starting your own FBO

[Fiveoh]

Just curious as to what it might take to start my own FBO. Right now I have the option of leasing the airport for 1$ per year from the county that owns the airport. Just looking for ideas from others who have been in this situation. I am a CFI and would be instructing. My wife would run the business side of things. We really would like to be a very active airport.(fly-ins,full-service, and hopefully a restaurant sometime down the road.) First purchase would have to be a training aircraft. What type of financing is involved or is their any type of small business loan available.
Just curious if I am going to go more broke in the process. Forgot to mention I would also be an employee of the county so I would receive a salary for maintaining the airport.

Thanks in advance!
Fiveoh

 

[Ralgha]

I'm sure someone is going to say something to the effect of "to make a small fortune in aviation, you must first start with a large one". Personally I disagree with that. The main problem is that everyone in the training side of the industry seems obsessed with the "we have to keep it cheap" mentality, which often results in the instructors living on ramen noodles, and the FBO being held together with spit and glue (and duct tape).

I think you should find a price that is fair both for the customer and for you. Realize that aviation is not cheap, and the customer is going to have to devote some serious cash to learning how to fly. Find prices that allow you to operate with a profit that allows you to easily maintain and sometimes upgrade your fleet, pay your instructors a decent wage, etc. Sure you'll end up not being the cheapest on the block, but that's why you need to ensure that you provide a top quality product. If the quality is there, the people will pay.

You could be undercut by others on the field charging dirt cheap prices (which undermines the entire industry), but it seems to me in this case that you would control the entire airport, so you could deal with that situation as you see fit.

 

[chawbein]

Gas. Most FBO's make their money by selling blue gas. I know that people will fly 30 miles to get gas at a reasonable rate. As far as aircraft for training, go with the good ole C-150/152.

Is the airport near a sizable town? Are there other airports nearby? How can you make people want to come to your field and spend their money. A GOOD, well-known restaurant will get you some transient traffic along with activities (i.e. eaa fly-ins, etc...).

 

[Timebuilder]

A friend is looking into running our local airport. Be gald you are only going to pay 1$ a year.

Our Borough Council wants a big piece of the pie from fuel that would make any operator be happy to eat ramen noodles. They want the operator to also be responsible for the entire operation and the grass cutting/snow removal. What they ended up with last time was a guy who was a lawyer who pulled out and started instructing out of his T-hangar, leaving the Borough to find a new operator.

My friend is trying to pry their hands off the fuel nozzle. If he can't, the place sits vacant, waiting for someone to propose a new strip mall.

 

[Hugh Jorgan]

1. Get a military fuel contract.

2. Fire up the grill and offer free burgers and sodas.

3. Get a hot little honey to smile as she collects the money.

 

[Fiveoh]

thanks for all the suggestions and info.

 

[Eagleflip]

Hugh Jorgan has a point. If your airport has sufficient runway (I'm thinking at least 6K, preferably 8) you would have a great shot of obtaining military stopovers. Add free food and you've got a winner.

Where's it located (in general...I know you don't want to give a good thing away)?

 

[AeroDMB]

There are many options depending on what type of airport and aircraft you will service...

Get pretty ladies working the front desk...
Offer cleaning/detailing services for small/large aircraft...
Pay Instructors well...
As far as the training aircraft goes, try to get someone to lease an aircraft back to your flight school...most of the time, you may get a pretty nice, new airplane if you find the right buyer...
Find a niche for your school, i.e. accelerated courses, specialized training, etc.,...
Know how to attract the majority of traffic coming to your airport...
Last but not least, definitely, definitely learn to think outside of the box and learn new ways to attract AND retain customers...

 

[groundpointsix]

I think it would help if you told us what type of airport this is. I'm guessing we're probably not talking some large, towered field. But are we talking a busy airport in a populated area or are we talking about some podunk grass strip (nothing wrong with those, except that it's really going to limit your opportunities for business).

 

[Fiveoh]

Again thanks for all of the great ideas. Airport has a single runway and is located near middle tennessee. Their has never been an operation of this type at this airport. It has always been run by the county, therefore no flight instruction. Hangar rental and fuel sales are the only revenue. County is offering a lot but I need more time and information before I make myu decision.

Thanks,
fiveoh

 

[Detroitpilot]

While I never owned an FBO, I managed one for a couple of years before I made my escape to the flying side of the business. Be prepared for long hours and hard work. The best way to make money at an FBO is not to have one huge profit center, but many small ones. You're not going to get rich on any one item or service, hell you probably won't get rich at all, but if you're diverse, i.e. light maintenance, supplies, flight instruction, aircraft rental, fuel sales, airport maintenance, etc, you just might make it. Depending on the current fuel setup, some fuel companies will really help you get going with marketing plans, and leased eqipment. No matter how much you love aviation, remember, you have to make money, don't feel guilty about charging a fair price for what you offer. Word of mouth advertising is the best, get pilots talking about you. Best of luck in your ventures.

By the way, a good looking woman behind the counter never hurts...

 

[Fiveoh]

Thanks for all the helpful suggestions. I realize this is going to be a long process. I'll keep everyone posted.

Thanks,
fiveoh

 

[Publishers]

FBO's

I have considerable experience with this subject. You might consider offering to manage the airport under an agreement for such. They should be able to provide you fuel and hanger sales for the last few years and you should be able to interpolate the gross and margins you will have.

In general today, you need jet traffic at most airports to get the fuel volume at the levels that it needs to be. A based jet will often make up the same revenue as 10 or 11 small piston aircraft. Look at areas you can subcontract and still collect some fees. Be creative.

There was an airport in Ohio that allowed a rock concert weekend once a year. It literally paid for the airport for the year and the owner could sit back and do what he wanted.

 

[DC-3TP]

FBO

I started an FBO in Utah. Things went very well until the local hospital stopped supporting our air ambulance service. I loved flying all the planes we operated. We operated everything from a sailplane to 421 Golden Eagle. It was very hard work and time consuming. 24/7 365 days per year. Overall I was glad I bit the bullet and did it. I didn't lose any money but never got rich, just sort of broke even. I sold everything except the glider in 1998 and left Utah for ever. I will never go back to Utah and start a business and live in Utah. My wife will leave me for sure.

When I retire in 15 years I want to operate a soaring operation in Moab, Utah. Great place to soar and we can live in Grand Junction,CO. I hope someone reads this and beats me to it, and sets up a commercial glider operation in Moab. I will buy it in 15 or so years. Good Luck