FBO Operation

Themes

Human Resources/ManagementEmployees4
HausAir fixed base operation will provide the highest quality of flight instruction and comfortable charter services to the public; without compromising an ounce of safety, at a price lower than the competition.

Human Resources/ Management Functions
Breakdown of initial staff to begin at HausAir.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

(5) Receptionist/ClericalJason Henderson(Full Time)
(6) Flight Instructors(Chief) Adam MacDonald(Full Time)
(4) Mechanics(Chief) Greg Radd (IA; Full Time)
Miguel Sanchez (A&P; Full Time)
(4) Line AttendentsJosh Hodny (Full Time)
FlightOfficeServiceFinanceSales
The HausAir flight instructors will follow some basic guidelines. They will be responsible for:
? Student training for appropriate licenses
? Maintaining proficiency in maneuvers
? Proficiency required flight knowledge
? Proficiency instructional techniques
? Promoting a positive image of general aviation
? Perform duties assigned by chief pilot
? Maintaining safe and professional habits
The position requires a minimum commercial multi-engine land instrument airplane and CFI certificate and those without a CFII will be expected to obtain the certificate within 6 months of start date. Instructors must be able to train a student from wherever their current ability level is to proficiency to the practical test standards for the certificate desired.Instructors will be required to follow HausAir flight training syllabus unless there is prior approval from the chief flight instructor. Instructors will be expected to give biannual flight reviews, checkouts to customers planning to rent aircraft and act as pilot or crewmember as required for charter operations.
The FBO will follow all rules applicable to our business in order to create a profitable and safe environment. Start up requirements:
? Obtain business licenses/permits
? FAR 47 – Aircraft Registration
? FAR 135 – Air Taxi Operators/ Commercial Operators
? FAR 145 – Repair Station Certification
? FAR 157 – Notice of Construction on Airport
? FAR 43 – Maintenance, preventive maintenance, rebuilding, and alteration
? FAR 61 – Certification: Pilots, flight instructors, and ground instructors
? FAR 67 – Medical Standards and certification(Insuring that my charter pilot and flight instructors are current)
? FAR 135 – Air Taxi Operators/Commercial Operators
? HMR 175 Fuel Considerations
? Meet local/community requirements
? Maintain Airport Minimum Standards
The Piper Warrior will be used as the primary/instrument trainer and rental aircraft.

The Bonanzas will be used as a complex trainer, rental, and some charter operations when it would be more economical or when the Baron is unavailable.
The Baron will be used solely a charter aircraft.

HausAir plans on purchasing all the aircraft through financing. This will enable ownership and benefit from tax savings. By financing we will avoid the lump cash sum all at once through payments. Financing will also give us some cash to utilize in other areas of out operations. Purchasing with cash would not give us flexibility and leasing is not cost effective and would limit our available excess cash.

This aircraft is to be used for flight training and rental. The following numbers will be based on a $140,000 Piper Warrior.

? Piper Warrior- flown 60hrs/month
Fuel (75% POWER)= $17.30
Interest and Depr. 60hrs/month=$12.00
Overhaul reserve and indirect cost=$16.00
Total (operational cost/hr)=$52.80
Allowing for a 25% profit margin every hour
Customer cost is $52.80/.75 = $70.40
Each aircraft will require a flight checkout from a CFI. The checkout will cover aircraft systems, procedures, and will follow the advisory circular for checkout procedures. Rental of the warrior will require a private license. Student pilots training with HausAir will also be allowed to rent aircraft for lessons. Pilots renting aircraft will be required to present: student pilot certificate (if required), pilots license &logbook. Rental of other aircraft will have more stringent time requirements based on insurance and other factors; to be determined at a later time.

The overall breakdown for the cost of an hour of flight instruction is as follows:
TypeCostIns.Handling BenefitsTotal
Above I outlined the per hour cost of the instruction. To keep training costs down and attract more students, I will not be applying a profit margin to the flight instructor rate. The figures I have arrived at below are based on a 100 hour/month with 6 same grade students for each instructor. It does not take into consideration that my instructors may teach in more than one category.
Type of InstructorBenefits(Medical, Life, dental)Pay
With four passenger seats, this aircraft is designed for the business traveler but may be used for any operation. It will not land at any airstrip that is not established with runway lights (unless down for repair). This aircraft will not initially be used for rental.

Oil (Incl. Oil & Filter @ 50 Hour Intervals)= $1.86
Engine & Airframe (100 Hours @ $38.00/Hour)= $37.35
Total direct operating cost= $137.72
Profit Margin of 40 %= $96.28
Total per hour charge= $250.00
The Baron flies at an average speed of 230 statute miles per hour. Based on all of the information presented in this section I will charge $1.08 per statute mile flown. Since we did lower the profit margin a little we will be required to charge a lay over fee. That will be equal to 75% of the $45 per hour charge for the pilots wage. This extra charge will not start to occur until the lay over exceeds 1 hour. One way charters, that are not picking up pay load on the return flight, there will be a charge of $.84 per mile. The reduction in price is accomplished but removing profit margin.
HausAir will operate under FAR part 135 and under some of these regulations dealing with the certification and proficiency of the aircraft, crew, and flight operations.

HausAir will use the regulations below to develop a manual for policies and procedures, operations specifications manual & operating certificate acceptable for use. Copies of the manual will be issued to pilots and be accessible to other necessary employees.

FAR 135 Subpart C- Aircraft and Equipment
135.163 Equipment requirements: Aircraft carrying passengers under IFR.

FAR 135 Subpart E- Crew Requirements
FAR 135 Subpart F- Flight Time and Duty Period Req.

135.267 Flight time limitations and rest req. for one and two pilot unscheduled operations
FAR 135 Subpart G- Crewmember Testing Req.

FAR 135 Subpart B- Flight Operations
135.101 Second in command Req. under IFR
135.109 Pilot in Command or second in command designation.

135.113 Passenger occupancy of pilot seat.

135.123 Emergency and emergency evacuation duties
The Determination of the hourly wage begins with the national average for a mechanic with an A&P license, currently $11.83. HausAir is interested in having the best mechanics working for us and are happy with their pay.
To start our shop rates will begin as follows until we have a better idea of our variable and fixed costs.

The wages for out mechanics will begin at, but are subject to change based on shortages, business and regional mechanic average pay. Periodic research will be conducted by our sales and office team to determine how we fit into the national structure.

The mechanics shop will not have paper library, but an electronic library. Manuals will be computer based to avoid large shelving units, paper loss, etc. The maintenance hanger will be separate from the storage hanger. Equipment will be purchased by HausAir.

Consideration will be made to other variable costs including hazardous waste storage/disposal, overstock parts, building costs etc.

We plan to earn a 40% profit. Which gives us a total fuel price of $2.74. With an average of 2000 gallons of fuel being sold/used in a week, that nets an income of $5480 with a profit of 2200 a month.

Fuel will be stored and fueled by the fuel truck. Line service will fuel all incoming aircraft, regardless of size.

HausAir will carry a wide selection of supplies and keep current with charts, approach plates, books and other aviation publications. We can make between 40-60% profit but will charge what competitors like sportys pilot shop charge. We will match their price and work prices around that range.

Insurance is an important protection for this FBO. Due to the high amount of risk involved in aviation it will be important to hold monthly safety meetings, and have rotating safety officer schedule that will change every day. There are many different kinds of insurance that we must purchase.

Some of the insurance coverage that is required:
Fire and Natural disaster coverage
Bibliography:
Bibliography
http://www.airplane.com/be58.htm
Richardson, Rodwell, & Baty (1995) Essentials of Aviation Management. Dubuque, IA: Kendall/Hunt Publishing Company.