Command Security CorporationLaGrangeville, NY, United States (NYSE Alternext: MOC)

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Command Security Competition

Now Viewing Command Security's competition in: Aviation Services

Call Preparation Questions

Customers, Marketing, Pricing, Competition

How does the company market its services to planes en route that need to stop and refuel? - Aircraft have choices where to refuel during travel; therefore, fixed base operations (FBOs) go to great lengths to make themselves attractive, as refueling revenue for a typical private jet may be as much as $2,000.

Who are the company’s typical customers? - Examples include business travelers, airlines, hobby flyers, and sightseers.

Who are the company’s largest competitors? - Most airports have at least two FBOs. Small companies can compete effectively in hometown markets. Big companies have more clout in negotiating with suppliers, which allows them better pricing for their own services.

Does the company have a "best customer" discount program? - Large chains offer substantial fuel discounts and other amenities when customers enroll in maintenance programs.

Competitive Landscape

Local and regional air travel, especially business travel, drives demand for aviation services to small and private aircraft. Profitability is based on sales volume, as prices fluctuate only periodically. Small companies can compete effectively in hometown markets. Big companies have more clout in negotiating with suppliers, which allows them better pricing options for their own services.

Business Challenges

CRITICAL ISSUES

Dependence on Local Aviation Activity - National economic trends, like demand for general aviation (GA) planes and weather trends, may impact aviation services. However, most aviation service companies operate locally or regionally; as a result, they're especially vulnerable to local business demands. Service companies must be able to endure cyclical economic periods of lower business and recreational flying activity, when revenue from fuel sales and maintenance may be down sharply.

Vulnerable to High Fuel Prices - Companies that carry large fuel inventories are exposed to considerable price risk. In recent years, the spot price of jet fuel has varied sharply from month to month. Because of intense competition, companies can't always pass higher costs to customers. High fuel costs also discourage recreational flyers.

Industries Where Command Security Competes

  • Security Products & Services
    • Security Services
      • Security Guard Services(primary)
  • Transportation Services
    • Air Cargo Services
    • Airport Management Services

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