North Dakota Airport and FBO Impact Study

Aviation is part of North Dakota’s economic infrastructure, providing passenger air service, air freight, air ambulance, agricultural services, and jobs to the local economy. Businesses that consider locating in the state often evaluate transportation, including scheduled air service, air-freight, aircraft lease, hangar rental, air taxi service, aircraft fuel, and maintenance. Aviation services at most airports are provided by Fixed-base Operators (FBOs). Like any other industry, FBOs and airport operators are faced with competition, a changing global economy, increased regulations, and the need to renovate the way business is conducted to meet the ever growing demands of their clients. Building an airport, extending a runway, or improving services, offers no guarantees that customers would seek to spend their money at the local airport or the community will support the airport. Promoting the airport as an asset to people in the community and especially those in government, takes on an urgency if the airport is to survive. Promoting the airport cannot be a one-time effort, but an ongoing process that takes time and commitment to win support. Users and providers of aviation services must be involved in the continuous and positive promotion of the airport. Aviation experts predict the number of FBOS in the United States will continue to decline from an estimated 10,000 in the 1980s to approximately 4,000 in the 1990s to less than 2,000 by the turn of the century. FBOs’ return on investment is among the lowest when compared to service, manufacturing, and other transportation industries. In today’s ever-changing market, FBOs may have to adapt to the new “global era” of doing business. As another aviation expert explained it, “FBOs have three choices, one, grow through acquisition and internally; two, downsize into a niche that can be dominate; or three, stand still and be rolled over” (Searles, 1993). While some FBOS choose to get out of business, others are fighting back. The exceptions are building partnerships with their community, participating in local politics, providing services their customers may not find elsewhere, closely monitoring daily operations, and seeking opportunities for positive media attention. These and other efforts return profits that may help FBOS stay in business.

• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=269
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/59213
• Corporate Authors:

  Upper Great Plains Transportation Institute

  North Dakota State University
  1320 Albrecht Boulevard
  Fargo, ND  United States  581052

  North Dakota Aeronautics Commission

  Bismarck, North Dakota  United States 

  Federal Aviation Administration

  800 Independence Avenue, SW
  Washington, DC  United States  20591
• Authors:
  • Aziz, Riaz A
• Publication Date: 1998-8

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Rural Aviation Research Report
• Features: Appendices; Figures; Maps; References;
• Pagination: 93p
• Serial:
  • UGPTI Publications
  • Issue Number: 121
  • Publisher: Upper Great Plains Transportation Institute

Subject/Index Terms

• TRT Terms: Airport operations; Business practices; Fixed base operations; Service agencies
• Geographic Terms: North Dakota
• Subject Areas: Administration and Management; Aviation; Terminals and Facilities;

Filing Info

• Accession Number: 01789296
• Record Type: Publication
• Files: NTL, TRIS, ATRI, USDOT
• Created Date: Nov 23 2021 9:01AM