Procurement Market Intelligence Report
Fixed-Base Operation Services
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Fixed-Base Operation Services Global Overview
Definition
Summary
Fixed-base operation (FBO) service providers offer air-transit support services, such as fueling, aircraft parking, tie-down services, hangar services, aircraft repair and maintenance, de-icing, and catering. Buyers in this market include general aviation buyers, commercial airlines, business jet charter companies, military aviation agencies and government agencies.
This Report Includes:
- Fueling Services
- Aircraft Parking
- Tie-Down Services
- Hangar Services
- Aircraft Repair and Maintenance
Not in this Report:
- Aircraft Charter Services
- Domestic Air Travel
- Domestic Air Cargo Transportation Services
Global Fixed-Base Operation Services Procurement Trends
Discover the top international trends affecting procurement in the global Fixed-Base Operation Services market.
Warning Trends
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Global Fixed-Base Operation Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 United States | 3,200 |
| #2 China | 2,630 |
| #3 Europe | 1,355 |
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Geography Drilldown - US
Average Cost of Fixed-Base Operation Services
United States
2026 Market Pricing$1.00 to $X.XX
per 1,000 pounds landed weightAverage Price
Prices in the Fixed-Base Operation Services market range from $1.00 to $X.XX, depending on Aircraft Size, Hangar Capacity, Level of Service and Geographic Location. For example, lower prices are associated with Smaller aircraft ($1 to $7 per 1,000 pounds landed weight), whereas higher prices are associated with Larger aircraft ($3 to $9 per 1,000 pounds landed weight).
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Fixed-Base Operation Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Fixed-Base Operation Services market, prices in the US have grown 2.3% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Fixed-Base Operation Services
Total cost of ownership is High in the Fixed-Base Operation Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Set Up Fees
Rentals
Implementation
Billed During
Additional Fees
Fuel
Handling
Unforeseen
Emergencies
Hidden Fees
Downtime
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.9 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Aviation Fuel Suppliers
- Fabricated Metal Manufacturers
- Aircraft Parts Manufacturers
2nd
Tier Suppliers
- Oil Refineries
- Metal Wholesalers
- Electronic Components Wholesalers
Biggest Fixed-Base Operation Services Suppliers in the US by Revenue
The largest Fixed-Base Operation Services vendors by revenue in the US are Cutter Aviation, Signature Aviation Limited and Modern Aviation Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| General Dynamics Corporation | International | RESTON | >10,000 | < 5 | ||||
| Modern Aviation Inc. | International | New York, NY | 51-100 | < 5 | ||||
| Truman Arnold Companies Inc. | National | Dallas, TX | 501-1,000 | < 5 | ||||
| Signature Aviation Limited | Global | London, UK | 1,001-10,000 | < 5 | ||||
| Million Air Interlink | International | Houston, TX | 1,001-10,000 | < 5 | ||||
| Ross Aviation Operations LLC | Global | Plano, TX | 501-1,000 | < 5 | ||||
| Shelter Aviation Services LLC | National | Fort Lauderdale, FL | 501-1,000 | < 5 | ||||
| Macquarie Infrastructure Company LLC | National | NEW YORK, NY | 1,001-10,000 | < 5 | ||||
| Cutter Aviation | Regional | Phoenix, AZ | 25-50 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Fixed-Base Operation Services market is 4.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The average vendor carries a moderate level of vendor risk because profit margins are low in this market and operating costs are steep.
The FBO services market exhibits low market share concentration. Even though the market contains major chain companies, FBO services tend to be highly localized, so no single provider has a controlling market share.
Fabricated metal and aircraft parts manufacturers present a moderate supply chain risk to FBO service providers due to volatility in steel and aluminum prices.
The United States is a net exporter of jet fuel, meaning it exports more than it imports. This helps ensure airlines will have steady access to jet fuel but also contributes to strong price fluctuations due to variations in global demand.
Supplier Information
Cutter Aviation
Cutter Aviation is a private company operating regionally. The company's offerings include fixed-base operation services. Founded in 1928, the company is currently headquartered in Phoenix, Arizona, United States of America with an estimated 37 employees. Subscribe to learn more
General Dynamics Corporation
General Dynamics Corporation is a global aerospace and defense company that designs, engineers, and manufactures solutions for the aviation and defense markets. It organizes its business into four segments: the Aerospace segment, which provides aircraft, aircraft repair, and support and completion services... Subscribe to learn more
Macquarie Infrastructure Company LLC
Macquarie Infrastructure Corporation is a diversified holding company that operates businesses that provide products and services to corporations, government agencies, and individual customers in the US. It organizes its business into three segments: the Atlantic Aviation segment, which provides fuel, terminal,... Subscribe to learn more
Million Air Interlink
Million Air Interlink is a private company operating internationally in the manufacturing sector. The company's offerings include jet fuel and fixed-base operation services. Founded in 1984, the company is currently headquartered in Houston, Texas, United States of America with an estimated 5500 employees.... Subscribe to learn more
Modern Aviation Inc.
Modern Aviation Inc. is a private company operating internationally. The company's offerings include fixed-base operation services. Founded in 2017, the company is currently headquartered in New York, New York, United States of America with an estimated 52 employees. Subscribe to learn more
Ross Aviation Operations LLC
Ross Aviation Operations LLC is a private company operating globally. The company's offerings include fixed-base operation services. Founded in 1927, the company is currently headquartered in Plano, Texas, United States of America with an estimated 750 employees. Subscribe to learn more
Shelter Aviation Services LLC
Shelter Aviation Services LLC is a private company operating nationally. The company's offerings include fixed-base operation services. Founded in 1963, the company is currently headquartered in Fort Lauderdale, Florida, United States of America with an estimated 750 employees. Subscribe to learn more
Signature Aviation Limited
Signature Aviation PLC is a private company operating . The company's offerings include fixed-base operation services. Founded in 1900, the company is currently headquartered in England. Subscribe to learn more
Truman Arnold Companies Inc.
Truman Arnold Companies Inc. is a private company operating nationally. The company's offerings include fixed-base operation services. Founded in 1964, the company is currently headquartered in Dallas, Texas, United States of America with an estimated 750 employees. Subscribe to learn more
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Procurement Management KPIs for the Fixed-Base Operation Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Cash Flow and Current Ratio (Assets/Liabilities). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Regulatory Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Cash Flow |
|
Press reports |
Vendors with positive cash flow are preferred because it signifies a higher level of profitability and solvency of the vendor. These factors minimize the risk of a supplier abruptly exiting the market. |
| Current Ratio (Assets/Liabilities) |
|
Current Assets Current Liabilities |
The current ratio can be used to determine a company’s liquidity and its ability to pay its short-term obligations. |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Cost Containment
Where do you source your fuel?
Where do you source your aircraft parts?
Customer Support
How do you track customer satisfaction, and do you have client references I can review?
Do you offer 24/7 customer support services?
Insurance
What are the insurance conditions specific to your FBO location?
Do you pass your insurance coverage obligations on to your subtenants?
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Fixed-Base Operation Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a description of their organizations, including size and geographic location.
Buyers should explain why they require FBO services.
Statement Of Need
Buyers should provide detailed aircraft specifications such as weight, make and model.
Buyers should include details about landing frequency and average refuel requirements.
Project Budget
Buyers should state the amount of the contract award for FBO services.
Buyers should explain whether they wish to become signatory or non-signatory clients.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance