Installation and Advantages of Self

advertisement
Self-Service 100LL Fuel Station
Atlantic Aviation JZI – Johns Island, SC
JZI Self-Service 100LL Background
 Atlantic JZI began offering self-service 100LL in May 2012.
 Prior to this, demand for lower priced 100LL was high among
the many based and transient piston operators at JZI.
 Many of these operators would fly out of their way to
smaller airfields in order to save money of fuel.
 Self-service was the only way that Atlantic JZI could offer
100LL at prices comparable to these smaller operations.
 After considering potential positive and negative effects we
determined that the pros of self-serve outweighed the cons.
Initial Concerns of Self-Service 100LL
 Margin cannibalization – If enough customers opted for self-serve over fullserve the lower margin would negate any increase in volume sold.
 We felt we could overcome this because our target customers were not buying
any fuel and we expected that many customers would still prefer full-serve.
 Invoicing – Since the self-service station would be invoiced by a 3rd party we
had concerns that some customers may use the self-serve to avoid facility fees.
 We knew that there were already some customers who were trying to avoid
fees, so with self-serve we would at least be getting revenue from fuel sales.
 Investment – Because the self-serve margins are low, we had concerns on ROI.
 The total initial investment in the station is less than a new refueling truck and
with the station we would extend the life of our current refueling truck while
at the same time being able to attract new customers and higher uplifts.
Justifications for Self-Service at JZI
 50 based piston aircraft at JZI,
majority not buying fuel.
 No other self-service 100LL
options in Charleston County.
 Located on the coast as a fuel stop
for flights along the east coast.
 Proximity to popular destinations
ensures steady transient traffic.
 Unlike FBO, station open 24/7
 Initial investment on station is less
than that of a new 100LL refueler.
JZI Self-Service 100LL Timeline
* May 2011 – Research began,
U-Fuel selected as vendor
* November 2011 – Internal
approval granted by Atlantic
* January 2012 – Approval
granted by Airport Authority
* April 2012 – Permit obtained
by City, Site prep completed
* May 1, 2012 – Self-service
100LL station online at JZI
Expectations for Self-Service at JZI
 Capture fuel sales from cost conscious piston operators,
including based aircraft and transient customers.
 Improve relationship with local aviation community.
 Use labor more effectively on full-service customers,
increasing both customer service and safety.
 Increase total gallons of 100LL sold at JZI through
increased visits and uplifts at a lower margin.
 Maintain a positive relationship with Aviation Authority.
U-Fuel 100LL Box Station
 We chose the 3,450 gallon Box Station by
U-Fuel for our 100LL Self-Serve Station.
 Station comes prefabricated with fuel tank,
pump, card reader, etc. already installed.
 Safety features exceed requirements by all
federal, state and local regulations.
 Minimal site prep needed in preparation of
delivery and easy installation upon delivery.
Self-Service Station - Permitting
 Permits must be obtained before installation begins.
 JZI is located within the city of Charleston, so all
applicable permits were obtained through the city.
 Fire Marshal approval – system comes standard with
many fire safety features which help this process.
 Ensure compliance with DHEC, flood zones, wind
suppression, fire hydrant proximity, local ordinances.
 Construction permits needed to lay concrete for pad
and to install power and phone lines to the station.
Self-Service Station - Site Prep
 Concrete pad to place fuel
station on w/ bollards.
 Electrical and phone lines
to the station, emergency
fuel shutoff system.
 Fuel station can be placed
directly on ramp, but pad
increases safety.
Self-Service Station - Installation
 Heavy forklift to pull station
out of truck (not needed if
station is on flatbed).
 Crane to pick up station and
position it on concrete pad.
 Anchor station to concrete.
 Install piping, calibrate fuel
pump and card reader.
Self-Service Station - Maintenance
 Quality Control – integrate
self-serve station into
existing QC program.
 Sump tank & filter daily
 Annual filter change
 Occasional maintenance –
repair bonding reel, fix any
leaks in piping, fix jam in
receipt printer as needed.
Self-Service - Customer Response
 Customer response has been overwhelmingly positive.
 Based customers who never purchased fuel at JZI before
were pleased and began to purchase from self-serve.
 On AirNav.com and similar sites customers who historically
complained of high prices at JZI left positive comments.
 Transient customers were pleased to have the option on the
field, although many still preferred full-serve.
 Overall, there were very few complaints on the self-serve
station, mostly technical issues which we worked out.
JZI Self-Service - Operations
 The self-service station has been a
success so far after almost 2 years.
 As predicted, most transient
customers still prefer full-serve to
self-serve.
 Many base customers who never
fueled at JZI now use the self-serve.
 Many customers who purchased
small amounts of full-serve in the
past now top-off with self-serve
fuel, increasing our 100LL uplifts.
JZI 100LL Gallons Sold 2011-2013
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Full-Serve
Self-Serve
Total 100LL
2011
2012
2013
 Self-serve 100LL first
available 5/1/12
 Self-serve is averaging
3,000 gal. sold/month.
 Total gallons sold have
increased each year
 While declining, fullserve fuel sales remain
the majority for 100LL
Self-Service 100LL - Summary
 Self-Service 100LL can be a great
addition to GA airports like JZI.
 Once installed, system requires
minimal maintenance.
 Many operators see price as the
#1 factor on where to buy fuel.
 Lower prices will increase uplifts
and attract new customers.
 Improves relationships with
customers and airport owners.
Download