COVER STORY • AVFUEL
Sincock’s flight path to success
Since it was established in 1973, Avfuel has grown from a company delivering fuel in a few states to fuelling one-in-three US business jets every day. Craig Sincock, president and CEO, says the secret to Avfuel’s success is listening to customers and colleagues. Words: Alasdair Whyte
Avfuel customers can fill up at more than 3,500 locations in 149 countries.
ON HIS FIRST day of college, Craig Sincock, Avfuel’s president and CEO, discovered his roommates were both pilots. He quickly agreed to a deal with them. In return for tennis and skiing lessons, they would teach him to fly. By the time he graduated from the University of Michigan, he also had a private pilot’s licence.
After university, he became a management consultant and often flew himself to visit customers. In 1985, a small aviation fuel company in Ann Arbor, Michigan, asked him to help it find capital. After one investor dismissed it as too small, Sincock bought it.
This is a fantastic origin story – and one Avfuel has told many times – but it is a mistake to focus on this serendipity. The real story is what happened after the deal closed and how this privately owned company became a global aviation powerhouse.
When Sincock acquired Avfuel, its main bragging right was its activity in three US states. The company specialised in trucking fuel from one refinery to airports. It had eight employees. This quickly became six when the husband-and-wife founders retired to Florida on Sincock’s first day in the office. Now, Avfuel has a team of more than 1,000 people.
One in three of all American business jets are fuelled by Avfuel. It serves every segment of aviation, including operators and corporate flight departments, all major and regional airlines, cargo and freight operations, governments, helicopter owners and piston aircraft pilots.
You can see Avfuel signs at more than 675 FBOs (this makes for a leading 28% market share of branded FBOs in the US). It also owns 25 of its own. In total, Avfuel customers can fill up at more than 3,500 locations in 149 countries.
As well as the original business of getting fuel from refineries into fuel tanks, Avfuel now offers a wide range of aviation services. It was the first fuel supplier to do this. This includes contract fuel, credit services, aviation insurance (Avsurance), trip planning (Avplan), fuel safety and customer service training, payment processing, fuel truck manufacturing and leasing, marketing, loyalty rewards (AVTRIP) and investments in the future of fuels.
None of Avfuel’s success has happened by accident.
Listen to customers
Sincock does not claim to have been to every FBO in the US. But he has been to most of them.
When he moved into his Avfuel office, Sincock hung a map of the US on his wall. All Avfuel locations were proudly marked by a blue pin (at the start, these were all close to its Ann Arbor headquarters). If there was a problem with a customer, the pin would be switched to red. Whenever he met a new FBO at a convention or on his travels, he would add a green pin to the map reminding him to follow up.
Most weeks, Sincock would get a piece of string that matched the range of the company’s first aircraft – a Rockwell Shrike Commander – and work out a route. “I would plug them all together into a logical path to hit as many as possible. I'd go all the way to the West Coast,” he said. “My goal was to connect back in the next few months in person. This always surprised them.”
When Avfuel bought a King Air, the piece of string got longer; the same happened when it got its first Citation Jet. The company now operates a Citation XLS+ and a Falcon 2000LXS. Sincock, who qualified as an Air Transport Pilot, often flies left seat in these aircraft.
Travelling to customers was never just about winning sales. It was fundamental to the company’s vision. “The business plan for Avfuel was written by FBOs,” said Sincock. “It’s inspired by the people who own and operate these businesses. I would fly around and almost do an interview with them – asking hundreds of questions. That is where new ideas come from. That is how you learn.”
“The business plan for Avfuel was written by FBOs. It’s inspired by the people who own and operate these businesses.”
This is where Avfuel Contract Fuel was born. By talking with FBOs and flight departments, Avfuel realised there was a need for a cost-plus jet fuel programme that connects these customers. Contract fuel existed at the time for commercial fuel customers, but it was a novel idea in business aviation.
Sincock’s team made it happen, growing the division into one of Avfuel’s core business lines and a leading solution in the industry. Today, that programme is implemented at more than 3,500 global locations, attracting 6,000 flight department customers representing more than 32,500 turbine aircraft. It drives sales for the FBOs, streamlines payment, provides 24/7 support, allows for easy online account management, cuts costs for the flight department and FBO, and more. Other fuel suppliers followed.
He repeated this pattern with a portfolio of other offerings – refueling equipment, training, loyalty rewards, flight planning, insurance. By doing this, Avfuel not only grew its business, but also changed what it meant to be a fuel supplier, surrounding the fuel with the services customers require to conduct business safely, efficiently and successfully. The industry was forever changed.
The company uses trade shows like NBAA-BACE to meet – and listen to – customers and suppliers.
Sincock says it all started with listening. If you spend time with any of Avfuel’s close-knit senior management team they will stress its importance.
“Communicating with customers is the foundation of everything we do; it drives our culture,” said Joel Hirst, senior vice president sales. “No matter what part of the company an employee is in, we encourage them to get to know and understand our customers. We want our customers to develop relationships with team members throughout Avfuel’s divisions at each touchpoint, from dispatch and logistics, to billing and taxes. It sounds so simple, but it is amazing how effective it is. It’s a focus on building relationships rather than making transactions, and it works.”
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Keeping customers
Once Avfuel has a new customer on board, the team works hard to keep it.
In the early days, customers were given a tin of cookies every time Avfuel delivered a load of fuel. In 1989, AVTRIP – a sophisticated and innovative loyalty scheme for operators – was instituted as a way to thank customers for their business. AVTRIP gives members points that translate to cash awards every time they buy fuel, plan a trip with Avplan, rent a car with Go Rentals, engage with the Avfuel Network, or for a host of other bonus point opportunities.
“For a long time, we were the only ones who had a loyalty programme,” said Marci Ammerman, vice president marketing, Avfuel. “Now, everybody has one. So, we’re always finding ways to develop enhancements to ours to make AVTRIP even better, richer, easier – whatever it is – to keep pilots interested in their membership and flying in the Avfuel Network. We do the same with all our other programmes. We are constantly thinking of ways to improve our offerings and expand our business lines.”
Sincock will be the first to tell operators that partnering with two to three of the large fuel suppliers combined can cover 90% of their fuel needs. He said the Avfuel difference comes down to providing in-house experts who personally assist customers and, as always, listen to their needs.
“You need to find out why somebody would want to buy from you,” said Sincock. “We had to listen hard – and still do – to each of our customers to discover from where their challenges stemmed. If you can find out what is really challenging for them, you can find solutions. We're strategic. We go in there and try to figure out what it is they are really after to improve their own operations. Then we build our business programmes and offerings around that. We were the first to do so and it’s helped us develop decades-long relationships with customers.”
“We had to listen hard – and still do – to each of our customers to discover from where their challenges stemmed. If you can find out what is really challenging for them, you can find solutions.”
As an example, Sincock said it is obvious every corporate flight department wants a good price and, perhaps, a line of credit. But by listening to pilots, Avfuel learnt accounting departments were frustrated with having to work out complicated tax issues on invoices or needing a special digital file. Avfuel took on that hassle for them, making it easier to conduct business with the company.
Craig Sincock’s son, CR Sincock, executive VP, joined the company 14 years ago.
Simplifying complexity
Avfuel’s business is less about fuel and more about simplifying things for its customers. It excels at hiding this complexity, like moving fuel from a refinery to an aircraft’s tank. The process includes committing to fuel several years before, then booking space in pipelines, barges or rail cars, and then getting the fuel to the airports. “The fact fuel is at the airport when an aircraft needs it seems seamlessly simple to pilots, but there are hundreds of details that take place behind the scenes,” said Sincock.
Avfuel leverages agreements with more than 90 different refiners and 300 supply terminals to continuously keep its customers fuelled up. It also has a network of more than 100 fuel hauler trucks.
Avfuel’s expert team of supply specialists watch the market to identify and adjust to interruptions – things like pipeline outages, or wildfires and hurricanes that can temporarily shut down a terminal while related recovery efforts require increased fuel demand. Sincock says that the company is able to quickly pivot and ensure the right amount of fuel gets where it needs to be when it’s needed. “We are balancing logistics all the time,” he said. “Truly, we are a logistics company more than a fuel company.”
Of course, transporting fuel to airports is far from the only complicated part of the business. “In the last 10 to 15 years, the complexity of the business has grown exponentially, especially from a tax and technology perspective,” said Hirst. “In just these realms, we’ve become experts in what's required and how to interact with all the increasing regulations and third-party systems.”
“Avfuel’s business is less about fuel and more about simplifying things for its customers.”
“The amount of compliance requirements today is staggering,” added Sincock. To sell fuel in any given country, the company has to work with a range of government departments. Avfuel files more than 5,000 tax returns a year. “There are times when we say, ‘We are just trying to sell some fuel,’” joked Ammerman.
Growth is good
Thirty-nine years ago, Sincock bought the business to grow it; that vision has not changed. “Every few months we have a leadership meeting – I think they get tired of me saying this – but I tell them they have to come to the meeting with ideas on how to grow and be a different company than we were a year ago,” said Sincock. “You can get the ideas from your customers, your colleagues, your suppliers, but you need to have a growth plan.”
Ideas to diversify have included creating its own FAA-approved training system and outfitting refueler trucks with advanced technologies that streamline FBO operations. “You should see our white board of wild ideas,” said Ammerman. “Nothing’s off the table. That’s how you foster an open environment that values innovation and collaboration. That’s how you continue to evolve after 50 years in the business.”
As well as growing organically, Sincock has a keen eye for adding valuable companies into the fold; but they have to make sense for the business. The first significant acquisition was the aviation division of Pride Refining in 1988, which gave Avfuel access to prominent regions in the southern US, including Texas, Louisiana, Arkansas and Oklahoma. This was a big acquisition for a relatively small company that Sincock had owned only for three years.
The Pride transaction led the way for other energy companies looking to exit general aviation. When Texaco merged with Chevron, the Federal Trade Commission said it had to divest its general aviation business across 14 American states. Avfuel was happy to take this on, adding 200 more independent FBOs to its branded customer network in one go.
“You should see our white board of wild ideas. Nothing’s off the table. That’s how you continue to evolve after 50 years in the business.”
Since 1985, the company has acquired more than 30 businesses. Some allowed it to enter new markets, like insurance or trip planning. Others gave Avfuel access to pipelines or other supply infrastructure.
Buying companies is easy. Integrating them is much harder and Avfuel takes this seriously. “When we purchase a company and bring it in-house, we do so with great care and forethought,” said Sincock. “This includes operational considerations, as well as acquired staff and assessing the efficacy of the entire transition process.
By adding services that solve problems for customers, Avfuel has redefined fuel supply.
By adding services that solve problems for customers, Avfuel has redefined fuel supply.
“Overall, it’s always been a smooth process, which I believe is because we handle our business lines completely in-house. This makes collaboration across divisions much easier and more effective. Ultimately, this fuels our high-touch culture and the customer experience.”
While the company has expanded into many aviation verticals, Sincock has no interest in entering other industries. He has no plans to launch “Seafuel” targeting boating, for example.
“I have never been interested in expanding outside of aviation. We are 100% dedicated to this industry,” said Sincock. “It’s one of our greatest differentiators. This singular focus keeps us on the leading edge of aviation innovation by dedicating all our resources to the industry we love.”
In 1995 – due to a unique set of circumstances – Avfuel purchased its first FBO in Saginaw, Michigan, establishing its sister company, Avflight. The company quickly recognised the value in owning FBOs and how it could be used to further support its Avfuel-branded network. Avflight now operates 25 FBOs around the world.
“You should always have a board of directors in your pocket. Think of a Rolodex, where you keep changing out board members and always ask a broader group for insight and mentorship rather than a few select people.”
Sincock said the Avfuel/Avflight relationship is like hotel chains owning a few properties and franchising the rest. One of the benefits for Avfuel and its customers is the inside knowledge the fuel supplier gained on FBO challenges.
“Avflight allows Avfuel to test out new solutions before taking them to market and better understand what FBOs need,” said Ammerman. “Avflight has also become a rich source of knowledge for Avfuel and Avfuel Network partners. Avflight’s leadership team regularly collaborates with Avfuel-branded FBOs to discuss and share operational best practices.”
As well as investing in companies, Sincock has a passion for investing in his community. He and his wife, Sue, take pride in using Avfuel as a vehicle to help others.
Along with supporting a number of aviation-related philanthropies and scholarships, the pair established the Susan L. and Craig R. Sincock Scholars’ Endowment Fund to support University of Michigan medical researchers. The fund has sponsored 25 scientists involved in a broad array of projects, including research into paediatric organ transplants, and trying to cure prostate and pancreatic cancer, Alzheimer’s, leukaemia and lymphoma.
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Keeping mentors on speed-dial
Sincock regularly says that he’s a different president every year, evolving along with the company. He says he continues to develop as a leader, calling on the insight of his peers, customers and colleagues. They serve as his sounding board.
“I say to my son you should always have a board of directors in your pocket,” said Sincock. “Think of a Rolodex, where you keep changing out board members and always ask a broader group for insight and mentorship rather than a few select people. Like our customers, everybody I work with at Avfuel mentors me all the time.”
Among these mentors is a senior management team with impressive tenure. Hirst, SVP sales, joined when Avfuel acquired Underwood Group Insurance Company – which became Avsurance – 30 years ago. Ammerman joined 37 years ago from college. Mark Haynes, VP sales has been there 36 years; Jon Boyle, VP contract fuel – 14 years; Tracie Yergin, VP fuel supply for 34 years; and Jim Korcek, VP commercial fuel sales for 17 years. Craig Sincock’s son, CR Sincock, executive VP, joined the company 14 years ago.
They are backed by a dedicated employee group of more than 1000 people. “Back in the day, we all wore a million hats because we had to,” said Ammerman, “Craig was chief bottle washer on top of securing supply, selling, purchasing trucks and marketing. Everybody kind of rolled up their sleeves and did whatever was needed to attend to customers and grow this special company.
“We still do whatever is needed today, but the resources we have in-house are so much more robust. We have experts in their field who understand the value of collaboration. We work across divisions every day to draw on that expertise.
“There are no silos. Craig taught us that. He always had the vision and the drive, and he knows when to call on others for insight. He’s both an excellent mentor and mentee. I think that’s why so many of us have stayed with the company for 20, 30, nearly 40 years.”
The next 50 years
When Sincock bought Avfuel, he had no plans to ever sell it. That hasn’t changed. The company is regularly approached by possible buyers and investment banks. “There are literally hundreds of investment bankers approaching us at a regular pace,” he joked. “But it has never been a distraction because we're very happy doing what we're doing. It's so much fun. It's exciting. I get to work with fabulous people.”
Craig, Sue and CR Sincock at the Living Legends of Aviation Awards.
“The fact fuel is at the airport when an aircraft needs it seems seamlessly simple to pilots, but there are hundreds of details that take place behind the scenes.”
Sincock is committed to making sure Avfuel is around in another 50 years. The company continues to expand internationally – in Europe, Canada, Mexico and beyond. As an energy company, it is also keen to stay at the forefront of new power sources beyond traditional fossil Jet A.
In 2012, Avfuel founded Avfuel Technology Initiatives Corporation to focus on next-generation technologies and fuels. Its sustainable aviation fuel (SAF) investments include Neste, which makes SAF from waste fats and oil, Gevo, which makes SAF from alcohol, Air Company, working on e-SAF by extracting carbon dioxide from the air, and Alder Fuels, using a mixture of waste, including wood chips. It also invested in VerdeGo Aero, which is developing a hybrid-electric engine.
Sincock, who credits his son CR with driving a lot of these investments, said they are keen to have a “seat at the table,” and early access to new technologies.
“It might sound to you like a complaint but what they're really doing is crying out saying, ‘I need your help.’”
While the industry continues to evolve, and Avfuel along with it, one thing that will not change is Sincock’s mantra of listening to customers. Avfuel celebrated its 50th anniversary at NBAA BACE 2023. In its press release, you could hear this message repeated. “We’re excited to update attendees on Avfuel’s latest products and services, as well as discuss what’s to come as an energy provider for the next generation of aviation,” said CR Sincock. “Even more importantly, we’re ready to listen to the needs of our customers and prospects while we’re face-to-face with them. I can tell you, we’re taking the legacy of innovation that shaped Avfuel and aviation in the last 50 years into the next 50. It’s that listening that’s made the Avfuel difference.”
Just like in Avfuel’s early days, Sincock continues to travel for business regularly. When he’s home in Ann Arbor, he loves meeting new employees and stresses the importance of talking to customers.
“I always say: if the phone rings, pick it up – it does not matter if you are brand new,” said Sincock. “They are only calling for two reasons. They're calling to order fuel or they're calling because they have an issue or problem. It might sound to you like a complaint, but what they're really doing is crying out saying, ‘I need your help.’ You're the person they're asking for help. If you fix that problem, they will forever be your customer and friend.”
Avfuel’s senior management team has been with the company as it has grown.
Avfuel’s senior management team has been with the company as it has grown.
Avfuel Timeline
1970s
1973: Avfuel founded & delivered first truckload of fuel
1975: Craig Sincock obtains his pilot’s licence
1980s
1985: Craig Sincock acquires Avfuel
1988: Acquires Pride Aviation and launches AVTRIP pilot loyalty programme
1990s
1990: Acquires Underwood Group Insurance Company to form Avsurance
1992: Acquires Rengo Brothers
1993: Acquires Triton Fuel Group
1994: Launches contract fuel programme
1995: Acquires Riverside Oils, Inc./Jets
1995: Forms Avflight with first FBO in Saginaw, Michigan
1998: Acquires PS Trading
1999: Establishes annual AVTRIP Scholarship
2000s
2001: Texaco Aviation Acquisition
2002: Launches contract fuel partnership with Cessna
2010s
2010: Creates Avplan Trip Support by acquiring Pacific Coast Forecasting
2011: Opens first international office in London
2012: Launches Avfuel Technology Initiatives Corporation
2018: Agrees to partnership with Gevo for sustainable aviation fuel
2018: Launches new online training system with FAA approval
2019: Delivers first truckload of sustainable aviation fuel
2019: Acquires CBL Trading to enhance product pipeline access
2020s
2020: Launches price risk management programme
2020: Voluntary carbon offset programme, and book and claim available
2021: Inks partnership with Neste for consistent SAF supply
2021: Exceeds 1,000 employees
2022: Invests in VerdeGo Aero and AIR Company
2022: Reaches 28% market share of branded FBOs in the US
2022: Sincock inducted into Living Legends of Aviation and receives Kenn Ricci Lifetime Aviation Entrepreneur Award
2022: Sincock receives NATA’s William A. “Bill” Ong Memorial Award
2023: Makes its 34th acquisition with Michigan’s Avflight Holland FBO
