CHAPTER 1
What is a “Full Service” FBO?
Charter operations, Pilot training, Aircraft
rental/sightseeing, Aerial photography, Sale of aviation petroleum products, Repair/Maintenance
of aircraft, Sale of aircraft parts
MANAGEMENT
Getting things done through
others.
four Ps
Product, Price, Place, and Promotion
4 forms of profit
Reward for Effort
Reward for Risk
Return on Investment
Profit to Sales Ratio
Variable expenses
goes up as the volume of sales goes up.
NEW WEALTH
Some of these people turned to flying as an outlet for their energies and
their wealth, and as a business tool, giving a boost to a previously declining
industry.
FOUR FUNCTIONS OF MANAGEMENT
Planning
Organizing
Directing and Coordinating
Controlling
Sport Pilot Certificate
enable beginning pilots to become qualified with fewer barriers
Profit Definiton
Reward for the risk of entrepreneurship, Higher or lower risks made with one’s own money
Month-by-Month Cash Flow Analysis
Used in a new business or where cash flow is lagged or erratic.
Fractional ownership
Fractional ownership is where one has the ability to own a small portion of a given aircraft/operation to which they then retain the right to use the aircraft/operation on a limited or proportionately scaled basis
Leadership styles
Authoritarian Leader
Participative Leader
Delegative Leader
General Aviation Revitalization Act of 1994 (GARA)
Encouraged a rebound in small aircraft production in an industry that otherwise might have all but ceased to exist.
Profit to Sales Ratio
Dividing the net profits of the business by its total sales
Competition
Watch to determine matching another’s
new service, reduce prices, or to show
initiative by trying something new.
THREATS OF AIRPORT
CLOSURES
Weather
Construction
Accidents / Incidents
Lack of funds
Inability to keep serviceable movement areas / failed inspections
MANAGERIAL CONTROL
In order to remain in control and holding themselves accountable for the delegated action’s quality
and completion, managers must keep informed on the progress without micromanaging the project
Elasticity
How flexible the market tends to be
Involves a singular organization
Typically considers the competition as well
Profit Maximization
Calculated by examining the point of diminishing returns for the business’s production.
Types of Money
Short-term cash
Long-term cash
Equity
Employee ownership
GLOBALIZATION
aviation sees globalization with new international business flights in corporate aircraft as well as FBO chains establishing overseas operating locations.
Time Management
Work expands so as to fill the time available for
its completion
Aviation Forecasts and
Market Projections
The FAA creates forecasts in aviation to determine
workloads and facility needs for the airspace system as a whole.
Fixed expenses
allows businesses to open
Slow time of year
Dec, Jan, Feb tend to be slower aviation months nationwide (except resorts)