Owning an FBO?

[smellthejeta]

One thing you have to consider is your profit margins.

I don't think there's a whole lot of $ in flight instruction/aircraft rental. My airport has FIVE FBO's on the field, and none of them do inhouse rentals. And, FWIW, 3 of the 5 FBO's are mom and pop operations, although one guy operates at more than one airport. Of the other two, one is a franchise, and the other is a service center for a well-known manufacturing line.

I'd say the insurance you have to carry (not talking about flight instruction) is humongous. If the FBO typically deals in in piston aircraft, just how much profit do you think you can make selling avgas for $2/gal profit? Realize that on the really dinky pistons, you're uplifting 10-20 gallons at a time. You can do 100 on a baron, but frankly, if you can't do volume, forget it. At the same time, competition for large jet traffic (G4/G5 and the like) drives fuel prices so low that you have to pump A LOT of Jet A to make up for it. If you compare my company's take after wholesale costs are paid, we have to pump 800 gallons of Jet A to our base customers to match what we take on ONE gallon of 100LL at retail price. It's a somewhat apples and oranges comparison because base customers receive a heavily discounted fuel price, but the point remains the same.

 

[Snakum]

Open an FBO?

Just give your money to me instead, and I'll send you a card every year on your birthday and I'll tell everyone I know what a nice guy you are. Your money'd be better spent this way, and I can quit my job and fly fulltime.

 

[gsrcrsx68]

And one more thought. How as a private business are you going to compete with various local government that subsidize airport operations?

In certain areas gov't ensures continueing and consistent operations. If you are one of these businesses, kudus, ride the gravy train. If not and you have any operations like that close to your fbo...uuhhmm...u r screwed, imho.

 

[propsarebest]

Someone hit the nail right on the head, it's the other stuff that really sinks you, I.E. insurance, OUTRAGOUS lease payments for the office/hangar/ramp sapce, credit card fees, fuel franchise fees, etc etc.

Unless you are on a popular G.A. field, you can't possibly make enough money.

There are so many fixed costs involved in just getting the place up and open that makes it not worth it.

 

[CalifDan]

If you compare my company's take after wholesale costs are paid, we have to pump 800 gallons of Jet A to our base customers to match what we take on ONE gallon of 100LL at retail price.

If that were true, why don't I get premium service at all jet centers when I taxi up in my Duchess? They should be making way more money on me than on any Gulfstream, unless he can take on 64,000 gallons of fuel.

 

[Espalda Mojado]

PacoPollo has the right idea. Why not find students and other time builders to work for free in exchange for a little flight time. You can even give them the airplane dry and have them pay for the gas they use.

Cheap labor = Big profits, this country runs on it!

 

[NuGuy]

Then again, in North Perry, Fla (HWO) there is another bar,MayDay's....same story. Just can't call the bar on the radio :nuts:

There's a reason for that...they went out of business a few years ago....

Nu

 

[81Horse]

My grandparents owned FBOs from the late 30s all the way into the 70s. Maintenance, hangars, tie-downs, sales, charters, rentals, instruction -- everything. They retired comfortably well off (but not rich).

Was it the Golden Age of General Aviation? No. It was the Golden Age of California Airport Real Estate. Real estate investments aside, as the old man used to say, "Aviation's a great way to make a small fortune; but you have to start with a big fortune first."

 

[CrimsonEclipse]

There's a reason for that...they went out of business a few years ago....

Nu

ACK!!

Now what will the Pines Police do on Friday nights?

CE

 

[smellthejeta]

If that were true, why don't I get premium service at all jet centers when I taxi up in my Duchess? They should be making way more money on me than on any Gulfstream, unless he can take on 64,000 gallons of fuel.

Ooops. I was smoking something when I wrote that post. Somehow I snuck in some extra zeros. Should have written 8 gallons of Jet A for a base customer per 1 gallon of retail 100LL.