Aviation Business Journal Third Quarter 2011 - (Page 29)

A Changing FBO Business Model Continued from page 27 , RI RTX Don’t give it away! • Our advice is: DON’T GIVE IT AWAY! In operating Mercury Air Centers, we looked at every asN pect of our business to see where we could recoup some of our ES- expenses. If a customer doesn’t buy fuel, or at least doesn’t buy a AX •minimum quantity for the type of aircraft being flown, why not charge a facility fee for use of the ramp, including labor for A • safely parking and towing the aircraft and repositioning for pasPA- senger loading? want a significant discount off the posted If aircraft operators why not taking lavaB • price,servicing charge forwith iceout the trash, cleaning the the tory, the galley and coffee or hooking up TX APU? If a fuel broker drives a hard bargain, why not charge for UX,the courtesy vehicle or the newspapers? (This often entails a for the pilots • requested setthe course of aand a set for the passengers.) is If, during transaction, your fuel margin significantly compromised in any way, why not consider a facilON- ity fee for that clean restroom which is kept tidy by paid staff? • Or how about the nicely furnished and well equipped conference room; or pilot and customer lounges that often include the cofS • fee and cookie bar that is kept well stocked throughout the day? Perhaps you don’t need or want to charge for everything you LE, do, but you need to analyze your various income streams and make sure you are not giving your services away. Your busi• ness deserves to make a profit — and that is not a bad word! Your business should not subsidize corporate aircraft operating • companies, or subsidize your airport sponsor. If you do that, NC your business will not survive and you’ll lose your investment. Profit allows for growth, sustainability and the continuation of • your business. • LN, U• WN, Aviation Business Journal | 3 Quarter 2011 Continued on page 31 rd A handling fee for collecting navigation fees ■■ A handling fee for collecting landing and over-flight fees ■■ Lounge fees ■■ Catering We are not suggesting that you should follow this model, at least in its entirety. However, as margins get squeezed, you need to get creative in shoring up your bottom line by creating other streams of income. ■■ So how do we make lemonade out of the tart extracted juice? 29

Table of Contents for the Digital Edition of Aviation Business Journal Third Quarter 2011

Aviation Business Journal Third Quarter 2011

Aviation Business Journal Third Quarter 2011 - (Page 1)
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