The New Chain In Town
By John F. Infanger, Editorial Director
Trajen has kept a low profile building an FBO network; now comes the big push HAYWARD, CA - In 1992, Trajen CEO John W. Clanton, 41, a certified public accountant by trade, entered the aviation services arena with a fueling contract at the Alameda Naval Air Station in California. Other government services contracts followed before Trajen opened its first fixed base operation at the retired Mather AFB in Sacramento. The Trajen FBO network has continued to expand, albeit quietly, and today has 14 locations along with seven military contracts. With a critical mass now established, Clanton reports that the time has come to begin a marketing push to give the Trajen name a much higher profile. At the same time, acquisitions remain a high priority.
In line with the new
emphasis on marketing, Clanton has brought on board a full time marketing
person and a national advertising campaign is being kicked off in industry
trade publications. At the same time, direct mail and personal sales contacts
will increase, says Clanton, as the Trajen chain works at becoming more
visible to corporate aircraft users.
Says Clanton, "We've really just kicked off the marketing effort.
Our target was February 1st, to coincide with the Super Bowl and the fact
that we have the Houston [Bush Intercon-tinental] facility."
The acquisition of the Houston facility, the former Qualitron Aero, a
well-known fixed based operation within the industry, is indicative of
the quiet acquisition approach Clanton preferred in the late 1990s, a
time which he describes as a "sellers' market" in the FBO business.
The market has settled down, says Clanton, which makes growth through
buyouts still an attractive option. At one time, he relates, he had considered
building a chain by buying one; however, single FBO acquisitions are today
the most likely scenario, he says.
"There had been some hype built into the market," says Clanton,
"but it's probably at an equilibrium today. Fair prices are being
paid."
In particular, he says, the Eastern and Southwestern portions of the U.S.
are key targets at present as the Trajen chain seeks to create a more
nationwide presence. There are no plans currently to expand beyond the
U.S. borders, according to Clanton.
He adds, "Geography doesn't play as big a role as do the basic business
practices of a location. From the beginning, our company has managed remote
locations." Central to the company's philosophy is a consistent level
of management and service training that brings about a consistent level
of service at each of its locations, he says.
•Alaska
- Gustavus (GST)
- Juneau (JNU)
- Ketchikan (KTN)
- Sitka (SIT)
•Arizona
- Tucson (TUS)
•California
- Hayward (HWD)
- Sacramento (MHR)
•Colorado
- Greeley (GXY)
•Texas
- Austin (AUS)
- Fort Worth (FTW)
- Houston (IAH)
- San Antonio (SKF)
•Virginia
- Stafford (RMN)
•Wyoming
- Casper (CPR)
Comments Gary Briggs, who is charged with helping develop FBO locations after acquisition and who is based at the Hayward location, "We look at a lot more potential opportunities than we ever get interested in giving quotes on. Each situation is unique; it's not like looking at a chain of Blockbuster video stores where they're all similar."
What's In a Name
Clanton relates that the unusual name for the company, Trajen, was inspired
by history. He explains: "The company's name is rooted in a deep
admiration for the leadership model of the Roman emperor Trajen [also
spelled Trajan]. An organized, efficient, and effective leader, Trajen
inspired his people to great service. He was known for his drive, dignity,
and determination."
He adds that, under Trajen's reign, the Roman Empire underwent its greatest
expansion, a fact that should not be lost on his FBO competitors and the
host of investment groups that have been actively exploring getting into
the FBO arena in recent years.
Fueling, Properties
Focus
Following the trend of many fixed base operations in recent times, Trajen
is primarily interested in being a property manager/developer and providing
fueling and other line services. While four of its FBOs provide maintenance,
Trajen is not overly interested in acquiring FBOs with large maintenance
or avionics divisions, although Clanton is quick to point out that those
would not be a deal-killer. He is not particularly interested in getting
into charter or aircraft management, he says, and would likely offer to
have the seller retain those services should an acquisition be completed.
The Airport Relationship
According to Briggs, one factor that can be a deal-killer is a bad relationship
with the airport's governing authority or an airport that does not appreciate
the role of the FBO to the community. Having grown up in the FBO business
and operated FBOs across the U.S., Briggs has had plenty of exposure to
airport-FBO relationships. He was general manager of the Hayward Flightcraft
FBO when Clanton acquired it in 2000, leading to his staying on with Trajen.
Says Briggs, "My role is to use my background in leasing and to develop
airport property at locations all around the country.
"We think it's very important, both in FBO development and property
development, to have a positive, cooperative relationship with an authority
that supports business development, and that will allow the FBO to be
profitable while also benefitting the airport. That, as opposed to a situation
where the airport authority doesn't really care if you're there or not,
or if you're successful or not. If your goals are tied together, with
a long-term investment that benefits everybody, you'll like the outcome.
If that mutual interest isn't there it's hard to get things done."
Briggs points to the changes in Trajen's Hayward FBO, which recently opened
a 60,000-square foot corporate hangar complex.
"We started with the city's master planning process," he recalls.
"The city had looked to put t-hangars on that site and had invited
me to join the master planning committee. I was able to convince the city
that we could put corporate hangars on the site and that the city and
the FBO could work together to attract a different type of customer, which
would provide growth opportunities for the FBO while also enhancing revenues
for the city over the long haul.
"I can tell you that we've been successful at Hayward because we've
been able to get the airport management to share our vision. We see the
same positive attitude, notably, at Tucson and Austin, where we have property
to develop."
