Fixed-Base Operator Market Report: Size, Share and Outlook by 2031

The global market for fixed-base operators (FBO) is projected to increase from approximately US$ 25,194.55 million in 2022 to around US$ 37,177.46 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.7% during this period.

FBOs provide a wide array of services, including hangaring, fuelling, flight training, aircraft maintenance, and rental services. Among these, fuelling stands out as the most lucrative segment within the fixed-base operator market. Globally, FBOs supply AVGAS for piston engine aircraft and Jet Fuel for turbine-powered planes. Their fuelling services encompass not only the sale of fuel to aircraft owners but also the provision of parking facilities for their planes. The business aviation sector has experienced robust growth in recent years, particularly before the COVID-19 pandemic, leading to a heightened demand for fuelling service providers. Furthermore, many FBOs are now introducing Sustainable Aviation Fuel (SAF) as part of their offerings, aiming to assist general aviation jet operators in minimizing their carbon emissions. The distribution of SAF within the fixed-base operator market is a strategic move to enhance service quality and attract clientele. Notable FBOs like Signature Aviation and Atlantic Aviation are at the forefront of providing SAF to their customers. The increasing interest in SAF among FBOs is a significant factor influencing the future trajectory of the market and serves as a vital driver for the fixed-base operator sector.

The escalating demand for both business and private jets, encompassing a range of small to large aircraft, is a key element propelling the growth of hangaring service providers. The consistent rise in general aviation air traffic has necessitated the introduction of new general aviation aircraft fleets with greater seating capacities. Aircraft manufacturers are also concentrating on developing next-generation aircraft that feature improved fuel efficiency, larger dimensions, and reduced noise and carbon emissions. Consequently, the need for hangars has surged within the fixed-base operator market. The design of these hangars has evolved significantly to accommodate the changing sizes and technologies of aircraft, with modern facilities now equipped with temperature control and enhanced security systems. According to Jet Aviation, a leading FBO service provider, the demand for new and larger hangars was first identified in the Asia-Pacific region, prompting the company to expand its hangaring services in various countries, including Singapore. In other regions, FBOs are focusing on enlarging their hangar spaces due to existing overcapacity, while some are awaiting updates to the National Fire Protection Association (NFPA) 409 code concerning aviation hangars. Thus, the trend towards constructing larger hangars to meet the needs of an expanding fleet of large general aviation aircraft is a significant trend that is expected to bolster the growth of the fixed-base operator market in the near future.

The industry is currently facing challenges due to a shortage of skilled labor, compounded by low unemployment rates, which have resulted in a competitive labor market. Ground handling companies are investing in advanced technologies and upgrading their equipment to keep pace with the latest aircraft innovations. Additionally, FBOs must invest in training their personnel to ensure they are equipped to operate sophisticated equipment. The demand for skilled professionals in the FBO sector is critical; however, the lack of qualified personnel is hindering industry growth. Moreover, the high costs associated with training further impede the expansion of the fixed-base operator market, particularly in developing or cost-sensitive regions. Consequently, the rising expenses related to fuel and maintenance services, along with the scarcity of well-trained staff, are significant factors restraining the growth of the fixed-base operator market.

Effects of the COVID-19 Pandemic on the Fixed-Base Operator Market

The COVID-19 pandemic has had a profound impact on the fixed-base operator market, leading to increased fuel prices and a notable decline in flight operations during 2020 and into 2021. This downturn has adversely affected the global aviation market, prompting many FBOs to reduce operational costs and lay off staff. To navigate through the pandemic, FBO service providers have implemented various strategies, including expanding their operations into new regions and forming partnerships with other FBOs or ground handling companies. These initiatives have enabled several players in the fixed-base operator market to sustain their operations during challenging times.

The overall size of the fixed-base operator market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the market across all segments. Additionally, primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this process included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the fixed-base operator market. Some prominent players in the fixed-base operator market include Avemex SA De CV, Deer Jet, dnata Corporation, Jet Aviation (a subsidiary of General Dynamics Corporation), Jetex, Luxaviation, Signature Aviation, Swissport International AG, ExecuJet, Atlantic Aviation, Universal Aviation, and Abilene Aero Inc. Recent developments among these key players include:

- In March 2022, Signature Aviation announced its agreement to acquire TAC Air along with its 14 FBO units located across various sites in the United States.

- In August 2022, Universal Aviation expanded its FBO services into Guatemala and Paraguay.

- In 2021, Jet Aviation, part of General Dynamics Corp., acquired ExecuJet's Zurich FBO and hangar operations, as well as Luxaviation's Swiss Aircraft Management and Charter Divisions.