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Contract Fueling Essay

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Words 433
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Introduction:
The contract-fueling program is a deal with, great benefits for Fixed Based Operators (FBOs). An operator will buy fuel from a contracted gas station at a low price compared to if they were to randomly source from a multiple of such gas stations without a deal. With an agreement that the few contracted suppliers will be the ones to supply the gas to the FBO (Enticknap, 2013).
Thesis statement:
Contract fueling has emerged as a challenge to many of organizations, taking into account the ever-changing business environment in the FBO industry (Enticknap, 2013). Aircraft owners desire to have reliable fueling services from contracting FBO. It is upon the FBO, therefore, to put its systems together to ensure the reliability of this …show more content…
It involves FBOs entering into agreements with gas stations and individual airplane service operators to provide fueling services. If an agreement is arrived at, the FBO commits to make purchases from the said gas stations to fuel its planes and spaceships, while in return gaining other accompanying benefits. The agreement ends but mutually benefiting the individual parties, and so improving their business performance (Enticknap, 2013).
Point 2:
An establishment of a reliable fueling contract significantly impacts on customers. This is viewed in terms of saving the clients wastage of resources (time and other unnecessary expenditure) while looking for the fuel services. Similarly, winning the clients confidence also benefits the FBO, since it gets an edge over its competitors, and so great chances of success. Studies support this argument citing that over 90 percent of trusted fueling contracts have massive benefits to the FBO and its clients (Enticknap, 2013).
Point 3: High competition in the industry as well as inadequate customer demands for the fueling lead the list. The main discussion will exhaustively study these said drawbacks, how they affect the firms and report on some of the possible ways to address

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