Supplier Spotlight

Latest video

Duncan Aviation begins work on US$70m Utah maintenance facility

Duncan Aviation has begun construction on a new US$70m business aircraft maintenance, modifications and paint complex in Provo, Utah, in the USA. The company will add nearly 275,000ft² of buildings, with a 222,000ft² maintenance and modifications center and a 53,000ft² paint facility.

23rd October 2017



Gulfstream Aerospace celebrates flight test program milestone

Gulfstream Aerospace has reflected on the first ten flight tests for the Gulfstream G500 and Gulfstream G600 jets. The jets are twin-engine, with the G500 replacing the G450. The G500 has a range of 5,000 nautical miles (9,260km) at Mach 0.85, with nonstop flights connecting distant cities such as Istanbul to Cape Town, Los Angeles to London, and San Francisco to Tokyo. The G600 can fly 4,800 nautical miles (8,890km) at a high-speed cruise of Mach 0.90, and seats up to 19 passengers, with room for nine to sleep.

19th September 2017

Does the US government need to intervene in the market to ensure reasonable public access and transparent pricing in FBOs?

Web Exclusive Articles

« back to listing

Is the price right?

Ries Vriend, CEO of Amsterdam Software – FBO One, discusses potential changes to regulation surrounding FBO pricing transparency in the USA.

 

FBO One is an online service for managing FBOs, and it used at over 120 airport locations on all continents around the world, and processes over 360,000 arrivals and departures per year.

Ries Vriend, CEO of Amsterdam Software – FBO One, discusses potential changes to regulation surrounding FBO pricing transparency in the USA.

More so than in private aviation, many service industries have already gone through a rapid structural transformation. Middlemen such as travel agents have been replaced by direct online and mobile booking platforms. Customers expect real-time online ordering and progress updates at their fingertips.

This trend puts pressure on the margins of FBOs, which not only provide in-house services such as fuel, but also arrange third-party services such as immigration, crew hotels, catering and ground transport.

Customers are more and more likely to optimize their costs by bypassing the FBO and use an online booking platform instead. Similarly, when looking for FBO services, I expect that customers will soon default to booking on a global cross-industry booking platform. This happened in the hotel industry, and I cannot think of an argument why a customer would not expect the same experience when booking FBO services.

Other trends that will soon impact FBOs and their service portfolio will be self-driving cars and auto-piloted aircraft. In Dubai, a drone-operated ‘flying taxi service’ is already there. Passengers that want low-cost private transport from A to B will soon be able to book and track their trip directly from their mobile devices.

Today it’s an Uber taxi service, tomorrow it’s a cross country trip that takes you from your doorstep in a self-driving car to an FBO, where a drone will fly you to another city where a self-driving car is ready to take you to your final destination.

These will all be provided at low cost because the drivers, pilots and booking agents have all been virtualized. What remains are stewards and stewardesses, both at the FBO and in flight.

This puts the FBO under pressure to really optimize its in-house services, such as lounges, safety procedures, meet-and-greet, and aircraft services. People will expect to pay appropriately for each of those services individually. Online reviews and ratings on each of those service will enable the client to pick each service with trust.

So, should public access and transparent pricing be introduced by the government? I think the government can stay out of this discussion. The internet and passengers will drive the industry toward eliminating any overhead that hides under the rocks of price discovery.

FBOs can prepare for this trend by automating information flow, optimizing their in-house service portfolio, and enabling real-time, bi-directional communication with their ultimate client – the passenger.

November 10, 2017

 

RECEIVE THE
LATEST NEWS


Your email address:



Read Latest Issue

Exclusive Articles

Ries Vriend, CEO of Amsterdam Software – FBO One, discusses potential changes to regulation surrounding FBO pricing transparency in the USA.
Click here to read more


The General Data Protection Regulation (GDPR) comes into effect in May and businesses must start preparing early to get a plan in place for its arrival, according to Paula Tighe, information governance director at law firm Wright Hassall.
Click here to read more


Sixty seconds with Claudio Lasagni, CEO at Air Service Basel, on how and why the FBO is partnering with local companies to boost its own brand.
Click here to read more



Submit your industry opinion

Industry BlogDo you have an opinion you'd like to share with the business airport community? Good or bad, we'd like to hear your views and opinions on the leading issues shaping the industry. Share your comments by sending up to 500 words to ben.sampson@ukimediaevents.com

Submit Your Recruitment Ad

Recruitment AdTo send us your recruitment advertising or to receive information on placing a banner please email jag.kambo@ukimediaevents.com