TERANGA AVIATION

Georgetown Airport (KGTU)

Austin, Texas November 2020

By Abdoulaye Diagne
Contents
I. Executive Summary .................................................................................................................................3
II. Industry Overview ...................................................................................................................................4
III. Products & Services ..............................................................................................................................5
IV. Marketing Plan ........................................................................................................................................8
Market Definition ........................................................................................................................8
Market Sizes and Trends ...........................................................................................................8
Competition ................................................................................................................................8
Strategies ...................................................................................................................................9
Pricing ........................................................................................................................................9
V. Personnel .................................................................................................................................................11
VI. Operations ..............................................................................................................................................13
VII. Legal Requirements. ..........................................................................................................................15
VIII. Financial Information ........................................................................................................................16
IX. Appendixes ............................................................................................................................................17
X. Sources ....................................................................................................................................................18

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I. Executive Summary

Mission Statement

“Far from your hometown airport basic handlings, TERANGA AVIATION aims to offer an
extraordinary experience.”

Value Statement

“We value safety in all aspects. Through a culture of professional and safe conduct, we strive to
exceed expectations while contributing to the economic growth of the regional community.”

“Teranga”

Loosely meaning ‘hospitality’ in the Wolof language, it means so much more. Used to evoke
warmth, friendliness, and selflessness, it guides the Senegalese way of life and is instilled into
each generation at an early age. it’s “the most important value” in Senegalese culture, and it all
boils down to “the way you treat the guest”.

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II. Industry Overview

Current Status of the General Aviation Industry

The covid-19 coronavirus outbreak is having a significant impact on global air traffic.
Commercial airlines are at a standstill and are facing an unprecedented crisis. Business aviation
is equally impacted but has nevertheless adapted to continue its operations. Airliners usually
operated in confined spaces and crowded airport terminals which are areas to be avoided
during the outbreak. The private jet has become the ideal solution for safe travel.
The Covid-19 coronavirus outbreak reveals the important role private jets can play in
times of crisis. Business aviation actors have all mobilized to participate in the fight against the
pandemic.
Private jets that have a wide enough door can be fitted with air ambulance to transport
patients. Many airports have decided to close their doors and ban commercial traffic for safety
reasons. However, the majority of them remain available for flights related to medical patient
transport or freight transport.

Industry-related Issues
Covid-19 did slow a lot of the activities down, FBOs became less and less busy during
the quarantine period but today the activities are coming back alive. Some changes have been
made but it is for the best.
“In the beginning of the pandemic, most of the food and beverage amenities were pulled
back by FBOs out of an abundance of caution with the exception of coffee where it was
available in single serve machines. That has since changed, but “single serve” is a very
healthful way forward for amenities. Customers still like and want cookies, but the expectation
now is that they are individually packaged like the DoubleTree hotel has been doing for years”
(Singer, 2020)
Covid-19 changed the FBOs experience to a more healthy and safe one and this will last
beyond this pandemic era.

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III. Products & Services

Expect the unexpected at Teranga Aviation, our FBO offer a large variety of services. From
good comfort and efficiency and great value for your money.

All services available and amenities

 Fuel Services
Teranga Aviation will provide JET-A and AvGas fuel services. A trained team will assist you
with the different methods an aircraft can be fueled, Into Wing or Over Wing. Teranga Aviation
will make sure constant fuel prices and adequate payment methods are provided.

 Baggage Handling
With its luggage handling service, whether traveling in the hold or cabin, Teranga Aviation
takes care of your luggage upon arrival. It will be handle with care from your vehicle to your
aircraft without exposing them to external aggressions (rain, frost, etc.).

 Passenger lounge
Teranga Aviation offers a large room with a panoramic view of the airport. The room is equipped
with comfortable chairs. Television with local and international coverage will be installed and a
small buffet area that offers snacks and drinks. A final touch will be a free ice cream machine for
the most enjoyable experience.

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  Crew Room
A crew lounge dedicated to pilots is at their disposal during each stopover. This crew lounge
is equipped with sofas and a TV and Teranga Aviation also provides crews with fruit snacks,
coffee, and soft drinks to make the stopover as enjoyable as possible.

 Flight Planning
Room
Teranga Aviation offers crews a dedicated area perfectly suited for flight planning. This area
reserved for crews is soundproofed, equipped with computers, a high-speed Wi-Fi
connection, and a multifunction copier for fast printing of operational flight plans, weather
reports or NOTAMS

 Courtesy Car
From the simple drop off at your meeting in Austin or for lunch, Teranga Aviation provides
three courtesy car free of charge. A BMW 5-Series and two Mercedes Vans.

 Aircraft Parking
Teranga Aviation provides 63,000
square feet of hangar space. More
than enough space to park the

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 larger Business Aviation Jet. Teranga Aviation also provides a ramp area equipped with Ties
downs for short-term parking.

Aircraft handling (Turn

around)
Several tasks are associated with a safe turn
around Teranga Aviation
- Supply of electric power to your
aircraft with GPU (Ground Power Unit).
- Performing the lavatory service
of your aircraft upon request.
- Performing the potable water
service of your aircraft.
- Essential catering for your
aircraft the desired quantity of coffee, hot
water, and ice cubes for your passenger
service.

IV. Marketing Plan

Market Definition

A Fixed-Base Operator, as defined by the FAA, is a commercial business granted the right by
an airport to operate on the airport and provide aeronautical services such as fueling, hangaring,
tie-down and parking, aircraft rental, aircraft maintenance, flight instruction, etc. One thing
special about the FBO market is that they all sell the same product and they cannot easily
increase the demand for services.

Market Sizes and Trends

2019 was a positive year for the general aviation community. But with the way the
coronavirus rolled in start in 2020, the entire aviation world took a hit which will have
consequences that will go on for years. FBOs business went down by more than half since a lot

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of people moved to online meetings instead of physical ones reducing the use of charter jets
therefore the use of FBOs.

But Air ambulance became a thing amid the crisis a lot of charter company transported
patients across the United States during all the quarantine period. Since the beginning of this
crisis, there have been numerous flights of medical evacuations by private jet in the USA.
Private jets are also a solution for those who would be stranded abroad due to border closures
and reduced air-to-air availability.

Competition

According to the 2015 FBO survey: The Americas, there are approximately 3,000 FBOs In the
U.S. The market is very large. Competition between FBOs is real. “In addition to direct
competition, FBOs face a number of other challenges. If you happen to be bordering a state with
a lower fuel tax, you may have to reduce profit margins, at least if you want to stay competitive.
The same goes for high fees, rents and infrastructure demands set by airport owners, sponsors
or management”. (AMC Staff, 2017.)
To overcome these deterrents, FBOs must count on a reliable customer base that keeps
coming back, while likewise battling to grow a lot of new business.

Strategies
The role of marketing is to show why will the customer choose you over any other FBO.
Your story, the value you offer going beyond just Parking, and fueling are the small things a
customer is looking for. There is a couple of marketing strategies one can use to promote its
products.

- Public Relations
Public relations allows you to spread the word about your business. Aviation forums,
Air shows are a good setting to show your product to the world. Special events and
giveaways also are a good way to mark your presence.

- Social Media
The world nowadays evolves around different social media platforms. A lot of
influencers make their living out of Instagram and Twitter. A strong social media
presence will help boost your visibility. A partnership with a local social media
influencer is a must.

- Advertising

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 Advertising can be a powerful tool for increasing brand awareness and generating
leads. Foreflight now has the option to advertise your FBO in the designated section
of its platform. Google ads are also a good way to put your product in front of others.

Pricing
Part of our business strategy is to ensure that we work within the budget of our clients. We
will ensure that we set our pricing system to reflect what is obtainable in the airport
operations industry.
GTU JET prices for fuel are currently:
- $4.75/gal for 100LL
- $4.33/gal for JET-A

GTU JET prices for parking:

- $20 for a Single Piston
- $30 for a Multi Piston
- $60 for a Small Turbine]
- $200 for a Jet

Teranga Aviation will try it best to keep the same pricing as GTU JET to help ease the transition
with the customers.

Payment options: Teranga Aviation will not be accepting cash as a form of payment because of
the volume of cash that will be involved with some of the transactions. Instead here are some of
the payments options that will be offered:
 Payment via bank transfer
 Payment via credit cards
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer

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V. Personnel

Teranga Aviation business structure will be no different from any other FBOs structure.
Since Teranga Aviation will be taking over GTU JET, our goal will be to keep the same
employee structure and employees which are already familiar with airport operations.

General Manager

Customer Services Line Services

Manager Manager

Customer Services Line Services

Representatives Technicians

Roles:
- General Manager
o Manages personnel and operational activities in the airport
o Ensures that airport staff follow aviation and security rules
o Ensures customer complaints are handled and resolved in an accurate and timely
manner
o Follows government rules and regulations for airport operation
- Customer Services Manager
o Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
o Defines job positions for recruitment and managing the interviewing process
o Responsible for training, evaluation, and assessment of employees
o Oversees the smooth running of the daily office activities.

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 - Line Services Manager
o Ensure departmental compliance with appropriate rules, regulations, and policies of
the Company, the Airport Authority, and all local or State agencies affecting the Airport
and FBO operations.
o Sets the tone for the overall quality of the operation and must strive to be a technical
subject matter expert concerning all areas of the operation.
- Customer Services Representatives
o Receives Visitors/clients on behalf of the organization
o Receives parcels/documents for the company
o Handles inquiries via e-mail and phone calls for the organization
o Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services
- Line Services Technicians
o Parking and marshaling aircraft
o Aircraft towing on-ramp and in/out of hangars
o Aircraft fueling
o Safety First Mentality recognizing and practicing all safety policies and procedures

VI. Operations
Teranga Aviation will be located in Georgetown Airport, Austin, Texas. Why Austin?
Studies show that Austin is on track to become the new silicon valley. “ In the past few months
alone Sapphire Venture, Draper Associates, 8VC and Breyer Capital, all capital investment firms
specializing in tech start-ups, have either opened or plan to open offices in the city. Apple, too,
recently announced plans to build a 1 billion dollar campus housing up to 22,000 staff in North
Austin while the presence of Google, Facebook, and Oracle has seen Austin affectionately
dubbed ‘Silicon Hills’.” (Dickens.).

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 The cost of living in Austin is also much lower than in San Francisco according to Built In.
And to get away from Bergstrom Intl, Georgetown (GTU) was a perfect match.

GTU JET is the main FBO at GTU and it happened to be for sale. Therefore transitioning
from GTU JET to Teranga Aviation is the plan.

The property features a newly remodeled FBO facility with lobby, pilot lounge,
conference room, and executive offices. The FBO offers full-service 100LL and JET A and
manages over 100,000 square feet of hangar and office space.
- 2.98-acre lease tract and 5.99-acre lease tract totaling 8.97 acres
- 63,000 square feet of hangar space
- 37,568 square feet of executive offices, lobby, pilot lounges, climate-controlled shop
space, break-rooms, restrooms, and storage
- 100,568 total building square footage

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Just 30 minutes North of Austin, Texas, Georgetown Municipal Airport is a convenient
alternative when traveling to Central Texas. The Georgetown Municipal Airport is a Class D with
an ATCT that is open every day from 7:00 am to 10:00 pm.

VII. Legal Requirements.

1. Certification
Teranga Aviation will comply with all Part 1562.25 CFR which are
- Each FBO must adopt and carry out an FBO
Security Program.

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 - Designate a security coordinator who meets the requirements in § 1562.23(b) of this
part and is responsible for implementing the FBO Security Program and other security
requirements required under this section
- Support the screening of persons and property
- Support the search of aircraft in accordance with the requirements of this subpart
- Perform any other duties required under the FBO Security Program.
Teranga Aviation will also permit the Transportation Security Agency to conduct any inspections
or tests, including copying records, to determine compliance.

2. Insurance
“Exposures for an FBO can range for the most basic premises liability to flight training,
charter, products, and hangar keepers and more. Given the many different services provided,
risk identification and management is extremely important to the daily operation of a successful
FBO.” (Air capital insurance)
Our Company will acquire this following type of insurance
- Airport Premises Liability
- Airport Liability
- Hangar Keepers Liability

3. Liability
Teranga Aviation will be a Limited Liability Company.

VIII. Financial Information

You would need a huge capital base to be able to operate, maintain, and renovate airport
facilities. Here are the areas we intend spending our startup capital:
Desired Fundings Table

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 Cost Cost Over One Year
GTU JET Property $4,495,000 $4,495,000
Ground Lease $4,688.79 $56,265.48
Tied Down lease $825.00 $9,900.00
Insurance Budget $5,400 $64,800.00
Salary of Employees $40,000 $480,000.00
Bills $5,000 $60,000.00
Courtesy Cars $100,000 $100,000
Website Launch $1,000 $1,000
Business cards, Signage, Adverts, etc. $1,000 $1,000
Total $4,652,914 $5,267,965

The fact that the FBO market is indeed a booming market means that investors are always
going to be attracted to the industry. A lot of the companies at least own a private jet. With
Austin being a new technology hub in the making, it will be difficult to see multi-millionaires who
don’t have an interest in investing in airports.
The top 1% will be the principal marketing group
The top 2% also will be part of the marketing group
The top 5% ( social media influencers) will also be considered.

IX. Appendixes

Goals

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 Our goal is to become one of the top 5 airports FBOs companies in the United States of
America which is why we have mapped out strategies that will help us take advantage of the
available market.

Objectives
We are set to hit the ground running and we are quite optimistic that we will meet our set target
of generating enough profits to grow the business beyond Austin, Texas to other airports in the
United States of America within record time.

X. Sources

49 CFR § 1562.25 - Fixed base operator requirements.

https://www.law.cornell.edu/cfr/text/49/1562.25

Fixed Based Operators & Aviation Property Insurance. (n.d.). Retrieved November 02, 2020,
from https://www.aircapitalinsurance.com/fbo-aviation-property.html

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Holloway, B. (2019, August 26). Senegalese Spirit: Discovering the Meaning of Teranga.
Retrieved November 02, 2020, from https://theculturetrip.com/africa/senegal/articles/why-
senegal-is-the-country-of-teranga/
https://www.law.cornell.edu/cfr/text/49/1562.25

Nwokoro, J. (2020, June 17). A Sample Airport Management Business Plan Template.
Retrieved November 02, 2020, from https://www.profitableventure.com/airport-
management-business-plan/

Singer, M. L. (2020, August 13). The FBO Customer Experience Beyond COVID-19. Retrieved
November 06, 2020, from https://www.aviationpros.com/fbos-
tenants/article/21146778/the-fbo-customer-experience-beyond-covid19

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