The frenzied round of fixed-base operator (FBO) consolidation during the 2020-2022 private aviation boom saw names including Signature Flight Support and Atlantic Aviation, the two largest FBO chains, change hands. Under new ownership, these groups continue to seek out additions to their stables. But elsewhere, what is the market driving, and how has this segmentation changed what the industry provides — and what customers want?
FBOs range in size and scale from single-hangar, single-airport, mom-and-pop-shop operations all the way to companies that are part of the largest global aviation conglomerates. Yet as the smaller players continue to do what they’ve always done well, and the larger players focus on consistency with global standards, a growing number of players in the middle are innovating to stay ahead of the game.
The industry usually refers to three tiers of FBOs:
- Tier 1: the big players, with many locations and offering the most services: MRO (maintenance, repair and overhaul) that is often certified by OEMs (original equipment manufacturers), parts, technical services, and so on: US$25m+ annual revenue
- Tier 2: medium-sized FBOs, with fewer locations and fewer services: perhaps servicing, charter, pilot training, management: $10–25m annual revenue
- Tier 3: small and often independent operators, often with one or just a few locations, offering a limited range of services — perhaps just hangars, fuel and maybe some limited flight instruction, and sometimes limited to non-jet aircraft: under $10m annual revenue
But some independent FBOs in the notionally lower tiers are looking to punch above their weight, Charles Clair, president and founder of Clair Group and Le Bourget-based FBO subsidiary Astonsky tells us.
“Astonsky is a fourth category,” Clair suggests. “Based in the largest terminal at Le Bourget airport, with six floors of lounges and offices, it is not so small but independent and present only in Paris. Our idea when we opened Astonsky in 2019 was to create a new mode of ground service, dedicated to passengers and crews with areas and services for each of them.”
At the larger end of the spectrum, in addition to Signature (formerly BBA) and Atlantic, those larger groups in the industry include major players with extensive operations elsewhere in the industry like ground handling titans dnata and Swissport.
On the one hand, this wider experience can be advantageous, especially when dealing with a volume of operations at busier airports. On the other hand, they may not be (or even may not be able to be) as responsive in delivering bespoke luxury services to customers, especially in the growing private leisure and blended travel markets.
There are, of course, specific geographies where a global standard, and indeed the resources and knowledge that comes with being part of a larger group, can be very useful indeed. If an operator wants to ensure that specific requirements are met, whether that’s on the technical side or in terms of passenger service, a larger organisation may be more appropriate.
This is especially useful in developing markets, where the savoir-faire of an international chain can be reassuring to clients, particularly those unfamiliar with a region. A reassuring similarity of the FBO experience — all the comforts of home, wherever you are — can be particularly helpful for the harder-nosed corporate or executive clientele whose focus is purely on business.
But elsewhere, for example, passengers want Paris to feel like it’s Paris. It’s this that Clair says Astonsky — which takes care of a third of all flights at the city’s Le Bourget airport — delivers to clients: “a real experience, from the car to the plane. Some of our services are exclusive: private and secured car park, valet service, VVIP lounge with a dedicated and secret access, wine cellar, in-house butler and chef…”
“Our customers,” Clair says, “wish to enjoy Paris and find it in the terminal, whatever they are arriving or departing. That is why all our services and atmosphere sounds like Paris culture and spirit. We also offer real bedrooms, not only snooze rooms. Each member of the team is dedicated to only one task: the valet is taking care of cars and luggage, the reception desk has his own mission, same for the ramp agents, the customer care manager, et cetera.”
That’s not to say that specific customer needs aren’t met: Astonsky is the FBO for organ transport flights, with its group sibling (the private aircraft operator Astonjet) the contract-holder for organ transportation for Paris’ hospitals, and thus it tailors services to the needs of doctors and their medical teams.
Much of what a modern FBO operator needs to deliver in order to stay ahead of the pack is well beyond the gas-and-go model for fuelling and ground handling. MRO, avionics shops, interiors repair stations, management hubs and catering outfits — whether those are provided internally to the FBO or via partnership — need to be able to deliver whatever a customer needs.
As with elsewhere in aviation, the staffing and services pipeline is inherently complicated, particularly where clients are demanding. Clair Group, for its part, is integrating across industry silos, and also offers the Astonfly pilot training academy as well as the Astonjet private aircraft operator and Astontec MRO centre.
Technology, too, is playing an important role as FBOs seek to manage greater customer demand and meet more specific requirements. New customer needs include making payment in cryptocurrency, while digitalised services mean that paperwork is reduced — although it will be critical to ensure that the overall amount of administrative overhead is not increased. FBOs have a key role to play here in designing the most efficient and simple processes for their customers, while also remaining driven to keep their own internal costs as disciplined as possible.
The growing ability to automate the integration of onward travel via a new generation of premium vehicle booking software, and eventually the nascent air taxi segment, will provide reasons for a client to select one FBO over another. All of this will need to take place within a world where there are growing concerns about privacy, and indeed regulatory requirements about personal data and its transfer.
FBOs will need to continue to innovate at pace, Clair confirms. “Our FBO management software is now being connected via APIs [application programming interfaces] to operators’ systems for the transfer of assistance requests, passengers lists and required services. The future is ahead and we will be part of it.”
Author: John Walton
Published 27 April 2023
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