FBO SURVEY Data Compiled by David Leach; Narrative by Curt Epstein
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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 AirFlite Aviation Services Long Beach/Daugherty Field KLGB 9.5 The Top Performing FBOs J.A. Air Center Aurora Municipal KARR 9.5 Fargo Jet Center Hector International KFAR 9.4 Jet Aviation Palm Beach International KPBI 9.4 remained fairly constant, the company Tampa International Jet Center Tampa International KTPA 9.4 AirFlite has noted a recent influx of midsize jets. XJet Centennial KAPA 9.4 TOP 10% Long Beach Airport (KLGB), One of AirFlite’s trump cards lies in Atlantic Aviation Charles B. Wheeler Downtown KMKC 9.3 Long Beach, Calif. Tary himself, who also serves as a G550 Black Canyon Jet Center Montrose Regional KMTJ 9.3 pilot in Toyota’s flight department. Not averse to integrating other winning strat- Destin Jet Destin-Fort Walton Beach KDTS 9.3 Minneapolis St. Paul International/ egies, when he learns of a flight that will Signature Flight Support KMSP 9.3 9.5 be visiting another successful FBO, he Wold-Chamberlain Landing at the top in last year’s sur- requests to be assigned that trip. Signature Flight Support St. Paul Downtown Holman Field KSTP 9.3 vey with an overall score of 9.6, AirFlite Such real-life industry involvement Banyan Air Service Fort Lauderdale Executive KFXE 9.2 shares the honors again this year, accord- allows him to share an invaluable per- Pentastar Aviation Oakland County International KPTK 9.2 ing to AIN’s readers, earning top scores in spective with his staff. “We try to make Texas Jet Fort Worth Meacham International KFTW 9.2 three of the five survey categories. Clearly this pilot-centric,” he told AIN. “All of a case of getting it right the first time, our customer service initiatives are really Wilson Air Center Memphis International KMEM 9.2 the Toyota-owned FBO has occupied based on my experience of going to hun- Atlantic Aviation Pittsburgh International KPIT 9.1 the same 34,000-sq-ft building at the Los dreds of FBOs and trying to educate our Base Operations at Page Field Page Field KFMY 9.1 Angeles-area airport for the past 23 years. CSRs to be able to understand and empa- Business Jet Center Dallas Love Field KDAL 9.1 “We always reinvest in the infrastruc- thize with the crewmember who is on the Henriksen Jet Center Austin Executive KEDC 9.1 ture, one way or the other,” explained road for 25 days a month.” general manager John Tary. “We’re con- With that in mind, the front-desk Jet Aviation William P. Hobby KHOU 9.1 tinuously upgrading what we have and staff is aware of all the newest hot spots, Meridian Teterboro KTEB 9.1 Fort Lauderdale/Hollywood investing in new technologies.” local events and latest activities and can National Jets KFLL 9.1 Among the refurbishments over the quickly recommend a pleasant diver- International past year were a $100,000 redesign of the sion, from electric bicycle tours to movie TOP 20% Rectrix Aerodrome Centers Sarasota/Bradenton International KSRQ 9.1 customer service desk and audio-visual screenings at the beach. Showalter Flying Services Orlando Executive KORL 9.1 equipment upgrades for the conference AirFlite has participated in Ritz- (now Atlantic Aviation) rooms, which seat 12 and 25, respectively. Carlton’s customer service training pro- Monterey Jet Center Monterey Peninsula KMRY 9.0 The facility’s 70,000 sq ft of hangar gram since long before it was a require- Orion Jet Center Opa-Locka Executive KOPF 9.0 space, which can accommodate the lat- ment for FBOs in World Fuel’s Air Elite est class of ultra-long-range business network, of which the FBO was a found- Premier Jet McClellan-Palomar KCRQ 9.0 Signature Flight Support jets, has reached 85-percent occupancy, ing member.