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Aircraft Fueling and Line Service

By Jason Milewski, C.M. &

Melissa Frazier

Aircraft Fueling and Line Service

Aircraft Fueling and Line Service

• Intro • 4 Topics of Discussion

– Upgrading Your Fuel Farm – Vendor Selection – Fuel Pricing – Marketing

• Questions / Comments

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• Existing conditions – USTs

• Pumps

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• Existing conditions – USTs

• Pumps • Sumping (no reclaiming)

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• Existing conditions – USTs

• Pumps • Sumping (no reclaiming)

– Leaks • Strong fuel odor after heavy rain • Unknown source • No detectable inventory loss

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• Existing conditions – USTs

• Pumps • Sumping (no reclaiming)

– Leaks (the laughter, fun and joys of TCEQ!) • Basin • Cathodic Protection

– Self Serve Tank

• TxDOT Funding

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• New ASTs – Site selection

• Proximity to Jet Center

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• New ASTs – Site selection

• Proximity to Jet Center – Configuration

• Upgrade Jet A • Downgrade Avgas • Single tank for self serve

– Operation • Offloading Time • Visual Inspections

Aircraft Fueling and Line Service Upgrading Your Fuel Farm

• Summary – Consider the whole economic benefit – Location with room to grow – Ensure fit with your goals and projections

– Next . . . Who’s fuel fills the tank?

• Why switch vendors? – Happy or Unhappy?

• Performance • Pricing • Customer Loyalty • Incentives • Equipment

• Branded or Unbranded?

Aircraft Fueling and Line Service Vendor Selection

Aircraft Fueling and Line Service Vendor Selection

• How to begin? – Issue an RFP

• Put your needs up front • Solicit all known vendors

• Evaluate Proposals – Performance

• Can they meet needs? • Check References!

Aircraft Fueling and Line Service Vendor Selection

• Evaluate Proposals (continued) – Pricing

• Fuel • Equipment • CC Fees • Contract fuel

– Customer Loyalty Program • Fees • Demand • Offerings

Aircraft Fueling and Line Service Vendor Selection

• Evaluate Proposals (continued) – Incentives

• Staff Training • Uniforms • Load Purchase Incentives • Event Sponsorships • Signage • Inspection Incentives

Aircraft Fueling and Line Service Vendor Selection

• Evaluate Proposals (continued) – Equipment

• Fuel Trucks – Adequate Size – Age – Maintenance Responsibilities

• Other GSE – Monitoring Performance

• Are Promises Kept? – Are the Sales Representatives in frequent contact?

Aircraft Fueling and Line Service Vendor Selection

• Summary – It’s more than just the price! – Be sure you’re comparing apples-to-apples – Ensure fit with your goals and projections

– Next . . . How do you set your prices?

Aircraft Fueling and Line Service Fuel Pricing

• Gopher Method

Aircraft Fueling and Line Service Fuel Pricing

• Gopher Method • Define your goals

– What facilities do you have/want

Aircraft Fueling and Line Service Fuel Pricing

• Gopher Method • Define your goals

– What facilities do you have/want – Who do you want to be?

• Large or “adequate” margin

Aircraft Fueling and Line Service Fuel Pricing

• Gopher Method • Define your goals

– What facilities do you have/want – Who do you want to be?

• Large or “adequate” margin • What’s Your Cost?

– What’s in your purchase price? • Equipment • Flowage Fees • Taxes • Delivery • CC Fees

Aircraft Fueling and Line Service Fuel Pricing

• What’s Your Cost? (Continued) – What does it cost you to put fuel in a plane?

Aircraft Fueling and Line Service Fuel Pricing

• Desired Margin – Are you in the Game? – Will the market sustain it? – Start Low for Room to Grow!

Aircraft Fueling and Line Service Fuel Pricing

• Full Serve vs Self Serve – What are your goals here? – Make it worth the work

Aircraft Fueling and Line Service Fuel Pricing

• Summary – Pricing should fit your goals – Local pricing (gopher method) should be apples-

to-apples – Can you cover your total cost?

– Next . . . Marketing your business

Aircraft Fueling and Line Service Marketing

• What are you marketing? – Goals! – More than just Advertising!

Aircraft Fueling and Line Service Marketing

• What are you marketing? – Goals! – More than just Advertising!

• Facility – Goals – Branding – Amenities – What message does it send?

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Facility – Creating the Victoria Jet Center

Aircraft Fueling and Line Service Marketing

• Vendor – Does the brand matter? (Think of yourself on the

road or in town) • Customers associate incentives with brands • Customers associate quality with brands

Aircraft Fueling and Line Service Marketing

• Vendor (continued) – “Ask not, what you can do for your vendor . . .”

• How do they assist in marketing your business – Customer Loyalty Program

» Offerings – Incentives

» Staff Training » Uniforms » Load Purchase Incentives » Event Sponsorships » Signage » Inspection Incentives

Aircraft Fueling and Line Service Marketing

• What’s in a name?

Aircraft Fueling and Line Service Marketing

• What’s in a name? • Web Presence –

www.buylotsafuelfromme.com – Website – AirNav, Global Air, Controller

Aircraft Fueling and Line Service Marketing

• Social Media

Aircraft Fueling and Line Service Marketing

• What’s in a name? • Web Presence –

www.buylotsafuelfromme.com – Website – AirNav, Global Air, Controller

• Social Media • Fuel Incentive Program – beyond the vendor’s

Aircraft Fueling and Line Service Marketing

• Supplies and Give-a-ways

Aircraft Fueling and Line Service Marketing

• Events

Aircraft Fueling and Line Service Marketing

• What’s in a name? • Web Presence – www.buylotsafuelfromme.com

– Website – AirNav, Global Air, Controller

• Social Media • Fuel Incentive Program – beyond the vendor’s • Supplies and Give-a-ways • Events • What are your competitor’s doing?

Aircraft Fueling and Line Service Marketing

• Summary – Market your goals (dress for the job you want) – Market the ENTIRE customer experience – Utilize ALL of your resources

Aircraft Fueling and Line Service

Aircraft Fueling and Line Service

• Conclusions – Identify problem areas – Team with the right provider – Price to sell, cover your costs, and meet goals – Consider your whole image. It’s more than fuel

Aircraft Fueling and Line Service

Aircraft Fueling and Line Service

Questions / Comments

Jason Milewski, C.M. Managing Director, Prautes Corporation jmilewski@prautes.com 361-655-0958

Melissa Frazier General Manager, Victoria Jet Center melissafrazier@vctx.org 361-578-1221