Optimizing Your FBO, Part 2: Cross-Train and Outsource

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In Part 1 of Optimizing Your FBO, we talked about analyzing your business and investing in your front line employees. It just makes good business sense, even in tough economic times, to invest your time and resources in your front line employees because they have the first and the most important contact with your customers.

In this post, Part 2 of Optimizing Your FBO, I want to share additional strategies that will help prepare you to weather any kind of economic environment and increase the efficiency of your operation.

Cross-Train

For most FBOs, employees must learn to multitask — a term that management gurus have coined. It’s really a new term for an old axiom. The best employees, who do the best jobs, can do many different tasks. Gee, what a concept!

For FBOs that are consistently successful, employees do many different job functions that result in a more efficient operation and better employee morale. A happy employee, a happy customer. It can be a very contagious working environment that results in better customer service. Cross-training makes all employees more valuable and better motivated.

Let’s look at some ideas:

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NBAA to Provide Update on Association's Upcoming Events at Asian Aerospace

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The National Business Aviation Association (NBAA) will convene a news conference to provide an update on the preparations underway for the 11th Annual European Business Aviation Convention & Exhibition (EBACE2011), NBAA's 64th Annual Meeting & Convention (NBAA2011) and the 2012 edition of the Asian Business Aviation Conference & Exhibition (ABACE).
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NBAA Opposes New Limitations on Participation in Block Aircraft Registration Request Program

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National Business Aviation Association (NBAA) President and CEO Ed Bolen issued the following statement regarding the Federal Aviation Administration's (FAA's) publication in the Federal Register of a call for comment in response to the Agency's plan to severely limit participation in the Block Aircraft Registration Request (BARR) program.
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Pricing Your FBO for Sale

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As we start to see a small ray of sunshine peeking out from behind the lingering recession cloud, we find some encouraging news in the industry. Flight hours are increasing, used aircraft are starting to sell, and we see a resurgence in the continued consolidation of the FBO industry.

In the last couple of months, we have witnessed chain operators sell a couple of locations and sell one location to a competitor. We also saw the sale of a small chain to a larger chain. Therefore, I pose the proverbial question in the manner Harvard Business School types might ask: Is it time to “harvest” your business?

Only you can determine this. But if you’re getting into the sell mode, here are few things to keep in mind as you move forward.

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Bolen Outlines Set of Guiding Principles For Aviation's Future in Major D.C. Address

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Speaking to a major aviation policy forum in Washington, D.C., National Business Aviation Association (NBAA) President and CEO Ed Bolen said aviation would be key to defining America's leadership in an increasingly global economy and outlined five priorities to ensure the industry's continued success.
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Dominion Aviation Services, DB Aviation Achieve ACSF Audit Registered Status

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The Air Charter Safety Foundation (ACSF) announced the addition of Dominion Aviation Services, Inc., of Richmond, Va., and DB Aviation, Inc., of Waukegan, Ill., to the ACSF Industry Audit Standard Registry (IAS). Twenty-five operators have now completed the IAS audit and achieved Registered status with the ACSF.
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Building Long-Term Profitable Customer Relationships, Part 2: Do You Feel Lucky?

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We’ve all seen Clint Eastwood’s Dirty Harry scene when he aims his seemingly empty .44 Magnum, “the most powerful handgun in the world,” in the face of the bank robber and taunts, “You’ve got to ask yourself one question: ‘Do I feel lucky?’ Well do ya, punk?”

FBOs shouldn’t have to feel lucky when putting together their marketing plans to attract new customers, yet during our NATA FBO Success Seminars, I often sense the frustration FBO owners and operators verbalize when we discuss this very subject.  

Over the years, FBOs have tried all sorts of things to attract customers. Wine, steaks, bobblehead dolls, free this and free that. Sometimes they get lucky, but mostly they’re just shooting blanks!

Many FBOs, when facing seemingly stiff competition, have done the unthinkable to attract customers. They resort to lowering their price of fuel beyond reason. Yikes! 

To be sure, an FBO should always manage its fuel price in order to be competitive and as a component to provide a customer value proposition (CVP). However, nothing good happens when you subjectively lower the price of fuel just to attract customers.

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