Owning an FBO?

[777-2H4]

What's it like to own an FBO? Can you really make money with it as a business, if you have rentals, instruction, fuel, maybe some hangars? Are small local FBO's decent profit makers?

Also....on a related note, is the high price of fuel having a negative impact on general aviation & fixed base operators, since it is getting so expensive to fly?

 

[propsarebest]

Trust me kiddo, it's a total moneypit. Don't even ponder the thought.

 

[mhaleem12]

Owning an FBO

Most folks that you question about starting an FBO don't have any business background whatsoever. You have to find a niche that is different from what other FBO's offer. Example: accelerated training versus traditional route, etc.

 

[777-2H4]

Most FBO's that I see are all doing the same thing. I don't see how one stands out from another.

 

[FN FAL]

What's it like to own an FBO? Can you really make money with it as a business, if you have rentals, instruction, fuel, maybe some hangars? Are small local FBO's decent profit makers?

Also....on a related note, is the high price of fuel having a negative impact on general aviation & fixed base operators, since it is getting so expensive to fly?

I know two brothers whose dad owned a pepsi bottling plant in town who thought they could run an FBO. They are done after a few years. Why don't you ask what their trials and tribulations were, certainly it wasn't the lack of operating capital.

 

[MFRskyknight]

I have a line job at one of the nicest FBOs you'll find anywhere. Red carpet, leather this, marble that, a few bizjets and the occasional airtanker or heavy as customers, people love coming to it. It definitely fills a niche that no one else -- at least not on our field -- can, that is being a really nice "golden age" FBO. Still, I can't conceive of how it makes any profit. It's been open quite a few years and if it hasn't broken even yet, it wouldn't surprise me.

An FBO is the kind of business that works great for someone who already has money. LOTS of it. If you can afford to lose a few hundred G's, go have yourself a ball selling as much fuel as you can to offset the loss and delay your capsizing.

On the other hand, I'm stepping into the business realm myself soon with a restaurant franchise. It's definitely not a "pet business" that I can afford to watch sink, shrug, and walk away from. I'm working to get my plan for it airtight as possible, and I'm still shaking in my boots.

Unfortunately, 99% of startup FBOs will do poorly since most anybody with a) a passion for aviation, b) an insane amount of money, and c) a shred of business sense would wisely put their time and money into more profitable endeavors.

MFR

 

[big_al]

probably the only thing more difficult than making a profit in aviation is making a profit in restaurants. good luck, MFR

 

[MFRskyknight]

Well the way I figure it, people don't have an inherent need to aviate, but they do have to get silly drunk...and hence stumble into my restaurant at 3am to eat.
:beer:

 

[777-2H4]

Ok, maybe I should clarify: Not opening a new FBO, but buying one that is on the market that has an estabilished position at the airport with all the physical assets already in place.

so...why can't people make money in it? Every airport has to have a place that caters to the local GA crowd, right? Certainly general aviation is not a dying sector...is it?

 

[CrimsonEclipse]

If I recall correctly, Cross City, Fla has an FBO/Restaurant/Bar.
There is a combination that seems to work. They even had a
beer drinking pig there. Have a drink, fuel a plane.

What could possibly go wrong?

CE

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: