GOLDEN ISLES AVIATION Continued from page 55 Wade refers to World Fuel Services’ Air Elite net- work as a “life boat for independent FBOs” at a time when the industry continues to consolidate and competition increases with the major chains. “There has been a lot of consolidation of FBOs in the chain networks, which have programs, and economies of scale in management and purchasing—as well as networking among locations, sharing customer data and standards of service,” he said. “Being a part of the Air Elite network has allowed us much of that, as we network with other (indepen- dently owned) FBOs and pursue opportunities to act much like a chain, yet with local personality and decision-making.” In addition to industry consolidation, Wade cited other challenges facing the independent FBO operator. “We need to keep general aviation healthy, from a pilot, service industry, airport facility and regulatory perspective,” he stressed. For instance, as aircraft become more fuel effi- cient, the revenue stream derived from fuel sales decreases, impacting the traditional FBO business model. Along this line, he noted, many FBOs are competing with those at “depot” locations, where providers have the opportunity to sell greater quantities of fuel, and thereby can shrink their margins on sales due to volume. “This puts an even greater squeeze on FBOs in non-depot locations,” he said. Wade added that some regulatory issues are also becoming problematic, not just for the FBO indus- try, but for airports, other flying-related businesses, and the general aviation community. “The costs of supporting general aviation from airport and service providers—as well as the effects of litigation and insur- ance costs—keep the cost of flying up,” he said. Wade is currently a member of NATA’s Board and has held membership in the association since he and Walker bought Golden Isles Aviation. “NATA played a big part in teaching me about the FBO industry. In my beginning, it was the sole source of trade show events that included seminars on FBO topics,” he remarked. “I learned so much, and continue to learn from taking advantage of the opportunities NATA affords its members. For the industry, it networks us, and we can bring our issues and challenges for discussion to seek possible resolve. It is a watchdog for regulation, lobbying the agencies and political offices of Washington, D.C. NATA is incred- ibly valuable to the general aviation service business.” Aviation Business Journal | 3rd Quarter 2018 57
