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Aviation Services
First Research, Aug 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
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. Over 4,000 FBOs operate in the US, often with several servicing the 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 ...
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