Aviation Services
Buy This Industry Report
Get more in-depth industry information with a First Research industry report containing business challenges, trends, executive insight, call prep questions, and so much more!
Increase Appointments
Engage Prospects
Build Your Confidence
Industry Overview
The US aviation services industry includes about 1,500 companies with combined annual revenue of $3 billion. Major companies include Atlantic Aviation FBO, Million Air Interlink, and Signature Flight Support. Most aviation services firms are single-facility operations with annual revenue less than $1 million. About 50 companies have annual revenue over $10 million and operate facilities at multiple airports.
Companies in the industry provide airport-based support services to the general aviation (private and business plane) market rather than to commercial airlines.
Competitive Landscape
Local and regional air travel, especially business travel, drives demand for aviation services to small and private aircraft. Profitability is based on sales volume, as prices fluctuate only periodically. Small companies can compete effectively in hometown markets. Big companies have more clout in negotiating with suppliers, which allows them better pricing options for their own services.
Products, Operations & Technology
Aviation services consist of refueling operations and fixed base operations (FBOs). Full-service FBOs usually include refueling. Nearly 4,000 FBOs operate in the US, often in competition at larger airports. (The US has 5,300 public airports.) The services provided are similar to the airport services that airline companies have for their commercial fleets: line operations, such as parking, refueling, de-icing, tie-down, hangar, and preheating; aircraft management services, such as maintenance, inspection, parts sales, aircraft sales, aircraft rental, chartering, and flight instruction; and personal services, such as food service, VIP terminals, car rentals, conference rooms, pilot lounges, flight planning, and business services.
Fuel sales are usually one of the most profitable services. Jet fuel is the predominant type of aviation fuel in commercial aviation, but aviation gasoline (avgas) is the primary fuel used by general aviation (GA) aircraft. Companies typically buy fuel from wholesalers. Fuel tanks, usually kept above ground, must comply with EPA regulations. Because aircraft can choose where to refuel during travel, companies go to great lengths to compete, as refueling revenue for a typical private jet may be as much as $2,000. Airplane owners lease hangar space at daily and monthly rates that depend on the size of the airplane. Hangar space for a small plane may cost $30 per day or $200 per month. Many locations consider long-term hangar rentals as loss-leaders. Companies, which usually lease their space and facilities from the host airport, provide low monthly hangar rates to make more-lucrative sales of fuel, maintenance, and other services.
Companies, particularly those with multiple locations, may use customer-oriented computer technology to support clients. Websites allow customers to plan trips, reserve services at various airports, and track maintenance and service records and reminders. Waiting rooms often offer Internet connections. New computerized maintenance tools give maintenance personnel information about any part on a specific plane.
