Win Perkins doesn’t have much patience for the traditional FBO business plan. He calls his facility at Morristown Municipal Airport (MMU), N.J., “the anti-FBO,” and the way he does business could be a harbinger of change in the airport service industry. Perkins proposes to generate the lion’s share of his profits through rent payments, while making little or no profit on fuel sales. It really is the reverse approach to the accepted norm.
Most business aviation FBOs rely primarily on profits from fuel sales to make their “small fortune.” All too often it’s the lack of such profits that whittles away at the “large fortune” the FBO may have started with. Perkins maintains that some FBOs will practically give away prime hangar real estate to tenants they believe will be lucrative sources of fuel profits. He disagrees with that strategy, at least when it comes to airports in high-density population centers where land is valuable.
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