An FBO's role is service. They do not make An FBO's role is service. They do not make money by selling tickets for flights, but by selling money by selling tickets for flights, but by selling fuel to plane owners and offering them a place fuel to plane owners and offering them a place

to park their plane or plan the rest of their flight. to park their plane or plan the rest of their flight.

Fixed-Base Operation: FBOFixed-Base Operation: FBO

Intro: The Aviation Service IndustryIntro: The Aviation Service Industry

• All civil aircraft are directly affected by the safety regulations of the FAA (In the US)

• Aviation Service requires maintenance, repairs and installation of parts

• Aircraft must go through a cyclical re-inspection on at least on annual basis

• Major airliners usually have their own maintenance facilities for periodic and progressive maintenance

• But a few major general aviation business aircraft operators rely on the services of specialized support business operations

Intro: The Aviation Service IndustryIntro: The Aviation Service Industry

Fixed-Base OperationsFixed-Base Operations

• Def: a service center at an airport that may be a a service center at an airport that may be a private enterprise or may be a department of the private enterprise or may be a department of the municipality that the airport servesmunicipality that the airport serves

• At a minimum, most FBOs offer aircraft fuel, oil, At a minimum, most FBOs offer aircraft fuel, oil, and parking, along with access to washrooms and and parking, along with access to washrooms and telephones. Some FBOs offer additional aircraft telephones. Some FBOs offer additional aircraft services such as hangar (indoor) storage, services such as hangar (indoor) storage, maintenance, aircraft charter or rental, flight maintenance, aircraft charter or rental, flight training, deicing, and ground services such as training, deicing, and ground services such as towing and baggage handling.towing and baggage handling.

• FBOs may also offer services not directly FBOs may also offer services not directly related to the aircraft, such as rental cars, related to the aircraft, such as rental cars, lounges, and hotel reservationslounges, and hotel reservations

• FBOs’ operations commonly contracted at/ FBOs’ operations commonly contracted at/ close to an airport , and often while sharing close to an airport , and often while sharing the airport with air carrier and military the airport with air carrier and military operationsoperations

Fixed-Base OperationsFixed-Base Operations

Fixed-Base OperationsFixed-Base Operations

• Major services provided by FBOs areMajor services provided by FBOs are– Ground HandlingGround Handling

• Cabin ServiceCabin Service• CateringCatering• Ramp ServiceRamp Service• Passenger ServicePassenger Service

– Field Operations ServiceField Operations Service

Ground HandlingGround Handling• Many airlines subcontract ground handling to an Many airlines subcontract ground handling to an

airport or a airport or a handling agent,handling agent, or even to another airline. or even to another airline.• Ground handling addresses the many service Ground handling addresses the many service

requirements of a passenger aircraft between the time requirements of a passenger aircraft between the time it arrives at a terminal gate and the time it departs on it arrives at a terminal gate and the time it departs on its next flight. its next flight.

• Speed, efficiency, and accuracy are important in Speed, efficiency, and accuracy are important in ground handling services in order to minimize the ground handling services in order to minimize the turnaround time (the time during which the aircraft turnaround time (the time during which the aircraft must remain parked at the gate).must remain parked at the gate).

• Airlines with less-frequent service or fewer Airlines with less-frequent service or fewer resources at a particular location sometimes resources at a particular location sometimes subcontract ground handling or on-call aircraft subcontract ground handling or on-call aircraft maintenance to another airline, as it is a maintenance to another airline, as it is a short-term cheaper alternative to setting up short-term cheaper alternative to setting up its own ground handling or maintenance its own ground handling or maintenance capabilities.capabilities.

Ground HandlingGround Handling

• Most ground services are not directly related Most ground services are not directly related to the actual flying of the aircraft, and instead to the actual flying of the aircraft, and instead involve other tasks. The major categories of involve other tasks. The major categories of ground handling services are described below.ground handling services are described below.

Ground HandlingGround Handling

Cabin ServicesCabin Services

• These services ensure passenger comfort. These services ensure passenger comfort. They include such tasks as cleaning the They include such tasks as cleaning the passenger cabin and replenishment of on-passenger cabin and replenishment of on-board consumables or washable items such as board consumables or washable items such as soap, pillows, tissues, blankets, etc.soap, pillows, tissues, blankets, etc.

CateringCatering

• Catering includes the unloading of unused food and Catering includes the unloading of unused food and drink from the aircraft, and the loading of fresh food drink from the aircraft, and the loading of fresh food and drink for passengers and crew. and drink for passengers and crew.

• Airline meals are typically delivered in Airline meals are typically delivered in trolleys.trolleys. The The empty or trash-filled trolley(s) from the previous empty or trash-filled trolley(s) from the previous flight is replaced by a fresh one. flight is replaced by a fresh one.

• Meals are prepared mostly on the ground in order to Meals are prepared mostly on the ground in order to minimize the amount of preparation (apart from minimize the amount of preparation (apart from chilling or reheating) required in the air.chilling or reheating) required in the air.

Ramp ServiceRamp Service

• This includes services on the ramp or apron, This includes services on the ramp or apron, such as:such as:– Guiding the aircraft into and out of the parking Guiding the aircraft into and out of the parking

position (by way of Aircraft marshallingposition (by way of Aircraft marshalling– Water cartage (to refill fresh water tanks)Water cartage (to refill fresh water tanks)– Refueling, which may be done with a refueling Refueling, which may be done with a refueling

tanker truck or refueling pumpertanker truck or refueling pumper– Passenger stairs (used instead of an aerobridge or Passenger stairs (used instead of an aerobridge or

airstairs, some budget airlines use both to improve airstairs, some budget airlines use both to improve turnaround speed) etc.turnaround speed) etc.

Ramp ServiceRamp Service

• This includes services on the ramp or apron, such as:This includes services on the ramp or apron, such as:– Lavatory drainage, Air conditioning (more common Lavatory drainage, Air conditioning (more common

for smaller aircraft) for smaller aircraft) – Airstart units (for starting engines) Airstart units (for starting engines) – Luggage handling, usually by means of beltloaders Luggage handling, usually by means of beltloaders

and baggage carts and baggage carts – Air cargo handling, usually by means of cargo Air cargo handling, usually by means of cargo

dollies, and cargo loaders dollies, and cargo loaders – Catering trucks, Wheelchair lifts, if required Catering trucks, Wheelchair lifts, if required – DeicingDeicing, Ground power

Passenger ServicePassenger Service

• This includes services inside the airport terminal This includes services inside the airport terminal such as:such as:

• Providing check-in counter services for the Providing check-in counter services for the passengers departing on the customer airlines.passengers departing on the customer airlines.

• Providing Gate arrival and departure services. Providing Gate arrival and departure services. The agents are required to meet a flight on The agents are required to meet a flight on arrival as well as provide departure services arrival as well as provide departure services including boarding passengers, closing the flight, including boarding passengers, closing the flight, etc.etc.

• Staffing the Transfer Counters, Customer Service Staffing the Transfer Counters, Customer Service Counters, Airline Lounges, etc.Counters, Airline Lounges, etc.

Field Operation ServiceField Operation Service

• This service dispatches the aircraft, maintains This service dispatches the aircraft, maintains communication with the rest of the airline communication with the rest of the airline operation at the airport and with Air Traffic operation at the airport and with Air Traffic Control.Control.

Other Operations of FBOOther Operations of FBO

• Can be summarized as listed belowCan be summarized as listed below– Administration of the businessAdministration of the business– Line ServicesLine Services

• FuelingFueling• Sale of lubricantsSale of lubricants

– Aircraft storageAircraft storage• Bulk hangarageBulk hangarage• T-hangarageT-hangarage

– Aircraft maintenance (related to MRO)Aircraft maintenance (related to MRO)• Major repairs and constructionsMajor repairs and constructions• Minor repairsMinor repairs• Annual inspections and relicensingAnnual inspections and relicensing

– Engine maintenanceEngine maintenance• MajorMajor• MinorMinor• RemanufactureRemanufacture

Other Operations of FBOOther Operations of FBO

– AvionicsAvionics• SalesSales• ServicesServices

– MaintenanceMaintenance– RecertificationRecertification

– Aircraft Sales and rentalsAircraft Sales and rentals• New aircraftNew aircraft• Used aircraftUsed aircraft

Other Operations of FBOOther Operations of FBO

– Flight instructionFlight instruction• PrimaryPrimary• AdvancedAdvanced

– InstrumentInstrument– Multi-engineMulti-engine

• RecurrentRecurrent– Parts sales and serviceParts sales and service

• Tires, brakes and bearingsTires, brakes and bearings• BatteriesBatteries

Other Operations of FBOOther Operations of FBO

– Specialized commercial functionsSpecialized commercial functions• Aerial advertisingAerial advertising

• Not all FBOs perform all the functions listed Not all FBOs perform all the functions listed beforebefore– Some may specialize in only one or two categoriesSome may specialize in only one or two categories

Other Operations of FBOOther Operations of FBO

• But normally performs the 6 major functions But normally performs the 6 major functions either as either as – Part of businessPart of business– By leasing space out to specialists who perform the By leasing space out to specialists who perform the

functions on the owned/ leased premisesfunctions on the owned/ leased premises• An FBOs is like a shopping mall manager who is An FBOs is like a shopping mall manager who is

charged with making a profit on each of the many, charged with making a profit on each of the many, widely diverse individual business operations widely diverse individual business operations within the orbit of the overall operationwithin the orbit of the overall operation

Other Operations of FBOOther Operations of FBO

Size and Scope of FBOsSize and Scope of FBOs

• Fall into four categoriesFall into four categories– MajorMajor– Medium-sizeMedium-size– SmallSmall– Special SizeSpecial Size

MAJORMAJOR

• Located at major airports and fully equipped Located at major airports and fully equipped to handle the servicing and maintenance of all to handle the servicing and maintenance of all types of aircrafttypes of aircraft– From the large air carriers used by majors service From the large air carriers used by majors service

carriers and business corporations to single-carriers and business corporations to single-engine aircraftengine aircraft

• Have a multi-plex operations, but most have a Have a multi-plex operations, but most have a single operations base single operations base

• Some affiliated with franchise and operate Some affiliated with franchise and operate nationally and internationally,nationally and internationally,

• Whereas others are independently owned Whereas others are independently owned and operated but have a network affiliation and operated but have a network affiliation with other independentswith other independents

• Major type of FBOs either independently Major type of FBOs either independently operated/ part of a larger corporation whose operated/ part of a larger corporation whose interests extend beyond FBO with million interests extend beyond FBO with million revenuesrevenues

MAJORMAJOR

MEDIUM SIZEMEDIUM SIZE

• Different from the MAJOR in terms of Different from the MAJOR in terms of – The size of investment (at 50 million with sales The size of investment (at 50 million with sales

volume range to 5-25 million)volume range to 5-25 million)• But also located at air-carrier served airportsBut also located at air-carrier served airports• At least must be able to remove and repair At least must be able to remove and repair

any aircraft that might use their facility in the any aircraft that might use their facility in the event/ situation such aircraft become disabled event/ situation such aircraft become disabled on the ramps or runawayson the ramps or runaways

SMALLSMALL

• Out of 3500 FBOs 2000 are small-U.S.Out of 3500 FBOs 2000 are small-U.S.• A.k.a ‘mom-and-pop shops’: Doing business A.k.a ‘mom-and-pop shops’: Doing business

on shoestring using the cash drawer systemon shoestring using the cash drawer system– Early year: So much moneyEarly year: So much money– Mid year: Some goes out some comes inMid year: Some goes out some comes in– End year: What is left is profitEnd year: What is left is profit

• But very vulnerable in the modern business But very vulnerable in the modern business environmentenvironment

• Majority of its operators have no business trainingMajority of its operators have no business training• Commonly started by s/one who loves aviation:Commonly started by s/one who loves aviation:

– An aeronautical specialistAn aeronautical specialist– A pilotA pilot– MechanicMechanic– Technician- engine rebuilder, radio expert, sheet Technician- engine rebuilder, radio expert, sheet

metal fabricatormetal fabricator• Then the business grows to meet the Then the business grows to meet the

increasing demands of the aviation publicincreasing demands of the aviation public

SMALLSMALL

SPECIALSPECIAL

• They are some extremely specialized aviation They are some extremely specialized aviation operations found at public airports operations found at public airports

• Not really a true FBOs but provide necessary Not really a true FBOs but provide necessary services and considered as essential in services and considered as essential in aviation industryaviation industry

• Operated by engine manufacturers and Operated by engine manufacturers and remanufacturers, avionics, propeller remanufacturers, avionics, propeller specialists, and flight training specialistsspecialists, and flight training specialists

FBO-ProfitabilityFBO-Profitability

• There can be no general aviation There can be no general aviation transportation w/out a nationwide system of transportation w/out a nationwide system of FBOs to support itFBOs to support it

• FBOs are the backbone of general aviation FBOs are the backbone of general aviation transportationtransportation

• In recent time, the industry is now in the In recent time, the industry is now in the position to develop and sustain rational groth position to develop and sustain rational groth and profitability as the supply and demand and profitability as the supply and demand increasingincreasing