When jet-A prices spiked last year after oil prices rose to new highs, pilots complained that the large FBO chains were taking advantage of monopoly locations to extract stiff per-gallon prices and high ramp fees from jet-A-buying customers. It’s true that prices rose, in some cases above $8 per gallon at some locations where sole FBOs are the norm. It is also true that some airports have only one FBO, whether because of local airport authority constraints or because there isn’t enough business to support more than one FBO. But were complainers correct that the big chains are monopolizing well traveled airports?
Before looking at the data, it is interesting to note that even the big chains aren’t immune to pricing pressure. The spike in oil prices and the sorry state of the economy have affected the amount of flying being done, and FBOs report reduced margins on fuel sales due to the slowdown in business; some have laid off personnel.
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