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FBOs Confront Competition From Airport-operated FBOs
There is a growing trend for airport authorities to underwrite and operate FBOs in competition with other FBOs on that same airport. Airports say they need to do it for the sake of 'competition,' and FBOs say, 'compete on a level playing field.' (www.ainonline.com) Más...Sort type: [Top] [Newest]
Totally agree that competition is a good thing. I would question government competition though where private industry fears to tread. There might be a good market based reason why there is only 1 FBO on the field. And in the long run, wasteful government spending costs us all much more than a short term super cheap fuel price.
As a corporate chief pilot, I've seen fuel prices soar way above costs, mainly because of no competition. I like the amenities of course, but good grief, please, we have to account for the outrageus cost of fuel. Our Bravo averages 200 gph. On an average we pay close to $3.00 per gallon more than what we pump our own for. That's $600 per hour. We have no choice but to tanker as much as possible. We have put off upgrading airplanes and cut back on our flying because of the economy and the outrageous cost of fuel. We even divert to smaller fields because of fuel costs and ramp fees like $250 to $300, Just to walk thru the lobby. Give me a break. That's just good old American greed. I don't like the guv'ment in competetion with private enterprise, but something has to give.
Competition = cheaper fuel. I'm all for that. Just that simple.
Clearly the use of public funds is a problem- but as others are mentioning, the real issue is price gouging by some private FBOs at certain airports. Its hard to have sympathy for any FBO that charges 100LL at 2 or 3 dollars over nearby muni FBOs. Add to that those parking, ramp and special fees that go into the FBOs pockets and not to the Feds who paid for the runway and anyone can understand why some FBOs develop a reputation. Need some examples: compare KSBA to KIZA or KMMH to KBIH and dont even get me started about KSNA... The best option is simple, give the FBO a lease then offer muni run self serv with limited parking. The G5s will go to the FBOs for full serve, marble and a crapachino. The C150s go to the self serv for cheap avgas and support the local restaurants with a burger
Muni owned facilities don't pay property taxes like privated facilities. Also most are self insured for insurance. Try to buy insurance for an FBO each year and you will see why avgas is so expensive. This is a direct cost that makes it hard to compete.
When you know that the rack price is $3/gal cheaper clearly the consumer is being gouged.
J