AOPA Turbine Pilot Magazine - August 2017 - 6

PRESIDENT'S POSITION

Merger fever

BY MARK BAKER
President and CEO

FBO consolidation harms general aviation
IN THIS AGE OF TECHNOLOGY and disruptive innovation, retailers are constantly finding new ways
to improve consumer shopping experiences. From
apps that compare prices to delivery services that
allow you to save time and money, the marketplace
is constantly evolving and benefiting consumers.
Unfortunately, parts of the FBO market are heading
in the opposite direction, much to the detriment of
general aviation.
AOPA advocates for protecting the freedom to
fly, and everything that goes along with those freedoms. Sadly, we are seeing a small number of FBOs
affecting access for aircraft owners and pilots by
imposing egregious prices, and many times preventing pilots from doing what they love most.
Many of these problematic FBOs have been part of
recent industry consolidations at high-demand airports, and they are often the only FBO that serves
an airport.

We need a healthy FBO infrastructure for general
aviation to thrive. Sadly, we are seeing a small
number of FBOs affecting access for aircraft
owners and pilots by imposing egregious prices.

AOPA President
MARK BAKER

is a commercial
pilot with singleand multiengine
land and sea
ratings, as well as
a rotorcraft rating.

6 | AOPA PILOT August 2017

AOPA is concerned about the ongoing consolidation of the FBO market, which has accelerated over
the past five years, and subsequent lack of competition in various locations across the country.
In 2016, merger fever really heated up. Rates for
FBO fees and fuel prices continued to climb at these
locations, where many times fees were demanded even
when pilots didn't request any services. Flash forward
to 2017, where the chorus of complaints from members
has skyrocketed, with fees reaching rates that pilots
say are preventing them from accessing certain FBO
locations.
Airport sponsors-generally those municipalities or authorities that own airports-can influence
prices at their facilities. In fact, when accepting federal grants for infrastructure improvements, they have
a direct responsibility to guarantee fair, reasonable,
and nondiscriminatory pricing. New regulations aren't
necessary to remedy the current circumstances facing

general aviation. However, there should be transparency in fair and reasonable fees, especially when pilots
arrive on a ramp and don't require services.
From what we are currently seeing, airport sponsors and community leaders are the solution. Pricing
concerns expressed to AOPA to date also include
reports submitted by FBO managers who are aware
that the outrageous prices charged at some locations
have detrimental consequences on the entire pilot
population. We are working with community leaders
to find a solution that works for all parties involved,
and that includes airport managers and sponsors
who have asked for our help and guidance. Officials
at California's John Wayne Airport-Orange County
took action to replace an FBO that was charging too
much. In Jackson Hole, Wyoming, the airport board
agreed to allow a competitive FBO after hearing complaints about high fees.
We need a healthy FBO infrastructure for general aviation to thrive. General aviation pilots are not
looking for a free ride, and we are more than willing
to pay fees that are reasonable and in line with services provided.
AOPA also has been working with the FAA
regarding pricing complaints, and the association
has asked for help in applying the rules and procedures previously implemented to ensure fairness for
all, including pilots, aircraft operators, and FBOs.
Ultimately, AOPA is looking to raise awareness
regarding price transparency. Making information
about fees easily accessible to all, as retail fuel prices
already are, would help pilots make more informed
decisions. Regardless, fees and prices at airports built
with public funds must be reasonable and competitive, and access must be available to all.
While there may not be a quick solution to this
problem, AOPA continues to work with the FAA and
industry stakeholders to ensure that steps are taken to
preserve profitability for FBOs and reasonable access
for pilots at public-use airports.
AOPA continues to encourage input from our members and to work with stakeholders and communities to
eliminate egregious prices. If you believe you have been
the victim of unreasonable pricing at an FBO, please send
us a report online (www.aopa.org/FBOfees).
AOPA
EMAIL mark@aopa.org

http://www.aopa.org/FBOfees

AOPA Turbine Pilot Magazine - August 2017

Table of Contents for the Digital Edition of AOPA Turbine Pilot Magazine - August 2017