Even in today’s failing economy, some businesses seem to be recession-proof and fixed base operators in general aviation are one such type of operation. While commercial airlines are realizing lower profits and many closing their doors, the private sector of aviation is faring much better.
Fixed base operators, or FBOs as they are commonly referred to, which cater to the general aviation industry have been largely unaffected by many of the current economic woes plaguing other industries. General aviation simply refers to such flying operations as flight schools, private aircraft owners, and corporations with privately held planes.
FBOs are highly competitive, much more so than commercial airlines. Since the airlines are all being negatively affected by rising prices and a sluggish economy, they tend to actually work together in some instances. Not so for FBOs. As commercial aviation struggles, general aviation is growing rapidly, and consequently, the demand for FBOs is higher than ever.
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The purpose of the fixed base operator is to serve the flight crew and passengers of the general aviation industry segment. FBOs are in charge of doing everything from providing ground transportation, to making hotel reservations, to providing catering. However their chief role and the most profitable part of their operation is fueling aircraft.
Successful FBOs do their best to persuade the largest number of flight crews coming into an airport to use their services. This is where the competition really heats up and successful marketing techniques become vital.
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One popular way to attract customers is by offering aviation gas rewards. This can work in a number of ways to an FBO’s advantage.
One way to use fuel rewards is for the FBO itself to become a member of such a program. They can use the savings on the gas they buy (usually from one or two gas companies which participate in the particular program) and pass this along to their customers.
Another method of using gas rewards for marketing is for fixed base operators to offer the program directly to their customers. For a corporate pilot, this can be a great benefit. Although he or she does not pay for the aviation fuel directly, the pilot can still reap the reward and the FBO will gain his loyalty. After all, if there is more than one FBO to choose from at a given airport, wouldn’t you fuel up at the one which offers something in return? Especially when coupled with excellent customer service, a rewards program can be a much bigger incentive than the cheapest price per gallon.
Fuel reward programs offered by fixed base operators usually consist of providing one point for each gallon of gas purchased. When the points reach a certain level, they can be redeemed for a gift card that can be used online or at a gas station to buy any variety of item sold there. Obviously, this is a win-win situation for all involved and a great way for the FBO to become highly competitive.
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