07/26 11:57 Executive Jetport of New Jersey, Inc. Offers Information on the
VIKG.OB>
Executive Jetport of New Jersey, Inc. Offers Information on the Operations of an FBO
TRENTON, N.J.--(BUSINESS WIRE)--July 26, 1999--Viking Resources International,
Inc. (OTC BB:VIKG) - Thomas E. Patterson, President and CEO of Executive JetPort
of NJ, Inc. (EJP), has offered the following information in response to stockholder
questions regarding FBO's.
Generally, FBO's or Fixed Base Operations are essentially full service gas stations
of the aviation industry. FBO's offer a variety of services for the pilots, their
passengers and their aircraft. Services include but are not limited to: Aircraft fueling,
maintenance, avionics (aircraft radio) cleaning and anything else associated with
the aircraft itself. Pilot services include: Flight planning, weather services, pilots
lounge, sleep rooms, exercise rooms, showers, courtesy cars and anything else
that might enhance their overall appreciation of the FBO. Passenger services
include: Large comfortable waiting area, free coffee, vending area, private dining
area, rental cars, hotel services and anything else that makes their stay more
enjoyable. It is the purpose of the FBO to cater to the needs of the General Aviation
Industry.
FBO's can also go well beyond the above and offer services for the general public
through both public and private charter operations, aircraft sales, lease back
options, fractional ownership, etc.
Income is derived from all of the above sources; however, the most obvious income
producer is fuel operations. There are three types of fuel sales: 1. Commercial -
Those sales going to commercial carriers (airlines) 2. Contract Sales - Usually
operators of charter operations under
Federal Aviation Regulations (FAR) Part 135 3. GA Sales (General Aviation) - These
represent the vast majority
of sales and profit for FBO's
Commercial Sales (airlines) usually represent a limited profit margin as the airlines
themselves contract directly with the fuel suppliers for "best price." The airlines, in
turn, then buy locally from service airports with the FBO's that carry the brand of fuel
of which was contracted. This always leaves small margins for the FBO, however,
large volumes of pumped fuel. The commercials give the FBO activity and volume.
The volume is turned into bonuses at the FBO, but again do not come near the
volume or profit base generated from Contract Sales and GA Sales.
Contract Sales represent a lesser amount of business for the FBO, as it is usually
geared toward the aircraft charter operations that work out of the airport. The profit
center on the fuel is as good as the GA Sales, but usually does not represent
significant volume.
GA Sales are the most volume and the most profitable of all fuel sales and usually
represent 80% of the fuel profit for an FBO. GA is corporate aircraft, including Fortune
500 Companies, and privately owned (pilot/owner) aircraft. Normally, a contract
between the FBO and the GA will not exist and the price of the fuel is sold at the
pump price. The fuel sales from GA in many cases are what supports the FBO and
indeed creates its profitability. The key to successful FBO's is the attraction of GA
aircraft. That is why an FBO caters to the pilot and his passengers.
It is important that one does not fall under the misconception that airline contracts
drive the FBO. FBO's would be just as profitable without airline contracts. The
majority of FBO's does not sell to airlines or do contract sales. It is also important to
understand the GA represent 99% of the maintenance and avionics business of an
FBO. Fuel sales to GA bring the aircraft into the FBO and eventually into the other
profit centers that exist there.
This information is important to understand and can be verified by calling the
National Business and Aviation Association, Inc. 1200 Eighteenth Street NW, Suite
400, Washington, DC 20036-2506 at 202/783-9000 or by accessing their web site at
www.nbaa.org
Viking Resources International, Inc. is a diversified holding company with a primary
focus of expansion through acquisitions and development within the aviation
industry.
Except for any historical information presented, the matters discussed in this
release are forward looking statements and are subject to risks and uncertainties
that could cause actual results to differ materially.
--30--gaa/mi*
CONTACT: Executive JetPort of New Jersey, Inc., Trenton
Investor Relations
Addam Chandler, 877/786-7885
or
Public Relations
Eric Estoos, 509/764-8021
or
Media Relations
Rob Solarchik, 516/596-6241 Today's News On The Net - Business Wire's full file
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