CJI London: FBO sector transforming
Business aviation’s FBO sector is undergoing a transformation, evolving from traditional fuel-service providers into scalable infrastructure businesses and “attractive investment” assets, according to industry executives speaking at CJI London 2026.
Moderated by Robert Baltus, director of sales and marketing, Zeusch Aviation, the discussion highlighted how private equity investment, rising operational costs and distinct regional models are reshaping the industry.
A key shift is revenue diversification. John Redcay, CEO of Atlantic Aviation, noted that while the US model was historically fuel-driven, FBOs now generate income from “ramp access, hangar rentals, and tenant occupancy”. Marwan Khalek, CEO of Gama Aviation, emphasised a move toward “availability-based revenue” from parking and hangarage, with fuel as an add-on, ensuring “the business model stands independently of flight volume”.
Regional differences remain stark. Tom Channing of Jetex explained that Middle Eastern FBOs often feature more elaborate facilities because “passengers spend more time there pre-flight”, unlike the US model focused on quick throughput. John Hewitt, system safety engineer, Universal Aviation, highlighted the complexity of maintaining “brand consistency across 75 global locations” while navigating varying regulations and cultural expectations.
Private equity’s growing role in the US market was attributed to the sector’s “stable earnings, long track record, and predictable returns”, without direct interference in daily operations. However, cost pressures are mounting universally, driven by real estate, revenue guarantees to airports, labour shortages and the economics of underutilised infrastructure compared with commercial aviation.
Looking ahead, transparency through published pricing and technology platforms is increasing, though panelists cautioned against “pure commoditisation”, stressing that service and safety remain core differentiators. While large networks offer consistency, niche and regional single-location FBOs can still thrive where local relationships are at the fore.
