Essay Fbo Case

1223 WordsMar 9, 20095 Pages
FBO, Inc. is a “Fixed base operator” at the Metropolis airport whose business is divided into two groups of operations, namely a) Refueling of Commercial (40%) under contract & Retail (60%) b) Provision of a variety of services (refueling, maintenance, and Avionics) to private and corporate aircraft. Reiling, the General Managers is concerned that the commercial contract operations are not being performed as efficiently as possible and is considering a variety of alternatives to alter operating procedures and operations control. At the same time, if pooling is deemed inappropriate then the implementation of a different format in the face of a hostile management/union relationship is a concern. This…show more content…
In some instances, trucks were idle an additional one hour after refueling. Better organization of these processes may allow the elimination of truck. Following actions are most desirable: 1. Eliminate two of the trucks. 2. Can we reduce the size of the truck? Maintenance cost can be reduced. 3. Encourage maximum use of radios. 4. Try to obtain airline cooperation in notifying FBO’s dispatcher about delays and other irregularities. 5. Install a communications system with the dispatcher. 6. Perhaps most important, improve scheduling rules. Among the improvements may be: o Replacing the rule “send a truck to meet plane” with better communication between airline, the dispatcher, and the truck drivers and o Encouraging drivers to retop whenever their schedule permits and the truck reaches a certain level of available capacity. 7. Insure that the lead dispatcher’s position is filled with someone with both analytic and human skills. The most difficult challenges in implementing these recommendations may well be the establishment of more effective channels of communication with the airline customers. Because most of the action should improve the working conditions and do not involve staff reductions, there should be few objections from the union. Income Statement Revenue
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