FBO Operations: Services, Charter, Rental & Instruction

Posted on Mar 31, 2025 in Other subjects

FBO Flight Service Offerings

One of the major distinguishing factors for FBOs is the type of flight services they offer:

  • Flight Instruction
  • Rental
  • Charter (Passenger, Cargo, Aeromedical)
  • Aerial Photography
  • Sightseeing / Aerial Observation
  • Agricultural Operations
  • Banner / Glider Towing
  • Contract Services (e.g., Power/Pipeline Patrol)
  • Mapping Services
  • Specialized Training / Aircrew Services
  • Aerobatics
  • Tailwheel
  • Helicopter, Airship, Glider, Balloon Operations

Charter Flying Operations

  • Operates on a non-scheduled (or very limited schedule) basis.
  • Typically requires multi-engine aircraft for Instrument Flight Rules (IFR) operations.
  • Pilots need at least 1,200 total flight hours (including 500 hours under Visual Flight Rules – VFR).
  • Pilots must pass an FAA Part 135 checkride.
  • Must have an FAA-approved operations manual detailing:
    • Organizational structure (e.g., Chief Pilot, Director of Maintenance)
    • Responsibilities of personnel
    • Standard operating procedures
    • Accident procedures
    • Emergency procedures
    • Weather procedures
    • Fueling procedures

Charter Requirements Continued

  • Aircraft must be maintained under an approved maintenance program.
  • Must apply for and prominently display the operating certificate.
  • Operations are subject to periodic and random FAA inspections covering equipment, personnel, and procedures.

Aircraft Rental Policy Considerations

If your FBO plans to rent aircraft, consider the following for your rental policy:

  • Eligibility: Define who can rent and the specific requirements (e.g., minimum flight time, certificates).
  • Check-out Procedures: Establish procedures for pilot approval on specific aircraft types.
  • Currency Requirements: Specify recency of experience requirements, often dictated by insurance policies.
  • No-Show Procedures: Outline policies for missed reservations.
  • Damage Procedures: Detail how aircraft damage incidents are handled and renter responsibility.
  • Operational Limitations: Set restrictions (e.g., night flying, operations in Instrument Meteorological Conditions – IMC, specific airports).

Determining Rental Rates:

  • Cost Analysis: Calculate based on overhead (fixed costs) and variable costs (fuel, maintenance).
  • Market Rates: Research and consider competitor pricing.

Understanding Aircraft Insurance

Key aircraft insurance considerations include:

  • Two Main Parts: Hull and Liability coverage.
  • Liability Insurance: Essential coverage protecting the FBO against lawsuits arising from injury to persons or damage to property caused by the insured aircraft.
  • Hull Insurance: Covers physical damage to or loss of the insured aircraft itself. It is often required by lenders if the aircraft is financed or by lessors if leased. Hull insurance functions similarly to comprehensive/collision coverage for automobiles.
  • Coverage Types & Cost: Insurance premiums increase with broader coverage. Common types include:
    • All Risks Not In Motion: Covers the aircraft only while parked/stationary on the ground.
    • All Risks Not In Flight: Covers the aircraft while on the ground, including taxiing, but not while airborne.
    • All Risks (In Flight & Ground): Provides the broadest coverage, including while the aircraft is in flight.

Contract Flying Services & Considerations

If your FBO chooses to offer contract flying, common services include:

  • Agricultural Surveying
  • Pipeline Patrol
  • Wildlife Patrol / Surveying

Contract Considerations:

  • Duration of the contract
  • Geographic coverage area
  • Specific flight paths and airspeeds required
  • Minimum pilot qualifications
  • Aircraft maintenance requirements
  • Pilot duty time limitations
  • Payment terms and schedule

Note: Some contract operations may necessitate the use of a helicopter; carefully evaluate the significant cost implications before committing.

Flight Instruction Services

  • Private pilot training is the most prevalent type of flight instruction offered.
  • Of the approximately 600,000+ certified pilots in the U.S., around 40% hold instrument ratings, and about 8% are Certified Flight Instructors (CFIs).
  • Most pilot training is conducted under Federal Aviation Regulations (FAR) Part 61.
  • FAR Part 141 governs FAA-certificated flight schools and sets forth more rigid requirements, including:
    • A formal, FAA-approved Training Course Outline (TCO) or Operations Manual.
    • FAA-inspected and approved facilities.
    • Yearly instructor standardization rides.
    • Training curriculum divided into specific stages (e.g., Private Pilot course divided into 3 stages).
    • Detailed student progress must be documented and filed.
    • Several written stage exams are required throughout the course.
    • Formalized lesson plans must be used for instruction.
    • Phase checks must be conducted by the Chief CFI or Assistant Chief CFI to evaluate student progress at key points.

Turnkey Flight Training Programs

Comprehensive, turnkey flight training programs are available through aircraft manufacturers like Cessna (using the King Schools syllabus) and Piper, which often provide:

  • Student training kits and supplies
  • Standardized documentation forms
  • Pre-made tests and exams
  • Billing and accounting software templates
  • Recommended aircraft maintenance schedules

CFI Quality Control Measures

Maintaining high CFI quality is crucial for an effective and safe flight training program:

  • Avoid “Inbreeding”: While hiring graduates is common, relying solely on internally trained CFIs can perpetuate errors or bad habits. Seek a mix of experience.
  • Hiring Standards: Avoid the pitfall of hiring anyone solely because they possess a CFI certificate. Assess teaching ability, professionalism, and attitude.
  • Supervision: Provide close supervision and mentorship for new instructors, and regularly monitor their students’ progress and training records.
  • Professionalism: Emphasize the importance of instructors being neatly dressed, well-groomed, and punctual.
  • Scheduling Integrity: Stress the importance of instructors honoring scheduled appointments and avoiding “bumping” students for other flight opportunities (e.g., charter, personal flying).
  • Freelance Instruction Policy: Develop a clear written policy regarding instructors conducting freelance instruction using FBO facilities or aircraft, considering potential liability implications for the FBO.