A fixed based operator is a service centre meant for airplanes and jets that is usually either a private entity or a subsidy that offers services such a fueling, hungering, flight instructions among many others.
Q1 Why should FBO’s Be Concerned with fuel prices.
One of the reason is that an FBO may not realize a steady/high profit margins as fuel prices have escalated hence purchasing it becomes limited (Cox, 2008). The other is that the numbers of passengers of air travels have decreased due to high prices of fuel hence opting for cheaper means of transports. Equally services such a crop dusting have become a concern to revenue income as farms have opted to reduce the amount of times they perform aerial application. Higher fuel prices translates into budget limits hence laborers opt to leave for commercial airlines once they get experience in the operating the FBO’s. Less flight hours for the FBO’s means, they cannot make profit from the sale of fuel to commercial airlines.
Q2. Why should FBO’s be concerned about labor issue?
There is stiff completion from other key players in the same industry. Actually the labor force for the FBO’s is gradually being depleted from outside competition from similar FBO’s and other well established and more secure airlines who ‘poach’ talented personnel in the market by offering better payment and services (Cox,2008). There is also gradual withdrawal of chatter sponsors who directly need the services of the FBO’s .Reason being there is raising concern of insecurity in these FBO’s especially in terroristic activities. This then translates to a total fear to all laborers.
Q3. How can FBO’s meet the security challenge?
Though the September 11, 2001 attacks rocked the profit margins of airlines, the FBO equally were hit with the wave of fear of transport. The FBO can meet or counter security fears and possible terrorist attacks by ensuring national security policies adhere to international standards (Cox, 2008). This includes FBO incorporating high tech instrument that ensure careful and precise security screening checkpoints of baggage. The FBO’s could equally advocate for the government to intervene in security matters by strengthening its research and development programs on potential threats and measures to curb any incidences that may ever arise (Anonymous,2006). FBO’s should as well increase advocate for proper implementation of a biometric Restricted Area Identification Card.
This means that every FBO’s need to have a management system that helps take care the welfare of each and every person in the industry. Hence, the realization of profits can be correlated to proper FBO management.
Anonymous. (2006).Fight plan: managing the risks in aviation security-report of the advisory panel. Retrieved on 11th October 2011 from http://www.tc.gc.ca/tcss/catsa/final_report-rapport_final/chapter2_e.htm
Cox, B, et al. (2008) .The concise encyclopedia of economics. Retrieved on 11th October 2011 from http://www.econlib.org/library/Enc/AirlineDeregulation.html