Duties: Manage and operate a retail business at an airport; perform duties as required
Education or Training ? Business training
Experience ? Years of experience in the FBO industry
Special Skills and Personality Traits ? Leadership, management, problem solving, organizational, customer service, interpersonal, communication, and self management skills; enterprising, foresighted, flexible, creative, and optimistic
Special Requirements ? Compliance with local, state, and federal laws regulating business operations
Position Description
A fixed base operator (FBO) is a vendor that offers various aviation services and products for sale at airports. The FBO may be a franchise or it may be an independent operation. Its primary clientele is usually composed of commercial pilots, private pilots, air taxi services, recreational aviation outfits (such as skydiving companies), corporate flight departments, and air ambulance operations. An FBO might also offer its services to commercial airlines, government aviation operations, and the military.
Historically, FBOs began as fuel stations for pilots. Today, they continue to offer fueling services, and many FBOs provide such services on a 24 hour basis. In addition, FBO Owners sell products and services that support the needs and demands of their customers, such as:
? flying lessons, including ground and flight instruction
? aircraft rentals or leasing to pilots for recreational, business, or training purposes
? air taxi or air charter services
? aircraft parking and storage
? aircraft maintenance, the installation and repair of avionics, repair and overhaul services on propellers, or other technical services
? ground handling services?which may include aircraft marshaling, towing, deicing, aircraft cleaning, and lavatory services
? passenger and crew services (for example, baggage handling and catering)
? aircraft as well as aircraft parts, pilot books, and other pilot accessories
? aircraft management services in which aircraft owners contract FBOs to operate and manage their aircraft
Many FBOs have crew lounges for pilots to use while they wait or plan for trips. Some FBOs also offer courtesy services to pilots, air crew, and passengers. For example, an FBO might make arrangements for local tours, hotel accommodations, or car rentals for pilots.
FBO Owners are entrepreneurs who are well versed in business practices and are aware of the risks involved in running a retail business. FBO Owners have several responsibilities in common with other business owners. They develop and implement standard operational plans, policies, and procedures. They make sure that their operations comply with all appropriate local, state, and federal laws and regulations.
FBO ownership also involves maintaining inventory and sales records, as well as keeping up to date with all accounts payable and taxes. FBO Owners troubleshoot problems as they arise in any aspect of their business. In addition, they make sure their customers are satisfied with the products and services they sell. Furthermore, FBO Owners are continually promoting their business through advertising and sales promotions as well as by joining and networking with trade associations, local chambers of commerce, and other organizations.
Many FBO Owners provide direct supervision and guidance to their employees. Depending on the size of the FBO and the activities they offer, the staff may consist of linepersons (also known as ramp service persons), aircraft mechanics, pilots, flight instructors, salespersons, customer service representatives, and administrative personnel. In large organizations, FBO Owners rely on managers to oversee particular departments.
Some FBO Owners continue to personally provide some or all of the services offered by their firms. For example, they might teach flight lessons, repair electrical equipment, sell aircraft, pilot a charter flight, or load baggage onto aircraft.
FBO Owners work hard to build a successful business. They typically work long hours each day and often work six to seven days a week.
Salaries
Formal income information for FBO Owners is unavailable. In general, business owners earnings vary from year to year, and depend on the success of their operations. Their annual net profit is determined after subtracting the total operating expenses from gross annual sales. It is common for small business owners to be unprofitable during their first years in operation.
FBO Owners pay themselves a wage. An idea of their earnings may be gained by looking at the salary information for general managers that is reported by the Bureau of Labor Statistics. According to its May 2007 Occupational Employment Statistics survey, the estimated annual salary for most general managers ranged between $43,990 and $145,600.
Employment Prospects
There are approximately 5,200 FBOs in the United States, which are located at public and private airports. Most FBOs are independently owned. Less than 10 percent are affiliated with a chain.
FBO Owners choose to start up their business from scratch or buy an established FBO. It is not uncommon for ventures to be unprofitable or go out of business within the first three years in operation. The success of FBO Owners depends on a number of factors, including their ambitions and abilities to run a business, the local demand for FBO services, competition, and the state of the economy.
Advancement Prospects
FBO Owners advance according to their own ambitions and interests. They measure their progress by achieving their business goals and objectives. For example, these entrepreneurs may attempt to make certain annual earnings or expand their businesses. Most, if not all, FBO Owners measure their success by being able to make a living from their shops profits.
Education and Training
FBO Owners generally learn their small business skills on the job. To be successful, they need basic business training in such areas as management, bookkeeping, accounting, finance, marketing, and sales. Their instruction may be formal or informal. For example, they can take small-business training courses offered at community colleges, at university extension programs, or through trade associations.
Special Requirements
FBO Owners must comply with appropriate local, state, and federal laws that regulate business operations. For example, business owners must register the name of their operations with the proper state agency, hold the proper local and state business licenses, and obtain a federal taxpayer identification number. For specific information about business licenses, contact the local (city or county) government office that oversees the jurisdiction where you wish to operate your FBO.
FBO Owners who perform flight or aircraft maintenance duties must also hold the appropriate FAA certification.
Experience, Special Skills, and Personality Traits
FBO Owners normally start a business after many years of experience working in the FBO industry as managers, pilots, aircraft mechanics, and customer service agents. To start an FBO, individuals must be highly knowledgeable about the products and services that they will offer to customers.
To do well in their business, FBO Owners need strong leadership, management, problem solving, organizational, and customer service skills. They also must have excellent interpersonal and communication skills, as they must be able to get along with many people from diverse backgrounds. In addition, they need highly developed self management skills, such as the ability to handle stressful situations, work independently, and organize and prioritize tasks. Some personality traits that successful FBO Owners share include being enterprising, foresighted, flexible, creative, and optimistic.
Unions and Associations
FBO Owners can join trade and professional associations to take advantage of networking opportunities, training programs, and other types of services and resources. For example, some FBO Owners belong to such associations as the Independent Fixed Base Operators Association and the Aircraft Owners and Pilots Association. For contact information to these organizations, see Appendix III.
Tips for Entry
1. Most FBO Owners worked their way up through the ranks by starting as linepersons and, through
the years, gained experience in the different areas of FBO operations. Many of them also trained to become pilots and aircraft mechanics while working mostly in general aviation.
2. The U.S. Small Business Administration offers various resources online to help entrepreneurs start and run their businesses. To visit this agency?s Web site, go to http://www.sba.gov
3. Use the Internet to learn about different FBOs and the various services they provide. To get a list of relevant Web sites to read, enter the keyword fixed base operator in any search engine.
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