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FBO SURVEY Data Compiled by David Leach; Narrative by Curt Epstein

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FBO SURVEY Data Compiled by David Leach; Narrative by Curt Epstein AirFlite 2015 • The Americas FBO SURVEY Data compiled by David Leach; narrative by Curt Epstein seeds for such deals tend to be planted Bucaro echoes that sentiment. “We’re not Brighter skies ahead for FBO industry years in advance. interested in the number of dots we have There are approximately 3,000 FBOs in on the map. We’re interested in making As business aviation continued its slow that they expect fuel sales to rise by 5 to 8 the U.S., a number Dennis believes is too sure that the locations we add to our net- rebound in 2014, there were indications percent this year, a healthy improvement large. “I don’t think there is enough mar- work really add value to our customers, that the industry has left the bottom of on the 10 percent who looked for such ket activity to support all the FBOs we and so that they are really relevant in what the trough in the rearview mirror and is gains last year. have out there,” he told AIN. “We’re at the we do,” he said. slowly recovering. According to indus- While the pace of FBO industry con- point where in the next three to five years In this year’s FBO survey, AIN asked try data provider Argus, the good news solidation slowed during the recession, it is we’ll see another 10- to 20-percent consol- readers how they view the consolida- is that business aircraft flights in the U.S. heating up again as the economy stabilizes idation of the industry.” This math sug- tion trend: nearly half the respondents and Canada recorded a 14th consecutive and business grows. “It’s still not as good gests several hundred FBOs will vanish, were undecided as to whether a move monthly increase in January. However, as it was in 2006 and ’07, but business is either through acquisition by the major from individually owned locations to that activity varies significantly by sec- stable so I think people are realizing they chains or, for FBOs at smaller airports, those owned by chains is good or bad, tor: turboprops and large-cabin jets saw made it through a downturn,” said Dan by their rival independent locations. While while hundreds of comments supported gains, while light and midsize jets experi- Bucaro, president and CEO of Landmark the major chains will continue to grow, the arguments for each side. While some enced slight declines. “Most FBO opera- Aviation, which added 23 locations to its Dennis believes that process will slow as characterized the consistency a chain pro- tors I’ve been talking with are facing the network over the past year (18 of those the available locations at the nation’s top vides as a plus, others viewed chains as fact that we have a slow recovery,” said through its purchase of the Ross Avia- 100 airports are exhausted. Landmark’s lacking the personality a one-off location Stephen Dennis, president of FBO indus- tion chain). “They don’t want to struggle can offer. Regardless, Dennis believes the try consultancy Aviation Resource Group through another downturn, so there are Inside This Survey day of the independently owned FBO is International (ARGI). “They’re still see- more locations out there for sale.” far from over. “There’s still going to be a Top Performing FBOs Page 21 ing some improvement driven by the oil The primary reasons driving each FBO huge number of FBOs out there that are cost reduction, and many of the FBOs operator to sell differ from location to not part of the domain of the primary www.ainonline.com Top Rated FBOs Page 21 have picked up more margin.” location and owner to owner, according in the Americas networks.” The recent rise of upper-tier to Signature Flight Support president and “membership” networks of affiliated Brighter Outlook Spurs COO Maria Sastre. “Some of them are FBO Survey Rules and Page 21 FBOs that emphasize service levels is Methodology Talk of Sales, Consolidation ready to retire, and don’t have an obvious one way such locations look to remain That assessment corresponds with the successor,” she said, adding that the recent Top Rated FBOs in the Pages competitive. Such groups require mem- growing sense of optimism for this year improvements in the market might have Americas by Region 22 & 24 ber facilities to uphold defined levels of conveyed by an annual survey of more spurred others to consider whether now FBOs Showing the Largest customer service as a condition of mem- than 200 FBO operators by the Aviation is a good time to sell. One longtime FBO Increase in Overall Average Page 26 bership. Indeed, customer service remains Business Strategies Group (ABSG). More owner who sold recently told AIN that from 2014 to 2015 key: 90 percent of survey respondents than 60 percent of the survey respondents had he known the economic downturn Survey Questions Pages 22 & 26 indicated it is among their top consid- anticipated gains of at least 2.5 percent would last so long, he would have sold erations in selecting a facility. While the AIN’s 2015 FBO Survey Page 34 this year. “In our 2014 survey, the major- years earlier. “Clients of ours have told by the Numbers FBO chains offer loyalty and reward ity of respondents predicted at least a us they did miss the golden opportunity programs to attract and retain their cus- breakeven marketplace, with only about of 2006-2007, and they regret not having FBO Chains: Top Facilities Page 34 tomers, less than 7 percent of our survey 40 percent projecting more fuel sales vol- done something at that time,” said Dennis. Gift Card Winners Page 34 respondents listed it as one of their most ume,” noted ABSG partner Ron Jackson. A further consideration is whether own- important factors in choosing a service Page 34 Of those surveyed, 18 percent responded ers have received offers in the past, as the Above & Beyond provider. o © 2015 AIN Publications. All Rights Reserved. For Reprints go to 20 Aviation International News • April 2015 • www.ainonline.com Top-rated FBOs in the Americas (by Overall Average) Airport Overall FBO Airport Code Average The Top Performing FBOs AirFlite Aviation Services Long Beach/Daugherty Field KLGB 9.5 J.A. Air Center Aurora Municipal KARR 9.5 Tary himself, who also serves as a G550 Fargo Jet Center Hector International KFAR 9.4 AirFlite pilot in Toyota’s flight department. Not Long Beach Airport (KLGB), averse to integrating other winning strat- Jet Aviation Palm Beach International KPBI 9.4 Long Beach, Calif. egies, when he learns of a flight that will Tampa International Jet Center Tampa International KTPA 9.4 be visiting another successful FBO, he XJet Centennial KAPA 9.4 TOP 10% requests to be assigned that trip. Atlantic Aviation Charles B. Wheeler Downtown KMKC 9.3 Such real-life industry involvement Black Canyon Jet Center Montrose Regional KMTJ 9.3 9.5 allows him to share an invaluable per- Landing at the top in last year’s sur- spective with his staff. “We try to make Destin Jet Destin-Fort Walton Beach KDTS 9.3 Minneapolis St. Paul International/ vey with an overall score of 9.6, AirFlite this pilot-centric,” he told AIN. “All of Signature Flight Support KMSP 9.3 shares the honors again this year, accord- our customer service initiatives are really Wold-Chamberlain ing to AIN’s readers, earning top scores in based on my experience of going to hun- Signature Flight Support St. Paul Downtown Holman Field KSTP 9.3 three of the five survey categories. Clearly dreds of FBOs and trying to educate our Banyan Air Service Fort Lauderdale Executive KFXE 9.2 a case of getting it right the first time, CSRs to be able to understand and empa- Pentastar Aviation Oakland County International KPTK 9.2 the Toyota-owned FBO has occupied thize with the crewmember who is on the Texas Jet Fort Worth Meacham International KFTW 9.2 the same 34,000-sq-ft building at the Los road for 25 days a month.” Angeles-area airport for the past 23 years. With that in mind, the front-desk Wilson Air Center Memphis International KMEM 9.2 “We always reinvest in the infrastruc- staff is aware of all the newest hot spots, Atlantic Aviation Pittsburgh International KPIT 9.1 ture, one way or the other,” explained local events and latest activities and can Base Operations at Page Field Page Field KFMY 9.1 general manager John Tary. “We’re con- quickly recommend a pleasant diver- Business Jet Center Dallas Love Field KDAL 9.1 tinuously upgrading what we have and sion, from electric bicycle tours to movie Henriksen Jet Center Austin Executive KEDC 9.1 investing in new technologies.” screenings at the beach. Among the refurbishments over the AirFlite has participated in Ritz- Jet Aviation William P. Hobby KHOU 9.1 past year were a $100,000 redesign of the Carlton’s customer service training pro- Meridian Teterboro KTEB 9.1 Fort Lauderdale/Hollywood customer service desk and audio-visual gram since long before it was a require- National Jets KFLL 9.1 equipment upgrades for the conference ment for FBOs in World Fuel’s Air Elite International rooms, which seat 12 and 25, respectively. network, of which the FBO was a found- TOP 20% Rectrix Aerodrome Centers Sarasota/Bradenton International KSRQ 9.1 The facility’s 70,000 sq ft of hangar ing member. This year for the first time, Showalter Flying Services Orlando Executive KORL 9.1 space, which can accommodate the lat- the location’s line service staff will par- (now Atlantic Aviation) est class of ultra-long-range business ticipate alongside the CSR staff.
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