about increasing those contract prices that always seem to be too low?

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