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Fbo Case

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Fbo Case
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 case addresses the problems in operating procedures and the difficulties of taking union relations into account in the modification of operating procedures. In particular, the case demonstrates the difference between operations planning and control. Normal fueling operations required 23 union employees. During a recent strike, when the FBO was negotiating the employment contract with these union employees, non-union managers performed refueling tasks. Fourteen managers handled refueling operations working 12 hour shifts, 7 days a week. While FBO would not expect union employees to work 12 hour shifts, or work 7 days a week, they do see evidence from this experience that refueling operations could be managed more efficiently.

To improving operations the alternatives to be considered are:

• Use Radios and install communications system with dispatchers

• Ask airlines to be cooperative in notifying about delays, etc.

• Is it possible to reduce absenteeism?

• Improve scheduling rules

• Assign refuelers to specific trucks; specific airlines.

• Assign specific refuelers to top trucks only.

The most obvious need for

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