Contents:

• Introduction:
• Differences between FBOs:
• Purchase:
• Fueling Operations:
  • Uplift:
  • Throughput:
  • De-fueling:
  • Transfer
• Fuel Stock Management:
  • Stock location:
  • Stock keeping unit (SKU):
• Price components:
  • FOB (Free On Board) Price:
  • Posted-Airfield Price:
  • Purchase Differential:
  • Airport Fees:
  • Duty Tax:

Introduction:

This article introduces the business processes supported by the FBO One Fuel Module. To keep this information to the point, this explanation is written around a concrete example, the so-called reference FBO.

The diagram above illustrates the fuel processes at the reference FBO (Fixed-Base Operator).

The fuel procurement begins with the FBO purchasing fuel from a depot. Once acquired, the fuel is stored within fuel tanker trucks, commonly referred to as bowsers, operated by the FBO.

The utilization of fuel occurs through two main processes. Firstly, when the fuel is sold and transferred into an aircraft, it is termed an 'uplift'. Alternatively, fuel can be de-fueled from an aircraft into a fuel truck or transferred from one fuel truck to another.

Further elaboration on these processes will be provided in subsequent sections of this document.

The FBO One Fuel Module offers the following capabilities:

1. Fuel Ticket Management:

   • Capturing and recording details of fuel tickets.

2. Inventory Management:

   • Tracking the current stock of different fuel types, such as Jet-A1 and AVGas.

3. Stock Discrepancy Handling:

   • Accounting for stock differences, including those caused by missing tickets.

4. Fuel Contract and Credit Management:

   • Managing fuel contracts and credit terms.

5. Automated Price Calculation:

   • Streamlining payment processes by automating price calculations.

6. Invoicing for Fuel Sales:

   • Generating and booking invoices for fuel sales.

7. Fuel Reward Program Integration:

   • Logging fuel reward program points in the accounting system.

8. Accounting Integration:

   • Recording revenue and stock value in the accounting system.

9. Management Reporting:

   • Creating comprehensive management reports and charts.

Differences between FBOs:

The outlined processes can vary slightly among different FBOs, as they may have specific procedures and business models. FBO One Fuel Module is designed to adapt to these variations and cater to the unique requirements of each FBO.

For instance, some airports may utilize a hydrant system, which comprises an underground network of fuel pipes. Dispenser trucks, responsible for refueling aircraft from hydrant pits, are employed in such cases. FBO One can accommodate this hydrant system and account for the direct pumping of fuel from the depot into the aircraft. This type of refueling is commonly referred to as 'into plane' or 'throughput' fueling.

Additionally, there are scenarios where the FBO does not possess ownership of the fuel in their trucks, as it remains under the supplier's ownership. In such cases, the FBO acts solely as an 'into plane service provider,' with no ownership of the fuel itself. Nonetheless, FBO One is still utilized to track and validate the inventory in each truck. However, the invoicing process differs in this scenario since there is no actual 'purchase' of the fuel when the truck is filled up at the depot. The purchase only occurs if the FBO sells fuel in its own name.

By providing flexibility in accommodating various fueling systems and ownership structures, FBO One ensures that it remains a versatile and comprehensive solution for FBOs, regardless of their specific operations and fuel management models.

Purchase:

In our reference FBO, the fuel ownership lies with the FBO itself, meaning they acquire fuel at a designated depot and store it in their own tanker trucks.

During the fueling process, the ramp agent operating the tanker truck receives a receipt for each purchase, commonly known as a "ticket." Subsequently, the fuel supplier sends a monthly invoice to the FBO based on these tickets.

FBO One plays a crucial role in streamlining this process by facilitating the matching of fuel tickets to the supplier's invoices. This feature simplifies the reconciliation of fuel transactions, ensuring accuracy and eliminating any discrepancies.

By leveraging FBO One's capabilities, the FBO can efficiently manage and track fuel purchases, effortlessly cross-referencing the tickets with the supplier's invoices. This significantly enhances the FBO's invoicing and accounting procedures, reducing potential errors and enabling a seamless fuel management system.

Fueling Operations:

Uplift:

The process of pumping fuel into an aircraft is called the uplift. When the uplift is complete, a receipt, commonly known as the ticket, is printed in the fuel truck. This ticket contains the meter start and end values, as well as the total volume of fuel sold. It also serves to capture the captain's signature, confirming the delivery. The payment for the uplift can be arranged in various ways.

In some cases, an aircraft operator may have credit with the FBO. This credit can be in the form of a direct credit by the operator with the FBO or because a fuel release is received for the handling. A fuel release is an authorization sent by a fuel broker, such as World Fuel or UVAir, to the FBO, allowing the captain to fuel the aircraft up to a specified maximum quantity. These fuel releases are often sent via fax or email and received by the operations staff. In FBO One, the credit status of the Uplift service is set to 'paid' using the 'fuel release received' workflow step.

When an aircraft operator has credit with the FBO, the ramp agent does not need to validate or process a form of payment. Instead, the FBO sends an invoice for the uplift to the client. FBO One helps the ramp agent by clearly showing the credit status, whether credit exists for the uplift or not. This information can be accessed through the ramp agent's iPhone, iPad, or desktop PC. If the aircraft operator does not have credit, the ramp agent needs to arrange for payment.

There are two main payment methods in such cases.

• The first is using a fuel card, also known as a carnet, which is issued by fuel brokers and suppliers like World Fuel, UVAir, Total, AVFuel, BP, and MultiService. These fuel cards function like credit cards and are typically valid for fuel purchases only, excluding handling services. When the captain presents a fuel card for payment, the ramp agent usually needs to validate the card details with the broker. In Europe, this validation step is often skipped due to the absence of automated devices for card swiping and validation. However, in the USA, fuel cards are always electronically validated. When an uplift is paid with a fuel card, the invoice is sent to the broker or fuel company that issued the card, similar to the process for fuel releases.
• The second payment method is a direct payment made by the captain using a credit card or cash. In this case, the fuel payment is combined with the handling services. The captain pays for both the fuel and handling fees together.

By accurately managing the credit status, coordinating payment methods, and facilitating invoicing, FBO One greatly assists the ramp agent in efficiently handling fuel transactions, ensuring smooth operations and accurate accounting.

Throughput:

When the uplift is paid by one of the fuel suppliers, it is referred to as a throughput. In this scenario, the purchased fuel is treated in FBO One as if it was uplifted using a hydrant system. Essentially, the fuel is pumped from the depot into the aircraft on behalf of the fuel supplier. The FBO will subsequently send an invoice to the fuel company for providing the uplift service, excluding the value of the fuel itself. It is the fuel company's responsibility to invoice the value of the fuel directly to the fuel card holder.

De-fueling:

When an aircraft requires maintenance that necessitates de-fueling, the fuel from the aircraft is transferred to a fuel truck. Upon the aircraft's departure, it is refueled again. The de-fueling process involves connecting a hose from the aircraft tank to the top of the fuel tank in the truck. Unlike regular fueling, there is no meter attached to the hose, making it necessary to estimate the fuel amount.

To estimate the fuel amount during de-fueling, calculations are based on the aircraft's flight plan and expected flight time. This estimation helps determine the approximate remaining fuel in the aircraft's tanks. However, to accurately determine the actual fuel quantity in the truck, it is customary to empty the truck immediately after de-fueling. This is achieved by pumping the fuel through a meter into another truck or a large tank owned by the maintenance facility. This final fuel transfer, known as the "uplift," allows the stock position of the truck to be reset to 0 because it is now confirmed that the truck is empty.

Any discrepancy between the fuel volume in the final uplift and the reset stock position of 0 is automatically recorded by FBO One as either a loss or profit. This accounting mechanism ensures that any variation in fuel quantity is accurately captured and reflected in the system.

Transfer

When one fuel truck is filled from another fuel truck, it is referred to as a transfer. Unlike other fuel operations, such as uplifts or refueling, transfers do not impact the total stock owned by the FBO. Instead, transfers solely affect the individual stock levels of each involved fuel truck.

During a transfer, fuel is moved from one truck to another to redistribute the fuel inventory or consolidate it for operational efficiency. This process allows the FBO to manage the fuel distribution across its fleet of trucks effectively.

Fuel Stock Management:

Stock location:

In FBO One, all storage locations for fuel, including fuel trucks and depots/tanks, are referred to as stock locations. Each stock location is equipped with at least one meter that is utilized to measure the quantity of fuel when it is extracted from the location.

Fuel trucks, which serve as mobile storage units, are considered stock locations in FBO One. These trucks are equipped with one or sometimes two meters, allowing them to pump fuel into multiple aircraft wings simultaneously. This capability is particularly useful when servicing larger aircraft that require fueling from both wings simultaneously.

Both uplifts (fueling operations) and transfers (internal fuel movements) involve the utilization of meters. As a result, the meter values displayed on the fuel tickets are associated with one of the meters installed on the fuel truck. This allows for accurate tracking and recording of the fuel quantities involved in these operations.

Stock keeping unit (SKU):

In FBO One, a stock keeping unit (SKU) refers to a specific type of fuel that is maintained in stock by an FBO. These fuel types can include Jet-A1 for jet engines, AV Gas for piston engines, and diesel/unleaded fuel for vehicles used at the airport. Each SKU represents a distinct fuel type and requires its own definition within the system.

It's important to note that each stock location within FBO One can only hold one SKU at a time. This means that a particular fuel truck can be designated exclusively for Jet-A1 or AV Gas, but not both simultaneously.

To manage pricing for each SKU, FBO One allows the creation of products that are linked to the specific SKU. For example, products can be named "Jet A1 Uplift" and "Jet A1 Transfer," both of which are associated with the "Jet-A1" SKU. However, these products may have different workflows and price structures due to the distinct processes involved in uplifts and transfers. By linking transactions (tickets or stock mutations) for these Jet-A1 related products, the system can accurately calculate and reflect the current stock position for the corresponding SKU. The "running stock" overview in FBO One provides visibility into this information.

Price components:

In FBO One, the fuel price can be composed of various price components that contribute to the overall cost. These components are defined to facilitate efficient price management and generate accurate tax declaration statements. Here are the components of the fuel price:

1. FOB (Free On Board) Price:

   • The FOB price is an industry-standard market price for Jet Fuel, typically provided by sources like 'Platts.' It serves as a reference value for fuel contracts and is subject to volatility. The FOB price is augmented with a "differential" that accounts for additional factors.

2. Posted-Airfield Price:

   • Airports often establish a "Posted-Airfield Price" for ad-hoc visitors who do not have contracts. This price is distinct from the FOB price and may offer discounts for bulk purchases, depending on the FBO's policy.

3. Purchase Differential:

   • The purchase differential represents the additional amount charged by fuel suppliers to the FBO on top of the FOB price when purchasing fuel. This differential varies across different FBOs and is a crucial component in determining the stock value.

4. Airport Fees:

   • Airport fees, akin to taxes, are mandatory charges that apply to all clients and must be collected. They are distinct from duty tax and VAT. Together with the FOB price and the purchase differential, airport fees contribute to the purchase price for the FBO.

5. Duty Tax:

   • Duty tax is an excise tax imposed on the sale of fuel in most countries. FBO One allows for different configurations of duty tax based on country regulations. For example, in the Netherlands, significant duty tax is applied to each liter of fuel, but Jet-A1 used in commercial international air transport is typically exempt from duty tax.

By defining and incorporating these price components in FBO One, the system enables accurate calculation and management of fuel prices, facilitates efficient price maintenance, and generates comprehensive tax declaration statements aligned with the specific requirements of each component.