Edition: April 2008



FBOs Fuel Niche In
Corporate Aviation


Airports in San Diego County provide
more than the bare necessities to private
charter and fractional owner clients








Jet Source at McClellan-Palomar Airport has finished an $8 million, five-year project of additions and improvements, including a 40,000-square-foot hangar to accommodate more and larger aircraft.

Fixed base operators in the county are taking corporate aviation services to a higher level. They are rising beyond the bare necessities to lavish amenities and special services for private charter passengers and crew members and building larger hangars for sleek new jets.

The FBO expansion is part of the boom in corporate aviation. Unless the economy completely tanks, this growth will continue, says Peter Drinkwater, the county’s director of airports. He says cost is a consideration, but not the only one.

The use of private charters for business meetings and conferences is sometimes worth the expense, says Drinkwater. “In some businesses,” he maintains, “time equals money and if you can save time, in the end you save money.”

Air traffic is increasing across America and notably in California, says Drinkwater. “Some airports are running out of space and becoming saturated with traffic, so the traffic needs to be spread out.” In San Diego County, airports are reshuffling and improving their services to accommodate the increased demand.

FBOs at the county’s airports provide infrastructure support from food to jet maintenance and parking. From the simplest to the most exotic, FBOs can provide tickets to events, coordinate and cater meetings or simply provide fuel, a place to store the aircraft and a way to get from point A to point B.

McClellan-Palomar

A three-phase, $21 million expansion at Magellan Aviation (MagellanAviation.aero) at McClellan-Palomar Airport in Carlsbad started last year. The first phase is nearly complete and the second will start this year.

Magellan has hangar space totaling 79,920 square feet and one office building with 10,355 square feet and will add 92,398 square feet of storage and offices.

All hangars at Magellan are built to fit specific aircraft. “We’re not just building boxes. We keep specific aircraft in mind (when creating plans to build),” says Sandy Walker, director of marketing.

The first phase includes a 5,615-square-foot hangar designed to house aircraft like a Falcon 50, Sovereign or a Gulfstream 150 or 200. Phase one also includes four 1,824-square-foot hangars built to fit VLJs (Very Light Jets), the latest in aviation, such as the Eclipse, and smaller turboprops as well as piston aircraft. A small office component will be attached to the end of the smaller hangar building, which will provide two private suites with glass storefront entrances and access to the street.

Phase two of the project should be completed by spring 2009. Three hangars plus an FBO office will be built on the north end of the site facing the runway. Two of the hangars will be about 30,000 square feet each with one hangar divisible into two separate spaces, one space to take a Gulfstream 450-sized aircraft and the other a Gulfstream 550. The third hangar will be 8,480 square feet and will accommodate a Challenger or an Embraer Legacy. Each of these three larger hangars will have storefront access directly into the hangar from the main parking area.

Walker says the hangar space is moving quickly and Magellan is already signing leases with tenants for the new structures. Magellan is the largest lease holder (16.59 acres) and is the only FBO with projects currently under construction at Palomar, says Walker. Upon completion of this phase, Magellan will become a full-service FBO.





Pilots can rest, relax and watch movies in the new electronic pilot media lounge at Jet Source.

Magellan will offer charter, jet maintenance and avionics, catering services, a pilot lounge, snooze rooms and concierge services. The two-story FBO building will consist of about 12,000 square feet divided into common areas and private office suites for lease as well as FBO reception and service areas. It will have glass walls on three sides, providing runway views and an atrium to allow sunlight to spill through the ceiling. “We have one of the larger ramps on the airport,” says Walker. “In fact it’s wide enough to fit two Gulfstream 450s side by side.”

Phase three plans are to build eight to nine private hangars within the next two to three years on the south end of the site. “We will build hangars for this phase following the demand in the market, with hangars to fit specific aircraft such as the Embraer Phenom 100 and 300, Spectrum Freedom and Independence, Cessna Mustang and midsize jets such as the Hawker 800 and 850 or the Citation CJ3 and CJ4 and others,” says Walker.

While Magellan expands, Jet Source (JetSource.com) has completed its $8 million, five-year project of additions and improvements. A new 40,000-square-foot hangar was built to accommodate more and larger aircraft and a new fuel farm was added.

Jet Source has private conference rooms and a luxurious pilot media room with overstuffed leather recliners and 100-inch television, located right across the hall from the snooze rooms, allowing pilots a place to hang out, relax and nap before takeoff.

“We call regular FBOs a vanilla; we’re very upscale and very high-end,” says Frank Milian, president and COO.

Jet Source offers memberships to Pure Fitness and has relationships with hotels, rental car companies and golf courses. “We have the ability to get things done,” says Milian. “Whatever you like, we can accommodate.”

Jet Source provides maintenance and upgrade of aircraft, making it a one-stop shop, says Milian. Handling and storing $55-million aircraft, Jet Source has policies, procedures and highly trained staff assuring the aircraft is well attended, says Milian. “We have sophisticated security and over 40 cameras on-site.”

Jet Source owns and operates 15 aircraft and the company is expanding to Henderson, Nev. Its FBO is the only entirely solar powered FBO in America, cutting energy costs by 60 percent to 70 percent. “We’re friendly neighbors because being solar powered, we actually generate excess electricity,” says Milian.

“At the end of the day we are a service company,” says Milian. “For the past three out of four years we have been on the top 40 FBOs in America list and that’s an achievement in itself. We take it seriously and we’re always looking to make improvements.”

Not only are the FBOs at Palomar improving, but a new terminal is expected to open by the end of 2008. Palomar will then be the only commercial airport operated by the county with customs. The new terminal will replace 24,000 square feet of old buildings with one $25 million building of 18,000 square feet. “We did some shuffling around and recaptured the land so we can modernize and redevelop the terminal,” says Drinkwater.





A three-phase, $21 million expansion program started last year at Magellan Aviation in Carlsbad. The first phase is almost complete and the next will begin this year.

He says the new terminal better utilizes the land while improving safety. FBOs at Palomar were willing to pay for customs to be added to the new terminal if the county would sponsor it, says Drinkwater. “Right now we’re clearing one aircraft a day and will increase to three aircraft per day in six to eight months.”

In addition to the $8 million improvements at Jet Source and the $21 million project at Magellan, Premier Jet has spent $33 million on improvements for its facility.

Lindbergh Field

Plans for Jimsair (jimsair.com), the FBO at Lindbergh Field in San Diego, are at a standstill. The entire airport is going through a master planning process and plans for rebuilding and improving Jimsair have been put on hold because the location of the facility may change, says John Bracamonte, general manager and vice president. “A lot of new ideas are being brought up for the airport and we’re still waiting to see what we can do.”

Bracamonte says Jimsair is the gateway to corporate America because it’s the first airport operation seen as planes arrive in San Diego. “The look and feel of FBOs has changed. It’s the feeling of walking into a really nice hotel,” says Bracamonte. “We’re striving to head in that direction.”

Besides charter, as a full-service FBO, Jimsair provides ramp space parking, fuel and catering. “All the little things, we provide,” says Bracamonte. “There’s an endless list of things we provide because we’re not limited in what we can do.”

Upon completion of the master plan for Lindbergh, Jimsair can start work on improvements. Bracamonte says there is plenty of space at the north end of the airport for aeronautical use. If the location of Jimsair moves, an entire ground-up facility will be built, says Bracamonte. “When there’s a resolution between Jimsair and Lindbergh Field, we can serve clients the way we want and in the style they expect.”

Gillespie Field

Jet Air Systems (JetAirSystems.com) at Gillespie Field in El Cajon is an FBO and charter company offering 24-hour line service, rental cars from Hertz and Enterprise, limousines and executive transport, and corporate rates for hotels in the area and Downtown. There is also a pilot lounge and conference room with wireless Internet. “Pretty much anything passengers request, we can get,” says Stephanie Grunwald, customer service representative.

Jet Air provides services daily for families and businesses staying for a few hours to a few weeks, including catering, says Grunwald. “You can have anything you want very easily. We keep things as uncomplicated as possible.” Three hangars at Jet Air offer up more than 250,000 square feet of aircraft storage.

FBOs are in business to meet market demand and FBO services are tailored to demand, says Drinkwater.

“It’s important to remember the value of an airport in the economy,” says Drinkwater. “Thirty years ago no one could have envisioned the planes we have today and tomorrow promises even more. Technology of aviation is constantly evolving and we’re trying to keep up with it.”

More airports are closing than are being built in America so it’s important to take care of existing airports and make them as safe and efficient as possible, says Drinkwater. “Until there’s a Star Trek contraption that can transport people through their computer screens and reassemble their particles, corporate aviation is here to stay.”


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