Annual FBO Fuel Sales Survey Results & Industry Forecast:
/FBO Fuel Sales Softened in 2023
The results of our Annual FBO Fuel Sales Survey indicate that fuel sales softened in 2023 following a relatively flat 2022 performance.
Read MoreFBO Insight: Use Financial Ratios to Help Improve Your Bottom Line
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A handy tool for FBOs to help manage profitability is to conduct a financial ratio analysis which will assist in spotting trends, both good and bad. This process will aid owners and operators to get a better grip on cash management and forecasting the effect that operations have on the bottom line.
Read MoreFBO Insight: The Value of Creating a Sound Balance Sheet
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The fourth element in building equity in your FBO enterprise is creating a sound balance sheet to help determine financial performance.
Read MoreFBO Success: Protecting Your Golden Eggs
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Multi-Part Series on The 7 Immutable Elements of Building Equity in Your FBO Enterprise. Now that you have your three golden eggs nicely arranged, lease agreements for Hangar Space, Office Space and Tie-down Space, there’s one last section of the lease documents that should not be overlooked. It’s the rules and regulations section that offers you protection should one of the parties in your agreement defaults.
Read MoreFBO Success: FBO Tie-Down Space, Another Golden Egg Opportunity
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If you want to maximize your ground lease return on investment, don’t overlook the value of your tie-down space. It’s an opportunity to add one more golden egg to your nest of income producers: Hangar Space, Office Space and Tie-down Space. We call it the trifecta of recurring income that will produce a passive source of revenue for months and years to come for your FBO.
Read MoreThe FBO Office Lease Agreement, Another Golden Egg
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Don’t look now, but there are two golden eggs in your grassy nest next to your fuel farm. The first one is your hangar lease agreement which we discussed in the last blog post. The second golden egg represents your office lease agreements which also deserve your undivided attention.
Read MoreContract Fuel: The Rewards and Risks
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When it comes to reviewing the contract fuel section of your fuel supplier agreement, please remember that there are two sides to every coin. On one side there are the rewards that need to be examined. On the other side, there are potential risks that need to be weighed.
Read MoreFBO Success: Negotiate Credit Card Processing Fees for a Better Fuel Supplier Agreement
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Multi-Part Series on The 7 Immutable Elements of Building Equity in Your FBO Enterprise
An often-overlooked element in developing a better fuel supplier agreement is the ability to negotiate favorable credit card processing fees. If you want to have a tangible impact on your bottom line, watching your credit card processing fees is a sure bet.
FBO Success: The Finer Points of a Favorable Fuel Supplier Agreement Can Pay Dividends
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Multi-Part Series on The 7 Immutable Elements of Building Equity in Your FBO Enterprise
Details, details, details. It’s often humdrum, but paying attention of the subtler points of a fuel supplier agreement can pay dividends in the long run.
For this blog post, we’ll discuss the finer points of a favorable fuel supplier agreement. This includes taxes (federal, state, local, LUST and flowage fees), in addition to quality control, training and marketing support.
Read MoreFBO Success: Unlock Potential Cost Savings in Your Fuel Supplier Agreement
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Multi-Part Series on The 7 Immutable Elements of Building Equity in Your FBO Enterprise
As we all know, running a successful FBO fueling operation comes down to dollars and cents. A penny saved per gallon here and there can mean better bottom line returns.
It’s really simple math. If you added a penny to the cost of every gallon sold annually, that’s $100 gross profit to the bottom line for every 10,000 gallons pumped. Not exactly chump change!
Read MoreFBO Success: A Multi-Part Series
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Over the next several blog posts, we will do an in-depth dive into each of these elements, providing valuable insight to help you navigate your way towards operating a more successful FBO business. For this blog post, we start at the top: Obtaining a long-term airport lease with extension options. Your lease with the airport authority is the lifeblood of your business. Here are the critical components of your airport lease that we will look at:
Read MoreHow to Approach Aircraft Arriving at Your FBO Safely
/As part of our series on best practices for FBOs, we suggest these 10 SOPs for avoiding danger before approaching an arriving aircraft to initiate service:
Read MoreReduce Fuel Spills by Mitigating Risk
/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.
Read MoreOngoing DEF Fuel Contamination Problem Sparks Safety Alert from NTSB
/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.
Handling of Dangerous Goods: Be Aware
/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.
Read MoreSpeeding on the FBO Ramp Can Be a Costly Proposition
/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.
Eight Best Practices to Prevent Hangar Rash or Worse
/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).
Get Ready to Post Fuel Prices and Other Fees
/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.
Read MoreReplace Wooden Chocks with Rubber Chocks
/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.
Read MoreUrgent: Isolate DEF Additive from Operations
/The FBO industry should be on alert for accidental Jet A fuel contamination from the misuse of diesel exhaust fluid (DEF).
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