Spotlight On: Mark Binko, President & CEO, National Jets
October 2024 — Mark Binko, president and CEO of National Jets, talked to Invest: about how the company’s new hangars and FBO terminal at Fort Lauderdale-Hollywood International Airport will enable it to reach a higher level of operation. He also discussed the workforce initiatives that the company has implemented to attract people to aviation and its plans to position itself in the emerging vertical takeoff and landing sector.
What have been the most important achievements for National Jets over the past year?
We are in the development phase of the new hangars and FBO (fixed-base operator) terminal that we are building at Fort Lauderdale-Hollywood International Airport. Private hangars are scarce at Fort Lauderdale International, and there is a large demand for that service. That is what drives the rest of the business at the FBO, including managed aircraft, fuel sales, and any other revenue components. Adding more base tenants and more hangared aircraft elevates that opportunity.
National Jets was designed and built to support our fleet and our air ambulance operations in the early 1990s, but the company did not build many hangars at that time. We had a small hangar to house our fleet and kept a lot of open ramp property to park planes. Nevertheless, the industry has changed as aircraft have become bigger and more expensive, so they need to be placed in a hangar. It was challenging not having that hangar available, so when we renewed our lease, the focus was on building the infrastructure needed for the community and the industry.
What strategy has National Jets implemented to enhance workforce development?
We have had a huge initiative in workforce education in collaboration with Workforce Broward, the Broward Alliance, and Broward County Public Schools to get younger students interested in aviation. We have gone to meet high-school students and people going into college who are about to make a career decision. For instance, we are working with Workforce Broward to present opportunities to people in impoverished areas who are not typically provided with them.
The people who are in aviation typically wanted to be pilots when they were kids. Something inspires them at a young age, so they get a bug for aviation that never leaves them. Therefore, my suggestion to the people we collaborate with is to look at the elementary schools, talk to third- and fifth-graders, and let them meet pilots and operations people, bring them out on a field trip, and let them step into a private jet. We want to inspire them on a lifelong journey for a career.
Many kids do not realize how easy it is to become a pilot, get into aviation, or get into some occupations that might feel unattainable. Bringing them in and showing them where to start and how to work their way up has been beneficial to both us as a company and to the community. We used to look at what our parents did for a living and want to be that. That went away at some point, which has been detrimental to an industry that needs technicians, mechanics, and skilled labor. It is time to be creative because it is difficult to hire and retain quality employees in such a dynamic and competitive market.
How does National Jets ensure a high level of safety in its operations?
One does not make it from 1947 to 2024 without having some thought regarding safety and how to do things right. We are in an industry that moves people at around 40,000 feet above the ground at 500 mph. That requires a culture of safety that was ingrained by my grandfather, who founded the company, and that continued forward without having to be told to us by the Federal Aviation Administration (FAA). Safety to an aviator is a lot more paramount than to an FBO operator that does not necessarily leave the ground. As an example, the FAA has recently implemented the safety management systems (SMS) that FBOs and operators will need to have in their system. On the other hand, National Jets has been operating with an SMS for the past 15 years because that is a tool that ensures that our employees go home to their families every day.
What initiatives is National Jets implementing to address sustainability in its operations?
As much as the industry pushes for sustainability, it does not have a product to deliver yet. A lot of it feels like theater and lip service. I am having a tough time buying into the concept of sustainable aviation fuel at this point. While I love the idea of it, I need to see how effective it is and how to get it done. It is still in the ideology phase where we are buying tax credits, but that is not necessarily eliminating carbon fuels. National Jets is looking to the future to ensure that when the transition from fossil fuels to energy happens, we are in position to provide that service.
We are also making the new facility carbon neutral with a LEED Gold certification to show that we are doing everything we can to contribute to the environment. For instance, we have the facility pre-wired for solar power. We also know that battery packs will replace a fuel farm and that the storage of energy and fast-charge energy will be important, so we are thinking along those lines. We do not want to be a company that is 15 years into a 30-year lease and needing to make changes to adapt to the industry.
What are the most important trends in technology and innovation shaping the aviation industry?
I am more interested in vertical takeoff and landing technology than on sustainable fuel. We brought in a chief technology officer whose job is to focus on where we need to position ourselves five to 10 years down the road so that we are considered in the vertical takeoff and landing launch programs. We aim to be a factor in that new industry.
There is talk about South Florida becoming one of three launch areas for vertical takeoff and landing next year. I am not sure how that is going to happen, but I am glad that the area is mentioned. I am working hard to keep our name in front of the people picking FBOs for their launch opportunities.
What is your outlook for the private aviation and FBO industries in South Florida?
The industry is in an interesting spot. During and after COVID, many travelers decided to spend the extra money and fly private. Those people got used to it, and many of them were told that they could buy an aircraft cost-effectively. That is an absolute lie. Many people who bought aircraft are starting to see the slowdown in charter, which is slowing down their revenues. They are also starting to receive the first big batch of maintenance bills that they were not necessarily expecting. Because of that, the number of people traveling private will still be there, but the way they do it will change.
There will be more pre-owned aircraft coming back onto the market, which will cause a dip. Additionally, more people will go back to retail charter and jet cards rather than owning aircraft. That is good for an operator like us. We are seeing a pickup when others are seeing a slowdown. We are also finding that aircraft owners are looking for somebody with experience that can provide references and does the right job managing aircraft. That has also been a benefit for us. Nevertheless, my top priority is to finish the development and get National Jets to the planned level of operation.
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