Hey guys this was my fuel numbers for last year. Let me know what you think. Could not get it to post very well sorry.
Aircraft Falcon 2000EX..

Detail by Month

2010 GALLONS RETAIL AVG. ACTUAL AVG. DOLLAR Discount % Discount Savings RAMP FEE REALIZED PRICE
0 1 January 0 $0.00 $0.00 $0.00 $0.00 0% $0.00 $0.00 $0.00
0 2 February 0 $0.00 $0.00 $0.00 $0.00 0% $0.00 $0.00 $0.00
1 3 March 13556 $5.30 $4.05 $53,433.49 $1.25 24% $18,434.63 $4,270.00 $3.63
1 4 April 12567 $5.49 $4.22 $51,352.81 $1.27 23% $17,630.71 $5,270.00 $3.67
1 5 May 9790 $5.46 $3.95 $38,856.14 $1.51 28% $14,590.73 $2,730.00 $3.69
1 6 June 16061 $5.21 $3.87 $61,125.52 $1.33 26% $22,526.59 $4,640.00 $3.52
1 7 July 4061 $6.05 $4.04 $16,279.05 $2.01 33% $8,290.00 $1,130.00 $3.73
1 8 August 15081 $5.17 $3.91 $57,334.39 $1.26 24% $20,609.25 $4,025.00 $3.53
1 9 September 8124 $5.31 $4.00 $32,124.91 $1.31 25% $11,019.34 $2,657.00 $3.63
1 10 October 9470 $5.42 $4.17 $38,605.89 $1.25 23% $12,726.25 $3,484.50 $3.71
1 11 November 15621 $5.55 $4.12 $63,635.86 $1.43 26% $23,086.73 $5,890.00 $3.70
1 12 December 11087 $5.60 $4.23 $45,324.28 $1.37 24% $16,750.60 $2,605.00 $3.85

2010 YTD 115418 $5.46 $4.06 $458,072.33 $1.40 26% $171,633 $36,702 $3.65

 

What is the ramp fee realized price?

 

Is this pilot busy work or something you are required to do?

We are a little less high tech.

"Fuel Saving Program" = We shop for the best price in the area where the pax want to go and give options....after that it is what it is...$2 or $8.

 

Hey, whatever works to save money!

I'm sure I am just preaching to the choir, but measuring your efforts in this manner to control costs significantly aids in the justification process. If the head-shed ever questions ken727pilot, he can retort by saying "in 2010, we aggressively pursued contract fueling vendors; resulting in a net savings of 26% from retail cost..."

It's always nice to have those numbers at performance review time!

Or, when they are trying to eliminate staff, cut back on flight hours, forgo asset purchases, etc.

 

yup, all good plans I suppose....yet never seen it matter one bit when the axe falls (or not)

Its usually well beyond any justification on the aviation managers end. 99% of owners/companies know what it costs to run an airplane vs not run an airplane. You can save a ton of money flying the airlines....(despite the worthless propaganda NBAA can make up)..at the end of the day this is luxury on every level. You can afford it or you cant. New equipment is based on ego and (sometimes) taxes, yet Im sure there is a "need" somewhere? (lol)...Not complaining, its kept me employed.

Just curious - not knocking what he's doing, at all....and I agree, fuel is where you can save a ton of money. We accomplish this by negotiating like mad through volume at home and tankering everywhere, even coast to coast.

Our people are usually very happy to drive 15 more minutes to save 3-5K...(KMIA vs KOPF for example) I like to see that, and to me thats really common sense no matter how rich you are. The ones who refuse to do so usually seem to be the ones that eventually figure out they cant afford a plane....

 

Sorry guys just got in from a flight. If you do not buy fuel at the FBO you pay a ramp fee
or facility fee and get nothing for that money. So if you buy fuel you would subtract the ramp fee off the price of the fuel and that is a realized savings or price.

The fuel savings program is part of our electronic logbook we track the fuel on that same page just 3 or 4 more things to enter and a press of a button. Monthly reports and yearly reports at a touch of the button awsome for my budget and time cycles MSP,ESP,Falcon care, takes me 10min. to do my budget for the year.

Hey guys I did this with NO CONTRACT FUEL SERVICES just buy shaking hands with the GM at any FBO.
Talking to people and asking questions making conections is what is all about, if I did not get a discount I still bought fuel just not as much and started from that point on.

I really hear what alot of you guys are saying about what airport to go to tankering fuel, Pax choose FBO we go were they want to. We are a corprate flight department and it is not always good I do not always get a deal you have to take the good with the bad.

 

I agree with you about the relationship building, it's a sorry state of affairs.

The realized savings numbers are still a little fuzzy to me; which isn't saying much. I get confused easily!

I do not see it as a realized savings, but more of a threat. The FBO says buy our fuel at X price, or we will charge you, say $200.00. If you purchased the minimum amount of fuel, and subsequently the FBO discounted your fuel bill by $200.00, then I would see it as a realized savings. Most of the time, that profit margin is built in to the price. They either get it by the gallon or they get it by an arbitrary charge.

I actually add the cost of the ramp fee to the total cost of the fuel as if I had purchased it at our home base. Here is an example:

Home base fuel cost per gallon: 3.88
Destination fuel cost per gallon: 4.79
Ramp fee in dollars: 200
Gallons to waive fee: 150
Home base x gallons 582
Destination x gallons 718.5
Difference 136.5
Ramp fee savings(-) -63.5

If the ramp fee savings number is close to zero (neutral) or negative, I plan on purchasing fuel. If the ramp fee savings number is higher (say over $200), I then plan on tankering if possible.

This does not calculate the cost of carrying the fuel, that's another issue. This is just a quick purchase guideline that we use. It's in a spreadsheet, but I could not embed it here.

Here is a crystal clear example that screams "tanker" at an FBO that starts with an "S" and ends with an "e"

Home base fuel cost per gallon: 3.88
Destination fuel cost per gallon 6.71
Ramp fee in dollars: 400
Gallons to waive fee: 300
Home base x gallons: 1164
Destination x gallons: 2013
Difference: 849
Ramp fee savings(-): 449

Cost to waive ramp fee: $449

 

Geosynchronus
You know what you are talking about !!! For the type of operation we have this really doesnt work for us we need the flexabilaty of being able to get into and out of small airports. I agree if you have the out and back operation or it pays to tanker RNW limits do not come into play and so forth this is the way to do it !!! What you cant see in the program or spread sheet we do not put in a ramp fee if one is not required in other words when I set up a trip the first question asked are there any fees if do not buy fuel. If I pay a ramp fee I add it to my program because it is a expense related to me not buying fuel. I do not see you're way adding the cost of the ramp fee into you're home base price. Here is another thing to think about the savings I am showing is based on the national average not on my home base price. Which is funny I bought say 60,000 gallons 3.80 at my home base but went to DAL and got fuel 3.71 gal and I only see them 5 times in a year maybe total 2500 gal for the year. If you compare apples to apples I am buying fuel all around the US with the ramp fees added and subtracted and my average is still $3.65 for the year. Plus as you say tankering is a added expense

 

We usually only visit 3-4 different airports in the US annually and we have done exactly this....its the way to go. Most managers are happy to have your business these days and are usually eager to beat Colt/UV/AVFuel etc. Always do best just walking in and asking to speak with the manager and offer to fill up if he can beat X.XX..

However - the few that offered no discount....we go where its cheaper. Sorry, no such thing as courtesy fuel.

Building a decent relationship at places has saved us a lot when its time for a hangar for a few weeks, last minute needs, etc..all good practice.

 

Well said ... Nowcorprate. Right now getting a hanger is like gold !! I will go regardless of fuel price if I can get into a hanger.

Here is another way to look at the numbers.

look at it from our average Actual retail price averaged over the last year

Home base price 3.88
our average actual 4.04
ramp fee 400
Home base cost 1552.00
cost at destination 1616.00
diference 64.00

Buying the fuel cost me 64.00 more then my base fuel but paying the ramp fee would cost me 336 more and I get nothing for it. This only works when there is a very large difference from the base price and the destination price. we are so close every where we go to the base price that paying ramp fees cost us more.