Story ID: 
GAO Investigating FAA Oversight of FBOs
By: Gordon Gilbert
Caption: AOPA claims the investigation will examine how well the FAA is exercising its responsibility to oversee airports that receive federal funds.
Word Count: 298
Following requests from House Transportation chairman Bill Shuster (R-Pennsylvania) and aviation subcommittee chairman Frank LoBiondo (R-New Jersey), the Government Accountability Office (GAO) is investigating the FAA’s oversight of FBOs to ascertain if they are conducting their businesses in accordance with or in violation of federal requirements. According to a GAO spokesman, the agency has been looking into issues related to the FAA and FBOs since earlier this year “with a target of next spring for completion.”

AOPA claims the investigation will examine how well the FAA is exercising its responsibility to oversee airports that receive Airport Improvement Program funds and the assurances that come with the grants, including the requirement that airports and businesses on them must charge only “fair, reasonable, and nondiscriminatory fees and prices.”

Over the past two years, AOPA has been asserting that FBO pricing is often unfair. “Most FBOs do a great job of providing service to pilots at reasonable costs,” the association said. “Our attention is focused on the small minority—often large-chain FBOs with a monopoly position at an airport.”

Meanwhile, NATA has rejected assertions that FBOs are unfairly profiting from allegedly excessive ramp fees and fuel pricing. “NATA is aware of the GAO study and is assisting the agency in providing a better understanding of the FBO industry,” said NATA executive v-p Tim Obitts.

He further told AIN, “NATA coordinated tours for GAO officials of large-chain, single-location, and municipally run FBOs to highlight the diverse operational and economic factors that impact these businesses. NATA will continue its efforts to provide a well-rounded perspective on this vital sector, highlight the unique aspects of the FBO business model and the extraordinary services and value they provide to their communities and the industry.”