GAO Report on Prices for Aviation Services

• the extent to which FAA ensures compliance with federal airport grant
assurances related to FBO activities.
To determine what is known about FBOs’ price transparency and to help
identify the factors that may influence FBOs’ prices, we performed a
literature search of reports, presentations, and articles about the FBO
industry. 4 We also reviewed two websites that list fuel prices for many
FBOs as well as individual websites for the 16 FBOs we interviewed, to
understand the extent to which prices for FBO services are posted
publicly. To add stakeholder perspectives, we selected a non-probability
sample of 26 airports and interviewed the airports’ officials to discuss their
operations and grant oversight process. We selected these airports to
obtain a geographic dispersion, aircraft traffic levels, and the number and
type of FBOs at the airport, among other factors. We also interviewed 16
FBOs at these airports to discuss their operations, relationship with the
airport, and prices. 5 See appendix I for a list of the selected airports and
FBOs. We also selected a non-probability sample of 18 general aviation
pilots to obtain perspectives on how they view the FBO market and how
they choose FBOs to patronize. 6 Our findings from our interviews with
airports, FBOs and selected pilots are not generalizable to all airports,
FBOs, and pilots.
To further understand factors that correlate with FBO fuel prices, we
obtained data on posted aviation fuel prices, information that we used—
along with data from FAA, the Department of Commerce’s Bureau of
Economic Analysis, and other sources, to examine the relationship
between the price of aviation fuel and selected cost factors, demand
factors, and factors related to the extent of competition among FBOs at
each airport. In addition, we met with the Department of Justice (DOJ) to
discuss competition and a recent FBO merger. We also discussed our
approach for analyzing fuel price information with DOJ officials. See
appendix II for further discussion of this analysis. Finally, we also
interviewed industry associations—the Aircraft Owners and Pilots
4
For the purposes of this report, we included only FBOs operating at airports in the
contiguous United States that provided fuel services. All references in this report reflect
this scope.
5 We contacted 16 airport sponsors, three of which each spoke for two airports.
6 To select the pilots, we reached out to <strong>GAO</strong> employees who knew general aviation pilots
and interviewed those who were interested in talking to us. We also asked managers at
some airports we visited for names of pilots and interviewed those who were interested in
talking to us.
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<strong>GAO</strong>-20-16 Airports