Story ID: 148Jan18
FAA Clarifies FBO Regulatory Policies
By: Curt Epstein
Caption: Amid swirling discussions on FBO fees and pricing, the agency issued a document restating its position.
Word Count: 423
In response to recent discussions regarding FBO pricing and fees at grant recipient airports, the FAA has issued a document detailing its positions on the matter, for use as a “basis for discussion between the airport sponsor, the FBO, and aeronautical users on the issue of reasonable access, without unjust discrimination at federally obligated public use airports.”

The document, titled Q&A’s—FBO Industry Consolidation and Pricing Practices, notes that with the exception of safety issues, the FAA does not regulate FBOs or approve their leases. If it receives a complaint, the agency might review a lease to determine if it is consistent with the airport sponsor’s federal obligations, though the FAA encourages direct communication between users, sponsors, and FBOs before involving the agency.

Airports should be prepared to consider claims of unreasonable and discriminatory service and pricing by FBOs, said the FAA. But the agency cautions airport sponsors that they should weigh costs and demands imposed on tenant FBOs regarding services and infrastructure development, when evaluating the FBOs' fuel pricing and the fees they charge end users. The document states that airport sponsors should also be transparent in how they develop user fees and what they are meant to recover in operating costs. If such fees are publicly disclosed, the agency believes that can help airport sponsors address FBO pricing concerns.

Ultimately, the agency believes that in any lease agreement, the airport sponsor “must insert and enforce provisions requiring the contractor to (1) furnish services on a reasonable, and not unjustly discriminatory basis to all users, and (2) charge reasonable, and not unjustly discriminatory, prices for services.”

The Aircraft Owners and Pilots Association (AOPA) has been vocal in questioning the costs and fees at some FBOs where it believes there has been discriminatory pricing. “We appreciate the FAA making an effort to clarify the responsibilities and available options in preserving airport access, improving fee transparency, and ensuring public-use airports comply with grant obligations,” stated Mark Baker, the organization’s president and CEO. “This isn’t about any new regulations or price controls, and we look forward to furthering our work with the industry to ensure that FBOs are profitable and airport sponsors are able to meet their grant expectations.”

In September the advocacy organization launched an airport access advisory panel consisting of current and former airport officials, industry experts and FBO owners and executives to address what AOPA described as instances of "egregious FBO pricing."

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