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Characteristics of the FBO Industry


2018-2019 (2020)

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90 pages | 8.5 x 11 | PAPERBACK
ISBN 978-0-309-48165-6 | DOI 10.17226/25846

CONTRIBUTORS
Lois S. Kramer, Kramer Aerotek, Inc.; Airport Cooperative Research Program;
Transportation Research Board; National Academies of Sciences, Engineering, and
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Characteristics of the FBO Industry 2018-2019

AIRPORT COOPERATIVE RESEARCH PROGRAM

ACRP SYNTHESIS 108


Characteristics of the
FBO Industry 2018–2019

A Synthesis of Airport Practice

Lois S. Kramer
KRAMER aerotek, inc.
Boulder, CO

Subscriber Categories
Aviation • Economics • Planning and Forecasting

Research sponsored by the Federal Aviation Administration

2020

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

AIRPORT COOPERATIVE RESEARCH PROGRAM ACRP SYNTHESIS 108

Airports are vital national resources. They serve a key role in trans- Project 11-03, Topic S01-20
portation of people and goods and in regional, national, and interna- ISSN 1935-9187
tional commerce. They are where the nation’s aviation system connects ISBN 978-0-309-48165-6
with other modes of transportation and where federal responsibility for Library of Congress Control Number 2020938996
managing and regulating air traffic operations intersects with the role of
© 2020 National Academy of Sciences. All rights reserved.
state and local governments that own and operate most airports. Research
is necessary to solve common operating problems, to adapt appropriate
new technologies from other industries, and to introduce innovations into
the airport industry. The Airport Cooperative Research Program (ACRP) COPYRIGHT INFORMATION
serves as one of the principal means by which the airport industry can Authors herein are responsible for the authenticity of their materials and for obtaining
develop innovative near-term solutions to meet demands placed on it. written permissions from publishers or persons who own the copyright to any previously
The need for ACRP was identified in TRB Special Report 272: Airport published or copyrighted material used herein.
Research Needs: Cooperative Solutions in 2003, based on a study spon- Cooperative Research Programs (CRP) grants permission to reproduce material in this
sored by the Federal Aviation Administration (FAA). ACRP carries out publication for classroom and not-for-profit purposes. Permission is given with the
applied research on problems that are shared by airport operating agen- understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA,
cies and not being adequately addressed by existing federal research FTA, GHSA, NHTSA, or TDC endorsement of a particular product, method, or practice.
It is expected that those reproducing the material in this document for educational and
programs. ACRP is modeled after the successful National Cooperative not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or
Highway Research Program (NCHRP) and Transit Cooperative Research reproduced material. For other uses of the material, request permission from CRP.
Program (TCRP). ACRP undertakes research and other technical activi-
ties in various airport subject areas, including design, construction, legal, Cover photo credit: Ziviani, iStock by Getty Images, Photo ID 186258169.
maintenance, operations, safety, policy, planning, human resources, and
administration. ACRP provides a forum where airport operators can
cooperatively address common operational problems. NOTICE
ACRP was authorized in December 2003 as part of the Vision 100—
The report was reviewed by the technical panel and accepted for publication according to
Century of Aviation Reauthorization Act. The primary participants in
procedures established and overseen by the Transportation Research Board and approved
the ACRP are (1) an independent governing board, the ACRP Oversight by the National Academies of Sciences, Engineering, and Medicine.
Committee (AOC), appointed by the Secretary of the U.S. Department of
The opinions and conclusions expressed or implied in this report are those of the
Transportation with representation from airport operating agencies, other researchers who performed the research and are not necessarily those of the Transportation
stakeholders, and relevant industry organizations such as the Airports Research Board; the National Academies of Sciences, Engineering, and Medicine; or the
Council International-North America (ACI-NA), the American Associa- program sponsors.
tion of Airport Executives (AAAE), the National Association of State The Transportation Research Board; the National Academies of Sciences, Engineering, and
Aviation Officials (NASAO), Airlines for America (A4A), and the Airport Medicine; and the sponsors of the Airport Cooperative Research Program do not endorse
Consultants Council (ACC) as vital links to the airport community; (2) TRB products or manufacturers. Trade or manufacturers’ names appear herein solely because
as program manager and secretariat for the governing board; and (3) the they are considered essential to the object of the report.
FAA as program sponsor. In October 2005, the FAA executed a contract
with the National Academy of Sciences formally initiating the program.
ACRP benefits from the cooperation and participation of airport
professionals, air carriers, shippers, state and local government officials,
equipment and service suppliers, other airport users, and research organi-
zations. Each of these participants has different interests and responsibili-
ties, and each is an integral part of this cooperative research effort.
Research problem statements for ACRP are solicited periodically but
may be submitted to TRB by anyone at any time. It is the responsibility
of the AOC to formulate the research program by identifying the highest
priority projects and defining funding levels and expected products.
Once selected, each ACRP project is assigned to an expert panel
appointed by TRB. Panels include experienced practitioners and
research specialists; heavy emphasis is placed on including airport
professionals, the intended users of the research products. The panels
prepare project statements (requests for proposals), select contractors,
and provide technical guidance and counsel throughout the life of the Published reports of the
project. The process for developing research problem statements and
AIRPORT COOPERATIVE RESEARCH PROGRAM
selecting research agencies has been used by TRB in managing coop-
erative research programs since 1962. As in other TRB activities, ACRP are available from
project panels serve voluntarily without compensation. Transportation Research Board
Primary emphasis is placed on disseminating ACRP results to the Business Office
500 Fifth Street, NW
intended users of the research: airport operating agencies, service pro- Washington, DC 20001
viders, and academic institutions. ACRP produces a series of research
reports for use by airport operators, local agencies, the FAA, and other and can be ordered through the Internet by going to
interested parties; industry associations may arrange for workshops, https://www.nationalacademies.org
training aids, field visits, webinars, and other activities to ensure that and then searching for TRB
results are implemented by airport industry practitioners. Printed in the United States of America

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non-
governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for
outstanding contributions to research. Dr. Marcia McNutt is president.

The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the
practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering.
Dr. John L. Anderson is president.

The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National
Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions
to medicine and health. Dr. Victor J. Dzau is president.

The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent,
objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions.
The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase
public understanding in matters of science, engineering, and medicine.

Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org.

The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine.
The mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through
trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. The
Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from
the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by
state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation,
and other organizations and individuals interested in the development of transportation.

Learn more about the Transportation Research Board at www.TRB.org.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

COOPERATIVE RESEARCH PROGRAMS

CRP STAFF FOR ACRP SYNTHESIS 108


Christopher J. Hedges, Director, Cooperative Research Programs
Lori L. Sundstrom, Deputy Director, Cooperative Research Programs
Marci A. Greenberger, Manager, Airport Cooperative Research Program
Gail R. Staba, Senior Program Officer
Demisha Williams, Senior Program Assistant
Eileen P. Delaney, Director of Publications
Natalie Barnes, Associate Director of Publications

ACRP PROJECT 11-03 PANEL


Joshua D. Abramson, Cypress Technology, Tullahoma, TN (Chair)
Debbie K. Alke, Montana DOT, Helena, MT (Retired)
Gloria G. Bender, TransSolutions, LLC, Fort Worth, TX
David A. Byers, Quadrex Aviation, LLC, Melbourne, FL
Traci Clark, Allegheny County Airport Authority, West Mifflin, PA
David N. Edwards, Jr., Greenville−Spartanburg Airport District, Greer, SC
Brenda L. Enos, Burns & McDonnell, Newton, MA
Patrick W. Magnotta, FAA Liaison
Liying Gu, Airports Council International−North America Liaison
Adam Williams, Aircraft Owners & Pilots Association Liaison
Christine Gerencher, TRB Liaison

TOPIC S01-20 PANEL


Courtney Beamon, Delta Airport Consultants Inc., Midlothian, VA
David A. Byers, Quadrex Aviation, LLC, Melbourne, FL
Richard Lanman, Auburn-Lewiston Airport (KLEW), Auburn, ME
Marty P. Lenss, Eastern Iowa Regional Airport, Cedar Rapids, IA
Gary E. Schmidt, Minneapolis−St. Paul Metropolitan Airports Commission, Minneapolis, MN (Retired)
Cathryn G. Cason, Federal Aviation Administration, Washington, D.C.
Luis Loarte, Federal Aviation Administration, Washington, D.C.
Bill Dunn, Aircraft Owners & Pilots Association, Frederick, MD
Megan Eisenstein, National Air Transportation Association, Washington, D.C.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

ABOUT THE ACRP SYNTHESIS PROGRAM


Airport administrators, engineers, and researchers often face problems for which information
already exists, either in documented form or as undocumented experience and practice. This infor-
mation may be fragmented, scattered, and unevaluated. As a consequence, full knowledge of what has
been learned about a problem may not be brought to bear on its solution. Costly research findings
may go unused, valuable experience may be overlooked, and due consideration may not be given to
recommended practices for solving or alleviating the problem.
There is information on nearly every subject of concern to the airport industry. Much of it derives
from research or from the work of practitioners faced with problems in their day-to-day work. To
provide a systematic means for assembling and evaluating such useful information and to make it
available to the entire airport community, the Airport Cooperative Research Program authorized the
Transportation Research Board to undertake a continuing project. This project, ACRP Project 11-03,
“Synthesis of Information Related to Airport Practices,” searches out and synthesizes useful knowl-
edge from all available sources and prepares concise, documented reports on specific topics. Reports
from this endeavor constitute an ACRP report series, Synthesis of Airport Practice.
This synthesis series reports on current knowledge and practice, in a compact format, without the
detailed directions usually found in handbooks or design manuals. Each report in the series provides
a compendium of the best knowledge available on those measures found to be the most successful
in resolving specific problems.

FOREWORD
By Gail R. Staba
Senior Program Officer
Transportation Research Board

The fixed-base operator (FBO) industry provides aeronautical services to a wide spectrum of
aircraft operators at airports. The aircraft operations include business and personal flying, charters,
air medical, aerial applicators, firefighting, search and rescue, commercial, military, and air cargo
support. Because FBOs operate in such different markets nationwide, there are many external and
internal factors that influence scale of operations, demand for services, customers, competition,
operating costs, and revenue potential.
This synthesis report profiles the FBO industry as of December 2018. The Airport Cooperative
Research Program funded this analysis of data to prepare a quantitative snapshot of the FBO industry
that would serve as a reliable baseline of information and that would establish useful metrics to track
FBO trends in the future. Elements from three databases were acquired and merged: (1) the FAA
Form 5010-1, Airport Master Records (5010); (2) the National Plan of Integrated Airport Systems,
2019−2023, Report to Congress (Appendix A), October 2018; and (3) FBO data self-reported to
AirNav Database as of December 2018. Data from the three sources were linked for each airport
and for each FBO that operated at a public-use airport. The data were checked for anomalies and
inconsistencies, updated, and used to generate the tables and graphs that appear in the report.
Lois S. Kramer, KRAMER aerotek, inc., synthesized the information and wrote the report.
The members of the topic panel are acknowledged on page iv. This synthesis is an immediately
useful document that records the practices that were acceptable within the limitations of the
knowledge available at the time of its preparation. As progress in research and practice continues,
new knowledge will be added to that now at hand.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CONTENTS

1 Summary
5 Chapter 1 Introduction
9 Chapter 2 Key Factors Shaping the FBO Industry
9 Economic Conditions
14 Structural Changes Within Commercial Aviation
16 Changes Within General Aviation
21 Customer Efficiency Strategies and Expectations
21 Airport Operating Environment
22 FBO Responses to Industry Change
26 Ongoing Challenges for FBOs
29 Wrap-up on Trends

30 Chapter 3 FBOs Operating in the United States


30 Types of FBOs
32 Location of FBOs

39 Chapter 4 Profile of FBO Products, Services, and Facilities


39 Fuel Services
42 Other FBO Products, Services, and Facilities
45 Noncommercial Landing Fees and Other Fees

46 Chapter 5 Private FBOs


46 Independent FBOs
50 Small FBO Networks
51 Large-Network, Franchise, and Affiliate FBOs

57 Chapter 6 Publicly Owned FBOs


57 Types of Airports
57 Geographic Distribution
57 Fueling Profile
60 FBO Services, Products, and Facilities

61 Chapter 7 Roadmap and Conclusions


61 Current Status of FBO Analysis
62 Proposed Approach to Future Research
62 Issues to Resolve
63 Additional Data Sources
64 Future for Special Reports
65 Conclusions

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

66 Appendix A Overview of FBO and Airport Data


74 Appendix B Summary Tables
76 Appendix C References and Bibliography
78 Appendix D Glossary
79 Appendix E List of Acronyms

Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing.
The electronic version of the report (posted on the web at www.trb.org) retains the color versions.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

SUMMARY

Characteristics of the FBO Industry


2018–2019

Overview
The term fixed-base operator (FBO) is defined by the FAA as “a business granted the
right by the airport sponsor to operate on an airport and provide aeronautical services . . .”
(FAA AC 5190.6B). The most basic FBO offers its customers self-service (SS) fueling. Typi-
cally, an FBO offers a set of core services such as fuel, use of hangars, ground services, and,
sometimes, aircraft maintenance. The services offered varies, as FBOs may cater to small
general aviation (GA) aircraft, business aviation, commercial airlines, cargo operators,
military flights, or a combination of clientele.
This synthesis report profiles the FBO industry as of December 2018. The ACRP funded
this analysis of data to prepare a quantitative snapshot of the FBO industry that would serve
as a reliable baseline of information and would establish useful metrics to track FBO trends
in the future.
The scope of the project includes the following:
• An estimate of the total number of FBOs operating at public-use airports in the United
States;
• A discussion of organizational characteristics of FBOs owned by
– public entities,
– independent private FBOs,
– small-network FBOs,
– large-network FBOs, franchises, and affiliates;
• An exploration of the relationships between scale and types of airport activity and level
of FBO services;
• An analysis of geographic variations in the delivery of FBO services and fuel prices;
• A focus on SS fueling and its use by different types of FBOs;
• An examination of branded and unbranded fuel strategies; and
• A profile of FBO services offered.
It is the hope and intention of this synthesis report to establish a firm foundation of
information that can be updated in the future and to pave the way for more complex
analyses of different aspects of the FBO industry in the United States.

Methodology
Elements from three databases were acquired and merged: (1) the FAA Form 5010-1, Air-
port Master Records (5010); (2) the National Plan of Integrated Airport Systems (NPIAS);
and (3) FBO data self-reported to AirNav, LLC. Data from the three sources were linked for

1  

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

2   Characteristics of the FBO Industry 2018–2019

each airport and for each FBO that operated at a public-use airport. The data were checked
for anomalies and inconsistencies, updated, and used to generate the tables and graphs that
appear in this report.

Organization of Chapters
This report is organized into multiple chapters so that readers can easily find subjects of
interest.
• Chapter 1 provides an overview of the project.
• Chapter 2 examines key trends in GA that have impacted the FBO industry and shaped
it today.
• Chapter 3 discusses the types of FBOs and their prevalence at different public-use airports.
• Chapter 4 describes FBO products, services, and facilities from a national perspective.
• Chapters 5 and 6 analyze private FBOs and publicly owned FBOs.
• Chapter 7 is a roadmap that discusses the inherent challenges with available data sets,
opportunities for future refinements, and major conclusions of the analysis.
• Appendix A describes the three data sets used.
• Appendix B presents consolidated tables from the analysis.
• Appendix C presents the references and bibliography.
• Appendix D contains a glossary of terms.
• Appendix E presents a list of acronyms used in the report.

Findings from the Study


Percent The study analyzed FBOs that are located at public-use
Groups Number
(%) landing facilities throughout the country. Public-use landing
Public use airports with FBOs 3,233 63 facilities are defined by the FAA and primarily include airports,
Airports without FBOs 1,859 37 heliports, and sea­plane bases owned by both public and pri-
Total public use airports 5,092 100 vate entities. The majority are traditional airports (95%); the
remaining facilities are seaplane bases (4%), heliports (1%),
Airports with 1 FBO 2,934 91
and a few facilities for gliders, ultra­lights, and balloons.
Airports with multiple FBOs 299 9
For the purposes of this report the term airports will refer
Airports with 1 or more FBOs 3,233 100
to all landing facilities. As of December 2018, there were
5,092 public-use airports. The total number of airports with
Single FBOs operating on airports 2,934 80
one or more FBO location was 3,233. There were 299 airports
Multiple FBOs operating on airports 727 20
All FBOs at public use airports 3,661 100
with multiple FBOs accounting for 727 FBO locations;
however, one FBO location per airport was most prevalent
Source: Compiled from FAA Form 5010-1, Airport Master Records,
as of December 5, 2018, and AirNav Database as of December 2018.
(2,934 airports with one FBO).
The FBO industry provides aeronautical services to a wide
spectrum of aircraft operators that include business and per-
sonal flying, charters, air medical, aerial applicators, firefighting, search and rescue, com-
mercial, military, and air cargo airlines. Because FBOs operate in such different markets,
there are many external and internal factors that influence scale of operations, demand
for services, customers, competition, operating costs, and revenue potential. Catalysts for
change in the FBO industry are coming from many directions and include
• A strong correlation with economic conditions (up and down);
• Changes within commercial aviation that favor concentration of airline service in the
largest metropolitan areas and present opportunities for FBOs to support air service
in smaller cities;

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Summary  3  

• Continued dominance of piston aircraft, but diminished growth potential in this segment;
• Improved prospects for business aviation, fractional ownership, and innovative ways
to optimize use of private aircraft through charter services for nonowners;
• Pilots and aircraft owners have greater pricing information and software to opti-
mize air­craft efficiencies and can negotiate prices for fuel and other FBO services in
advance of a flight;
• Airports exercise of proprietary exclusive rights to provide FBO products, services, and
facilities and to use of minimum standards to influence FBO investment and require-
ments for certain aeronautical services;
• FBOs are unbundling the services, products, and facilities they offer to stay profitable
and support customer demand;
• Increased use of affiliations and virtual networks by FBOs to achieve consistent standards
of service, brand identity, and customer loyalty without the capital costs of owner-
ship; and
• Ongoing challenges to the FBO industry posed by piston aircraft and pilot retirements,
competitive price pressures on fuel, mechanic shortages, self-fueling by large fuel customers,
and lighter, more fuel-efficient aircraft that reduce the need for en route stopovers.
Of the 3,661 FBOs operating in the United States as of December 2018, the majority,
2,099 (57%), were privately owned. Airport sponsors, including municipalities, counties,
and airport authorities, owned 1,543 FBOs (42.5%), and colleges or universities owned
19 FBOs (0.5%). The synthesis divided and analyzed FBOs into four categories:
• Publicly owned FBOs and school-owned FBOs, most of which are individual operators;
• Independent FBOs, privately owned facilities operating at one or two locations;
• Small network FBOs, also privately owned, operating at three to five locations; and
• Large networks, franchises, and affiliates, operating with more than five locations.
Independent FBOs represent the greatest number of locations—1,666 locations or 45%.
Publicly owned and school FBOs are a close second, with 1,562 locations or 43%. Small-
(94) and large-network FBOs (339) represent 12% of locations, but generally operate at the
largest, most active GA airports.
All but 36 FBOs or 99% of 3,661 FBOs sell fuel as follows:
• Full-service Jet A—2,143 (59%)
• Self-service Jet A—2,164 (23%)
• Full-service 100LL—824 (59%)
• Self-service 100LL—2,335 (64%)
Other top-ranked services and facilities reported by FBOs were
• Hangar rental and leasing (42%)
• Courtesy transportation or crew cars (40%)
• General aviation terminal (29%)
• Maintenance, repairs, and parts (29%)
• Ground services and line services (26%)
• Airport management (20%)
The mix of products, services, and facilities listed by FBOs varied by type of FBO. One-
third of publicly owned FBOs also manage the airport. Hangars, courtesy transportation
and crew cars, and maintenance were the top three services for independent FBOs. For
small- and large-network FBOs, ground services, line services, cleaning, and detailing were
the highest ranked FBO services, followed by maintenance, repairs, and parts, and then air-
craft rentals and charters. Scanning the services an FBO offers sheds light on the FBO’s

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

4   Characteristics of the FBO Industry 2018–2019

core businesses. Some FBOs specialize in flight training, charters, and sightseeing; others
are primarily maintenance or avionics shops. The largest network FBOs are emphasizing
brand, quality facilities, and access to specialists that can provide specific technical aircraft
services and flight services for passengers, crew, and aircraft owners.
The industry profile that follows provides a baseline to track changes as the FBO industry
continues to evolve and adapt to new technologies, an ever-increasing digital environment,
alternatives to carbon-based fuel, and the next generation of aviation users and FBOs.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CHAPTER 1

Introduction

The term fixed-base operator (FBO) is defined by the FAA as “a business granted the right
by the airport sponsor to operate on an airport and provide aeronautical services . . .” [FAA
AC 5190.6B]. The most basic FBO offers its customers self-service (SS) fueling. More typically,
an FBO offers a set of core services such as fuel, use of hangars, ground services, and, sometimes,
aircraft maintenance. The services offered varies, as FBOs may cater to small general aviation
(GA) aircraft, business aviation, commercial airlines, cargo operators, military flights, or a com-
bination of clientele. At some airports, aeronautical services are divided among different
businesses. The FBO may offer fuel, aircraft parking, hangars, and ground and concierge services.
Specialized aviation service operators (SASOs) handle other services. For example, at 13 of
its U.S. locations, Signature Flight Support offers a full range of aircraft maintenance at its
TECHNICAir centers. At other FBO locations, it will refer customers to maintenance spe-
cialists on the airfield or a nearby TECHNICAir center. There are many SASOs specializing
in flight instruction, aircraft rentals and charters, aircraft management, maintenance, avionics,
aircraft painting, interiors, and modifications. SASOs tend to cater to specific clients, aircraft,
or onboard equipment.
The FBO industry remains large and segmented, reflecting a diverse system of airports,
a broad spectrum of airport users, and many different FBO owners, both private companies and
public entities. To provide a sense of scale, there are 19,622 airports or landing facilities in the
United States. These include airports, heliports, gliderports, seaplane bases, balloonports, and
ultralight facilities. Most of these facilities are privately owned and inaccessible to the public.
In the FAA’s database of 5010-1, Airport Master Records, the FAA listed 5,092 public-use air-
ports (in 2018). These public-use airports are the facilities examined in this synthesis.
Comparisons of FBOs at public-use airports can be based on
• Ownership patterns
• Services offered
• Customer base
• Scale of operations
• Investment in facilities
• Sales revenue
• Culture (brand)
It is possible to group FBOs by any one of these variables, but for this publication, FBOs are
examined by services offered, number of locations, and ownership patterns as follows and shown
in Figure 1:
• SS fuel for commercial sale
• Publicly owned FBOs

5  

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

6   Characteristics of the FBO Industry 2018–2019

Large
Self-Service Small
Independent Network,
Fuel for Publicly Network
FBOs (1-2 Franchise,
Commercial Owned FBOs FBOs (3-5
locations) and Affiliate
Sale locations)
FBOs

Figure 1.   Different types of FBOs.

• Independent FBOs (1 to 2 locations)


• Small-network FBOs (3 to 5 locations)
• Large-network, franchise, and affiliate FBOs

The purpose of this synthesis was to establish a baseline of information, accurate for 2018, that
described the FBO industry and identified important trends that might affect the provision of
FBO services in the near term. That said, the analysis of this industry was challenging because
the FBO industry is dominated by privately held companies that for competitive reasons tend
not to publish information about sales, financial performance, or marketing strategies at an
airport-level of detail. For the largest publicly owned companies such as BBA Aviation and
Atlantic Aviation, companywide information is reported in annual reports. Location-specific
FBO information is largely self-reported on websites and listings in aviation databases pub-
lished by AirNav, AC-U-KWIK, FlightAware, the Aircraft Owners and Pilots Association
(AOPA), and various electronic applications directed at pilots, flight departments, and sched-
ulers and dispatchers. Self-reporting occurs primarily when an FBO operator is advertising
fuel prices or aircraft, pilot, and passenger services. These listings are marketing efforts to
retain and attract customers. For this reason, use of the FBO directories and databases must be
done with circumspection regarding the intended audiences and objectives of each data source.
Putting together a picture of the FBO industry thus involved use of multiple sources of
information. This report is a beginning effort and stands as an open invitation for readers to
continue the effort with increasing precision. The analysis examined self-reported FBO listings
as well as information compiled by the FAA from Form 5010-1, Airport Master Records, and by
the National Plan of Integrated Airport Systems (NPIAS). Figure 2 describes the major sources
of information about FBOs and public-use airports used in the synthesis.
This snapshot of the FBO industry includes an exploration of the following topics:
• An estimate of the total number of FBOs operating at public-use airports;
• The organizational characteristics of these FBOs (i.e., publicly owned, independent establish-
ments, or FBO networks or franchises);
• A profile of fuel offerings and fuel brands at FBOs, including the incidence of SS fueling
stations with minimal services;
• An examination of the types of airports that support individual or multiple FBOs;
• A focus on publicly owned FBOs, their governance, levels of service, and geographic distri-
bution; and
• A profile of private FBOs, including small independents and FBOs operating at multiple
locations.
The report is organized into multiple chapters as shown in Figure 3. After this chapter,
Chapter 2 provides a discussion of key factors shaping the FBO industry. Chapter 3 describes
the characteristics of FBOs in the United States in terms of ownership patterns and regional
distribution. Chapter 4 delves into the specific services that FBOs offer. Chapter 5 examines

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Introduction  7  

GA/FBO Trends FBO Data

FAA 5010

NPIAS

Source: Adapted, from Wikimedia Commons, the free media repository


(User Amanda 44).

Figure 2.   Initial sources of FBO information.

Overview FBO Analysis Roadmap Appendices

Industry Challenges Sources of


Summary
Profile Data

Summary
Introduction FBO Services Open Issues
Tables

Key Factors Bibliography


Next Step
Shaping the Private FBOs and
Opportunities
FBO Industry References

Public FBOs Conclusions Acronyms

Glossary

Figure 3.   Report organization.

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Characteristics of the FBO Industry 2018-2019

8   Characteristics of the FBO Industry 2018–2019

Table 1.   Related ACRP publications.

Publications Titles
ACRP Legal Research Digest 11 Survey of Minimum Standards: Commercial Aeronautical Activities at Airports

ACRP Legal Research Digest 37 Legal Issues Relating to Airports Promoting Competition

ACRP Report 47 Guidebook for Developing and Leasing Airport Property

ACRP Report 60 Guidelines for Integrating Alternative Jet Fuel into the Airport Setting

ACRP Report 77 Guidebook for Developing General Aviation Airport Business Plans

ACRP Research Report 165 Tracking Alternative Jet Fuel

ACRP Research Report 172 Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement

ACRP Research Report 192 Airport Management Guide for Providing Aircraft Fueling Services

ACRP Synthesis 63 Overview of Airport Fueling Operations

ACRP Synthesis 86 Airport Operator Options for Delivery of FBO Services

privately owned FBOs, and Chapter 6 focuses on FBOs operated by airports, authorities, or
limited liability companies (LLCs). Chapter 7 discusses additional resources and potential
analyses that were not addressed or only partially addressed but that would benefit from
additional future work. The appendices provide a detailed overview of FBO and airport data,
summary tables, references and bibliography, a glossary, and a list of acronyms.
While there are many articles written about the FBO industry, there is little published
research. The ACRP has sponsored several studies and syntheses that complement this report.
Table 1 lists relevant studies that might be of interest. See http://www.trb.org/Publications/
PubsACRPPublications.aspx

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CHAPTER 2

Key Factors Shaping the


FBO Industry

The FBO industry provides aeronautical services to a wide spectrum of aircraft operators
that includes business and personal flying, charters, air medical, aerial applicators, firefighting,
search and rescue, commercial, military, and air cargo airlines. Services needed by these users
are diverse and summarized in Figure 4. FBOs tend to specialize with respect to aircraft, services,
and clientele.
Because FBOs operate in such different markets, there are many external and internal factors
that influence the scale of operations, demand for services, customers, competition, operating
costs, and revenue potential. Catalysts for change are coming from multiple directions and include
the following:
• Economic conditions,
• Structural change within commercial aviation,
• Changes in general aviation segments,
• Trends within the FBO industry,
• Customer strategies and preferences,
• Airport operating environment for FBOs,
• Ongoing challenges to the industry, and
• Innovation and technology.
Figure 5 summarizes the key factors shaping the FBO industry. The remaining sections of
Chapter 2 discuss these factors in more detail.

Economic Conditions
“It’s the economy”—a much touted phrase, with meaning. Aviation has historically per-
formed well during strong economies and poorly during recessions. This correlation is especially
true for commercial aviation and somewhat true for general aviation.

The Economy and Commercial Aviation


U.S. airlines performed well in 2018, lengthening an undisrupted stretch of positive profits
to 8 years. Figure 6 shows real net income for domestic U.S. scheduled-service passenger air-
lines and gross domestic product and underscores the strong connections between economic
activity and airline performance. Today’s domestic airline industry, however, despite consis-
tently profitable results, looks very different than it did a decade ago. Recovery following the
recession of 2007–2008 was cautious. Airlines lowered operating costs by eliminating unprofit-
able routes, grounded less fuel-efficient aircraft, and experimented with new pricing strategies.
The number of domestic airlines operating in the United States also declined through mergers
and bankruptcies.

9  

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Characteristics of the FBO Industry 2018-2019

10   Characteristics of the FBO Industry 2018–2019

General Aviation Commercial Service Military Air Cargo

•Full-service/self-service •Fueling aircraft •Fueling aircraft •Consolidated air cargo


aircraft fueling •Fuel storage and quality •Fuel storage and quality facility
•Fuel storage and quality control control •Small and large package
control •Above- and below-the-wing •Temporary ground-staging handling
•Hangar rental aircraft services support, ramp space, and •Warehousing
•Flight training •Deicing facilities •Fueling aircraft
•Aerial tours and •Passenger services •Fuel storage and quality
photography •Customs clearance support control
•Aircraft rental and charters •Agricultural inspections •Above- and below-the-wing
•Aircraft sales or leases aircraft services
•Aircraft management •Deicing
•Maintenance, repairs, and •Customs clearance support
parts •Agricultural inspections
•Aircraft painting, interiors,
and modifications
•Line services, cleaning, and
detailing
•Avionics sales and services
•Customs clearance support
•Courtesy transportation

Figure 4.   Demand for FBO services by different users.

The Economy and General Aviation


Several factors outside of economic conditions have contributed to a smaller general avia-
tion industry that peaked in the 1970s. Recreational flying has declined as older, single-engine
piston aircraft have left the active fleet and many private pilots retired. That said, general aviation
(GA) has stabilized since the recession of 2007–2008, with considerable growth in the business
aviation segments of the industry. Figure 7 shows the total number of aircraft shipped and GA
operations at airports with air traffic control towers. Following 2008, both U.S. shipments and
GA operations declined, then stabilized, and have improved in 2018. In 2018, U.S. shipments
of piston aircraft increased by 43 total aircraft over 2017 piston shipments; turbine shipments
increased by 104 aircraft over the previous year. The number of GA operations was an even more
positive indicator of growth, as GA operations increased by an estimated 915,000 or by 3.6% in
2018 (FAA Aerospace Forecasts).
Figure 8 examines the positive relationship between changes in real U.S. gross domestic prod-
uct (GDP) and changes in GA operations at airports with FAA and contract control towers.
General aviation will continue to wax and wane with economic conditions. Many industries
depend on aviation support to conduct business. For example, helicopters and fixed-wing air-
craft support the oil and gas industry, air medical, forest management, search and rescue, and
firefighting.

The Impact of Fuel Prices on Aviation Activity and FBO Fuel Revenue
There is a substantial discretionary component of aviation activity, particularly in the recre-
ational and personal flying segments, but also in the logistics industry. Integrated carriers such
as FedEx or UPS are always weighing the relative costs of transporting packages and freight by air
or by truck. For commercial airlines, fuel costs can represent between 25% and 30% of operating
costs, so the price of fuel is important.

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Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    11  

•Strong economy/strong aviation industry


•GA aircraft shipments and operations have staged a modest
Economic Conditions recovery
•Stable and low fuel prices a plus

•Capacity of ultra low-cost carriers (ULCCs), which are the


fastest growing segment of commercial service
Commercial Aviation •ULCCs tend to use local FBO for ground and passenger
Structural Changes services
•Charters and 9 seat aircraft are replacing air service in small
markets and often use FBO services

•Growth in corporate flying and charter activity


•Small piston-aircraft fleet reductions suggest limited growth
opportunities in this segment, although student pilots
General Aviation Trends increased for the first time in decades
•Demand for and production of Avgas declining
•U.S. regions vary for GA growth

•Customers have more information in advance of flight


Customer Efficiency
•Tankering strategies reduce en route fuel purchases
Strategies and
•Corporate customers pre-negotiate contract rates or
Expectations discounts for fuel

•Minimum standards influencing FBO buildout, investment,


and level of services
•Exercise of proprietary (exclusive) services at some airports
Airport Operating
•Provision of ground and passenger equipment/support as air
Environment service incentives
•High valuations of airport property, raising lease and
assignments costs

•Fuel sales remain important, but not always the cash cow
•Unbundling of FBO services in response to market conditions
FBO Responses to
•Active use of digital tools
Industry Change
•FBO networks, franchises, and affiliates expanding
coordinated services and brand

•Self-fueling by large fuel customers can limit FBO competition


or growth
•Competitive pressures from low price fuel at certain FBOs
Ongoing Challenges •Pilot and mechanic shortages/FBO staff retention
•Transition to non-leaded fuel
•2020 compliance with ADS-B requirements

Figure 5.   Summary of key factors shaping the FBO industry.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

$20.0 19,000

Annual Net Income (Billions 2012 $)


$18.0 18,500
$16.0 18,000

GDP (Billions 2012 $)


$14.0 17,500
$12.0 17,000
$10.0 16,500
$8.0 16,000
$6.0 15,500
$4.0 15,000
$2.0 14,500
$0.0 14,000
2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Income GDP


Source: Compiled from IHS Markit and the Bureau of Transportation Statistics.

Figure 6.   Domestic U.S. scheduled-service passenger airlines annual net income
GDP, 2010–2018 (billions of 2012 dollars).

3,500 40,000

GA Operations at Towered Airports


3,000 35,000
U.S. GA Aircraft Shipped

30,000
2,500
25,000
2,000

(000)
20,000
1,500
15,000
1,000
10,000
500 5,000

0 -
2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GA Operations (000) U.S. GA Aircraft Shipped
Source: Compiled from General Aviation Manufacturers Association (GAMA) 2018 Annual Report and FAA
Aerospace Forecasts, Fiscal Years 2019–2039.

Figure 7.   U.S. aircraft shipped and GA operations at towered airports, 2000–2018
(2000 is listed as a benchmark).

3.5% 4.0%
Percent Change in GA Operations

3.0%
Percent Change in Real GDP

3.0%
2.5% 2.0%

2.0% 1.0%

1.5% 0.0%

1.0% -1.0%

0.5% -2.0%

0.0% -3.0%
2011 2012 2013 2014 2015 2016 2017 2018
GDP GA Operations
Source: Compiled from the U.S. Bureau of Economic Analysis and FAA Aerospace Forecasts, Fiscal
Years 2019–2039.

Figure 8.   Percentage change in real GDP and GA operations at airports


with air traffic control towers, 2011–2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    13  

$4.50

$4.00

$3.50

$3.00
Dollars per Gallon

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Jet Fuel Avgas Linear (Jet Fuel) Linear (Avgas)
Source: Compiled from Energy Information Administration, https://www.eia.gov/dnav/pet/pet_pri_refoth_dcu_
nus_m.htm.

Figure 9.   Jet and 100LL fuel wholesale/resale price by refiners, 1999–2019
(nominal dollars per gallon).

Figure 9 shows fluctuations in the wholesale price of fuel (not adjusted for inflation) and the
long-term trend lines. Both avgas (100 low lead, or 100LL) and jet-fuel wholesale prices are well
below their respective trend lines. The price of 100LL, however, is trending higher at a faster
rate than jet fuel. This is because demand for 100LL is declining, refining costs are higher than
jet fuel, and only eight refiner locations in the United States make 100LL (Kramer et al. 2019),
contributing to high transportation costs for delivered product to many small airports.
Figure 9 also shows the volatility of fuel prices. From an FBO perspective, changes in the price
of aviation fuel translate into higher or lower costs for purchasing new fuel supplies. If an FBO
receives fuel deliveries multiple times per week, price differences would average out. However,
for an FBO with less frequent deliveries, price fluctuations can impact the sales margin. Table 2
demonstrates how fluctuations in the price of jet fuel can affect FBO fuel margins. For example,
assume a smaller FBO receives deliveries of 7,500 gallons. If the operator purchased a delivery

Table 2.   Example of short-term changes in spot


fuel prices.

Difference
Wholesale from Week 2
Week Price ($) Cost ($) ($)
1 1.73 12,975 (300)
2 1.77 13,275 0
3 1.80 13,500 225
4 1.82 13,650 375
5 1.89 14,175 900
6 1.92 14,400 1,125
7 1.95 14,625 1,350
8 1.93 14,475 1,200
Source: From Kramer et al. 2019.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

14   Characteristics of the FBO Industry 2018–2019

at prices available in Week 7, the operator would pay an additional $1,335 over prices available
in Week 2. Likewise, had the FBO made the purchase in Week 1, it would have cost $300 less.

Structural Changes Within Commercial Aviation


Some FBOs manage fuel farms and fuel inventories for commercial airlines. In addition, FBOs
fuel large aircraft and provide above- and below-the-wing services such as cabin cleaning, catering,
auxiliary power to the aircraft while on the ground, baggage handling, and aircraft towing.
Sometimes an FBO will perform minor maintenance and check in passengers and baggage. Some
airport sponsors, either as part of airport operations or through the FBO, have offered these
ground and passenger services at favorable rates as incentives to attract or retain an air carrier.
Fueling of commercial service aircraft can be an important revenue stream for FBOs. In the
aftermath of the 2007–2008 recession, structural changes within commercial aviation has pre-
sented FBOs with new revenue opportunities, particularly at small commercial service airports.

Growth of Ultra-Low-Cost Carriers


In 2018, there were far fewer mainline U.S. airlines than existed in 2007. The remaining carriers
divide into three groups: network, value, and ultra-low-cost carriers (ULCCs), each representing
different business models and operational characteristics. Figure 10 groups mainline carriers in
the United States.
Of the three groups, it is the ULCC carriers that offer limited frequency schedules (i.e., less
than daily) and often rely on local airports and FBOs to provide fueling as well as other ground
and passenger services. While ULCCs represent a smaller group of airlines, in the 12 months
ending 2018, capacity offered by this group grew by 16.2%, contrasting with value-carrier capacity
growth of 5.1% and network carrier capacity growth of 3.8% (Wyman 2019).
The three mainline groups have focused attention and service in the largest commercial air
service markets. Seats per aircraft are increasing. Domestic load factors reached historic highs
of 84.7% in 2018. Domestic departures, however, remained about 17% below 2007 levels (FAA
Aerospace Forecasts). According to the Regional Airline Association (RAA), when comparing
Official Airline Guide (OAG) scheduled departures in 2013 with OAG scheduled departures in
2018, reductions in service are dramatic. They are as follows:
• 246 airports reduced by 10% or more
• 180 airports reduced by 20% or more
• 109 airports reduced by 33% or more
• 77 airports reduced by 50% or more
• 42 airports reduced by 75% or more
• 32 airports lost all service

Network Carriers Value Carriers Ultra Low-Cost Carriers


•American •Alaska •Allegiant
•Delta •Hawaiian •Frontier
•United •JetBlue •Spirit
•Southwest

Source: Oliver Wyman, Airline Economic Analysis, 2018–2019.

Figure 10.   Mainline U.S. airlines.

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Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    15  

Table 3.   Changes in scheduled


departures and routes,
2009–2018.

Departures Routes
Hub (%) (%)
Large 0.7 7.0
Medium -4.7 1.3
Small -13.9 -10.3
Nonhub -15.1 -2.8
Nonprimary -19.3 -24.2
Source: Regional Airline Association, July
schedules for U.S. domestic operations.

The smallest cities were among the hardest hit, as Table 3 indicates. With fewer departures
from smaller airports, the door may be open for FBOs at these airports to provide fuel and
ground services to remaining carriers.

Regional Carriers Opportunities Diminished


Given that declines in scheduled service have occurred in the smallest cities, the regional
carriers have not enjoyed the same recovery mainline airlines have experienced. Regional carrier
capacity has grown 0.5% since 2007, and passengers are down 1.5%. With reduced service to
smaller market and fewer mainline carriers, regional carriers are competing for even fewer
contracts. Figure 11 compares growth in domestic-revenue passenger enplanements for main-
line carriers and regional carriers.

Startup Air-Service Options Remain Active Using Very Small Aircraft


Despite pressures on small-community air service, these cities remain active areas for inno-
vative solutions. Use of nine-seat aircraft and scheduled charter service has allowed for some
service continuity. Cape Air using a Cessna 402 and Boutique Airlines flying a Pilatus PC-12

700 165
Mainline Enplanements (Millions)

Regional Enplanements (Millions)

600
160
500

400 155

300 150
200
145
100

0 140
2010 2011 2012 2013 2014 2015 2016 2017 2018E
Fiscal Year
Mainline Regional
Source: Compiled from Form 41 and 298C, U.S. Department of Transportation.

Figure 11.   Scheduled domestic U.S. revenue passenger enplanements


in millions (E = estimated).

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

16   Characteristics of the FBO Industry 2018–2019

aircraft have been leaders in these markets. Both airlines have limited on-airport footprints in
the cities they serve and use local FBOs for fuel and, sometimes, ground and passenger services.

Changes Within General Aviation


Since FBO services is a demand-driven business, changes within the different segments of the
GA industry reflect sooner or later on FBO sales revenue, customer base, and growth prospects.
This section highlights some of the national and regional trends within GA that have impacted
FBOs already or may impact them in the future.

Composition of the GA Fleet


The FAA estimates active aircraft in the GA fleet, hours flown, and utilization rates based
on an annual survey distributed to aircraft owners and operators. Figure 12 shows the FAA’s
estimated composition of active aircraft in the U.S. GA fleet. Single-engine and multi-engine
piston aircraft, despite annual declines for over the last decade, still dominate two-thirds of the
GA fleet (67%). Helicopters represent 5% of the fleet and jets 12%. Experimental and light sport
aircraft may be the replacement aircraft for some recreational enthusiasts at 14% of the fleet.

Customer Groups Are Growing or Contracting at Different Rates


The FAA takes information collected from the annual General Aviation and Part 135 Activity
Survey and prepares assumptions about aircraft deliveries (from GAMA), retirement rates, and
forecasted economic growth to estimate the future fleet size and level of GA activity. Table 4
shows historical trends starting in 2010 and FAA forecasts for fleet size, hours flown, and fuel
consumed. Of note, in 2010 turboprop and turbojet (turbine) aircraft made up 15% of the
active fleet. By the end of the forecast period, the number of active piston aircraft in the fleet
had declined by 36,777 aircraft and turbines had increased by 18,718. In 2039, turbines are
projected to be 27% of the active fleet. These forecasts imply that FBOs that rely on 100LL sales

Light Sport, 2,665,


Experimental, 27,365, 13% 1% Other, 4,715, 2%

Rotorcraft Turbine,
7,370, 3%
Rotorcraft Piston,
3,335, 2%
Turbo-Jet,
14,585 , 7%
Single Engine,
129,885, 61%

Turbo-
Prop,
9,925, 5%

Multi-Engine, 13,040, 6%
Source: Compiled from FAA Aerospace Forecasts, Fiscal Years 2019–2039.

Figure 12.   Composition of the U.S. active general aviation and air taxi fleet.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    17  

16,000 18,000

14,000 16,000
Piston Aircraft Hours Flown (000)

Turbine Aircraft Hours Flown


14,000
12,000
12,000
10,000
10,000
8,000
8,000
6,000
6,000
4,000 4,000
2,000 2,000
0 0
2010 2018E 2019 2029 2039

Piston Turbine
Source: Compiled from FAA Aerospace Forecasts, Fiscal Years 2019–2039.

Figure 13.   FAA forecasts of hours flown by piston and turbine


aircraft (E = estimated).

as a principal source of revenue are likely to experience declining sales unless they increase
market share, offer new revenue services, or attract additional customer segments. Figure 13 and
Figure 14 show the FAA forecasts of hours flown and fuel consumed. In terms of sheer numbers,
piston aircraft remain the dominant aircraft in GA. However, in terms of hours flown and fuel
consumed, turbine aircraft represent greater growth opportunities and volume fuel sales for an
FBO (see Table 4).
Since 2010, fractional aircraft owners have added substantially to the fleet available for
Part 135 charter activity and are large contributors to the increase in private jet and turboprop
aircraft hours. Fractional owners often engage charter companies, such as NetJets, to manage the
operation and maintenance of their aircraft, who in turn will offer charter services to nonowners

230,000 2,500,000

220,000
Jet Fuel Gallons Consumed (000)
Avgas Gallons Consumed (000)

2,000,000
210,000
1,500,000
200,000

190,000 1,000,000
180,000
500,000
170,000

160,000 0
2010 2018E 2019 2029 2039
Jet Fuel AvGas
Source: Compiled from FAA Aerospace Forecasts, Fiscal Years 2019–2039.

Figure 14.   FAA forecasts of 100LL and jet fuel consumption


(E = estimated).

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Characteristics of the FBO Industry 2018-2019
Copyright National Academy of Sciences. All rights reserved.

Table 4.   Historical and forecast general aviation active aircraft, hours flown, and fuel consumed.

Gallons of Fuel Consumed


Active Aircraft Hours Flown (000s) (000s) Per Piston Aircraft Per Turbine Aircraft
Year Piston Turbine Piston Turbine 100LL Jet Fuel Hours Fuel Hours Fuel
2010 159,007 27,367 14,773 8,311 220,737 1,434,835 93 1,388 304 52,429
2018E 146,260 31,880 14,404 9,578 208,000 1,613,000 98 1,422 300 50,596
2019 145,700 32,385 14,305 9,929 207,045 1,674,626 98 1,421 307 51,710
2029 133,085 38,580 12,792 12,802 191,000 2,089,000 96 1,435 332 54,147
2039 122,230 46,085 12,265 15,543 184,000 2,335,000 100 1,505 337 50,667
Average Annual Growth
2010–
2018 -1.0% 1.9% -0.3% 1.8% 1.5% 1.2% 0.9% 1.0% 1.3% -0.4%
2019–
2029 -0.9% 1.8% -1.1% 2.6% 2.2% 1.9% -0.2% 0.1% 0.8% 0.5%
2019–
2039 -0.9% 1.8% -0.8% 2.3% 1.7% 1.5% 0.1% 0.3% 0.5% -0.1%
Source: Compiled from FAA Aerospace Forecasts, Fiscal Years 2019–2039.
Note: E = estimated.
Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    19  

Table 5.   General aviation local and itinerant operations in high activity areas.

% Local
Region 2013 2018 % Change 2018
Phoenix-Mesa-Scottsdale, AZ Area 1,561,064 1,644,020 5.30 65
Miami-Fort Lauderdale-West Palm Beach, FL Area 902,992 1,145,559 26.90 45
Los Angeles-Long Beach-Anaheim, CA Area 1,085,659 1,052,279 -3.10 45
New York-Newark-Jersey City, NY-NJ-PA Area 558,127 525,765 -5.80 32
Dallas-Fort Worth-Arlington, TX Area 421,904 512,751 21.50 35
Chicago-Naperville-Elgin, IL-IN-WI Area 237,766 260,235 9.50 36
Source: Compiled from Air Traffic Activity Data System (ATADS).

through a subscription card or a per-hour fee. These revenues help to offset the cost of owner-
ship. At some GA airports (e.g., Naples), fractional (charters) are the most frequent customers
of FBOs (Byers 2019).

General Aviation Activity Varies by Region and Is Fluid


Among Airports in a Region
Many factors explain the growth or reduction of GA operations in a region. For some airports,
a large component of activity is local operations. Local operations are flights that arrive or depart
within a 20-mile radius of an airport, stay within the local traffic pattern, and are usually associ-
ated with flight training. Itinerant operations are arriving and departing flights that go outside
the local traffic patterns. GA is composed of itinerant and local operations. Part 135 charters
are tracked by air traffic control as air taxis and not distinguished from commercial regional air
carriers, so for the purposes of this report, charter operations are not counted in this analysis.
Increases or decreases in regional GA operations occur because of changes at individual air-
ports or the regional level. Aircraft operators may relocate to a different airport because of
pricing or available services. New flight training services can add to local operations at an
airport. At the regional level, economic and tourist developments can bring in more traffic or
special events such as the Super Bowl, and political conventions can increase operations during
a specific year. Population growth also can add new GA users to a region.
To gain perspective on regional changes in GA, Table 5 compares 2013 and 2018 local and
itinerant GA operations at five of the more active areas for GA: Chicago, Dallas, New York,
Phoenix, and South Florida. Table 6 shows estimated population growth during the same
period for the metropolitan statistical areas that encompass these airports.

Table 6.   Population change in high-activity areas.

Population
Gain or 2013–2018
Metropolitan Statistical Area (MSA) 2013 2018 Loss (%)
New York-Newark-Jersey City, NY-NJ-PA Metro Area 19,901,696 19,979,477 77,781 0.4
Los Angeles-Long Beach-Anaheim, CA Metro Area 13,106,114 13,291,486 185,372 1.4
Chicago-Naperville-Elgin, IL-IN-WI Metro Area 9,553,268 9,498,716 -54,552 -0.6
Dallas-Fort Worth-Arlington, TX Metro Area 6,817,518 7,539,711 722,193 10.6
Miami-Fort Lauderdale-West Palm Beach, FL Metro Area 5,849,411 6,198,782 349,371 6.0
Phoenix-Mesa-Scottsdale, AZ Metro Area 4,404,675 4,857,962 453,287 10.3
Source: Compiled from the U.S. Census Bureau, Population Division, Metropolitan and Micropolitan Statistical Areas
Population Totals and Components of Change: 2010–2019.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

20   Characteristics of the FBO Industry 2018–2019

Airports included in metropolitan areas:

Phoenix Area SNA - Santa Ana/John Wayne


TOA - Torrance/Zamperini Field
CHD - Chandler Municipal
VNY - Van Nuys
DVT - Phoenix Deer Valley
FFZ - Falcon Field New York Area
GEU - Glendale Municipal
GYR - Phoenix Goodyear CDW - Caldwell/Essex County
IWA - Phoenix-Mesa Gateway EWR - Newark Liberty Int’l
PHX - Phoenix Sky Harbor Int’l FRG - Farmingdale/Republic
PRC - Ernest A. Love Field HPN - White Plains/Westchester
SDL - Scottsdale JFK - John F. Kennedy Int’l
LGA - La Guardia
South Florida Area MMU - Morristown Airport
TEB - Teterboro
BCT - Boca Raton
FLL - Fort Lauderdale/Hollywood Dallas Area
FXE - Fort Lauderdale Executive
HWO - Hollywood/North Perry ADS - Dallas Addison
MIA - Miami International AFW - Fort Worth/Alliance
OPF - Miami/Opa-Locka DAL - Dallas Love Field
PBI - Palm Beach International DFW - Dallas/Fort Worth Intl
PMP - Pompano Beach Airpark FTW - Fort Worth Meacham
TMB - Miami/Kendall-Tamiami GKY - Arlington Municipal
Executive RBD - Dallas Redbird

Los Angeles Area Chicago Area

BUR - Burbank-Glendale-Pasadena DPA - Chicago/DuPage


FUL - Fullerton Municipal GYY - Gary Regional
HHR - Hawthorne Mun/Northrop MDW - Chicago Midway
LAX - Los Angeles International ORD - Chicago/O`Hare Intl
LGB - Long Beach/Daughtery Field PWK - Chicago/Palwaukee Muni
SMO - Santa Monica Municipal UGN - Chicago/Waukegan Regional

From an FBO perspective, examination of regional and individual airport trends in opera-
tions are an important indicator of which regions are growing and which individual airports are
generating new business, retaining its customers, or losing market share. With a GA industry
that is experiencing low growth, customer retention, and increasing market share are competi-
tive marketing strategies that are evident when examining individual airport trends.
The Phoenix, Dallas, and Miami Metropolitan Statistical Areas (MSAs) have experienced
the largest population growth in the five years from 2013 to 2018. The Phoenix area also stands
out because it has the largest number of GA operations of the five regions. Digging deeper,
Phoenix has a high concentration of local operations, conducted at Phoenix Deer Valley, Falcon
Field, and Ernest A. Love Field in Prescott due to extensive flight instruction programs. DuPage
Airport in the Chicago area greatly expanded local operations and accounts for most new GA
operations in 2018. Table 6 also shows high growth in the South Florida and Dallas area airports
over the last 5 years. Itinerant operations accounted for most of the growth in operations at
Dallas Addison Airport; at Fort Worth Meacham, itinerant operations grew by 50% and local
operations more than doubled. The South Florida area experienced sustained growth, primarily
in local operations across most airports. However, Hollywood/North Perry accounted for nearly
half the region’s growth in both local and itinerant operations. The New York and Los Angeles

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Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    21  

regions experienced declines, primarily in itinerant operations. These two areas also have the
lowest population growth.

Customer Efficiency Strategies and Expectations


With changes in aircraft technology and the availability of software to plan and cost a trip,
aircraft operators usually know in advance where they will refuel and what FBO they will stop
at either en route or at the destination. Corporate flight departments and private pilots now
routinely have the following:
• Immediate access to fuel prices and fees charged by FBOs;
• Branded fuel card memberships with discounted fuel pricing;
• Software to inform decisions about the cost and efficiency to carry extra fuel onboard or refuel
during a trip (tankering decisions);
• Route planning software that optimizes travel time and cost;
• Current weather conditions to make “on-the-fly” route changes;
• Trip records for each flight and segment as a history and basis for similar flight plans; and
• 24-hour customer service, equipment manuals, and support.
With planning and cost tools at hand, established relationships with FBOs are also a key
determinant of where an aircraft might stop to take advantage of contract or discount rates
for fuel or fees. FBOs that operate multiple locations promote consistent quality of service and
discount pricing across all FBOs within their network. For smaller one- or two-location FBOs,
prior relationships with customers, exceptional customer service, and competitive pricing (in
the bottom quadrant) is a must (Kramer et al. 2019).

Airport Operating Environment


Minimum Standards
Underlying market conditions and an airport’s operating environment are key factors in
arriving at a level of FBO services that can be supported and competitive. The FAA recom-
mends, but does not require, that airport sponsors prepare minimum standards for commer-
cial service activities at an airport that sets out requirements for all providers that seek access
to the airport “on reasonable terms and without unjust discrimination” (Smith 2019). Mini-
mum standards for FBOs outline the physical requirements (building and ramp space), pilot and
passenger amenities, and required specialized aircraft or training services to be offered. Mini-
mum standards often articulate the application requirements and the airport-sponsor review
and decision process.
Minimum standards are usually published as guiding documents and incorporated by refer-
ence into a commercial lease. They are useful tools for managing development and protecting
the airport sponsor from allegations of unjust discrimination (Smith 2019). Because market
conditions change, it is important to periodically review minimum standards to make sure that
requirements for an FBO match the airport’s market situation. In this sense, minimum stan-
dards are unique to every airport and are reflective of the aeronautical services that can be practi-
cally and financially supported.

Proprietary (Exclusive) Services


Where at one time most FBOs were privately owned and operated, many FBOs have failed
over the years and airport sponsors either found replacements or took over the provision of

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Characteristics of the FBO Industry 2018-2019

22   Characteristics of the FBO Industry 2018–2019

FBO services. Some airport sponsors at the end of a lease agreement with a private FBO have
elected to exercise a “proprietary exclusive right” to be the sole provider of FBO services or
specific individual services such as fueling or deicing. The FAA recognizes this right with the
condition that the exercise of this right requires the airport sponsor to use its own employees
and resources to provide aeronautical services. The sponsor is not permitted to contract for these
services with third parties.
The number of FBOs that airport sponsors operate is large, estimated in 2018 (Kramer et al.
2018) at 1,562 locations (or 43% of all FBO locations). While many airports have exercised pro-
prietary exclusive rights, others have chosen to operate FBO services through LLCs, which are
separate from the airport sponsor. The majority of publicly owned FBOs, however, are small
operations offering just fuel services and minimal aeronautical services. In many instances,
these airports serve markets that would be unlikely to have the financial feasibility to attract
interest by a private FBO.

Ground and Passenger Services as Air Service Incentives


It is noteworthy that some airport sponsors have offered incentives to attract and retain com-
mercial air service by providing fuel farm management, into-plane fueling, baggage handling,
and passenger check-in services. Once airport sponsors purchased equipment to handle pas-
senger aircraft, the provision of FBO services to charters and GA aircraft was a logical addition.
Some airports accomplished these services with airport employees; others formed LLCs as
separate ground and passenger service companies.

FBO Lease Assignments, Reasonable Fees, and Transfers


Over the last 20 years, the underlying value of existing long-term ground leases accompanied
by low lease rates became well-understood by both FBO lessees and airport sponsors. Many
long-term leases crafted 30 to 40 years ago became valuable assignment opportunities for FBO
operators ready to sell. Many airport sponsors expressly state in leases that assignment of a lease,
improvements, and subleasing of leased premises must have written consent by the sponsor,
and, sometimes, there is a negotiated fee due or a commitment for development projects
when a lease renews or an assumption or sublease transaction takes place (Kramer et al. 2018).
However, more than a few airport sponsors remained on the sidelines as lease assignments
transferred FBO assets to new operators, often at high premiums.
A decade without recession has helped to support high valuations of leaseholds and capi-
tal investment in FBO facilities, but some industry observers have expressed concerns about
whether FBOs with leveraged financial positions will survive a period of recession and dimin-
ished aviation demand (Epstein 2019).

FBO Responses to Industry Change


The FBO industry is a nimble adaptor to changes in the market environment. This section
briefly addresses fuel sales; unbundling of FBO services; the growth of FBO networks, franchises,
and affiliates; brand identity developments; and the nature of national competition.

Beyond Fuel Sales


Fuel sales continue to be a principal source of revenue for FBOs. However, structural changes
in fuel markets have permanently altered this component of FBO services. The wide availability
of retail pricing for 100LL on the Internet makes fuel a competitive commodity at the local,

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Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    23  

regional, and national level. Piston aircraft operators with access to this information can make
route planning decisions based on fuel prices. FBOs serving this customer group are now
advertising to a national audience. For charters and corporate flight departments, wide use of
contract pricing, negotiated corporate discounts with fuel suppliers, and preferred network
organizations [such as the Corporate Aircraft Association (CAA)] have made public data
about actual prices paid for jet fuel more difficult to obtain. For an FBO, remaining price-
competitive and maintaining fuel margins has grown increasingly complex.
Large differences exist in the 100LL and Jet A fuel markets, and they are highlighted in the
following lists.

100LL Market

• 100LL is one of a few fuels that use tetraethyl lead (TEL) in the blend. There is only one
producer of TEL in the world.
• Despite research and testing of alternatives for 100LL, engine performance, storage, and
distribution challenges remain.
• Only eight refiners in the United States make 100LL, resulting in limited supplies and high
transportation costs to move fuel supplies to airports.
• Demand for 100LL is in decline and highly dispersed across the United States at small airports.
• Because of low demand, some FBOs must manage fuel inventories carefully to avoid fuel
spoilage. It is also important to watch fuel prices to minimize fuel supply costs and to price
retail fuel to cover the direct costs for delivered 100LL and the indirect costs for labor, equip-
ment, and maintenance of the fueling operation.
• 100LL is largely a retail market whose customers are highly price-sensitive.
• Some FBOs purchase partial-load deliveries at a higher price to better manage fuel inven-
tories or because fuel tanks are sized below full-tanker truck deliveries (usually 7,500 or
8,000 gallons).
• Prices for 100LL are widely advertised on the Internet. To stay competitive, most FBOs now
advertise retail fuel prices digitally and keep their prices current.
• SS 100LL has become the norm at airports with low-volume fuel demand. To keep operat-
ing costs at a minimum for this fuel, a majority of FBOs offer 100LL as an SS product. As of
December 2018, over 2,300 (63%) of FBO locations reported offering SS 100LL; only 822
(22%) reported a full-service (FS) 100LL product.

Jet Fuel Market

• The jet fuel market is far less transparent than the 100LL market. Most corporate flight depart-
ments negotiate contract rates for fuel and frequent FBOs that honor these contract rates.
FBOs receive reimbursement for contract sales, primarily through an upload fee. Upload fees
are determined by the FBO and submitted to a fuel supplier. There is limited public informa-
tion about upload fees charged, but FBOs do try to keep these fees competitive and at the same
time have the fees accurately reflect the cost of fuel services. Depending on the upload fee,
margins on contract fuel sales can be lean, and volume sales may be required to offset lower
margins on contract fuel sales.
• Those FBOs that fuel commercial airlines may be making money on fuel storage management
and into-plane fuel fees. The fuel is often owned by the carrier or a consortium of airlines.
The airlines contract with the FBO for the direct and indirect costs to store and pump their
fuel plus a profit margin.
• With sophisticated software, flight departments can evaluate the trade-offs between carrying
jet fuel onboard the aircraft or refueling en route at potentially a higher cost than the operator’s
own fuel supply. This practice of tankering can reduce fuel purchases at away airports.

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Characteristics of the FBO Industry 2018-2019

24   Characteristics of the FBO Industry 2018–2019

• The combination of contract rates and tankering practices has put some FBOs that are out of
network at a disadvantage in competing effectively for transient-aircraft fuel sales.
• Refiners produce more jet fuel than 100LL. Transportation for delivered jet fuel tends to be
conducted in bulk, either by pipeline, ship, or rail. Unlike 100LL, jet fuel is produced in refin-
eries throughout the United States and, consequently, fuel distributors can obtain supplies
closer to their final market. Thus, jet-fuel transportation costs tend to be lower than those
for 100LL. Some FBOs with high-volume fuel sales can maintain relationships with multiple
suppliers to effectively manage the cost of fuel supplies and sales margins.
• Aircraft performance has greatly improved over the years. With greater fuel efficiencies and
extended ranges, aircraft can travel longer distances without requiring an intermediate fuel stop.
The shift to highly competitive pricing for fuel has shifted the 100LL market to a primarily SS
(gas station) model. For jet fuel, contract rates and discounts favor higher fuel-volume purchases
for customers using these rates.

Unbundling of FBO Services


Changes in fuel markets have led FBOs to reevaluate their business model. Historically, an
FBO at an airport was an FS organization that offered fuel, aircraft handling, maintenance and
repair, flight training, aircraft rental, hangar space, concierge services, route planning, lounges,
and other passenger or pilot support services. Occasionally, an FBO would manage the airport
as well. In sum, the FBO served as the GA gateway to the airport. In the 1960s and 1970s, there
was enough growth in the industry to support many small FBOs and often multiple FBOs at a
single airport.
A diversified set of FBO services does not always make financial sense today and presents
practical challenges to retaining mechanics and staff for low-volume services while at the same
time preserving adequate revenue to cover expenses. The FS FBO business model needed to
evolve, and it did.
For many small airports, the challenges were insurmountable. Fuel sales have been the princi-
pal source of revenue. Some FBOs have closed permanently, with the airport sponsor taking over
and providing limited FBO services. Given a smaller GA industry and stagnant growth of GA
activity, FBOs and airport sponsors are experimenting with unbundling FBO services. Limited
demand for 100LL has caused many airport sponsors to set up an SS facility for aircraft-based
owners. Signature Flight Support offers hangar space, line, and concierge services at all locations
and has established relationships with specialists on the airfield for maintenance, repair, or flight
training or refers its customers to a nearby location where these specialty services are available
within the Signature network. It is also apparent from this report that on-airport specialists are
branching out to serve as fuel providers. For example, aerial applicators based at a public air-
port will sell retail fuel. Sometimes, on-airport specialists with core businesses in flight training,
charters, or avionics will take over fueling and even airport management.

Active Use of Digital Tools


Given use of flight planning software by private pilots and flight departments, customers
expect immediate or informed responses from FBOs of all sizes. This translates into expectations
for the following:
• Easy-to-use FBO reservation systems;
• Privacy with respect to individual flight plans;
• Available current pricing for fuel and services, including contract rates and discounts; and
• Ability to communicate with customers through various social media channels.

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Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    25  

Fixed-base operators have added electronic capabilities to address these expectations and to
participate more effectively in local, regional, and national markets. Digital capabilities have
enabled FBOs to do the following:
• Manage fuel inventories.
• Time fuel orders and deliveries.
• Keep track of SS and FS transactions on a point-of-sale (POS) system.
• Pay bills, transfer revenues to the sponsor, and keep records that can be audited.
• Maintain current fuel prices on the Internet.
• Communicate regularly with existing and new customers.

FBO Networks, Franchises, and Affiliates Continue to Build Out


Market Reach and Service Portfolios
The largest FBO service companies have built substantial service networks throughout the
United States and worldwide. In February 2016, BBA Aviation, a global aviation support and
service provider group and owner of Signature Flight Support, completed its purchase of
68 Landmark Aviation FBOs. As of August 2019, Signature Flight Support owned and operated
a total 124 FBO locations in the United States and had affiliations with seven additional FBOs
under the Signature Select program. Worldwide, Signature operates an additional 76 FBO loca-
tions. Atlantic Aviation, a wholly owned subsidiary of Macquarie Infrastructure Corporation
(MIC), has invested more than $2 billion to build its large FBO chain, which has grown from
18 locations in 2005 to more than 70 in 2018 (Moorman 2008). Million Air has 31 franchise and
corporate-owned FBOs worldwide, and Paragon Network has 25 affiliates in the United States
and 32 worldwide. The CAA also has a list of 254 preferred FBOs in the continental United
States, as well as two offshore in Nassau, Bahamas, and St. Thomas, U.S. Virgin Islands, that offer
fuel and ramp fee discounts to members.
While the field of FBO candidates for acquisition may have narrowed, acquisitions have
nevertheless continued, especially among long-time FBO operators and private equity firms. Jet
Aviation has continued to expand with new or renovated facilities at Teterboro, Van Nuys, and
Dallas in the United States and acquisitions of Hawker Pacific FBOs in Australia and KLM Jet
Centers in Amsterdam and Rotterdam. Sheltair expanded into the Colorado market at Rocky
Mountain Metropolitan. Lynx FBO, owned by Sterling Group private equity, acquired five loca-
tions, including facilities at Fort Lauderdale Executive, Allegheny County Airport in Pittsburgh,
Napa Jet Center, Anoka County-Blaine Airport (Janes Field) near Minneapolis-St. Paul, and the
FBO at Little Rock. Modern Aviation, funded by Tiger Infrastructure Partners, which formed
in 2017, has acquired FBO facilities at Boeing Field, Centennial Airport, and Wilmington Inter­
national Airport. Ross Aviation has completed acquisition of Rectrix Aviation (five FBOs) and
two other FBOs, one in the Cayman Islands and another in Fairbanks, Alaska.
Fixed-base operator networks are also developing and expanding their portfolio of avia-
tion service businesses. BBA Aviation operates 16 aircraft maintenance companies, 13 in the
United States, under the TECHNICAir brand. In May 2018, BBA acquired EPIC Fuels, a fuel
and fuel-related services supplier. The acquisition gave BBA connections with an additional
205 privately owned and independent FBOs and built out their non-owned network of FBOs
initiated through the Signature Select program. The acquisition of a fuel supplier also provided
a conduit for well-priced fuel to all FBOs in the network. Avfuel Corporation went in the other
direction, beginning first as one of the leading independent suppliers of fuel in the United
States. Having established supply and logistics relationships, Avfuel developed its branded net-
work of 15 FBOs, Avflight, and has a total of 634 locations that are branded Avfuel dealers
participating in a virtual network.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

26   Characteristics of the FBO Industry 2018–2019

Large-Network FBOs Dominate Business Aviation and Smaller FBOs


Support Flight Training Centers at the Busiest GA Airports
Network FBOs participate in large markets where there is extensive business aviation activity.
Small private FBOs and publicly owned FBOs serve a wide range of GA situations, from the
smallest GA airports to airports where extensive flight training is offered. The airports where
network FBOs locate tend to have more itinerant GA operations and notable business jet
activity. Table 7 shows the 10 busiest U.S. airports for GA operations in 2018 and the FBOs that
are located on the airfield. Airports with more than 60% local operations are highlighted in blue
and indicate the presence of extensive flight training operations and relatively few arrivals and
departures of business jets. The airports where network FBOs locate have more itinerant GA
operations and notable business-jet activity.

Ongoing Challenges for FBOs


Self-Fueling by Large Customers
Self-fueling is the right of an aircraft owner or operator to self-fuel their aircraft with their
own employees, equipment, and fuel tanks (with caveats) at any airport where the sponsor has
entered into grant agreement with the FAA, binding the sponsor to all federal obligations. Self-
fueling is distinguished from a commercial SS pump that allows a pilot to fuel an aircraft from
a fueling tank that is owned by an FBO or an airport sponsor. Even in an instance where an
airport sponsor has exercised proprietary exclusive rights, an individual owner or operator may
self-fuel, provided that self-fueling is done “in accordance with reasonable rules, regulations, or
standards established by the airport sponsor” (FAA AC 150/5190-6, Exclusive Rights at Federally
Obligated Airports, Washington, D.C.).
Self-fueling is prevalent at some airports and can include private companies, fuel consor-
tiums, and public agencies that maintain their own fuel tanks and self-fuel. These airport tenants
tend to be large fuel consumers. From an FBO perspective, these groups are at the airport but
not available as fuel customers.

Pricing of Fuel and Services to Cover Direct and Indirect Costs


At some smaller airports, fuel prices are established primarily by the delivered product cost
and the going rate at nearby competing airports. If there is a competing airport that is a low-price
leader, the price floor may be set very low to attract customers. Covering both the delivered cost
and expenses for operating and maintaining the fuel facility is an ongoing challenge, especially
in low-volume markets where fuel customers primarily purchase 100LL. (See Kramer et al. 2019,
Chapter 12, for a full discussion of fuel pricing.)

Pilot and Mechanic Shortages and FBO Employee Retention


Issues Persist
In a full employment economy and rising wages, job mobility is not only possible, but preva-
lent. For FBOs, a robust economy has magnified issues of mechanic shortages and retention of
employees, particularly line service employees, because of the following:
• Workforce demand is outstripping workforce growth.
• Starting average wages are low compared with the job requirements and responsibilities.
• Training and regulatory requirements, particularly for mechanics, are arduous.
• There is strong competition from other industries.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019
Table 7.   FBOs at airports ranked highest for GA operations in 2018.
Copyright National Academy of Sciences. All rights reserved.

Domestic
FAA Airport Percent Operations by
Facility Airport Name and Asset Total GA Local Local Top 12 Business
Rank ID State Category Operations Operations (%) Jet Aircraft FBOs on Airport
1 DVT Phoenix Deer Valley, AZ GA - National 415,684 269,689 65 813 Cutter, Sibran
Denver Jet Center, Modern Aviation, Signature,
2 APA Centennial Airport, CO GA - National 304,259 163,040 54 15,460 TAC Air, The Heliplex
The Fuel Depot, North Perry Central FBO,
3 HWO North Perry, FL GA - Regional 299,161 201,023 67 1 Hollywood Aviation
Reliance Aviation, International Flight Center,
4 TMB Miami Executive, FL GA - Regional 259,976 112,302 43 3,096 Signature, Advanced Aircraft Center
5 GFK Grand Forks, ND Non-hub 258,777 246,399 95 238 Avflight Grand Forks
Signature, Castle & Cooke, Clay Lacy, Jet Aviation,
6 VNY Van Nuys, CA GA - National 250,779 90,441 36 22,909 The Park VNY
Golden State, Circle, High Performance Aircraft, GS
7 SEE Gillespie Field, CA GA - National 249,630 157,467 63 658 Jet
8 PRC Ernest A. Love Field, AZ GA - Regional 232,767 157,671 68 446 Legend Aviation
9 SNA John Wayne, CA Medium Hub 232,324 112,047 48 14,152 Atlantic Aviation, ACI Jet
10 LGB Long Beach, CA Small Hub 229,810 115,243 50 3,128 Signature, Ross Aviation
Source: Compiled from FAA Operations Network (OPSNET) via GAMA 2018 Annual Report, AirNav.com, FAA Traffic Flow Management System Counts (TFMSC), Aviation System Performance
Metrics.
Note: The business jet aircrafts with the largest number of operations in 2018 included the following: C56X – Cessna Excel/XLS; E55P – Embraer Phenom 300; H25B – Bae HS 125/700-800/
Hawker 800; C560 – Cessna Citation V/Ultra/Encore; CL30 – Bombardier (Canadair) Challenger 300; GLF4 – Gulfstream IV/G400; BE40 – Raytheon/Beech Beechjet 400/T-1; C680 – Cessna
Citation Sovereign; EA50 – Eclipse 500; and C510 – Cessna Citation Mustang.
Characteristics of the FBO Industry 2018-2019

28   Characteristics of the FBO Industry 2018–2019

When many FBOs were family-run businesses, staff also were family and trained in all aspects
of the business, with the expectation that the children would one day take over the business.
Fast forward to today and for multilocation FBOs, owned by large companies or private equity
firms, staffing is more traditional and hierarchical. A typical wage for a line service technician is
$13 to $25 per hour for a private FBO (Indeed); publicly owned FBOs tend to pay living wages
that may be higher and conform to local government personnel rules. Some GA FBOs with high
seasonal variations in traffic will maintain a core staff and hire seasonal workers without fringe
benefits (e.g., health insurance or personal time off) for peak periods to control operating costs.
Line service personnel have important responsibilities. They are the first face a customer sees
and are typically responsible for the following:
• Customer service;
• Traffic control and aircraft parking on the ramp;
• Safety of the aircraft while on the airfield;
• Fueling and handling of expensive aircraft;
• Testing fuel quality and inventory levels;
• Maintaining equipment in clean and functional condition; and
• Airfield maintenance, snow removal, and possibly deicing (if a publicly owned FBO).
At some airports where the FBO is publicly owned, line service personnel are cross-utilized
for providing airfield maintenance (e.g., mowing), snow removal, and some support aircraft
rescue and firefighting.
In a full employment environment, working in FBO management or becoming a pilot (now
that pilot shortages have led to higher salaries) are attractive career paths, but may leave con-
tinual openings in line service. FS FBOs have also experienced shortages in aviation maintenance
technicians and mechanics. To address mechanic shortages, some FBOs use third party mainte-
nance specialists on the airfield instead of in-house maintenance technicians. At larger airports,
affiliations with SASOs are increasingly common.

Replacement for Leaded Fuel


Lead is a required additive in gasoline for preventing detonation of fuel in piston engines
operating at altitude and at high performance. According to the FAA, “Lead is a toxic substance
that can be inhaled or absorbed in the bloodstream, and the FAA and EPA and industry are
partnering to remove it from 100LL. 100LL emissions have become the largest contributor to
the relatively low levels of lead emissions produced in this country” (FAA, Aviation Gasoline 2019).
The Piston Aviation Fuels Initiative began in 2013 with a goal to develop replacement options
for 100LL as leaded fuel. In September 2014, the FAA selected four unleaded fuels for a Phase 1
testing program. Subsequently, in March 2016, Shell and Swift fuels were selected for more
intensive engine and aircraft testing. Initial Phase 2 testing resulted in identification of several
issues to resolve. In September 2018, Swift suspended testing, but Shell has agreed to continue
to address problem areas. New flight and engine testing are delayed now until mid-2020, making
piston aircraft conversions to an unleaded fuel an issue beginning early in the next decade. For
airports and FBOs owning 100L storage tanks, a replacement fuel for 100LL may require envi-
ronmental cleanup, new storage tanks, and fuel lines.

2020 Compliance with ADS-B Requirements


Automatic Dependent Surveillance-Broadcast (ADS-B) systems are foundational for imple-
mentation of NextGen as the FAA moves from reliance on ground radar for air traffic con-
trol to navigational aids that track aircraft using satellite signals. On January 1, 2020, the FAA

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Characteristics of the FBO Industry 2018-2019

Key Factors Shaping the FBO Industry    29  

required all aircraft operating in defined airspace according to Federal


Regulation 14 CFR § 91.225 (CFR-2011-title14-vol2-sec91-225.pdf) The following types of airspace require
to install an ADS-B transponder in an aircraft that transmits GPS coor- ADS-B:
dinate data to a ground-based receiver, where they are processed for
air traffic control. Not all aircraft will be required to equip for ADS-B, 1. Class A, B, and C airspace.
but flying will be restricted in controlled airspace. The FAA estimates 2. Class E airspace within the 48 con-
that between 106,000 and 167,000 GA aircraft may need to be equipped tiguous states and the District of
with ADS-B. As of September 2019, approximately 60,000 aircraft have Columbia at and above 10,000 feet
been equipped with ADS-B Out avionics and are ready for the 2020 mean sea level (MSL), excluding the
mandate. airspace at and below 2,500 feet
FBOs that purchase an ADS-B “in-only” receiver can monitor above the surface.
ADS-B–equipped aircraft in a range of 200 miles of airspace around 3. Class E airspace at and above 3,000 feet
an airport and keep track of arriving and departing aircraft. From the MSL over the Gulf of Mexico from the
FBO’s perspective, knowledge of inbound aircraft can help to plan for coastline of the United States out to
impending ramp space and line service needs. 12 nautical miles.
4. Around those airports identified in
14 CFR part 91, Appendix D [FAA].
Wrap-up on Trends
During solid performance of the economy, commercial aviation
has remained profitable. Yet, GA is still an industry that has seen little
growth in the fleet, especially for smaller personal aircraft. GA has achieved stability, offsetting
declines in the large and dominant piston aircraft segment with growth in business aviation. The
FBO industry has learned to be a nimble responder to changes in demands for service, an evolv-
ing GA fleet, implementation of new technologies, and development of new revenue sources and
capital requirements to continue operating. Growth of network services, software management
solutions, cultivation of loyal customers, and useful alliances with specialty service providers
are some of the many ways that FBOs continue to manage their business and preserve margins.

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Characteristics of the FBO Industry 2018-2019

CHAPTER 3

FBOs Operating in the United States

This chapter examines the 3,718 FBOs operating in the United States that have listings in the
AirNav database as of December 2018. The FBOs of interest are those operating at public use
airports, a total of 3,661 FBOs. A few FBOs (57) operate at private-use landing facilities and
are listed in the AirNav database; however, these FBOs are excluded from this analysis because
the public does not have access to their services and facilities. Furthermore, there is reason to
believe that FBOs at private-use airports are more numerous than 57 but have not been listed
with AirNav. Figure 15 shows how FBOs at public-use airports are described in this chapter, first
by type of FBO and then by location.

Types of FBOs
FBO Ownership Patterns
As shown in Figure 16 and Table 8, the majority of FBOs (57%) operating at public-use
airports are privately owned. Airport sponsors, including municipalities, counties, and airport
authorities, own 42% of FBOs, and a small number of FBOs (19) are owned and operated by
colleges or universities.

Types of Public-Use Facilities by FBO Ownership


As shown in Table 9, the vast majority of FBOs exist at conventional airport facilities. There
are a few FBOs at heliports and seaplane bases. As noted previously, most heliports are owned
privately, many by hospitals, and are not open to the public.

FBO Business Models


There is great diversity among the 3,661 FBOs at public-use airports that reflect scale of
operations, capital investment, services offered, number of locations, ownership, and marketing
strategies. This publication divides FBOs into four groups, each of which will be examined in
greater detail in subsequent chapters.
• Publicly Owned FBOs. These FBOs include municipalities, counties, authorities, schools,
branches of the military, or other governmental groups and represent an estimated 43% of
all FBO locations at public-use airports. Most FBOs in this group are individual operators.
• Independents. Privately owned, independent FBOs, known historically as “mom and pop”
FBOs, operate at one or two locations and at one time were owned by individuals or families.
This group remains the largest group numerically in the industry, composed of 1,666 locations,
or 46% of all locations in the United States.

30

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Characteristics of the FBO Industry 2018-2019

FBOs Operating in the United States   31  

U.S. FBOs
(3,718)

At Private-Use At Public-Use
Airports (57) Airports (3,661)

Location of
Types of FBOs
FBOs

Ownership By Landing By NPIAS


By FAA Region
Patterns Facility Category

By Business Airports with


Model Multiple FBOs

Figure 15.   Analysis of FBOs operating in the United States.

University-
Owned, 19, 1%

Authorities,
Counties, &
Municipalities,
1,543, 42% Privately
Owned FBOs,
2,099, 57%

Source: Compiled from AirNav Database, December 2018, and Quadrex


Aviation, LLC.

Figure 16.   FBO ownership patterns.

Table 8.   FBO ownership patterns.

Owner Number Percent (%)


Privately Owned FBOs 2,099 57
Authorities, Counties, and Municipalities 1,543 42
University Owned 19 1
Total FBO Locations 3,661 100
Source: Compiled from AirNav Database, December 2018, and Quadrex
Aviation, LLC.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

32   Characteristics of the FBO Industry 2018–2019

Table 9.   FBO locations by type of landing facility.


Privately
Type of Landing Facility Public and University-Owned FBOs Owned FBOs Total
Airports 1,559 2,063 3,622
Heliport 2 9 11
Seaplane Base 1 26 27
Balloonports 0 0 0
Gliderports 0 1 1
Ultralight 0 0 0
Total 1,562 2,099 3,661
Source: Compiled from AirNav Database, December 2018.

• Small Networks. These consist of privately owned FBOs with three to five locations. Small
networks often concentrate in one or two regions and can take advantage of economies of
scale for fuel purchases and of cross-utilizing aviation specialists among locations (e.g., main-
tenance, flight training, aircraft rentals, and avionics).
• Large Networks, Franchises, and Affiliates. This group of FBOs has more than five loca-
tions. Each location within a network or franchise shares the same brand identity and service
standards. Discounts for fuel and other services are available at all locations. Some large net-
works are diversifying the services they offer and increasing their network reach by including
non-owned affiliates. To competitively address the market power of the large networks and
franchises, some independent and small-network FBOs are affiliating to offer similar service
levels and discounts.
Table 10 and Figure 17 present the number of companies or airport sponsors in each group,
the number of actual and average locations, and the percent share of all FBO locations.

Location of FBOs
FAA Regions
The FAA divides the United States into nine geographic regions to carry out its responsibili-
ties, which include the following:
• Aircraft safety inspections
• Aircraft and engine certification

Table 10.   Types of FBOs operating in the United States.

Number of Percent of
Individual Number Average Total
Companies or of Number of Locations
FBO Ownership Airport Sponsors Locations Locations (%)
Publicly Owned FBO 1,562 1,562 1.0 43
Independents (1-2 locations) 1,556 1,666 1.1 46
Small Networks (3-5 locations) 28 94 3.4 3
Large Networks and Franchises (> 5 locations) 14 339 24.2 9
Total 3,160 3,661 1.2 100
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

FBOs Operating in the United States   33  

Large Networks & Franchises


Small Networks (> 5 locations), 339, 9%
(3-5 locations),
94, 3%

Publicly Owned FBO,


1,562, 43%

Independents (1-2
locations), 1,666,
46%

Source: Compiled from AirNav Database, December 2018.

Figure 17.   Relative shares of different FBO owners.

• Engine and propeller rulemaking


• Airport planning and design assistance
• Air traffic control operations
• Incident/accident response and airmen certification
• Regional counsel
• Human resources
• Civil rights
• Logistical support
Figure 18 shows the FAA regions and the number of FBO locations in each region. Table 11
displays each region’s GDP, share of FBO locations, public-use airports, and based aircraft. For
example, the Great Lakes Region has 20% of listed FBO locations, 21% of public-use airports,
and 17% of based aircraft. The Southern Region has the same share of FBO locations and based
aircraft (18%), but only 14% of public-use airports. GA activity is somewhat concentrated in this
region. California, Nevada, and Arizona, also a region of intense activity, have 8% of public-use
airports, 9% of FBO locations, and 15% of based aircraft.
Table 12 describes FAA classifications for GA airports. These are of interest, as they provide a
comprehensive way to consider FBO size and services performed at individual airports.

FBOs at Airports in the National Plan of Integrated


Airport Systems (NPIAS)
The NPIAS report is prepared by the FAA, U.S. Department of Transportation (DOT), and
submitted to Congress every 2 years. The 2019–2023 NPIAS contains data for about 3,321 exist-
ing public-use airports and proposed airports. Of utility to this report is the NPIAS grouping of
airports. Airports that have scheduled air service with 10,000 or more enplaned passengers are
considered primary commercial service airports. These are grouped as large, medium, small,
and nonhub airports. Nonprimary airports include commercial service airports (with between
2,500 and 9,999 enplaned passengers per year), relievers, and GA airports. A reliever airport

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

34   Characteristics of the FBO Industry 2018–2019

736
148
389

358 366

347
661
578

78

Figure 18.   FBOs at public-use airports by FAA region.

Table 11.   Regional GDP, FBO locations, public-use airports, and based aircraft by FAA region.

Annual Percent
Regional Total Percent of Public- Percent Percent
GDP Public- of Use of FBO of Based
Regional (millions $) FBO Use Based Regional Airports Locations Aircraft
FAA Region Code 4Q 2018 ($) Locations Airports Aircraft GDP (%) (%) (%) (%)
Alaska AAL 54,851 78 394 5,400 0.3 8 2 3
Central ACE 810,195 358 467 11,587 4 9 10 6
Eastern AEA 4,399,758 366 455 18,768 21 9 10 10
Great Lakes AGL 3,303,393 736 1,051 32,388 16 21 20 17
New England ANE 1,545,739 148 180 6,450 7 4 4 3
Northwest Mountain ANM 1,545,739 389 645 25,593 7 13 11 13
Southern ASO 3,396,306 661 734 33,936 16 14 18 18
Southwest ASW 2,508,591 578 767 28,847 12 15 16 15
Western Pacific AWP 3,635,819 347 399 29,291 17 8 9 15
Totals 21,200,391 3,661 5,092 192,260 100 100 100 100
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018, AirNav Database, December 2018, and U.S. Bureau
of Economic Analysis.
Note: This table omits Puerto Rico and the Virgin Islands.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019
Table 12.   Description of FAA asset classifications for GA airports.

National Regional Local Basic


Support the national airport Supports regional economies by connecting Supplements local communities by providing Provide a means for GA flying and link the
system by providing communities communities to regional and national access to markets within a state or community to the national airport system.
access to national and markets. Generally located in metropolitan immediate region. Local airports are most These airports support GA activities (e.g.,
international markets in multiple areas and serve relatively large populations. often located near larger population centers, emergency services, charter or critical
states and throughout the United Regional airports have high levels of activity, but not necessarily in metropolitan or passenger service, cargo operations, flight
States. National airports have with some jets and multiengine propeller micropolitan areas. Most of the flying at training, and personal flying). Most of the
Copyright National Academy of Sciences. All rights reserved.

very high levels of aviation aircraft. The metropolitan areas where local airports is by piston aircraft in support flying at basic airports is self-piloted for
activity, with many jets and regional airports are located can have an of business and personal needs. These business and personal reasons using
multiengine propeller aircraft. urban core population of between 10,000 airports typically accommodate flight propeller-driven aircraft. They often fulfill
and 50,000. training, emergency services, and charter their role with a single runway or helipad,
passenger service. and minimal infrastructure.

Airports meet one of the bulleted minimum criteria for annual activity as follows:
• 5,000 or more instrument • In an MSA, 10 or more domestic flights • Publicly owned and 10 or more • Publicly owned with 10 or more based
operations, over 500 miles, 1,000 or more Instrument operations and 15 or more aircraft or four based helicopters if a
• 11 or more based jets, instrument operations, and one or based aircraft; or heliport;
• 20 or more international more based jets or 100 or more based • Publicly owned and 2,500 or more • Publicly owned located 30 or more
flights or 500 or more aircraft; enplanements. miles from the nearest NPIAS airport;
interstate departures, • Reliever with 90 or more based
• Owned or serving a Native American
• 10,000 or more aircraft; or
enplanements and at least community;
• Nonprimary commercial service
one enplanement by a large airport (requiring scheduled service) • Identified and used by the U.S. Forest
certificated air carrier with an MSA. Service, U.S. Marshals, U.S. Customs
• 500 million pounds of and Border Protection (designated,
landed cargo weight. international, or landing rights), U.S.
Postal Service (air stops), or has
Essential Air Service;
• A new airport or replacement (publicly
owned) airport that has opened within
the last 10 years; or
• Unique circumstances related to
special aeronautical use.

Unclassified
Currently in the NPIAS but with limited activity. If the next review of an unclassified airport’s activity shows levels that meet the criteria for one or more of the classifications,
that airport will be reclassified in the next published NPIAS.
Source: National Plan of Integrated Airport Systems (2019–2023), Appendix C: Statutory and Policy Airport Categories Used in the NPIAS Report.
Characteristics of the FBO Industry 2018-2019

36   Characteristics of the FBO Industry 2018–2019

refers to an airport designated to relieve congestion at a nearby commercial service airport and
to provide more GA access to the overall community. These categories of airports became the
standard units for analysis. Beginning in 2012, the FAA further refined GA airports into five
categories: national, regional, local, basic, and unclassified.
Table 13 summarizes the number of FBO locations by categories of airports originally defined
by statute for the NPIAS. Some NPIAS airports have no FBO; others have more than one.
Reliever airports have the largest number of airports with multiple FBOs.
Table 14 shows the number of FBO locations by both the original statutory categories and the
new asset classifications for GA airports and creates an index of FBOs to airports to get a sense
of which categories of airports have more than one FBO on the premises. Since each airport
category has a different number of airports, the index smooths these differences. Medium-
and small-hub airports and national GA airports have the highest concentration of multiple
FBOs. Conversely, at local airports there is virtually a one-to-one ratio between FBO locations
and NPIAS airports, except in the category of local commercial. The local asset category implies
a small airport that primarily serves a population center that is smaller than a metropolitan or
micropolitan area. Those local airports that have commercial service are likely to be remote
airports with regular charter or Essential Air Service, but otherwise limited in aircraft activity
that might support an FBO.

Airports with Multiple FBOs


The number of FBO locations should not be equated with the number of airports. There are
727 FBO locations at 299 airports. Some FBOs operate multiple locations on a single airport.
For example, Signature Flight Support operates three locations at Teterboro Airport (TEB)
and two locations at Van Nuys Airport (VNY). Figure 19 displays airports with multiple FBOs.
Two FBO locations on an airfield is the most prevalent number.
Table 15 groups the airports according to NPIAS roles. Airports with the greatest intensity
of GA activity also have more FBO providers. It is noteworthy that the largest commercial
service airports attempt to redirect private aircraft activity to nearby GA reliever airports, and
consequently demand for FBO services may be more limited at these airports.

Table 13.   FBO locations by public use airports, original


statutory categories.

Number of
FBO NPIAS Index of
Locations Airports Multiple FBOs
Airport Category (1) (2) (3) = (1)/ (2)*100
Total Primary Airports 544 380 143
Nonprimary Commercial Service 79 126 63
Reliever 406 261 156
General Aviation 2,180 2,554 85
Total NPIAS Airports 3,209 3,321 97
Source: Compiled from FAA, National Plan of Integrated Airport Systems (2019–2023) and
AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

FBOs Operating in the United States   37  

Table 14.   FBO locations at public-use airports by airport category.

Number of Public-Use Index of


FBO Locations Airports Multiple FBOs
Airport Category (1) (2) (3) = (1)/ (2)*100
Large Hub 46 30 153
Medium Hub 65 31 210
Small Hub 123 72 171
Nonhub 311 247 126
Total Primary Airports 545 380 143
National - GA 38 22 173
National - Reliever 153 66 232
National Subtotal 191 88 217
Regional - GA 331 296 112
Regional - Reliever 202 143 141
Regional - Commercial Service 57 53 108
Regional Subtotal 590 492 120
Local - GA 1,181 1,176 100
Local - Reliever 31 29 107
Local - Commercial Service 22 73 30
Local Subtotal 1,234 1,278 97
Basic - GA 544 840 65
Basic Subtotal 544 840 65
Unclassified - GA 86 220 39
Unclassified - Reliever 20 23 87
Unclassified Subtotal 106 243 44
Total Nonprimary Airports 2,665 2,941 91
Non-NPIAS Airports with FBOs 451 450 100
Totals 3,661 3,771 97
Source: Compiled from FAA, National Plan of Integrated Airport Systems (2019–2023)
and AirNav Database, December 2018.

215

51

17
9 7

Two Three Four Five Six or Seven


Source: Compiled from AirNav Database, December 2018.

Figure 19.   Number of airports with multiple FBO locations.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

38   Characteristics of the FBO Industry 2018–2019

Table 15.   Number of airports with multiple FBOs by NPIAS


roles/categories.
Airports Listing Total NPIAS
Airport Category Multiple FBO Locations Airports Percentage
Primary Airports
Large Hubs 12 30 40
Medium Hubs 22 31 71
Small Hubs 38 72 53
Nonhub 62 247 25
Total Primary Airports 134 380 35
Nonprimary Airports
National 58 88 66
Regional 71 492 14
Local 31 1,278 2
Basic 4 840 0
Unclassified 1 243 0
Total Nonprimary Airports 165 2,941 6
Total 299 3,321 9
Source: Compiled from FAA, National Plan of Integrated Airport Systems (2019–2023) and
AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CHAPTER 4

Profile of FBO Products, Services,


and Facilities

Fixed-base operators provide a diverse set of aviation products, services, and facilities. Fig-
ure 20 identifies the common ways that FBOs serve their GA customers and provide services
and facilities to commercial and all-cargo airlines; emergency medical; and military aircraft,
passengers, and crew.
This chapter examines what types of products, services, and facilities that FBOs reported in
the AirNav database to attract visiting aircraft to their location. Most FBOs offer fuel, ground
services, basic maintenance, a GA terminal, and hangar rentals or leasing. Flight and technical
services offered at FBOs often stem from the evolution of the FBO; that is, if an FBO began as
a flight training facility, it is heavy on flight instruction, aircraft rentals or charters, and sight-
seeing. FBOs can also concentrate on concierge services; avionics; or aircraft sales, leasing, and
management.

Fuel Services
Aircraft fuel remains a cornerstone of FBO services. In the AirNav database, 36 FBO loca-
tions reported no fuel services. This may be because tenants self-fuel, there are no based air-
craft, or the airport sponsor has opted to exclusively sell fuel at an airport where there are
multiple FBOs.

Average Fuel Prices


Average fuel prices for Jet A, 100LL, and motor gasoline (Mogas) fluctuate weekly, sometimes
daily. Figure 21 shows the wholesale/resale price of Jet A, 100LL, and Mogas for the last 20 years
(with no adjustments for inflation). Mogas prices track closely with Jet A prices. Some GA air-
craft owners have engines that can operate with Mogas instead of 100LL, which sells at a higher
price per gallon; however, only a handful of FBOs sell Mogas because this fuel competes directly
with automotive fuel sold at gas stations, which is often sold at a lower price.
Table 16 lists average fuel prices effective May 1, 2019, and is published primarily to set a base-
line for fuel prices. As noted in Chapter 2, 100LL and Mogas retail prices tend to reflect actual
retail prices paid. Jet A prices are less transparent, as jet fuel customers frequently have volume
discounts or contract rates available to them at the time of a fuel purchase.

FBO Fuel Products


FBOs offer different combinations of fuel products. Of the 3,661 FBO locations, 1,077 sell
FS and SS Jet A fuel and no 100LL. A total of 811 FBO locations offer SS 100LL exclusively,

39  

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Characteristics of the FBO Industry 2018-2019

40   Characteristics of the FBO Industry 2018–2019

Passengers, Crew, and


Aircraft Facilities
Aircraft Owners

•Guidance and parking •Loading and unloading •GA terminal building


•Ground services and •Baggage handling •Aircraft parking (ramp)
handling •Catering •Aircraft hangars
– Towing •Concierge services •Office
– Ground power •Pilot supplies •Shop
– Deicing
•Flight services •Storage
– Lavatory
– Flight training •Vehicle parking
– Potable water
– Aircraft rental
•Fuel – Aircraft charters
•Lubricants – Aerial photography
•Aircraft cleaning – Aircraft management
– Cabin – Aircraft sales
– Exterior •Ground transportation
•Technical services
– Airframe and power plant
– Avionics and instruments
– Paint and interior

Source: Adapted from Aviation Management Consulting Group, Inc. et al. 2012.

Figure 20.   Aviation products, services, and facilities.

$4.00

$3.50

$3.00
Dollars per Gallon

$2.50

$2.00

$1.50

$1.00

$0.50

$-
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20

U.S. Aviation Gasoline U.S. Kerosene-Type Jet Fuel U.S. Motor Gasoline
Source: Compiled from data available at the U.S. Energy Information Administration, https://www.eia.gov/dnav/
pet/pet_pri_refoth_a_EPJK_PWG_dpgal_a.htm.

Figure 21.   Jet, 100LL, and motor gasoline wholesale/resale price by refiners
(nominal dollars per gallon).

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Profile of FBO Products, Services, and Facilities   41  

Table 16.   Listed fuel price report as of May 1, 2019.

Fuel Types
Reporting 100LL/Avgas Jet A Mogas
FAA Region FBOs FBOs Avg. ($) Min. ($) Max. ($) FBOs Avg. ($) Min. ($) Max. ($) FBOs Avg. ($) Min. ($) Max. ($)
Nationwide 3,674 3,583 5.09 3.32 10.00 2561 4.73 2.86 10.00 89 3.86 2.49 10.00
Alaska 79 69 6.73 5.16 10.00 63 6.12 3.77 10.00 5 7.95 5.90 10.00
Central 355 352 4.74 3.58 7.59 211 4.31 3.00 7.81 18 3.58 2.99 4.20
Eastern 362 349 5.49 3.90 9.14 255 5.23 3.21 8.97 6 3.99 3.49 4.75
Great Lakes 735 725 4.97 3.60 8.59 482 4.53 2.87 8.43 26 3.58 2.99 4.30
New England 145 140 5.52 4.00 8.62 86 5.09 3.50 8.55 7 4.21 3.85 4.95
Northwest Mountain 391 381 5.22 3.85 7.15 263 4.72 3.25 7.92 12 4.14 3.50 5.15
Southern 676 664 4.99 3.57 8.49 528 4.69 2.99 8.46 9 3.53 2.49 4.00
Southwest 577 569 4.78 3.32 7.71 414 4.47 2.86 7.29 5 3.87 3.50 4.25
Western Pacific 354 334 5.39 3.99 8.52 259 5.05 3.28 8.52 1 not available
Source: AirNav, May 1, 2019.
Note: Report includes prices reported between April 8, 2019, and May 1, 2019. This is a dynamic data table that changes daily.

and these locations are owned by both publicly owned and privately owned FBOs (492 public/
319 private). Table 17 shows the different fuel service offerings, starting with the most frequent
combinations of fuel services.
Table 18 shows FBO fuel services by NPIAS airport category. At primary airports, most
FBO fuel services are located at small and nonhub airports. Few of these FBOs sell 100LL.
At national nonprimary airports, Jet A fuel is also the predominant fuel service. However, at the
smaller nonprimary airports, both Jet A and 100LL are sold, and 70% of FBO locations at
NPIAS airports offer SS 100LL. FS 100LL is far less prevalent.

Brand Market Share


Fuel suppliers serve both national and international markets. Some fuel distributors may
focus on certain regions of the country. Avfuel, for example, began in the Upper Midwest and

Table 17.   Fuel services at public-use airports.

Jet A 100LL Percentage


Number of of
Fuel Services FS SS FS SS Locations Share
FS and SS Jet A Only X X 1,077 29.4
SS 100LL Only X 811 22.2
FS Jet, SS Jet A, SS 100LL X X X 449 12.3
FS and SS 100LL X X 365 10.0
All Fuel Services X X X X 342 9.3
SS 100LL and SS Jet A X X 152 4.2
SS Jet A Only X 128 3.5
FS Jet A and SS 100LL X X 119 3.3
FS Jet, FS 100LL, SS 100LL X X X 85 2.3
FS Jet A Only X 65 1.8
No Advertised Fuel Services 36 1.0
FS 100LL Only X 11 0.3
Other Configurations 21 0.6
All FBO Locations 3,661 100.0
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

42   Characteristics of the FBO Industry 2018–2019

Table 18.   Fuel services by airport category.

Full Service Self Service Public-Use


Airports with
Airport Category Jet A 100LL Jet A 100LL FBO Locations FBOs
Primary Airports
Large Hubs 45 0 38 1 46 30
Medium Hubs 65 1 59 1 65 31
Small Hubs 116 0 108 24 123 72
Nonhub 280 21 270 96 311 247
Total Primary Airports 506 22 475 122 545 380
% of Primary Airports 93% 4% 87% 22% 100%
Nonprimary Airports
National 178 2 172 48 191 88
Regional 518 96 517 323 590 492
Local 702 467 636 963 1,234 1,278
Basic 153 164 180 446 544 840
Unclassified 19 19 37 83 106 243
Total Nonprimary Airports 1,570 748 1,542 1,863 2,665 2,941
% of Nonprimary Airports 59% 28% 58% 70% 100%
Non-NPIAS Public-Use Airports 67 54 147 350 451 450
Totals All Categories 2,143 824 2,164 2,335 3,661 3,771
Percent of FBO Locations 59% 23% 59% 64% 100%
Source: Compiled from FAA, National Plan of Integrated Airport Systems (2019–2023) and AirNav Database,
December 2018.

has since expanded both its fuel distribution and network of FBOs internationally. Figure 22
shows market share by brand. Phillips 66, Avfuel, and Shell have the largest branded presence at
FBO locations. However, almost one-third of FBOs have opted to not sell branded fuel listing
their fuel products as either undesignated or independent. Signature Flight Support lists its fuel
brand as independent, but likely purchases fuel from multiple fuel suppliers.
Table 19 numerically shows brand market share. Of branded fuels, Phillips 66, Avfuel, Shell,
and EPIC have the largest market presence. Avfuel, EPIC, and World Fuel have more locations
with private FBOs.
Table 20 shows brand shares for airports that offer SS 100LL fuel exclusively. The largest
group of FBOs in this category tends to purchase fuel on the spot market, with 54% either
undesignated or independent with respect to brand. This is not surprising, as volumes of 100LL
fuel sold tend to be small and fuel deliveries less frequent. That said, Phillips 66 and Avfuel
actively supply this group, as does Shell and EPIC to a lesser extent.

Other FBO Products, Services, and Facilities


Beyond fuel, FBOs offer additional products, services, and facilities directed at supporting
based and visiting aircraft as well as passengers, cargo, and crew. Among the most expected
aircraft services include the following:
• Available SS or FS fuel (100LL and Jet A) and lubricants (for piston and turbine engines);
• Basic line services that include guiding and towing aircraft that are arriving or departing
as well as operating airfield equipment such as fuel trucks, aircraft-towing vehicles, and
luggage carts;

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Undesignated or No
Texaco, 19, 0% Fuel, 259, 7% World Fuel, 135, 4%
Tesoro, 3, 0%

Shell, 534, 15% Avfuel, 677, 18% Chevron, 3,


0%
EPIC, 250, 7%

Phillips 66, 844, 23%

Independent, 936,
26%

ExxonMobil, 1, 0%
Source: Compiled from AirNav Database, December 2018.

Figure 22.   Fuel brand market share.

Table 19.   Fuel brand share by FBO location.

Use of Brand By:


Number Percentage of Public/School Private
Fuel Brand of Locations Brand Share FBOs FBOs
Phillips 66 844 23 415 429
Avfuel 677 18 222 455
Shell 534 15 248 286
EPIC 250 7 100 150
World Fuel 135 4 41 94
Texaco 19 1 5 14
Chevron 3 0 2 1
Tesoro 3 0 0 3
ExxonMobil 1 0 0 1
Independent 936 26 378 558
Undesignated or No Fuel 259 7 151 109
Total 3,661 100 1,562 2,099
Source: Compiled from AirNav Database, December 2018.

Table 20.   Brand share for SS 100LL fuel facilities.

Number Percentage of
Fuel Brand of Locations Brand Share Public FBOs Private FBOs
Phillips 66 155 19 92 63
Avfuel 95 12 59 36
Shell 59 7 41 18
EPIC 43 5 20 23
World Fuel 20 2 12 8
Texaco 7 1 3 4
Chevron 2 0.2 2 0
ExxonMobil 1 0.1 0 1
Independent 313 39 179 134
Undesignated Brand 116 14 84 32
Total 811 100 492 319
Percent Public/Private 61% 39%
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

44   Characteristics of the FBO Industry 2018–2019

• Aircraft cleaning of the cabin, lavatory, and exterior, as well as resupply of potable water;
• Technical services to maintain the airframe and power plant, avionics, and instruments;
• Parking for aircraft on the ramp or in hangars/vehicle parking; and
• Aircraft management.
Less commonly, an FBO will be called upon to manage fuel storage on behalf of commercial
airlines or high-volume private users; load or unload air cargo on or off an aircraft; move air
cargo to or from an on-airport warehouse; or paint or otherwise modify the exterior or interior
of an aircraft.
FBO services for passengers, crew, or aircraft owners commonly include the following:
• Assistance with loading and unloading baggage or cargo;
• A GA terminal building with lounge, office space, Wi-Fi, pilot supplies, restrooms, showers,
and food and beverages;
• Concierge services involving hotel and restaurant reservations and catering;
• Ground transportation to and from the airport via courtesy cars, rental cars, taxis, transporta-
tion network companies (e.g., Uber or Lyft), or public transportation; and
• Flight services such as flight instruction, aircraft rental and charters, and aerial photography
and sightseeing.
At some smaller airports the FBO provides basic services, products, and facilities and may also
manage the airport for the airport sponsor.
Websites such as AirNav, AC-U-KWIK, FlightAware, and AOPA each list aviation fuel
services, current prices, and fuel brands available at airports. In addition, FBOs will list products,
services, and facilities that may attract pilots, flight departments, and dispatchers. This study
performed a word search on the AirNav database to determine the most advertised FBO
products, services, and facilities. The results are presented in Table 21. Of note, virtually
100% of FBO locations offer some fuel services, 42% offer hangar rentals, and 40% have some
sort of courtesy transportation or crew cars. These three services make up the most common
FBO services and facilities. Also, 20% of FBOs also perform airport management duties.

Table 21.   Key products, services, and facilities at FBO locations.

Service Offered Percentage


FBO Products, Services, and Facilities at FBO Locations of Locations
Fuel Services 3,625 99
Hangar Rental and Leasing 1,549 42
Courtesy Transportation or Crew Cars 1,473 40
General Aviation Terminal 1,069 29
Maintenance, Repairs, and Parts (including third-party) 1,058 29
Ground/Line Services, Cleaning, and Detailing 962 26
Airport Management 734 20
Aircraft Rental and Charters 687 19
Flight Training, Pilot School, and Ground Training 684 19
Aerial Tours and Photography 350 10
Aircraft Sales or Leasing 286 8
Avionics Sales and Service 260 7
Aircraft Painting, Interiors, and Modifications 243 7
Aircraft Management 169 5
All FBO Locations 3,661 100
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Profile of FBO Products, Services, and Facilities   45  

Noncommercial Landing Fees and Other Fees


On the commercial air service side, airlines in 2018 posted their 10th consecutive year of
profits since the recession of 2008. Several factors have contributed to this profitability, including
a sustained economic recovery and careful management of capacity and yields by the airlines.
In addition, the unbundling of airfares with fees for baggage, seats, and meals has also been a
significant contributor to the bottom line. For GA airports, the imposition of landing, ramp,
and other handling fees are subjects of debate. Most airports advertise current fuel prices, and
some airports and FBOs are voluntarily posting fee schedules on their websites. FBO fees and
fuel information are also available to any customer that asks for it.
FAA Form 5010-1, Airport Master Records, keeps track of airports that charge non­
commercial landing fees. As of December 2018, 311 primary and nonprimary airports charge
landing fees for noncommercial aircraft. These airports include the following:
• 263 publicly owned airports,
• 45 privately owned airports, and
• three airports owned by the U.S. Air Force.

Table 22 shows the types of primary and nonprimary NPIAS airports that have non­
commercial landing fees. This group of public-use airports represents about 9% of NPIAS
airports. More than half of large-hub airports use landing fees for both commercial and non-
commercial aircraft. Several nonprimary airports, especially destination airports, as well as
airport sponsors that manage multiple airports, also charge noncommercial landing fees, but
as of 2018, these landing fees remain relatively rare.

Table 22.   NPIAS airports with noncommercial landing fees.

NPIAS Airports
with Noncommercial NPIAS Percentage of
Airport Category Landing Fees Airports Share
Large-Hub 19 30 63
Medium-Hub 9 31 29
Small-Hub 22 72 31
Nonhub 76 247 31
Total Primary Airports 126 380 33
National 25 88 28
Regional 42 492 8
Local 40 1,278 3
Basic 21 840 3
Unclassified 57 243 23
Total Nonprimary Airports 185 2,941 6
Total NPIAS Airports 311 3,321 9
Source: FAA, National Plan of Integrated Airport Systems (2019–2023) and AirNav
Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CHAPTER 5

Private FBOs

The majority of FBOs in the United States are owned and operated by private companies.
At public-use airports, private companies operate 2,099 FBO locations or 57% of all FBOs
(3,661) at these airports. For the purposes of this synthesis, private FBOs were divided into
three groups according to the number of locations a company operated. As shown in Figure 23,
the vast majority of FBO locations are operated by local companies in one or two locations.
Table 23 identifies the number of companies in each group. Independents are primarily single-
location companies. On the other end of the spectrum are large networks with an average of
24 locations per company. Because there is such a wide spectrum of companies operating in
the FBO sphere, each group is described separately in this chapter.

Independent FBOs
Independent FBOs are still the largest group of FBOs. A total of 1,556 individual companies
operate one or two FBO locations; 80% of these are located at publicly owned airports as
Table 24 shows.
Table 25 examines independent FBOs by NPIAS airport category and the incidence of multiple
FBOs at an airport. Small-hub airports and national GA airports have the highest frequency of
multiple independent FBOs; however, they still average only one or two FBOs per airport.
Table 26 shows the geographic distribution of independent FBOs. Nationwide, independents
represent 46% of all FBO locations. There appear to be higher concentrations of this type
of FBO in the Alaska, Eastern, New England, Northwest Mountain, and Western Pacific FAA
regions. The Southern FAA region, which has the largest number of FBO locations, has the
smallest representation of this category of FBO.
Table 27 shows the types of fuel products offered at independent FBO locations. In contrast
with publicly owned FBOs, the top fuel offering is FS and SS jet fuel, representing more than
one-third of all locations in this category. SS 100LL is another strong offering at 18% of loca-
tions, followed by FS 100LL and SS jet and 100LL fuel at 13%.
A total of 71% of independent FBOs sell a specific fuel brand; 29% purchase fuel in the
open market or purchase fuel from multiple fuel suppliers. Figure 24 and Table 28 show brand
market shares for this group of FBOs. Phillips 66 and Avfuel have a combined market share of
45%, followed by Shell (12%) and EPIC (8%).
As shown in Table 29, the top five services, products, and facilities available at independent
FBO locations include fuel, hangar rentals and leasing, courtesy transportation or crew cars,
maintenance and repairs, and ground and line services. Aircraft rentals and charters and flight
training are also among the core services at more than 25% of this group of FBOs.

46

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Private FBOs   47  

1,666

339

94

Independents (1-2 Small Networks (3-5 Large Networks (> 5


locations) locations) locations)
Source: Compiled from AirNav Database, December 2018.

Figure 23.   Ownership patterns of private FBO locations.

Table 23.   Private FBO average number of locations per company.

Average Percentage of
Number of Number of Number of Total
Companies Locations Locations Locations
Independents (1-2 locations) 1,556 1,666 1.1 46
Small Networks (3-5 locations) 28 94 3.4 3
Large Networks (> 5 locations) 14 339 24.2 9
Total 1,598 2,099 1.3 57
Source: Compiled from AirNav Database, December 2018.

Table 24.   Airport ownership where independent


FBOs operate.

FBO
Airport Ownership Locations Percentage of Airport Ownership
Publicly Owned 1,336 80
Privately Owned 327 20
Military Joint Use 3 0.2
All Independent FBOs 1,666 100
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of
December 5, 2018, and AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Table 25.   Independent FBOs by type of airport.

Number Number FBOs


Airport Category of FBO Locations of Airports per Airport
Primary Airports
Large-Hub 5 4 1.3
Medium-Hub 14 11 1.3
Small-Hub 41 28 1.5
Nonhub 180 137 1.3
Total Primary 240 180 1.3
Nonprimary Airports
National 102 57 1.8
Regional 344 262 1.3
Local 471 466 1.0
Basic 143 141 1.0
Unclassified 366 366 1.0
Total Nonprimary 1,426 1,292 1.1
All Independent FBOs 1,666 1,472 1.1
Source: Compiled from FAA, National Plan of Integrated Airport Systems
(2019–2023) and AirNav Database, December 2018.

Table 26.   Regional distribution of independent FBOs.

Percentage
Region Total FBO Percentage Independent Share of FBOs
FAA Region Code Locations of FBOs FBOs in Region
Alaska AAL 78 2 53 68
Central ACE 358 10 141 39
Eastern AEA 366 10 178 49
Great Lakes AGL 736 20 335 46
New England ANE 148 4 87 59
Northwest Mountain ANM 389 11 209 54
Southern ASO 661 18 243 37
Southwest ASW 578 16 246 43
Western Pacific AWP 347 9 174 50
All FBO Locations 3,661 100 1,666 46
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018, and AirNav
Database, December 2018.

Table 27.   Fuel services at independent FBO locations.

Jet A 100LL Number of Percentage Cumulative


Fuel Services FS SS FS SS Locations of Share Percentage
FS and SS Jet A Only X X 574 34.5 34.5
SS 100LL Only X 307 18.4 52.9
FS Jet, SS Jet A, and SS 100LL X X X 209 12.5 65.4
All Fuel Services X X X X 128 7.7 73.1
FS and SS 100LL X X 116 7.0 80.1
SS Jet A Only X 95 5.7 85.8
SS 100LL and SS Jet A X X 79 4.7 90.5
FS Jet A and SS 100LL X X 47 2.8 93.3
FS Jet A Only X 41 2.5 95.8
FS Jet, FS 100LL, and SS 100LL X X X 30 1.8 97.6
No Advertised Fuel Service 22 1.3 98.9
Other Configurations 18 1.1 100.0
All Independent FBO Locations 1,666 100.0
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Private FBOs   49  

Chevron, Exxon,
and Tesoro, 4,
Independent or Phillips, 389,
0%
Undesignated, 23%
484, 29%

Texaco,
14, 1% Avfuel, 365, 22%

EPIC, 139 , 8%

Shell, 206, 13%


World Fuel
Services, 65,
4%

Source: Compiled from AirNav Database, December 2018.

Figure 24.   Brand market share at independent FBO locations.

Table 28.   Brand market shares at


independent FBOs.

Market
Fuel Supplier FBO Locations Share (%)
Phillips 389 23
AvFuel 365 22
Shell 206 12
EPIC 139 8
World Fuel Services 65 4
Texaco 14 1
Chevron, Exxon, and Tesoro 4 0.2
Independent or Undesignated 484 29
Total 1,666 100
Source: Compiled from AirNav Database, December 2018.

Table 29.   Key products, services, and facilities at independent FBOs.

FBO Percentage
FBO Products, Services, and Facilities Locations of Locations
Fuel Services 1,644 99
Hangar Rental and Leasing 715 43
Courtesy Transportation or Crew Cars 674 40
Maintenance, Repairs, and Parts (including third-party) 601 36
Ground/Line Services, Cleaning, and Detailing 500 30
Aircraft Rental and Charters 466 28
General Aviation Terminal 423 25
Flight Training, Pilot School, and Ground Training 418 25
Aerial Tours and Photography 239 14
Aircraft Sales or Leasing 219 13
Airport Management 200 12
Aircraft Painting, Interiors, and Modifications 169 10
Avionics Sales and Service 168 10
Aircraft Management 130 8
All Independent FBO Locations 1,666 100
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

50   Characteristics of the FBO Industry 2018–2019

Table 30.   Small FBO networks by


the numbers.

Number of FBO Companies with Small Networks 28


Number of FBO Locations 94
Number of Airports 93
Number of Publicly Owned Airports 89
Number of Privately Owned Airports 4
Source: Compiled from FAA Form 5010-1, Airport Master
Records, as of December 5, 2018, and AirNav database,
December 2018.

Small FBO Networks


Small network FBOs are private companies that operate three to five locations, often oper-
ating in a specific region in the country. Table 30 lays out some basic facts about the group.
There are 28 companies in this category. They operate primarily as the single FBO on an
airport but can offer some additional network services in the form of maintenance services,
aircraft rentals and charters, and flight instruction if network facilities are located near one
another. Some small networks have embarked on acquisitions programs and become large
networks over time. Ross Aviation, Lynx, and Jet Aviation are examples of small networks that
grew rapidly through acquisitions. They are no longer considered part of this group.
Table 31 shows the location of small-network FBOs by type of airport. Most small-network
FBOs operate at nonhub airports and at the larger nonprimary airports and are the single FBO
provider at the airport.
Table 32 presents the geographic distribution of small-network FBOs. They are numerically
prevalent in the Southern and Western Pacific FAA regions and represent 3% of all FBO locations.
Fuel services for small-network FBOs are shown in Table 33. The dominant fuel offering is
FS and SS Jet A. Another 25 locations offer FS 100LL and SS jet and 100LL fuel. These two fuel
configurations represent 73% of FBO locations in this category.

Table 31.   Small network FBO locations by type of airport.

Number Number FBOs


Airport Category of FBO Locations of Airports per Airport
Primary Airport
Large-Hub 3 3 1.0
Medium-Hub 3 3 1.0
Small-Hub 8 8 1.0
Nonhub 19 18 1.1
Total Primary 33 32 1.0
Nonprimary Airports
National 8 8 1.0
Regional 28 28 1.0
Local 17 17 1.0
Basic 4 4 1.0
Unclassified 4 4 1.0
Total Nonprimary 61 61 1.0
All Small Network FBOs 94 93 1.0
Source: Compiled from FAA, National Plan of Integrated Airport Systems
(2019–2023) and AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Private FBOs   51  

Table 32.   Geographic distribution of small-network FBOs.

Total Small - Percent Share


Region FBO Percentage Network of FBOs in
FAA Regions Code Locations of FBOs FBOs Region (%)
Alaska AAL 78 2 7 9
Central ACE 358 10 9 3
Eastern AEA 366 10 6 2
Great Lakes AGL 736 20 11 1
New England ANE 148 4 0 0
Northwest Mountain ANM 389 11 12 3
Southern ASO 661 18 22 3
Southwest ASW 578 16 6 1
Western Pacific AWP 347 9 21 6
All FBO Locations 3,661 100 94 3
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018, and AirNav
Database, December 2018.

Small-network FBOs sell a larger percentage of branded fuel (85%) than independent FBO
locations. Avfuel and Shell have the largest market shares at 32% and 27%, respectively.
Phillips 66 has another 15% of market share. Figure 25 and Table 34 show fuel brands for the
small-network FBO locations.
Small-network FBO services have similarly ranked services as independent FBOs, but propor-
tionately offer a higher frequency of aircraft sales and leasing, avionics, aircraft management,
and aircraft modifications, as shown in Table 35.

Large-Network, Franchise, and Affiliate FBOs


This category of FBOs is composed of FBOs with more than five locations. That said, the
group is changing rapidly as different network arrangements develop. For example, as of
September 2019, Signature Flight Support owns 124 FBOs and has formal affiliations with
seven other independently owned FBOs in the United States that are part of the Signature
Select branded program. In May 2018, BBA Aviation (parent company of Signature) acquired
EPIC Fuels and considers its 205 privately owned FBOs as complementary to the Signature

Table 33.   Small-network fuel services.

Jet A 100LL Number of Percentage Cumulative


Fuel Services FS SS FS SS Locations of Share Percentage
FS and SS Jet A Only X X 44 46.8 46.8
FS 100LL, SS Jet A, SS 100LL X X X 25 26.6 73.4
SS 100LL Only X 7 7.4 80.9
All Fuel Services X X X X 7 7.4 88.3
FS 100LL and SS 100LL X X 4 4.3 92.6
SS Jet A Only X 2 2.1 94.7
SS Jet A and SS 100LL X X 2 2.1 96.8
FS Jet A and SS 100LL X X 1 1.1 97.9
FS Jet A Only X 1 1.1 98.9
FS 100LL Only X 1 1.1 100.0
All Small-Network FBO Locations 94 100.0
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Independent or
Undesignated,
14, 15%
World Fuel, Phillips 66, 14,
3, 3% 15%
EPIC, 6 , 6%

Avfuel, 30, 32%

Shell, 27, 29%

Source: Compiled from AirNav Database, December 2018.

Figure 25.   Small-network FBO locations: Fuel brand


market shares.

Table 34.   Small-network fuel brand


market shares.

FBO Market
Fuel Supplier Locations Share (%)
Avfuel 30 32
Shell 27 29
Phillips 66 14 15
Independent or Undesignated 14 15
EPIC 6 6
World Fuel 3 3
All Fuel Supplier Locations 94 100
Source: Compiled from AirNav Database, December 2018.

Table 35.   Key products, services, and facilities


at small-network FBOs.

Percentage
FBO of
FBO Products, Services, and Facilities Locations Locations
Fuel Services 94 100
Hangar Rental and Leasing 53 56
Courtesy Transportation or Crew Cars 50 53
Maintenance, Repairs, and Parts (including
third party) 46 49
Ground/Line Services, Cleaning, and Detailing 43 46
General Aviation Terminal 39 42
Aircraft Rental and Charters 37 39
Flight Training, Pilot School, and Ground
Training 27 29
Aircraft Sales or Leasing 21 22
Avionics Sales and Service 21 22
Airport Management 16 17
Aircraft Management 15 16
Aircraft Painting, Interiors, and Modifications 15 16
Aerial Tours and Photography 14 15
All Small-Network Locations 94 100
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Private FBOs   53  

Select locations, establishing another branch of non-owned network of branded fuel loca-
tions. Avflight has a similar arrangement, with a network of FBOs and a fueling network that
includes over 3,000 branded locations worldwide. Million Air operates 24 locations in the
United States that are either owned or franchised under the same brand. Atlantic Aviation
operates 68 U.S. locations and is the second-largest FBO network, as shown in Table 36.
Early in the 2010s, BBA Aviation and Atlantic embarked on aggressive acquisition programs.
Other companies are also actively expanding locations. In 2018 and 2019, Sheltair expanded into
Colorado and TAC Air into Dallas, Ross Aviation acquired Rectrix Aerodrome in February 2019,
and Lynx continued its expansion program.
One of the characteristics of large-network FBOs is their ability to extend consistency of
service, customer loyalty programs, and discounts across all locations. Some network com-
panies, notably Ross Aviation and FlightLevel Aviation, along with 23 other publicly owned
and private FBOs have joined in an independent network of affiliates called Paragon Networks.
Paragon Network members are listed in Table 37. To become a network member, an FBO must
submit to an audit and commit to a common set of standards that encompass safety, quality,
reliability, value, and service performance. Other groups, such as the CAA, have formed a net-
work of preferred FBOs that offer guaranteed discount pricing on fuel and a recognized high
standard of service.
Large-network FBOs are present at many primary airports and national GA airports. Table 38
shows the distribution of large-network FBOs by airport category and the frequency of multiple
FBOs in each category. Multiple large-network FBOs are often present at medium-hub com-
mercial airports and at national airports.
Table 39 shows the distribution of large-network FBOs by FAA region. For the whole
United States, large-network FBOs represent approximately 9% of all FBO locations. Larger
concentrations of these FBOs exist in the Eastern, New England, Southern, and Western Pacific
regions.

Table 36.   Large-network FBO companies and locations


(as of December 2018).

Number Percentage of
Large-Network FBO Companies of U.S. Locations Share
Signature Flight Support and Signature Select 129 38
Atlantic Aviation 68 20
Million Air Corporate and Franchises 24 7
Avflight 19 6
Sheltair 18 5
TAC Air 15 4
Crowley 14 4
Ross Aviation/Rectrix Aerodrome 13 4
Jet Aviation 8 2
FlightLevel Aviation 7 2
Air Service Hawaii 6 2
Hawthorne Global Aviation Services 6 2
Leading Edge Aviation 6 2
Lynx 6 2
All Large-Network U.S. Locations 339 100
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Table 37.   Paragon Network members.

Location
Airport State FBO
ID
BFI Boeing Field WA Modern Aviation
DAB Daytona Beach FL Yelvington Jet Aviation
DAL Dallas Love Field TX Business Jet Center
DPA DuPage IL DuPage Flight Center
EDC Austin Executive TX Henriksen Jet Center
FAR Fargo ND Fargo Jet Center
FCM Flying Cloud MN Premier Jet Center
FLL Fort Lauderdale FL National Jets
GYR Phoenix Goodyear AZ Lux Air Jet Centers
HIO Hillsboro OR Aero Air
HPN Westchester County NY Ross Aviation
ISM Kissimmee FL Odyssey Aviation
JYO Leesburg Executive VA ProJet Aviation
LGB Long Beach CA Ross Aviation
LNK Lincoln NE Silverhawk Aviation
OPF Opa-Locka FL Fontainebleau Aviation
OQU Providence RI FlightLevel Aviation
OSU The Ohio State University OH The Ohio State University Airport
PSM Portsmouth International NH Port City Air
RBW Lowcountry Regional SC Lowcountry Aviation
TME Houston Executive TX Henriksen Jet Center
TRM Jacqueline Cochran Regional CA Ross Aviation
UTA Tunica Airport MS Tunica Air Center
VNY Van Nuys CA Clay Lacy Aviation
YIP Willow Run MI Odyssey Aviation
Source: Paragon Aviation Group (2019).

Table 38.   Large-network FBOs by airport category.

Number Number FBOs


Airport Category of FBO Locations of Airports per Airport
Primary Airports
Large-Hub 37 27 1.4
Medium-Hub 48 25 1.9
Small-Hub 66 47 1.4
Nonhub 74 69 1.1
Primary Total 225 168 1.3
Nonprimary Airports
National 66 44 1.5
Regional 33 31 1.1
Local 8 8 1.0
Basic 4 4 1.0
Unclassified 3 3 1.0
Nonprimary Total 114 90 1.3
All Large-Network FBOs 339 258 1.3
Source: Compiled from FAA, National Plan of Integrated Airport Systems
(2019–2023) and AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Private FBOs   55  

Table 39.   Geographic distribution of large-network FBOs.

Total Large- Percentage of


Region FBO Percent Network Share of FBOs
FAA Regions Code Locations of FBOs FBOs in Region
Alaska AAL 78 2 16 21
Central ACE 358 10 16 4
Eastern AEA 366 10 51 14
Great Lakes AGL 736 20 39 5
New England ANE 148 4 17 11
Northwest Mountain ANM 389 11 27 7
Southern ASO 661 18 73 11
Southwest ASW 578 16 47 8
Western Pacific AWP 347 9 53 15
All FBO Locations 3,661 100 339 9
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018, and AirNav
Database, December 2018.

Many large-network FBOs cater to business jet traffic and thus advertise FS and SS jet fuel.
While sometimes not advertised, 100LL fuel service is also available. Table 40 confirms an
emphasis on FS options, primarily for jet fuel.

Figure 26 and Table 41 show brand market shares for fuel at large-network FBOs. Atlantic
and Signature Flight Support do not advertise a specific brand of fuel, accounting for the large
share (49%) of independent or undesignated brand. Given large sales volumes of fuel and
deliveries, these two companies have substantial fuel requirements and buying power to pur-
chase fuel. Avfuel and Shell are also brand participants with a combined market share of 34%.
Phillips 66, World Fuel, and EPIC have a combined market share of 20%.

What differentiates the large-network FBOs from other categories is reliance on other spe-
cialized aviation-service providers (third parties) to offer specific FBO services such as main-
tenance, repair, avionics, and aircraft modifications. Large-network FBOs typically purchase
custom advertisements in online directories such as AirNav and will co-list other company’s
expertise as third party services available to customers. Table 42 ranks the products, services,
and facilities listed by large-network FBOs.

Table 40.   Fuel services at large-network FBOs.

Jet A 100LL Number of Percentage Cumulative


Fuel Services FS SS FS SS Locations of Share Percentage
FS and SS Jet A Only X X 258 76.1 76.1
FS Jet, SS Jet A, SS 100LL X X X 45 13.3 89.4
FS Jet A Only X 19 5.6 95.0
SS 100LL Only X 5 1.5 96.5
All Fuel Services X X X X 3 0.9 97.3
No Advertised Fuel Services 1 0.3 97.6
Other Configurations 8 2.4 100.0
All Large-Network FBO Locations 339 100.0
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

56   Characteristics of the FBO Industry 2018–2019

World Fuel, EPIC, Tesoro, 1


27, 8% 4 , 1% No Fuel

Phillips 66, 26, 8%

Independent or
Shell, 53, 16% Undesignated,
165, 49%

Avfuel, 62, 18%

Source: Compiled from AirNav Database, December 2018.

Figure 26.   Brand market shares for fuel at large-network FBOs.

Table 41.   Brand market share for fuel


at large-network FBOs.

Market
Fuel Supplier Fuel Brand Share (%)
Independent or Undesignated 165 49
AvFuel 62 18
Shell 53 16
Phillips 66 26 8
World Fuel 27 8
EPIC 4 1
Tesoro 1 0
No Fuel Service 1 0
All Large-Network Fuel Suppliers 339 100
Source: Compiled from AirNav Database, December 2018.

Table 42.   Key products, services, and facilities


at large-network FBOs.

Percentage
FBO of
FBO Products, Services, and Facilities Locations Locations
Fuel Services 338 100
Hangar Rental and Leasing 255 75
Courtesy Transportation or Crew Cars 244 72
Ground/Line Services, Cleaning, and Detailing 240 71
Maintenance, Repairs, and Parts (including third-
party) 169 50
General Aviation Terminal 130 38
Use of Third Party Maintenance or Other Services 84 25
Aircraft Rental and Charters 45 13
Avionics Sales and Service 33 10
Flight Training, Pilot School, and Ground Training 27 8
Aircraft Sales or Leasing 14 4
All Large-Network FBOs 339
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CHAPTER 6

Publicly Owned FBOs

One of the largest groups of FBOs is publicly owned FBOs. There are an estimated 1,562 FBO
locations owned and operated by public entities or universities, including the following:

• Airports, ports, or industrial development authorities;


• Municipalities, cities, towns, or villages;
• Counties or parishes;
• States;
• Military joint-use facilities;
• Colleges or universities;
• Native American jurisdictions; or
• Combinations of jurisdictions, such as a county and municipality or multiple counties.

Municipal governments are the most frequent type of airport sponsor that operates this
group of FBOs. Table 43 shows the distribution of owners for publicly owned FBOs.

Types of Airports
Table 44 sorts publicly owned FBO locations using the NPIAS categories. While there is
a definite bias toward smaller airports self-operating the FBO, there are also a considerable
number of publicly owned FBOs operating at nonhub airports and regional airports.

Geographic Distribution
Table 45 shows the geographic distribution of publicly owned FBOs across FAA regions.
If publicly owned FBOs represent 43% of all FBO locations, regions with a higher percentage of
publicly owned FBOs suggest more concentration of FBOs in public ownership. Four regions
have higher-than-average concentrations of publicly owned FBOs: the Central, Great Lakes,
Southern, and Southwest regions. The New England and the Western Pacific regions have higher
concentrations of privately owned FBOs.

Fueling Profile
Table 46 shows the different types of fuel services at publicly owned FBOs. A relatively high
percentage of publicly owned FBOs cater exclusively to small piston aircraft using 100LL fuel. For
publicly owned FBOs, 32% offer only SS 100LL fuel; another 16% offer both SS and FS 100LL,

57  

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

58   Characteristics of the FBO Industry 2018–2019

Table 43.   Governance of publicly owned FBOs.

Number of Percentage of
Public Entity FBO Locations Share
Municipality, City, Town, or Village 801 51
County or Parish 358 23
Airport, Port, or Industrial Development Authority 259 17
Multijurisdiction 84 5
State 22 1
College or University 19 1
Military-Joint Use 14 1
Native American Tribal Group 5 0
All Publicly Owned FBOs 1,562 100
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018,
and AirNav Database, December 2018.

combining to represent 47% of all fueling services. The other most common fuel services for
this group are as follows:

• Both FS and SS Jet A and 100LL fuel (13%);


• FS and SS Jet A only (13%); and
• FS jet and SS Jet A and 100LL (11%).

These five fuel services represent 84% of fuel offerings at publicly owned FBOs.

Figure 27 and Table 47 show fuel-brand market shares. More than one-third of publicly
owned FBOs do not sell a specific fuel brand. Phillips 66 has the largest market share of branded
customers (27%), followed by Shell (16%) and Avfuel (14%).

Table 44.   Publicly owned FBOs by type of airport.

Number of NPIAS Public Percentage of


Type of Airport FBO Locations Use Airports Share
Primary
Large-Hub 1 30 3
Medium-Hub - 31 0
Small-Hub 7 72 10
Nonhub 38 247 15
Total Primary 46 380 12
Nonprimary
National 15 88 17
Regional 203 492 41
Local 746 1,278 58
Basic 393 840 47
Unclassified 159 243 65
Total Nonprimary 1,516 2,941 52
All Publicly Owned FBOs 1,562 3,321 47
Source: Compiled from FAA, National Plan of Integrated Airport Systems
(2019–2023) and AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Publicly Owned FBOs   59  

Table 45.   Geographic distribution of publicly owned FBOs.

Total Publicly Percentage of


Region FBO Percentage Owned Share of FBOs
FAA Region Code Locations of FBOs FBOs in Region
Alaska AAL 78 2 2 3
Central ACE 358 10 192 54
Eastern AEA 366 10 131 36
Great Lakes AGL 736 20 350 48
New England ANE 148 4 44 30
Northwest Mountain ANM 389 11 141 36
Southern ASO 661 18 324 49
Southwest ASW 578 16 279 48
Western Pacific AWP 347 9 99 29
All FBO Locations 3,661 100 1,562 43
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018, and
AirNav Database, December 2018.

Table 46.   Fuel services at publicly owned FBOs.

Jet A 100LL Number of Percentage Cumulative


Fuel Services FS SS FS SS Locations of Share Percentage
SS 100LL Only X 493 31.6 31.6
FS and SS 100LL X X 243 15.6 47.1
All Fuel Services X X X X 204 13.1 60.2
FS Jet A and SS Jet A X X 200 12.8 73.0
FS Jet, SS Jet A, and SS 100LL X X X 170 10.9 83.9
FS Jet A and SS 100LL X X 70 4.5 88.3
SS 100LL and SS Jet A X X 69 4.4 92.8
FS Jet A, FS 100LL, and SS 100LL X X X 56 3.6 96.4
SS Jet A Only X 30 1.9 98.3
No Advertised Fuel Services 12 0.8 99.0
Other Configurations 15 1.0 100.0
All Publicly Owned FBO
1,562 100.0
Locations
Source: Compiled from AirNav Database, December 2018.

World Fuel, 41, 3%


Chevron, 2, 0%
EPIC, 100, 6% Texaco, 5, 0%

Avfuel, 222, Independent or


14% Undesignated,
529, 34%

Shell, 248, 16%


Phillips, 415,
27%

Source: Compiled from AirNav Database, December 2018.

Figure 27.   Fuel brands used by publicly owned FBOs.

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Characteristics of the FBO Industry 2018-2019

60   Characteristics of the FBO Industry 2018–2019

Table 47.   Fuel-brand market shares at publicly


owned FBOs.

Name Fuel Brand Market Share (%)


Independent or Undesignated 529 34
Phillips 415 27
Shell 248 16
Avfuel 222 14
EPIC 100 6
World Fuel Services 41 3
Texaco 5 0.3
Chevron 2 0.1
All FBO Locations 1,562 100
Source: Compiled from AirNav Database, December 2018.

FBO Services, Products, and Facilities


The major services, products, and facilities offered at publicly owned FBOs include fuel,
hangar rentals, airport management, and courtesy transportation or crew cars. Table 48 shows
the distribution of services, products, and facilities advertised.

Table 48.   Key services, products, and facilities at publicly owned FBOs.

Percentage
FBO Services, Products, and Facilities FBO Locations of Locations
Fuel Services 1,550 99
Hangar Rental and Leasing 522 33
Airport Management 513 33
Courtesy Transportation or Crew Cars 505 32
Maintenance, Repairs, and Parts (including third-party) 242 15
Flight Training, Pilot School, and Ground Training 212 14
Ground/Line Services, Cleaning, and Detailing 179 11
Aircraft Rental and Charters 139 9
Aerial Tours and Photography 92 6
All Publicly Owned FBO Locations 1,562
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

CHAPTER 7

Roadmap and Conclusions

This compilation of data about FBOs was a first attempt to bring together information about
the FBO industry. Private-sector participants know a lot about the markets where they are active
or considering entry. Publicly owned FBOs operate largely independent of one another. This
publication had ambitious goals, including the following:
• Acquiring data about FBOs that is largely self-reported information;
• Merging this information with airport data provided in the FAA Form 5010-1, Airport Master
Records and in the NPIAS;
• Discerning ownership patterns and categories of FBOs;
• Documenting the prevalence of SS fueling options in the United States and the use of branded
versus unbranded fuels;
• Characterizing levels of service offered by different types of FBOs; and
• Building a framework to update the data.

Verification of data and an objective of understanding the structure and ownership patterns
of FBOs required detailed scrubbing of data and an analysis of FBO information that resulted in
a larger-than-expected effort on the front end of the project. That said, the study team became
wiser about what would be needed to continue this effort on a regular basis. Thus, this chapter
is devoted to a roadmap for future efforts.

Current Status of FBO Analysis


FBOs have been studied by both the industry and airport sponsors, primarily on an individual
FBO basis, for a variety of objectives:
• To evaluate the potential value, revenue streams and expenses, and return on investment for
acquisition or expansion purposes;
• From a public perspective, capital and staffing requirements, as well as potential revenues to
take over an expiring FBO lease or a failed FBO;
• To examine fuel prices to determine price levels that are competitive in the market and that
cover FBO operating expenses for the fueling facility;
• To survey rates and fees at FBOs;
• To survey business expectations for future fuel sales and activity levels;
• To rank FBOs for customer satisfaction about levels of service and facilities; and
• To report on sales and acquisitions in industry publications.
Detailed evaluations of individual FBO properties remain proprietary, as do the finer points of
fuel-pricing strategies and annual sales data of private FBOs. Industry reporting is typically high-
level, leaving the study team to search primarily through self-reported data points. Since 43% of
FBOs are now owned by public entities that operate typically as single locations, publicly owned

61  

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Characteristics of the FBO Industry 2018-2019

62   Characteristics of the FBO Industry 2018–2019

FBOs have a particular interest in greater industry data so that they might effectively position
themselves in the market, set appropriate levels of minimum standards (from the airport sponsor
perspective), and offer services that reflect best practices in the provision of FBO services.

Proposed Approach to Future Research


Based on the analytic experience of this project, Figure 28 suggests an approach to future
updates and new research on the FBO industry that includes the following:
• User input about FBO issues to be examined
• Data determination and availability
• Analytics desired and reports designed
• Data collection
• Database design/modifications of a tool for annual update of data
• Analysis
• Reports
• User review and suggestions
• Data verification
• Database inputs and updates

Issues to Resolve
There are numerous challenges to analysis of the FBO industry, some of which can be
addressed effectively through annual updates and ongoing improvements to the database. These
challenges are outlined as part of the roadmap.

Fluidity of FBOs
The FBO industry is somewhat fluid, with new FBOs opening, closures, acquisitions, assump-
tions of leases, and takeovers. Now that there is a list of FBO locations at public-use airports for
2018, annual updates can track changes by airport.

Figure 28.   Future FBO industry updates.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Roadmap and Conclusions   63  

Meaningful Categories of Analysis


This FBO study divided the universe of FBOs into four categories: publicly owned, indepen-
dent, small-network, and large-network. Other analysts classify FBOs in terms of number of
FBO locations, by total revenue, services offered, and retail fuel characteristics. It would be useful
for the next iteration of data compilation for industry stakeholders to agree on working defini-
tions of FBO types and categories of relevant FBO services for comparative purposes.

Verification of Self-Reported Data


When it comes to information about FBO services, including fuel and fuel brands, the data
are largely self-reported. Online platforms are devoted to providing pilots and flight depart-
ments updated information about fuel services and prices. These Internet sites and subscription
services are potentially useful ways to verify specific information. In the instances of one FBO
per airport, services can be matched to FAA Form 5010-1, Airport Master Records. However,
for the airports with multiple FBOs present, service levels per FBO would require additional
in-depth research.

User Surveys
Going forward, it would be possible and useful to provide annual updates of a core group of
data and track changes within the industry. It would also be interesting and useful to identify a
topic that would require additional analysis and reporting. User surveys would be indispensable
for discerning which parts of the core report is useful for updates and what special topics hold
interest to the user community.

Additional Data Sources


As the database is built out, additional information about FBOs and the airports where they
are located would expand the analytical capability of the database. The following are data sources
that could be incorporated into the database more completely or as new sources of data.

FAA Data: NPIAS, FAA Form 5010-1, Airport Master Records,


Operations Network, Passenger Boarding/All-Cargo Statistics
For this round, a defined set of data and use of NPIAS airport-asset classes were used as
proxies for different-size airports, functions, and capabilities. Much more data are pub-
licly available in the FAA Form 5010-1, Airport Master Records, and Operations Network
(OPSNET), as well as enplanement and cargo data. These data sets could support additional
analytics to investigate the relationships between different types of FBOs and runway length,
air traffic control, customs capabilities, and distance to central business districts.

FBO Listings
For this project, AirNav was used as the principal source of FBO data; however, since most of
this information is self-reported, for verification purposes, it would be useful to cross-check FBO
information currently found in the AC-U-KWIK and FlightAware databases.

FBO Fees and Charges


A developing area of interest, particularly for small-aircraft operators, is the availability of
FBO fees and charges and/or minimum fuel-purchase requirements compiled in one location.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

64   Characteristics of the FBO Industry 2018–2019

There are several potential or existing websites, such as Rampfee.me, for collecting and report-
ing this information. As of the fourth quarter of 2018, Rampfee.me had collected FBO listed fees
from 2,262 FBOs. For averaging purposes, this is a significant sample size. However, the focus of
the sample results is heavily weighted toward small piston aircraft versus jets. Another example
is AOPA’s website, which is also adding to its Airport Directory information about FBO fees
charged for different types of aircraft. This data are self-reported by the FBOs. There are other
existing websites that compile data for different purposes and users. These web-based reporting
sites are available for free or by subscription.

Business Aviation
Argus Information International, Inc., publishes data on various metrics associated with
flight activity for Part 91 private jets, Part 135 charter aircraft, and fractional operators. Business
aviation is one of the strongest growth areas of private flying. A core business of Argus is
keeping track of business aviation. Their data could be integrated in useful ways into a fuller
analysis of FBOs that serve business aviation.

Retail Fuel
Retail fuel prices are widely available in the public domain. For 100LL customers, retail prices
tend to represent actual prices paid for fuel. For jet fuel prices, this is not the case, as most
large-volume jet fuel customers purchase jet fuel at a discount either based on volumes, con-
tract rates, or participation in fuel discount programs. That said, retail jet-fuel prices are decent
proxies of directional changes in fuel costs.

Future for Special Reports


This synthesis concentrated on gathering and organizing data about FBOs to describe
the basic size of the industry, ownership patterns, FBO presence at different-size airports,
types of fuel and other FBO services offered, and fuel-brand market shares. More can be
done with the information developed. For example, the database holds the potential to do
the following:

• Track FBO turnover rates.


• Focus on certain geographic regions to profile FBO industry growth/decline, market satura-
tion, and GA activity.
• Investigate the characteristics of virtual networks and affiliations of FBOs and how they are
competitively positioning their brands and services.
• Estimate aviation fuel sales based on state aviation-tax data where available.
• Examine correlations between FBO categories and airport activity and other metrics.
• Survey/profile publicly owned airports to benchmark fuel sales and other revenue sources.
• Evaluate the impacts of low-price leaders on fuel prices in designated regions.
• Analyze the role of fractional ownership in business aviation, charters, and demand for
services at FBOs.
• Describe and analyze noncommercial landing fees as well as new data collected on FBO rates
and fees.

With the foundation set and a good systematic approach, this report on the FBO industry
has the potential to be refined, updated, and expanded as a platform to discuss trends and
innovations in the industry.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Roadmap and Conclusions   65  

Conclusions
The analysis of the FBO industry clearly demonstrates how as a service provider FBOs have
adapted and responded to the changing requirements of the different segments of GA, which
include aircraft owners and pilots that fly for personal reasons, for business travel, for special-
ized missions such as emergency airlift, for charters, or for flight training.

This profile of the FBO industry should be considered a work in progress and presents an
opportunity for industry participants to identify issues that require a deeper dive and to agree
on benchmarks that effectively help to document changes in the FBO industry and demand
for products, services, and facilities over time. Several probable events are already occurring to
transform the FBO landscape. They include the following:

• Transitions to alternative fuels and different potential requirements for fuel storage as well
as distribution channels (pipelines, trucks, rail, and ships);
• Testing of high valuations of leaseholds and highly leveraged FBO facilities when the economy
weakens;
• Additional acquisitions, lease assumptions, and new expansions for virtual and owned-
network FBOs;
• Experiments with sharing of specialty services among all types of FBOs;
• Ongoing changes in ownership patterns for publicly owned and independent FBOs;
• Further retirement of piston aircraft and aging pilots;
• Compliance with ADS-B requirements in controlled airspace; and
• Solutions to shortages of mechanics and pilots.

As an industry composed of public and private participants, a comprehensive profile is in the


early stage. The FBO industry can benefit from further examination of component parts, agree-
ment on units of analysis, and improved quality and consistency of the data.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

APPENDIX A

Overview of FBO and Airport Data

Sources of Data on FBOs


Information about FBOs operating in the United States is available from multiple sources
with many caveats. Unlike commercial air service and airport activity where the FAA requires
regular reporting, many GA airports have no air traffic control tower; they estimate aircraft
operations and based aircraft, and generally report financial activities to local airport spon-
sors based on locally determined reporting requirements. Data on activity and the dimensional
aspects of GA airports are available from six sources, all governmental:
• Local airport master plans
• FAA Form 5010-1, Airport Master Records
• State system plans
• FAA’s National Based Aircraft Inventory Program (https://www.codot.gov/programs/
aeronautics/PDF_Files/FAA_BA_UserGuide)
• National Plan of Integrated Airport Systems (NPIAS)
• FAA Air Traffic Activity Data System (ATADS)

Data on FBO ownership, facilities, level and type of services, and fuel prices are left primarily
to the private sector and exist primarily on a paid subscription basis or for advertising purposes.
Table 49 lists the most prevalent sources of data about FBOs (including generic FBO services).
Privately sponsored FBO directories primarily target aircraft pilots, flight departments, sched-
ulers, and dispatchers. The information is available to paying subscribers or directed at specific
customer segments, such as business aviation or personal flying. To a large extent, these websites
and publications rely on FBOs to self-report and users to comment on facilities and services.
There is a minimal amount of publisher checking, and some websites purchase data access from
other information services. For example, AirNav provides fuel price data to 100LL.com, and
100LL.com sells the fuel data to AOPA.
For the purposes of this synthesis, the AirNav data were purchased to work with, as the data
had many airports and FBOs represented. The AirNav pricing model for listings allows for free
FBO listings and paid listings and is updated regularly. AirNav’s core businesses include fuel
prices and presentation on the Internet of airport reports that include basic FAA Form 5010-1,
Airport Master Record airport data; FBO, fuel providers, and ground support companies; and
aviation businesses, services, and facilities.
To obtain an overview of the FBO industry for this synthesis, three data sources were used:
1. AirNav FBO locations, ownership, and service listings, December 2018
2. FAA Form 5010-1, Airport Master Records for public-use airports, December 2018
3. NPIAS Report 2019-2023 (Nonprimary Airport Classification), Appendix A, October 2018

66

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Characteristics of the FBO Industry 2018-2019
Table 49.   Sources of airport FBO information.

Name Core Businesses Scope Audience Website Reference


Corporate pilots,
charter brokers, flight
departments, fuel
Copyright National Academy of Sciences. All rights reserved.

Airport and FBO Airports with hard- service buyers,


directories, surfaced runways over dispatchers and
AC-U-KWIK advertising revenue 3,000 feet schedulers, etc. https://acukwik.com/
FAA Form 5010-1,
Airport Master Record
data, self-reporting fuel
Fuel pricing, airport prices, FBOs, and
information, FBO specialized service Pilots, airports, and
AirNav listings providers analysts http://www.airnav.com/
Education and Airport directory, FAA
training, advocacy, Form 5010-1, Airport
insurance, flight Master Record data,
information and self-reported FBO and Pilots, primarily small
AOPA tools fuel and fee data aircraft https://www.aopa.org/travel/flight-tools/airports-directory
Corporate Part 91 operator CAA members, must
Aircraft organization—fuel own turbine/diesel
Association and vendor savings CAA-preferred FBOs aircraft https://www.corpaa.us/fbo-list-contact-info
Airport ownership,
location, contact
information, use,
runways, lighting and
Database of all approach aids,
FAA Form 5010- public and private obstructions, services,
1, Airport airports/generic facilities, based aircraft, Airports and airport
Master Records service information operations users https://www.faa.gov/airports/airport_safety/airportdata_5010/
Daily scheduling, flight
Software solutions planning, discounts at
FBODatabase for aircraft preferred FBO network,
and Airplane management and discounts off retail fuel http://www.fbodatabase.com/ and
Manager flight planning price, FBO service listing Private jet operators https://airplanemanager.com/
(continued on next page)
Characteristics of the FBO Industry 2018-2019
Copyright National Academy of Sciences. All rights reserved.

Table 49.  (Continued).

Name Core Businesses Scope Audience Website Reference


FlightAware Flight tracking Over 4,000 self- Private and https://flightaware.com/commercial/data/fbos
reported FBO listings commercial air traffic
Weather, destination
Software solutions information, route
for aircraft planning, electronic
management and charts and maps, fuel Pilots and flight
ForeFlight flight planning and FBO information departments https://foreflight.com/about/foreflight/
Interactive mapping
and weather
information,
navigation, flight Full-featured navigation Pilots and flight
Garmin Pilot plans, logbook software departments https://buy.garmin.com/en-US/US/p/115856
Research tool for
owners, operators,
and flight
Airport, fuel, FBOs, 934 FBO listings, fuel departments looking
aircraft resale, and cards, fuelers, ground for up-to-date fuel
weather data handlers, international, prices and airport
GlobalAir.com aggregator fuel prices information https://www.globalair.com/directories/FBO-13.html
Characteristics of the FBO Industry 2018-2019

Overview of FBO and Airport Data   69  

Managing and Analyzing the Data


The objective of this synthesis was to investigate FBO locations, ownership patterns, and
service offerings. No single data source provided a comprehensive and verified set of informa-
tion about FBOs. The three data sets selected for this synthesis required sifting, sorting, and
organizing the data in a systematic fashion. The effort began with the FAA Form 5010-1, Air-
port Master Records, as they contain the most comprehensive set of information about airport
facilities in the United States. Simultaneously, the AirNav database was acquired to develop
a list of FBOs at public-use airport facilities; identify FBO ownership; and report on services,
products, and facilities that FBOs provided. As a first step, private FBOs at private airports
were eliminated from the inquiry. To determine FBO ownership, each record was individually
scrubbed. Services were coded from text file descriptors. In addition, airports were linked to
FBO locations and to NPIAS airport categories. All data included were published in the third
and fourth quarters of 2018. As comprehensive as this might seem, the three data sets over-
lapped but did not always coincide. To fully understand the resulting tables in this report, it
is useful to describe each data set beginning with FAA Form 5010-1, Airport Master Records.

Airport Facilities in the United States: FAA Form 5010-1,


Airport Master Records
The most inclusive database of airport facilities in the United States is the FAA Form 5010-1,
Airport Master Records. The FAA collects and publishes data about 19,622 airport facilities, as
shown in Figure 29 and Table 50. Most of these facilities are privately owned and for private use
only (13,502). There are also publicly owned facilities, primarily helipads for public hospitals,
law enforcement, and other specialized agencies that are not available for public use (1,028). The
remaining 5,092 airports, owned by public or private entities, are open for public use and are the
airport facilities of interest for this FBO census.
Table 51 provides more detail on airport facility ownership, particularly facilities owned and
operated by branches of the U.S. military. The military owns 305 landing facilities; only 20 are
available for public use.

Private
Airports/Public
Use, 950

Public
Airports/Public
Use, 4,142

Public Private
Airports/Private Airports/Private
Use, 1,028 Use, 13,502

Source: Compiled from FAA Form 5010-1, Airport Master Record, as of December 5, 2018.

Figure 29.   5010 public and private landing facilities.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

70   Characteristics of the FBO Industry 2018–2019

Table 50.   5010 landing facilities:


owners and use.

Landing
Owner/Use Facilities

Private Airports/Private Use 13,502

Public Airports/Private Use 1,028

Public Airports/Public Use 4,142

Private Airports/Public Use 950

All 5010 Airports 19,622


Source: Compiled from FAA Form 5010-1, Airport
Master Records, as of December 5, 2018.

The other key factor to understanding the scope of 5010 facilities is the breakdown of landing
facilities by type. This includes airports, balloonports, gliderports, heliport, seaplane base, and
ultralight.
Figure 30 shows facilities reported in the FAA Form 5010-1, Airport Master Records, with air-
ports and heliports accounting for 97% of all facilities. Figure 31 digs deeper into the 5,092 public-
use facilities. Airports dominate, making up 95% of all public-use facilities. Lastly, Table 52 shows
the distribution of different types of facilities by owner and by use and demonstrates the great
number of privately owned and privately used aviation facilities in the United States.

Data from the National Plan of Integrated Airport Systems (NPIAS)


The NPIAS report is prepared by the FAA, U.S. Department of Transportation (DOT) and
submitted to Congress every 2 years. Its main purpose, according to U.S. statute [Title 49,
U.S.C., Section 47103, National Plan of Integrated Airport Systems] is to “include the kind and
estimated cost of eligible airport development the Secretary of Transportation considers neces-
sary to provide a safe, efficient, and integrated system of public-use airports adequate to antici-
pate and meet the needs of civil aeronautics, to meet the national defense requirements of the
Secretary of Defense, and to meet identified needs of the United States Postal Service.”
The NPIAS contains data about 3,321 existing public-use airports. Of use to this report is the
NPIAS category of airports. Historically, airports that have scheduled air service with 10,000 or

Table 51.   Ownership of 5010 landing facilities.

Owners Public Use Private Use Total


Coast Guard - 7 7
Air Force 10 86 96
Navy 1 68 69
Army 9 124 133
Private 950 13,502 14,452
Public 4,122 743 4,865
Total 5,092 14,530 19,622
Source: Compiled from FAA Form 5010-1, Airport Master
Records, as of December 5, 2018.

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Characteristics of the FBO Industry 2018-2019

Overview of FBO and Airport Data   71  

Seaplane Ultralight, 112, 1%


Base, 501,
2%

Heliport, 5,864,
30%

Airports, 13,096,
67%

Gliderports,
35, 0%
Balloonports,
14, 0%

Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018.

Figure 30.   Airport facilities reporting in 5010 records.

Seaplane Base, 501


Ultralight, 112

Heliport, 5,864

Airports, 13,096

Balloonports and
Gliderports, 49

Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018.

Figure 31.   Public-use airport facilities.

Table 52.   Types of landing facilities, ownership, and use.

Ownership Use
Type Coast Guard Air Force Navy Army Private Public Total Private Public Total
Airports 4 92 54 62 8,817 4,067 13,096 8,284 4,812 13,096
Balloonports 14 - 14 13 1 14
Gliderports 33 2 35 30 5 35
Heliport 3 4 15 71 5,108 663 5,864 5,804 60 5,864
Seaplane Base 369 132 501 290 211 501
Ultralight 111 1 112 109 3 112
Total 7 96 69 133 14,452 4,865 19,622 14,530 5,092 19,622
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

72   Characteristics of the FBO Industry 2018–2019

more enplaned passengers are considered primary airports and grouped as large-, medium-,
small-, and nonhub airports. Nonprimary airports include commercial service airports (with
between 2,500 and 9,999 enplaned passengers per year), reliever, and GA airports. Beginning in
2012, the FAA further divided GA airports into five categories: national, regional, local, basic,
and unclassified. The new GA categories provide a comprehensive way to consider FBO size and
services performed at individual airports. Activity indicators considered in grouping an air-
port’s category included the following:
• Based aircraft
• Based jets
• Instrument flight rules flights (e.g., total, international, Interstate, and flights over a 500-mile
radius)
• Enplanements
• Cargo landed weight
• Metropolitan or micropolitan statistical area
• Remote location and limited access
• Nearest NPIAS airport
• Commercial service
• Public interest supported by government agencies (e.g., firefighting, U.S. Postal Service,
Customs and Border Patrol, and Essential Air Service)
• New or replacement airport
• Owned by a public sponsor or privately owned, but designated as a reliever

As of 2018, 243 GA airports remained not categorized. Airports are unclassified because
they do not have enough validated based aircraft or there is no other documented public use
(including remote access). Also, of note, the FAA and participating stakeholders determined
that runway length, while important to the type and size of aircraft using an airport, “didn’t
mean that there was a common minimum length required to meet a specific aeronautical func-
tion” [NPIAS, Appendix C]. Similarly, the presence of an instrument approach and control
tower, while advantageous, related to local airspace, metrological conditions, and safety con-
cerns, and did not necessarily relate directly to specific aeronautical functions, which was the
main reason for the new categories.
The new categories for GA airports are reasonable proxies to study FBO characteristics at
different types of airports. Table 53 presents the NPIAS categories.
NPIAS does not include all public-use airports. FAA Order 5090-5 establishes internal guide-
lines for managing and maintaining the NPIAS and the Airport Capital Improvement Plan
(ACIP). Some GA airports are disqualified because of inadequate sites; inability to expand or
improve to meet safety standards; or location within 20 miles of another NPIAS airport. Ultra-
light, gliderports, and balloonports are also excluded. Table 54 shows the numerical differences
between 5010 public-use airports and NPIAS airports.

AirNav Database
Behind the AirNav online reports is a continually updated database. AirNav updates its
5010 data monthly in step with FAA updates to this data. Fuel prices, FBO information, and
other business listings are largely self-reported and updated whenever an FBO provider submits
information. AirNav prices a basic listing at very low cost, determined by the type and amount
of traffic at an airport. For business listings, preferred position on the page, custom copy, logos,
and advertisements on other airport report pages cost more.
The use of a tiered pricing schedule makes for an inclusive database. However, when it comes
to services listings, lower-fee customers choose from a list of keywords describing FBO services;

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

Overview of FBO and Airport Data   73  

Table 53.   Airports in the NPIAS


by category.

Number of
Airport Category Airports
Primary Airports
Large-Hub 30
Medium-Hub 31
Small-Hub 72
Nonhub 247
Total Primary Airports 380
Nonprimary Airports
National 88
Regional 492
Local 1,278
Basic 840
Unclassified 243
Nonprimary Airports 2,941
Total NPIAS Airports 3,321
Source: Compiled from FAA, National Plan of
Integrated Airport Systems (2019–2023).

higher-paying customers can post their own service descriptions, resulting in some records that
are easy to compare; other records are more free-form. As of December 2018, AirNav had list-
ings for 3,661 FBO locations at public-use airports and 57 FBO locations at private-use airports.
For purposes of this analysis, FBOs at private-use airports were culled from the list.
It is important to make the distinction between FBO locations and airports with FBOs.
In the AirNav database, there are 299 public-use airports with multiple FBO locations operating
on the field. For example, Centennial Airport (APA) in Colorado lists five FBO locations and
Teterboro Airport (TEB) in New Jersey lists six FBO locations, which includes three Signature
facilities and three other companies with FBO locations at TEB. Dallas Love Field Airport lists
six FBO locations reflecting six different companies. Most airports with multiple FBOs, how-
ever, have two or three FBO locations at the airport, and one FBO location is the norm.
AirNav data were used to identify FBOs at public-use airports; to determine fuel services and
brands; and to compare aviation products, services, and facilities offered.

Table 54.   Comparison of 5010 public-use


airports and NPIAS airports.

Public-Use NPIAS
Facility Type Airports Airports
Airports 4,812 3,273
Heliport 60 10
Seaplane Base 211 38
Balloonports 1 -
Gliderports 5 -
Ultralight 3 -
Total 5,092 3,321
Source: Compiled from FAA, National Plan of Integrated Airport
Systems (2019–2023) and FAA Form 5010-1, Airport Master
Records, as of December 5, 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

APPENDIX B

Summary Tables

Table 55.   FBO locations by type and NPIAS airport categories.

Number of FBO Locations


Publicly Small- Large- NPIAS
Airport Category Owned Independents Network Network Airports
Primary Airports
Large Hubs 1 5 3 37 30
Medium Hubs - 14 3 48 31
Small Hubs 7 41 8 66 72
Nonhub 38 180 19 74 247
Total Primary Airports 46 240 33 225 380
Nonprimary Airports
National 15 102 8 66 88
Regional 203 344 28 33 492
Local 746 471 17 8 1,278
Basic 393 143 4 4 840
Unclassified 159 366 4 3 243
Total Nonprimary Airports 1,516 1,426 61 114 2,941
Total 1,562 1,666 94 339 3,321
Source: Compiled from FAA, National Plan of Integrated Airport Systems (2019–2023) and AirNav Database, December 2018.

Table 56.   FBO locations by type and FAA region.

Number of FBO Locations Reporting


Regional Publicly Small- Large- All
FAA Region Code Owned Independents Network Network Locations
Alaska AAL 2 53 7 16 78
Central ACE 192 141 9 16 358
Eastern AEA 131 178 6 51 366
Great Lakes AGL 350 335 11 39 736
New England ANE 44 87 0 17 148
Northwest Mountain ANM 141 209 12 27 389
Southern ASO 324 243 22 73 661
Southwest ASW 279 246 6 47 578
Western Pacific AWP 99 174 21 53 347
Totals 1,562 1,666 94 339 3,661
Source: Compiled from FAA Form 5010-1, Airport Master Records, as of December 5, 2018, and AirNav Database, December 2018.

74

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Characteristics of the FBO Industry 2018-2019

Summary Tables   75  

Table 57.   Fuel services by type of FBO location.

Jet A 100LL Number of FBO Locations Reporting


Fuel Services FS SS FS SS Publicly Owned Independents Small-Network Large-Network All Locations
FS and SS Jet A Only X X 200 574 44 258 1,077
SS 100LL Only X 493 307 7 5 811
FS Jet, SS Jet A, and SS 100LL X X X 170 209 25 45 449
FS & SS 100LL X X 243 116 4 365
All Fuel Services X X X X 204 128 7 3 342
SS 100LL and SS Jet A X X 69 79 2 152
SS Jet A Only X 30 95 2 128
FS Jet A and SS 100LL X X 70 47 1 119
FS Jet, FS 100LL, and SS 100LL X X X 56 30 85
FS Jet A Only X - 41 1 19 65
No Advertised Fuel Services 12 22 1 36
FS 100LL Only X 1 11
Other Configurations 15 18 8 21
All FBO Locations 1,562 1,666 94 339 3,661
Source: Compiled from AirNav Database, December 2018.

Table 58.   Products, services, and facilities by type of FBO location.

Number of FBO Locations Reporting


Products, Services, and Facilities Publicly Owned Independents Small-Network Large-Network All Locations
Fuel Services 1,550 1,644 94 338 3,625
Hangar Rental and Leasing 522 715 53 225 1,549
Courtesy Transportation or Crew Cars 505 674 50 244 1,473
General Aviation Terminal 423 39 130 1,069
Maintenance, Repairs, & Parts (including third party) 242 601 46 169 1,058
Ground/Line Services, Cleaning, & Detailing 179 500 43 240 962
Airport Management 513 200 16 734
Aircraft Rental & Charters 139 466 37 45 687
Flight Training, Pilot School, Ground Training 212 418 27 27 684
Aerial Tours & Photography 92 239 14 350
Aircraft Sales or Leasing 219 21 14 286
Avionics Sales & Service 168 21 33 260
Aircraft Painting, Interiors, & Modifications 169 15 243
Aircraft Management 130 14 169
All FBO Locations 1,562 1,666 94 339 3,661
Source: Compiled from AirNav Database, December 2018.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

APPENDIX C

References and Bibliography

References
AirNav database, December 2018.
Aviation Management Consulting Group, Inc., KRAMER aerotek, inc., Shafer, G. R., and Southern Illinois
University Carbondale. ACRP Report 77: Guidebook for Developing General Aviation Airport Business Plans.
Transportation Research Board of the National Academies, Washington, D.C., 2012.
Byers, Dave. Telephone interview, 2019.
Epstein, C., “FBO Survey: Facilities Serve Growing Market,” AIN Publications, 2019.
FAA AC 150/5190-6, Exclusive Rights at Federally Obligated Airports, Washington, D.C.
FAA AC 150/5190-6B, Appendix C, Advisory Circulars on Exclusive Rights and Minimum Standards for
Commercial Aeronautical Activities, Definitions, September 30, 2009, Washington, D.C.
FAA Aerospace Forecast, Fiscal Years, 2019–2039. https://www.faa.gov/data_research/aviation/aerospace_
forecasts/
FAA, Airspace, 2019. https://www.faa.gov/nextgen/equipadsb/research/airspace/
FAA, Aviation Gasoline, About Aviation Gasoline, 2019. https://www.faa.gov/about/initiatives/avgas/
FAA, Form 5010-1, Airport Master Records, 2018.
FAA, National Plan of Integrated Airport Systems (2019–2023). https://www.faa.gov/airports/planning_capacity/
npias/
General Aviation Manufacturers Association (GAMA), 2018 Annual Report.
Kramer, L. S., Daniel, J. P., Moore, M., Moroney, M., and Shafer, G. ACRP Synthesis 86: Airport Operator Options
for Delivery of FBO Services. Transportation Research Board, Washington, D.C., 2018.
Kramer, L. S., Jones, R., Neuder, D., Tessitore, N., and Shafer, G. ACRP Research Report 192: Airport Management
Guide for Providing Aircraft Fueling Services. Transportation Research Board, Washington, D.C., 2019.
Moorman, R. W., “Atlantic Aviation Spent $2 Billion to Build Empire,” Aviation Week Network, October 15, 2008.
Oliver Wyman, Airline Economic Analysis, 2018­–2019 edition.
Regional Airline Association, July schedules for U.S. domestic operations.
Smith, E. T. ACRP Legal Research Digest 37: Legal Issues Relating to Airports Promoting Competition. Transportation
Research Board, Washington, D.C., June 2019.
U.S. Bureau of Economic Analysis, Gross Domestic Product. https://www.bea.gov/data/gdp/gross-domestic-
product
U.S. Census Bureau, Population Division. Metropolitan and Micropolitan Statistical Areas Population Totals
and Components of Change: 2010–2019. Annual Estimates of the Resident Population: April 1, 2010 to
July 1, 2019. https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-metro-and-micro-
statistical-areas.html

Bibliography
ARG/US, “2018 Business Aviation Review,” January 2019.
Enticknap, J. L., and Jackson, R. R., “Year-End Review: State of the FBO Industry in 2018,” December 21, 2018.
Epstein, C., and Leach, D., “AIN FBO Survey,” Aviation International News, 2019.
FAA AC 150/5190-7, Minimum Standards for Aeronautical Activities, Washington, D.C.
FAA AC 150/5200-35A, Submitting the Airport Master Record in Order to Activate a New Airport, September 23,
2010, Washington, D.C.
FAA, Aviation Gasoline, About Aviation Gasoline, https://www.faa.gov/about/initiatives/avgas/.

76

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Characteristics of the FBO Industry 2018-2019

References and Bibliography   77  

FAA, FBO Industry Consolidation and Pricing Practices, Q&A, ACO-100, December 7, 2017, https://www.faa.gov/
airports/airport_compliance/media/QAs-FBO-Consolidation-Pricing-final.pdf.
FAA, Federal Regulations 14 CFR 91.225 and 14 CFR 91.227.
J.A. Air, “Trends in Private Aviation for 2019,” February 28, 2019.
JETNETglobal.com, “FBO Market Analysis & Trends,” January 2016.
Pilsk, E. W., Benner, D. C., and Timpanaro Jr., L. M. ACRP Legal Research Digest 28: Operational and Legal Issues
with Fuel Farms. Transportation Research Board, Washington, D.C., June 2016.
Prather, C. D. ACRP Legal Research Digest 8: The Right to Self-Fuel. Transportation Research Board, Washington,
D.C., 2009.
Regional Airline Association, “Pilot Supply & Air Service Update,” May 2019.
Rose, M., “FBO Market Analysis and Trends,” AvBuyer, February 12, 2016.
Thurber, M., AINsight: “Simple Solution to Aircraft Mechanic Shortage,” March 27, 2019.
Wilson, D., “State of the FBO Industry 2016,” Professional Pilot, 2016.
Yu, W., “Identify and Prioritizing Critical Success Factors for Fixed Base Operators in the United States: A Mixed
Method Approach,” 1026 Purdue University Open Access Dissertations, 6–7, 2016.

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

APPENDIX D

Glossary

Airport Sponsor: The entity that is legally responsible for the management and operation of
an airport, including the fulfillment of the requirements of laws and regulations related thereto.
Assignment: An assignment is the transfer of a claim, right, interest, or title to a property,
especially personal property. In addition, an assignment refers to the actual document—also
called the instrument—you use to record and make the transfer legal.
Common Use: Common Use means the flexible and shared use of airport facilities through
shared technology and infrastructure.
Conveyance: Conveyance refers to the transfer of ownership or interest in real estate or real
property from one person or entity to another by a legally acceptable document. Acceptable
documents include deeds, mortgages, leases, and statements of conveyance. The latter is dif-
ferent from a deed or lease in that it is a much simpler document, usually only one page. You can
also use a statement of conveyance to transfer intangible property—for example, a trademark
or license—to someone else.
Exclusive Use: Property that is available only to a single tenant.
Federally Obligated Airport: Airport sponsors agree to certain obligations when they accept
federal grant funds or federal property transfers for airport purposes. The FAA enforces these
obligations through its Airport Compliance Program.
Joint-Use Airport: A joint-use airport means an airport owned by the Department of Defense,
at which both military and civilian aircraft make shared use of the airfield.
Nominal Dollars: Nominal dollars refer to the current value of the dollar when reported. There
is no adjustment for inflation.
Preferential Use: Preferential or shared-use contractual arrangements represent a shared control
between the airport and the tenant(s). The tenant acknowledges that under specified circum-
stances, the airport sponsor can allow use of the facility by other tenants.
Tankering: Fuel tankering involves carrying more fuel than is needed to optimize fuel burn,
fuel costs, and en route fuel stops.
Upload Fee: Sometimes called an into-plane fee, an upload fee is a charge made to customers
that considers the cost of storage of the fuel and fueling the aircraft.

78

Copyright National Academy of Sciences. All rights reserved.


Characteristics of the FBO Industry 2018-2019

APPENDIX E

List of Acronyms

100LL 100 Low Lead (also known as AvGas)


AAL Alaska FAA Region
AC Advisory Circular
ACE Central FAA Region
ACIP Airport Capital Improvement Plan
ADS-B Automatic Dependent Surveillance-Broadcast
AEA Eastern FAA Region
AGL Great Lakes FAA Region
ANE New England FAA Region
ANM Northwest Mountain FAA Region
AOPA Aircraft Owners and Pilots Association
ASO Southern FAA Region
ASW Southwest FAA Region
ATADS Air Traffic Activity Data System
AvGas Aviation gasoline (also known as 100LL)
AWP Western Pacific FAA Region
CAA Corporate Aircraft Association
FAA Federal Aviation Administration
FBO Fixed-base operator
FS Full-service
GAMA General Aviation Manufacturers Association
LLC Limited liability company
NPIAS National Plan of Integrated Airport Systems
OAG Official Airline Guide
POS Point of sale
RAA Regional Airline Association
SASO Specialized Aviation Service Operator
SS Self-service
TEL Tetraethyl lead

79  

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Characteristics of the FBO Industry 2018-2019

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Characteristics of the FBO Industry 2018-2019

Abbreviations and acronyms used without definitions in TRB publications:


A4A Airlines for America
AAAE American Association of Airport Executives
AASHO American Association of State Highway Officials
AASHTO American Association of State Highway and Transportation Officials
ACI–NA Airports Council International–North America
ACRP Airport Cooperative Research Program
ADA Americans with Disabilities Act
APTA American Public Transportation Association
ASCE American Society of Civil Engineers
ASME American Society of Mechanical Engineers
ASTM American Society for Testing and Materials
ATA American Trucking Associations
CTAA Community Transportation Association of America
CTBSSP Commercial Truck and Bus Safety Synthesis Program
DHS Department of Homeland Security
DOE Department of Energy
EPA Environmental Protection Agency
FAA Federal Aviation Administration
FAST Fixing America’s Surface Transportation Act (2015)
FHWA Federal Highway Administration
FMCSA Federal Motor Carrier Safety Administration
FRA Federal Railroad Administration
FTA Federal Transit Administration
HMCRP Hazardous Materials Cooperative Research Program
IEEE Institute of Electrical and Electronics Engineers
ISTEA Intermodal Surface Transportation Efficiency Act of 1991
ITE Institute of Transportation Engineers
MAP-21 Moving Ahead for Progress in the 21st Century Act (2012)
NASA National Aeronautics and Space Administration
NASAO National Association of State Aviation Officials
NCFRP National Cooperative Freight Research Program
NCHRP National Cooperative Highway Research Program
NHTSA National Highway Traffic Safety Administration
NTSB National Transportation Safety Board
PHMSA Pipeline and Hazardous Materials Safety Administration
RITA Research and Innovative Technology Administration
SAE Society of Automotive Engineers
SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act:
A Legacy for Users (2005)
TCRP Transit Cooperative Research Program
TDC Transit Development Corporation
TEA-21 Transportation Equity Act for the 21st Century (1998)
TRB Transportation Research Board
TSA Transportation Security Administration
U.S. DOT United States Department of Transportation

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