FBO consultant admits consolidation is a problem

In an AviationPros Op-Ed, Wilson wrote, “Admittedly, the FBO industry shares some culpability—as do airports themselves. Consolidation hasn’t helped competition in certain markets; there are always few bad apples, and always will be.”

Wilson went on to defend high prices at FBOs and argued that seemingly egregious fees often are the result of “astronomically high” operating costs, but his analysis failed to consider those costs in relation to revenue. For example, BBA Aviation, the London-based parent company of Signature Flight Support, which is the only FBO at 48 U.S airports, reported a 20.4 percent operating margin for its flight support business segment in 2016 following the acquisition of Landmark Aviation.

Wilson also has consulted for ACI Jet, an independent FBO that replaced Signature at John Wayne Airport following complaints over high prices. At the time he called the change, “a canary in the coal mine-type event for the FBO industry.”

“Both end users and airports are simply more desirous of a choice in FBOs that includes a strong independent FBO,” said Wilson.

AOPA has asked members to submit reports about egregious pricing, and many of those involve Signature locations at airports with only one FBO.

One flight instructor who was with a student at Baltimore/Washington International Thurgood Marshall Airport reported they pulled off the taxiway for some flight planning prior to departure and were still charged a fee by Signature, the only FBO at the airport. The instructor wrote, “Because I ‘touched’ the ramp, they wouldn't let us take off until I paid $50.” 

“If I came inside then they were going to charge me a parking fee, too! So I gave them my credit card over the radio. NOT RIGHT!” the instructor continued.

Another pilot reported he arrived at Gerald R Ford International Airport in Grand Rapids, Michigan, to pick-up a passenger in a Beechcraft Musketeer and was told he would have to pay expensive fees or buy high-priced fuel. He wrote, “When I called to get information, they explained that their ‘handling fee’ was $35, and the ‘infrastructure fee’ was $5. They claimed they would waive the handling fee with a fuel purchase of 7 gallons, however their 100LL fuel price is $6.59/gallon.”

The pilot also wrote, “While friendly, they explained it was ‘the signature way’ to treat general aviation and there was nothing they could do.”

Signature is the sole FBO at Gerald R Ford International Airport.

According to FAA regulations, FBOs are obligated to charge reasonable and non-discriminatory prices for services.