Ground Handling Safety for Aircraft Operators Continued from page 51 even within a single operator, and hangar movement is even more personnel intensive than other operations. The Cost of an Accident It can be easy to look at ground events and assume the people involved weren’t adequately trained or made bad decisions. In almost all cases, though, line personnel (who are involved in accidents) reiterate that they were try- ing extremely hard to get a job done for the customer. No one comes to work with the idea that they’ll have an acci- dent; and, most of us in any aspect of aviation are driven to get the job done. Sometimes, this can lead to some creative variation from norms, generally precipitated by a perceived pressure to accomplish a job for the client. Several years ago, Flight Safety Foundation’s Ground Accident Prevention program estimated airlines spend at least $10B/year on ground damage. Industry figures for the average cost of a general aviation ground damage claim are approximately $127K, though damage routinely exceeds that amount, and has historically been as high as $9 mil- lion for damage to a single, general aviation aircraft. Physical damage is a relatively small piece of the total damage figure that is often far exceeded by: ■■ Diminution in value of the air- craft due to damage history ■■ ■■ ■■ Loss of use and replacement cost for aircraft Lost charter revenue Punitive damages Damage cost is further exacerbated by: ■■ ■■ ■■ ■■ ■■ Reputational damage Damaged equipment Personnel injuries Loss of personnel Negative impact on morale FBO Challenges FBOs are a difficult business to run sustainably and they face a number of challenges. Most FBOs are keenly interested in operating safely, but they have to focus their efforts on what customers demand. Those competing interests make for a delicate balance. Tools Available to FBOs and Their Customers NATA has a number of service offerings available to members that are making a positive difference to FBOs. Safety 1st of NATA. Safety 1st In the same way most of us don’t ask to see a kitchen safety inspection report—or even to inspect the kitchen itself—when we go out to eat, FBOs typically face ques- tions about fuel pricing, facilities and amenities, and loyalty programs, but not about their safety and training efforts. As an FBO, investing heavily in safety is a tough sell, especially when your clients don’t seem to care. On top of this, FBOs face high turnover, airport gov- ernance issues, real estate lease struggles, fuel pric- ing uncertainty, and heavy consolidation in the industry—all on top of low starting margins. At an FBO, predicting traffic is often difficult, so ensuring hangar space or ramp space is available can be a real chal- lenge, made worse by never knowing what size aircraft might arrive on any day. Since most FBOs are open 24 hours a day, every day of the year, finding time to shut down opera- tions for maintenance or for training personnel is a very expensive process that often means substantial overtime. FBOs face a litany of differing requirements from air- ports, customers, leaseholders, etc. Those diverse requests lead to operational conflicts that can be very difficult to resolve while keeping the many stakeholders happy. Additionally, FBOs are not regulated, so gaining sup- port for non-compulsory programs can be difficult. Finally, FBO liability is no small matter and ground handlers often find themselves in a position where they are blamed for acts of nature, pre-existing damage, or the actions of flight crew or another ground service provider. In addition to the effect on insurance premiums, FBOs must absorb the direct cost of deductibles. Unlike turbine aircraft, which commonly have no first-party deductible for an insurance claim, FBO liability losses often have deductibles from $25,000 to as high as $250,000. is the educational outreach and training arm programs are developed through col- laboration with NATA members and industry experts. The men and women who safely marshal, fuel and manage aircraft are integral not only to the FBO business, but to 52 Aviation Business Journal | 2nd Quarter 2017
