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Congress Asks FAA For Guidance On Airports Competing With Private Business

Letter from Congressman Pete Sessions to FAA Administrator Huerta asking the FAA to provide guidance on grant assurance compliance when airport sponsors enter into direct competition with their own tenants. ( Daha Fazlası...

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Eric Clark 7
I'm glad that congress is getting involved in this. When the airport is able to subsidize their FBO operations via other airport operations it gives them an unfair advantage. Give us a level playing field to compete on.
Chip Hermes 2
What did Tac Air do to piss off the local TN government...?
larry clement 2
Generally speaking, there is nothing the Gov't can do as efficiently as private business. Look at the cost of operating the private control towers compared to the Gov't-operated towers.
mercops 1
Gee, let me get this right. So to open an FBO on an airport, I have to lease land from the airport, promise to make millions in improvements to the leasehold, borrow money from the banks to make the improvements, pay the airport rent, pay the airport fuel flowage fees, pay my help plus taxes and insurance, only to have the airport go into business against me with their own FBO, which is by the way paid for through taxpayer dollars ....Geez where do I sign up for this deal!
unclefester 1
Competition also comes from the airports 5 to 25 miles away. You don't have to
have two FBO operations on the same airport to compete. When the government takes over the FBO business it pretty much shuts down any chance for competition.
It's impossible to compete with a landlord who holds your lease and has very
little overheard of their own.
Goodrichav 1
Point 1 - Follow the $$$ - As more and more FBOs strive for "profit maximization" and cut out all the other less profitable aviation services, they become nothing but gas stations. Airports look at that and say, "Hey, if that is were the money is, we can do that." Hence you have more and more sponsor-owned FBOs getting into the gas station business to make a buck. Remember that airports are getting the squeeze from the airlines and are looking for more revenue to make their budgets work.

Point 2 - Private is best??? - We have all flown into airports with one private FBO and found horrible service and high prices because there is no competition. Competition in the FBO business is a good thing.

Point 3 - Sponsors can do it well - Whether it is private or sponsor-owned, where there is good leadership and good systems in place, you will find good service. Global Select in Sugarland TX is always voted at the top of every pilot survey for FBOs and it is owned and operated by the City of Sugarland.
Hope Macaluso 1
It is sad that the Congressman did not have all of his facts before writing this. He obviously does not understand that those federal funds can NOT be used for operational costs but only for the maintenance and improvement of the infrastructures which everyone uses (runway maintenance, etc.). There is absolutely NO competitive advantage, especially when many airports carry the operational expense of not only the FBO, but the maintenance of facilities used by everyone (changing runway lights bulbs, etc.) for which the public does NOT fund. If someone wants to get into a losing business the best way is to run and airport AND and the FBO.
Bob Abbott 0
I'm wondering how old Eric Clark is........ he's glad congress (small s) is gettng involved !!
Marcus Pradel -2
Just how do you stop the new guy from getting a better deal? stop-loss clause on the lease that keeps everybody at the same level rent?

Too many airports have a single FBO that reigns supreme over the entire field, using infrastructure that was built by the Government/FAA in the first place!

The public deserves competition..
mattdavis 4
Competition is generally a great thing Marcus, and TAC Air welcomes it when it is funded through private dollars, not government subsidies.
Daniel Baker 0
But the "new guy" is the paid for by the local government. The legacy FBO (TAC Air) is competing against the local airport authority, operated by Wilson Air.


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