Airport Management Guide for Providing Aircraft Fueling Services (2019)

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A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP RESEARCH REPORT 192 2019 Research sponsored by the Federal Aviation Administration Subscriber Categories Aviation • Operations and Traffic Management Airport Management Guide for Providing Aircraft Fueling Services Lois S. Kramer KRAMER AERotEK, Inc. Boulder, CO Robert Jones David Neuder KIMlEy-HoRn And AssocIAtEs, Inc. Denver, CO Nick Tessitore BuRns & McdonnEll EngInEERIng coMpAny, Inc. Denver, CO a n d Gary Shafer soutHERn IllInoIs AIRpoRt AutHoRIty And FlIgHtlInE FBo Carbondale, IL

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans- portation of people and goods and in regional, national, and interna- tional commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal responsibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Cooperative Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near-term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon- sored by the Federal Aviation Administration (FAA). ACRP carries out applied research on problems that are shared by airport operating agen- cies and not being adequately addressed by existing federal research programs. ACRP is modeled after the successful National Cooperative Highway Research Program (NCHRP) and Transit Cooperative Research Program (TCRP). ACRP undertakes research and other technical activi- ties in various airport subject areas, including design, construction, legal, maintenance, operations, safety, policy, planning, human resources, and administration. ACRP provides a forum where airport operators can cooperatively address common operational problems. ACRP was authorized in December 2003 as part of the Vision 100— Century of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant industry organizations such as the Airports Council International-North America (ACI-NA), the American Associa- tion of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), Airlines for America (A4A), and the Airport Consultants Council (ACC) as vital links to the airport community; (2) TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academy of Sciences formally initiating the program. ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research organi- zations. Each of these participants has different interests and responsibili- ties, and each is an integral part of this cooperative research effort. Research problem statements for ACRP are solicited periodically but may be submitted to TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by identifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel appointed by TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport professionals, the intended users of the research products. The panels prepare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing coop- erative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended users of the research: airport operating agencies, service pro- viders, and academic institutions. ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties; industry associations may arrange for workshops, training aids, field visits, webinars, and other activities to ensure that results are implemented by airport industry practitioners. ACRP RESEARCH REPORT 192 Project 01-30 ISSN 2572-3731 (Print) ISSN 2572-374X (Online) ISBN 978-0-309-48009-3 Library of Congress Control Number 2018930223 © 2019 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FRA, FTA, Office of the Assistant Secretary for Research and Technology, PHMSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. Cover photo credit: Argus Consulting, Inc. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; or the program sponsors. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Published research reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to http://www.national-academies.org and then searching for TRB Printed in the United States of America

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to increase the benefits that transportation contributes to society by providing leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Board’s varied committees, task forces, and panels annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP RESEARCH REPORT 192 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Michael R. Salamone, Manager, Airport Cooperative Research Program (deceased) Theresia H. Schatz, Senior Program Officer Megan Chamberlain, Senior Program Assistant Eileen P. Delaney, Director of Publications Natalie Barnes, Associate Director of Publications Sreyashi Roy, Editor ACRP PROJECT 01-30 PANEL Field of Administration Matthew Van Valkenburgh, Killeen Fort Hood Regional Airport, Killeen, TX (Chair) Stephanie Blankenship, Ozark-Dale County Economic Development Corp., Ozark, AL Curt G. Castagna, Aeroplex/Aerolease Group, Long Beach, CA Mark Gibbs, San Bernardino International Airport Authority, San Bernardino, CA Robert Hom, Eagle River Union Airport, Eagle River, WI Ronald F. Price, QED, Amelia Island, FL Kevin Hehir, FAA Liaison Cathy Bucht, Airlines for America Liaison Megan Eisenstein, National Air Transportation Association Liaison Alex Gertsen, National Business Aviation Association Liaison 15064-00b_FM-4thPgs.indd 4 2/7/19 12:14 PM

ACRP Research Report 192 is a management guide for airports that are considering or are currently self-providing fueling services directly to their customers. The management guide includes a methodology to evaluate whether an airport should or should not provide fuel service, a checklist of action items required for providing fuel service, and a sample request for proposal to solicit bids from fuel suppliers. The management guide also addresses a wide range of topics including feasibility evaluations for new or improved fueling facilities, fuel pricing and marketing strategies, and organizational considerations when starting or expanding a fueling service. In addition, there are introductions to how aviation fuels are produced and to the components of an airport fueling system, which can be used to brief municipal decision-makers or airport employees. The provision of fuel services used to be almost exclusively a private-sector endeavor. However, the advent of more fuel-efficient aircraft and a decline in single-engine piston aircraft activity has altered the dynamics and structure of the aviation fueling industry. At the time of this publication, almost half of publicly owned airports self-operate fueling facilities. Some airports have made a clear decision to self-operate; others needed to respond quickly to the loss of a private fixed-base operator (FBO). The management guide offers useful information about branded and unbranded fuel products, setting price, inventory controls, customer service, staffing levels, regulatory requirements, capital investment, and operating and maintenance costs associated with the fueling services. The foundation for the management guide, under ACRP Project 01-30, was extensive research including interviews, case studies, and surveys. KRAMER aerotek served as the research agency with assistance from Kimley-Horn and Associates, Burns & McDonnell Engineering Company, Southern Illinois Airport Authority and Flightline FBO. With the focus on small general aviation airports, the research team completed 16 case studies about their fueling operations. A 29-question survey captured basic information about each airport’s fueling operations. The team followed up with a telephone interview that focused on pricing practices, sales and marketing histories, and perceived trends. Participants were also asked about any lessons learned and best practices that might be useful. Write-ups of the case studies are in Appendix A. Appendices A through C are available on the TRB website and can be found by searching for “ACRP Research Report 192.” Appendix B contains Microsoft Excel worksheets that can be downloaded and customized by airports to keep track of inventories, sales, operating F O R E W O R D By Theresia H. Schatz Staff Officer Transportation Research Board

expenses, and profit and loss. Chapter 13 brings all these worksheets together to produce a data entry sheet, which can be tailored and adapted by airports to produce the fuel manager’s monthly and annual reports and the fuel manager’s report to the airport sponsor. A Microsoft PowerPoint presentation (Airport Fueling Operations—Sample Fuel Manager’s Report to the Airport Sponsor.pptx) is also available in Appendix B to help airports produce their own PowerPoint presentations for their sponsors. AUTHOR ACKNOWLEDGMENTS Case Study Participants Mike Smith, Thomas C. Russell Field, Alexander City, Alabama Gary Meisner, Burlington Municipal Airport, Burlington, Wisconsin Mike Miller, Cheyenne Regional Airport/Jerry Olson Field, Cheyenne, Wyoming Robert Hom, Eagle River Union Airport, Eagle River, Wisconsin Laura Zimmerman, Front Range Airport, Watkins, Colorado D. J. Wolfskill, Hulett Municipal Airport, Hulett, Wyoming Brent Brown and Chris Hall, Huntington Tri-State Airport, Huntington, West Virginia Brad Palmer, Leadville Lake County Airport, Leadville, Colorado Constance Castillo, Meriden Markham Municipal Airport, Meriden, Connecticut Bill Tanner, Mesquite Municipal Airport, Mesquite, Nevada Sandy Poe and Sean Montgomery, Montgomery County Airpark, Gaithersburg, Maryland John Marquardt, Pine Bluffs Airport, Pine Bluffs, Wyoming Zechariah Papp, Salida Airport/Harriet Alexander Airfield, Salida, Colorado Mark Gibbs, San Bernardino International Airport Authority, San Bernardino, California Jim Livingston, Skylark Field Airport, Killeen, Texas Gary Shafer, Southern Illinois Airport, Carbondale, Illinois Project Study Team Lois Kramer, KRAMER aerotek, Principal Investigator Mike Moore, KRAMER aerotek, Analyst, Case Studies Robert Jones, Kimley-Horn and Associates, Senior Project Manager, Aviation David Neuder, Kimley-Horn and Associates, Civil Analyst, Aviation Nick Tessitore, Burns & McDonnell Engineering Company, Civil Engineer, Aviation Specialist Tara Dunseith, Burns & McDonnell Engineering Company, Environmental Engineer, Environmental Specialist John H. Bagnall, Burns & McDonnell Engineering Company, Mechanical Engineer, Fuel System Specialist Robert A. Perue, Burns & McDonnell Engineering Company, Mechanical Engineer, Fuel System Specialist Gary Shafer, Southern Illinois Airport Authority and Flightline FBO, Manager

1 Summary P A R T 1 Overview 11 Chapter 1 Introduction 20 Chapter 2 Overview of the Aviation Fuel Industry 36 Chapter 3 Airport Fueling Systems P A R T 2 Evaluation of Fuel Services at the Airport 57 Chapter 4 Airport Self-Check 65 Chapter 5 Airport Fuel Customers and Competitors 73 Chapter 6 Clarifying the Airport Brand P A R T 3 Fuel System Improvements and Feasibility 83 Chapter 7 Fuel System Improvements and Funding 100 Chapter 8 Feasibility Evaluations P A R T 4 Implementation Plan 115 Chapter 9 System Design 135 Chapter 10 Operating Decisions 155 Chapter 11 Operating the Fuel Facility 171 Chapter 12 Managing Inventory, Ordering Fuel, and Setting Prices P A R T 5 Implementation Tools 189 Chapter 13 Tools to Measure Progress 209 Chapter 14 Request for Proposals and Evaluation of Bids 221 Chapter 15 Action Checklists C O N T E N T S

229 References 232 Definitions 234 Acronyms 236 Appendices A through C