Fixed-Base Operation: FBO An FBO's role is service. They do not make money by selling tickets for flights, but by selling fuel to plane owners and offering them a place to park their plane or plan the rest of their flight.

Intro: 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 Industry

Fixed-Base Operations a service center at an airport that may be a private enterprise or may be a department of the municipality that the airport serves Def: a service center at an airport that may be a private enterprise or may be a department of the municipality that the airport serves At a minimum, most FBOs offer aircraft fuel, oil, and parking, along with access to washrooms and telephones. Some FBOs offer additional aircraft services such as hangar (indoor) storage, maintenance, aircraft charter or rental, flight training, deicing, and ground services such as towing and baggage handling. At a minimum, most FBOs offer aircraft fuel, oil, and parking, along with access to washrooms and telephones. Some FBOs offer additional aircraft services such as hangar (indoor) storage, maintenance, aircraft charter or rental, flight training, deicing, and ground services such as towing and baggage handling.

FBOs may also offer services not directly related to the aircraft, such as rental cars, lounges, and hotel reservations FBOs may also offer services not directly related to the aircraft, such as rental cars, lounges, and hotel reservations FBOs’ operations commonly contracted at/ close to an airport, and often while sharing the airport with air carrier and military operations FBOs’ operations commonly contracted at/ close to an airport, and often while sharing the airport with air carrier and military operations Fixed-Base Operations

Major services provided by FBOs areMajor services provided by FBOs are –Ground Handling Cabin ServiceCabin Service CateringCatering Ramp ServiceRamp Service Passenger ServicePassenger Service –Field Operations Service

Ground Handling Many airlines subcontract ground handling to an airport or a handling agent, or even to another airline. Many airlines subcontract ground handling to an airport or a handling agent, or even to another airline. Ground handling addresses the many service requirements of a passenger aircraft between the time it arrives at a terminal gate and the time it departs on its next flight. Ground handling addresses the many service requirements of a passenger aircraft between the time it arrives at a terminal gate and the time it departs on its next flight. Speed, efficiency, and accuracy are important in ground handling services in order to minimize the turnaround time (the time during which the aircraft must remain parked at the gate). Speed, efficiency, and accuracy are important in ground handling services in order to minimize the turnaround time (the time during which the aircraft must remain parked at the gate).

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

Most ground services are not directly related to the actual flying of the aircraft, and instead involve other tasks. The major categories of ground handling services are described later in this chapter. Most ground services are not directly related to the actual flying of the aircraft, and instead involve other tasks. The major categories of ground handling services are described later in this chapter. Ground Handling

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

1) Cabin Services Ground Handling

2) Catering Catering includes the unloading of unused food and drink from the aircraft, and the loading of fresh food and drink for passengers and crew. Catering includes the unloading of unused food and drink from the aircraft, and the loading of fresh food and drink for passengers and crew. Airline meals are typically delivered in trolleys. The empty or trash-filled trolley(s) from the previous flight is replaced by a fresh one. Airline meals are typically delivered in trolleys. The empty or trash-filled trolley(s) from the previous flight is replaced by a fresh one. Meals are prepared mostly on the ground in order to minimize the amount of preparation (apart from chilling or reheating) required in the air. Meals are prepared mostly on the ground in order to minimize the amount of preparation (apart from chilling or reheating) required in the air. Ground Handling

2) Catering Ground Handling

3) Ramp Service This includes services on the ramp or apron, such as: This includes services on the ramp or apron, such as: Guiding the aircraft into and out of the parking position (by way of Aircraft marshalling) Guiding the aircraft into and out of the parking position (by way of Aircraft marshalling) Water cartage (to refill fresh water tanks) Water cartage (to refill fresh water tanks) Ground Handling

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 for smaller aircraft) Lavatory drainage, Air conditioning (more common for smaller aircraft) Ground Handling 3) Ramp Service

Ground Handling –Refueling, which may be done with a refueling tanker truck or refueling pumper –Passenger stairs (used instead of an aerobridge or airstairs, some budget airlines use both to improve turnaround speed) etc. –Airstart units (for starting engines) –Luggage handling, usually by means of beltloaders and baggage carts –Air cargo handling, usually by means of cargo dollies, and cargo loaders –Catering trucks, Wheelchair lifts, if required –Deicing

3) Ramp Service Ground Handling

3) Ramp Service Ground Handling

3) Ramp Service Ground Handling

4) Passenger Service This includes services inside the airport terminal such as: This includes services inside the airport terminal such as: Providing check-in counter services for the passengers departing on the customer airlines. Providing check-in counter services for the passengers departing on the customer airlines. Providing Gate arrival and departure services. The agents are required to meet a flight on arrival as well as provide departure services including boarding passengers, closing the flight, etc. Providing Gate arrival and departure services. The agents are required to meet a flight on arrival as well as provide departure services including boarding passengers, closing the flight, etc. Staffing the Transfer Counters, Customer Service Counters, Airline Lounges, etc. Staffing the Transfer Counters, Customer Service Counters, Airline Lounges, etc. Ground Handling

4) Passenger Service Ground Handling

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

Other Operations of FBO Can be summarized as listed below Can be summarized as listed below Administration of the business Administration of the business Line Services Line Services Fueling Fueling Sale of lubricants Sale of lubricants Aircraft storage Aircraft storage Bulk hangarage Bulk hangarage T-hangarage T-hangarage

Aircraft maintenance (related to MRO) Aircraft maintenance (related to MRO) Major repairs and constructions Major repairs and constructions Minor repairs Minor repairs Annual inspections and relicensing Annual inspections and relicensing Engine maintenance Engine maintenance Major Major Minor Minor Remanufacture Remanufacture Other Operations of FBO

Avionics Avionics Sales Sales Services Services Maintenance Maintenance Recertification Recertification Aircraft Sales and rentals Aircraft Sales and rentals New aircraft New aircraft Used aircraft Used aircraft Other Operations of FBO

Flight instruction Flight instruction Primary Primary Advanced Advanced Instrument Instrument Multi-engine Multi-engine Recurrent Recurrent Parts sales and service Parts sales and service Tires, brakes and bearings Tires, brakes and bearings Batteries Batteries Other Operations of FBO

Specialized commercial functions Specialized commercial functions Aerial advertising Aerial advertising Not all FBOs perform all the functions listed before Not all FBOs perform all the functions listed before Some may specialize in only one or two categories Some may specialize in only one or two categories Other Operations of FBO

But normally performs the 6 major functions either as But normally performs the 6 major functions either as Part of business Part of business By leasing space out to specialists who perform the functions on the owned/ leased premises By leasing space out to specialists who perform the functions on the owned/ leased premises An FBOs is like a shopping mall manager who is charged with making a profit on each of the many, widely diverse individual business operations within the orbit of the overall operation An FBOs is like a shopping mall manager who is charged with making a profit on each of the many, widely diverse individual business operations within the orbit of the overall operation Other Operations of FBO

Challenges facing FBOs Determining when your customers will arrive Having fuel trucks available when planes arrive Freeing up ramp space before planes arrive Knowing fuel type of an arriving plane Scheduling personnel for arrival times Providing catering service for just-in-time service Monitoring the competition Keeping alert to pending weather problems

Size and Scope of FBOs Fall into four categories Fall into four categories Major Major Medium-size Medium-size Small Small Special Size Special Size

MAJOR Located at major airports and fully equipped to handle the servicing and maintenance of all types of aircraft Located at major airports and fully equipped to handle the servicing and maintenance of all types of aircraft From the large air carriers used by majors service carriers and business corporations to single-engine aircraft From the large air carriers used by majors service carriers and business corporations to single-engine aircraft Have a multi-plex operations, but most have a single operations base Have a multi-plex operations, but most have a single operations base

Some affiliated with franchise and operate nationally and internationally, Some affiliated with franchise and operate nationally and internationally, Whereas others are independently owned and operated but have a network affiliation with other independents Whereas others are independently owned and operated but have a network affiliation with other independents Major type of FBOs either independently operated/ part of a larger corporation whose interests extend beyond FBO with million revenues Major type of FBOs either independently operated/ part of a larger corporation whose interests extend beyond FBO with million revenues MAJOR

MEDIUM SIZE Different from the MAJOR in terms of Different from the MAJOR in terms of The size of investment (at 50 million with sales volume range to 5-25 million) The size of investment (at 50 million with sales volume range to 5-25 million) But also located at air-carrier served airports But also located at air-carrier served airports At least must be able to remove and repair any aircraft that might use their facility in the event/ situation such aircraft become disabled on the ramps or runaways At least must be able to remove and repair any aircraft that might use their facility in the event/ situation such aircraft become disabled on the ramps or runaways

SMALL 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 on shoestring using the cash drawer system A.k.a ‘mom-and-pop shops’: Doing business on shoestring using the cash drawer system Early year: So much money Early year: So much money Mid year: Some goes out some comes in Mid year: Some goes out some comes in End year: What is left is profit End year: What is left is profit But very vulnerable in the modern business environment But very vulnerable in the modern business environment

SMALL Majority of its operators have no business training Majority 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 specialist An aeronautical specialist A pilot A pilot Mechanic Mechanic Technician- engine rebuilder, radio expert, sheet metal fabricator Technician- engine rebuilder, radio expert, sheet metal fabricator Then the business grows to meet the increasing demands of the aviation public Then the business grows to meet the increasing demands of the aviation public

SPECIAL They are some extremely specialized aviation operations found at public airports They are some extremely specialized aviation operations found at public airports Not really a true FBOs but provide necessary services and considered as essential in aviation industry Not really a true FBOs but provide necessary services and considered as essential in aviation industry Operated by engine manufacturers and remanufacturers, avionics, propeller specialists, and flight training specialists Operated by engine manufacturers and remanufacturers, avionics, propeller specialists, and flight training specialists

FBO-Profitability There can be no general aviation transportation w/out a nationwide system of FBOs to support it There can be no general aviation transportation w/out a nationwide system of FBOs to support it FBOs are the backbone of general aviation transportation FBOs are the backbone of general aviation transportation In recent time, the industry is now in the position to develop and sustain rational growth and profitability as the supply and demand increasing In recent time, the industry is now in the position to develop and sustain rational growth and profitability as the supply and demand increasing

Question 1 An FBO's role is service. They do not make money by selling tickets for flights, but by selling fuel to plane owners and offering them a place to park their plane or plan the rest of their flight. a)Briefly explain in your own words the definition of airline Fixed Base Operation (3 marks) b) Discuss in your own words all the major services provided by FBOs. (9 marks) c) If you plan to start an airline FBO company, which kind of FBO services would your prefer and state your reason why (3 marks)

Question 2 Ground handling in FBO addresses the many service requirements of a passenger aircraft between the time it arrives at a terminal gate and the time it departs on its next flight. a)Briefly explain in your own words the concept of ground handling in FBO services (8 marks) b) Discuss your understanding on Avionics and what type of FBO services available. (4 marks) c) Why do you think FBO ground handling services require fast and efficient actions strictly monitored by the authorities? (3 marks)

Question 3 Airlines with less-frequent service or fewer resources sometimes subcontract FBO services as it is a short-term cheaper alternative. a)Briefly explain in your own understanding on ramp services (3 marks) b) Describe the 6 services available in ramp services and 3 services offered in passenger services. (9 marks) c) State which FBO services is subcontract to foreign company in Malaysia and discuss your reasons. (3 marks)

Question 4 FBOs’ operations commonly related to the actual flying of the aircraft, but may also offer services not directly related to the aircraft, such as rental cars, lounges, and hotel reservations. a)Briefly explain 8 others Other Operations of FBO excluding the major services (8 marks) b)Discuss in your own words four activities in ground handling FBO services. (4 marks) c) From you opinion, which type of FBO operation excluding the major services is the most profitable one? State your reason. (3 marks)