CHANGING LANDSCAPE OF FBO SERVICES Continued from page 63 While utilization of airport security mechanisms, such as security fencing, vehicle and pedestrian gates with key codes or key card access, and secu- rity cameras can enhance the over- all security of an airport and FBO, human presence and security camera monitoring are integral in deterring/ detecting airport and FBO security breaches. However, smaller general aviation airports are more vulner- able to security breaches as these airports typically have less security mechanisms and reduced activity levels that do not support a larger airport or FBO staff. As a result, these airports rely heavily on airport and FBO staff to perform these duties. • Service — One of the primary reasons general aviation aircraft are utilized by aircraft owners and passengers is to save time. That is why general aviation aircraft are commonly referred to as “a time machine.” However, when airport/FBO staff are perform- ing airport maintenance and operation functions (away from the FBO facility), the response time to FBO customer requests can be negatively impacted, thereby reducing the overall level and quality of FBO services. Conversely, airport/FBO staff who are focused primarily on respond- ing to FBO customer requests can negatively impact the ongoing airport maintenance and opera- tion responsibilities of the airport. This can include timely snow removal, repair of airport infra- structure and facilities, response to airport incidents and more. Self-Service Fueling Versus Full-Service Fueling There is a significant difference between an airport sponsor providing self-service aviation fueling services and full-service aviation fueling services. Many of the airport spon- sors that own and operate an FBO only provide self-service Avgas fuel- ing services. This typically occurs at airports that have insufficient demand for a broad range of FBO services to attract the investment of private enterprises. In these situations, the self-service aviation fueling services require significantly less investment and personnel/operational costs than those associated with full- service aviation fueling services. However, airport sponsors that own and operate an FBO provid- ing a broad range of FBO services (including full-service aviation fueling services, aircraft ground handling, passenger and crew services and aircraft storage) require significant investment, personnel, training, regulatory compliance and market- ing efforts. Additionally, these airport sponsors will typically be in direct competition with private enterprise FBOs located at competing airports. The issues commonly associated with safety, security and service are sig- nificantly increased in this scenario. The Future Role of Airport Sponsors and FBOs While a majority of airport spon- sors and private enterprises do remain focused on their primary roles associated with maintain- ing the availability and provision of FBO services, it is incumbent on these parties to work together Aviation Business Journal | 1st Quarter 2017 and support one another. This can be accomplished in many ways: • Airport sponsors can conduct market assessments to bet- ter understand the needs of the airport users as they relate to the provision of FBO services. • Airport sponsors (in collabora- tion with private enterprises) can determine the best methods for the airport sponsor and/ or private enterprises to meet the needs of the airport users. • Private enterprises can engage with, and support, airport sponsors in their primary role of develop- ing, managing, and operating the airport’s airside and land- side land and infrastructure. • Private enterprises can invest in the broad range of commercial aeronautical products, services and facilities needed by airport users, including the marginal profit centers and “loss leaders.” Aviation Management Consulting Group (AMCG), founded in 1998, is focused on promoting general aviation management excellence through the provision of trusted services, support, and resources. Jeff Kohlman, a co-founder of AMCG and Managing Principal, has over 30 years of indus- try experience and is a regular contributor to NATA publications and speaker at NATA events. 65
