Aviation industry overview
What act in 1978 significantly changed the airline industry
The Airline Deregulation Act
What are the four traditional functions of management
Planning, Organizing, Directing, and Controlling.
What are the four Ps of marketing?
Product, Price, Place, Promotion
What are the four main forms of profit?
Reward for effort, reward for risk, return on investment, profit to sales ratio
What does FBO stand for?
Fixed Base Operator
Name the major components of the modern aviation industry
Pilots, Airport System, Air Navigation System, Manufacturers, General Aviation, or Scheduled Air Carriers
What is management defined as
Getting things done through others
What is market research used for?
Understanding trends and customer needs.
How is Return on Investment (ROI) calculated?
Net profit divided by equity/investment
What are common services an FBO provides.
Fueling, towing, marshalling
Which organization continuously researches and designs aircraft to be faster, more efficient, and quieter?
NASA
Which management function involves setting goals?
Planning
Why is marketing important in GA
To attract and keep customers.
Fixed costs include things like what?
Rent, utilities, labor, insurance
What is required in a full-service FBO?
Charter, maintenance, fuel sales, training
Name the aviation regulatory agencies in the U.S.
FAA, NTSB, or TSA
Which management function ensures work is completed properly
controlling
What type of ownership accounts for over 40% of new corporate jet orders?
Fractional ownership
Variable costs increase with what?
sales volume
Why must FBOs adapt to industry trends?
To stay competitive and profitable.
Why is aviation considered an expensive industry?
High costs for aircraft, fuel, maintenance, labor, and operations.
Delegation means giving away responsibility but not giving away what?
Control
What government act helped revive small aircraft production in 1994?
GARA (General Aviation Revitalization Act)
Cash flow problems often happen because of what?
Payment delays or credit accounts.
What is a major technical concern for FBOs?
Fuel prices and availability