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Competition is for FBOs
Aviation may be perceived as a very competitive business. This isn’t so much the case for airlines as they all just struggle to stay afloat. You don’t see ads on television by airlines trying to cut each other’s throats. Most actually work together, somewhat. Ever heard of the Sky Team Alliance? If not, then you can look it up. I’ll just say that it consists of 11 member airlines and 16,409 daily flights to 841 destinations. So in short, it makes things a little easier for frequent flyer’s.
The real competitive part of the aviation industry is the General Aviation side. General Aviation can be considered an umbrella term consisting of Private owners, Corporations/Businesses, and Flight schools. It does not include airlines. FBO’s (Fixed Based Operators) are in business to serve these potential customers. Their main gig is to take care of the passengers and flight crew of these aircraft. This can consist of arranging hotel reservations, catering, and ground transportation, etc. The money however, comes from fueling these lovely aircraft. Since most airports consist of at least two FBO’s it is important to persuade or bribe flight dispatchers and pilots to send the business their way. Let’s take KMSY for example, Signature and Atlantic; two strong arms in the aviation industry. Signature’s price is about .60 cents higher per gallon, but claim they perform their job with greater safety than any other FBO *cough* *cough* *bullshit*. It’s a game and each have their own marketing scheme. Atlantic offers reward bucks. They give out points for fuel purchases. The bigger the fuel purchase, the more points acquired. Once so many is reached they may be redeemed online for a $100 AMEX gift card that can be reloaded. It’s a huge hit for pilots on the corporate side because they don’t buy the fuel, the company does (major perk). I’d like to see Signature offer something similar, but they are far too cheap.
KMSY is a class Bravo airport so the fuel is always higher. Always. Eight miles east is KNEW, a class Delta airport. It consists of three FBO’s; Million Air, Flightline First and the new AeroPremier FBO. Million Air has been there for decades while the other two are brand new. For comparison, Million Air is about a dollar cheaper per gallon than Signature and Atlantic at KMSY.
The General Manager there is also the V.P. of Million Air, a Citation pilot and a Police officer who is very well respected. Heck, I respect the hell out of him. He has two life times of success on one resume.
Now to get back to my blog, Flightline has the cheapest fuel prices in the city and they still can’t steal any customers from Million Air, at least not a handful. I work at Lakefront and I know that if pilot’s move their airplane, Addie will kick their a$$ to the moon and double their ramp charge if they choose to return. You gotta’ love his philosophy… I do.
In conclusion, the best way to a successful FBO is a great crew, lead by a great General Manager. That’s my .02 cents.
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3 Responses to “Competition is for FBOs”
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Nice post. Nice photoshop too.
I also work at lakefront airport in New Orleans, ADDIE is the man!!!!!
Nice site!!