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Issue link: http://airportbusiness.epubxp.com/i/643578
SPECIAL FEATURE February/March 2016 airportbusiness 13 some otherwise. That's understandable when one considers the current average pretax profits of FBOs, put by one industry source at 1.8 per- cent of sales with an average return on assets of only 4 percent. There's no margin for error. In fact, there's no margin for much of anything with that kind of profit potential. Yet there are people profiting in this envi- ronment, some handsomely. A few are doing as well or better than they did back in the glory years of the late '70s, In the course of studying the feasibility of bringing a retailer-oriented publication into this market, we came across a number of success stories. We were fascinated by them because they are classic studies of entrepreneurial survivors in a mature market experiencing a complex, prolonged downturn. But we weren't surprised. There are parallels in several of the other industry segments in which we publish retailer periodicals. The retail survivors in general aviation are no different than those in any other industry in trasition. They are, first of all, working harder and smarter than ever before. They are man- aging their businesses, studying financials for creative ways to deploy their assets and resources. They are controlling costs. In larger operations, where several tiers of management may exist, managers are being held more accountable than in better times. In a number of these companies, middle manage- ment ranks are thinning as CEOs roll up their sleeves and get back to the basics of selling and running the business. The survivors are aggressively seeking new opportunities. And, while they may tap into outside sources for counsel, they know that the solutions must come from within themselves and their companies. Hard decisions are being made; there is no waiting for legislative or reg- ulatory relief because the crises are here and now. Perhaps most important, the survivors con- sistently show a renewed emphasis on their most important asset: their customers. These operators have learned not only how to get new customers but how to keep them, and that an absolute commitment to customer satisfaction drops straight to the bottom line. Not only will satisfied customers keep coming back to buy, but they will bring their friends. And satisfied customers will pay prices profitable to the retailer for good service because price is an issue only in the absence of value. Our editorial platform is to profile those indi- viduals and companies that are doing things right … both large and small. We will examine how they are doing it, what has worked and what hasn't, and focus their styles, systems, controls, planning and visions. A wealth of knowledge resides within these success sto- ries and can be profitable to others. We are not teachers. We are students, not knowing when or to what degree there will be a recovery in this industry. We do, however, have a pretty strong sense of where the turnaround will take place: at the retail level. It won't be in Wichita, Vero Beach or Kerrville. It won't be with the staffs of the Washington-based trade associations. Only general aviation retailers can keep the diminishing numbers of corporate and recre- ational aircraft and plots in the air. And only retailers can create the user-friendly environ- ment that will spawn the next generation of owners and pilots this industry so desperately needs. Economic centers of influence, such as the airframe manufacturers, can't do it. In fact, they don't even exist right now. It can only hap- pen out at the airport, where relationships are nurtured and business is transacted. That is the premise of FBO. It started on a cocktail napkin and has stood the test of exten- sive field interviews, focus groups, surveys and market analysis. Research tells us that this is the right publication, at the right time, focused on the right audience. You, our readers and advertisers, will now pass judgment on our research. AS AIRPORT BUSINESS celebrates i t s 3 0 t h Anniversary in 2016, we want to see how you've grown in the industry as well. Contact Editor-in-Chief Joe Petrie at joe.petrie@aviationpros.com to share the journey of your orga- nization, facility, business or industry leaders who have seen the evolution of the airport world and how it impacts the future of aviation. This special edition commemorates this publication's 20th year of publishing, and features looks back and forward from representative industry officials.