Through thought-provoking sessions, valuable opportunities to engage and connect, and a celebration of the most innovative and dedicated people in the industry, NATA’s annual Aviation Business Convention offered attendees from every corner of general aviation the means to learn about and understand the most pressing issues – and uncover strategies to best position themselves for 2025 and beyond.

Leading experts and decision-makers provided valuable lessons and perspectives on a wide range of pressing issues at November’s event in Nashville, which included managing the evolving FBO business model, interpreting and handling current and looming regulatory issues, strategies to engage local communities, and best practices to motivate and retain employees.

“The conference and our packed agenda showcased the power and relevancy of NATA by reinforcing the value of business and general aviation to local airports, giving attendees a sharp picture of the issues facing our industry, and providing a roadmap to best take advantage of the ever-changing climate,” said Curt Castagna, NATA President and CEO.

“We didn’t want to just present to members, but to hear from them and to illustrate the value of their participation,” Castagna explained. “We wanted to demonstrate how they can get the most value from their membership, and emphasize our role as their primary legislative and regulatory advocacy group – their eyes, ears, and voice when it comes to national, state, and local issues that impact virtually everything they do every day.”

Gathering together at the Aviation Business Convention allowed airport business officials to exchange best practices and learn about strategies that they could apply at their home airport and, in turn, share with their peers and teams. The engaging discussions spotlighted NATA as the enabler of important dialogue between local airports and businesses, and how to foster a  robust ecosystem in which FBOs can remain healthy.

“Local airports and airport businesses have never been more important to the fabric and economies of local communities,” Castagna said. “This truth really came to light during the pandemic when business aviation became a lifeline to corporate and personal mobility, and keeping the flow of goods and services moving. This has not abated since the health crisis and our annual conference is a testament and salute to the people that enable the industry’s continued success.”

As local airports and airport businesses are not one-size-fits-all, Castagna explained the value of hearing and embracing different perspectives.

“While challenges and issues are unique from airport to airport, there are common dynamics and a need for ongoing dialogue,” he explained. “That’s why it’s so valuable to have these wide-ranging views present at the conference. You never know where and from whom you will pick up an important suggestion that will make a difference with your own business. We find it heartening for NATA to be the glue among these businesses and enabler of important conversations.”

Castagna added that the takeaway from the conference was to offer attendees a glimpse of what’s taking place in the industry beyond their own doorstep, a flavor for the innovations and advancements being made nationally, and to provide an opportunity to make better decisions for themselves and their customers.

“As we enter our 85^th year of service to the aviation business community, the importance and value of bringing together the leading minds to understand the current conditions and challenges ahead in our industry has never been more urgent,” he added.

While there was a host of valuable sessions throughout the event, a few stood out as particularly relevant and topical to a wide range of attendees.

Evolving Business Models in a Consolidating GA Market

Led by aviation expert Carlos Ozores, partner and U.S. aviation lead at Virginia-based PA Consulting, this session addressed the rapidly evolving FBO market at U.S. airports, what lessons FBO leaders can learn from the changing landscape, and how they can apply these learnings for success in the coming year and beyond.

The panel, also featuring experts Chris Smith, Nick Fazioli, and Carl Muhs, discussed ownership and management trends within the FBO industry, which has been undergoing significant transformation over the last few years. Notably, there has been a consolidation in ownership structure, an evolution that was accelerated during and after the pandemic. Compared to just a few years ago, many FBOs, especially larger companies, are owned and operated by larger private equity firms.

The three largest FBO companies (Signature Aviation, Atlantic Aviation, and Modern Aviation–with their combined 300+ locations) are currently owned by such firms. Given this evolving dynamic, independent and smaller operations need to look at their business in a different, more rigorous and diligent way whether they are open to acquisition or want to maintain their current structure.

“Private equity is transforming FBOs, and two primary words came out of this session:  focus and discipline,” explained Ozores.

“Let’s take focus,” he added. “Whether you’re talking about an FBO or any other business, you want to make sure that every part of the organization is providing value and then some. I think what we’ve seen is some of the smaller mom-and-pops may not have the management and accounting acumen to really understand what value each of the parts of their business is creating. Without that vision, you may end up doing more harm than good.”

With discipline being the second key principle of the evolving FBO market, he explained why several private equity funds employ it to enable a sound investment.

“Structural-oriented PE funds have the ability to drive out unnecessary costs from the business without losing their customers and without sacrificing service levels,” he explained. “They run a tight ship and use stronger market intelligence, so they know much more about their customers and their behaviors to better serve their needs. There’s no rule that says you sacrifice service when you bring in a private equity operator. These companies spend a lot of time analyzing the business and understanding what makes them successful.”

When asked what smaller and independent FBO operators can learn from the wave of PE ownership, Ozores said understanding how to maximize an asset is a universal business concept regardless of size, scope, or industry.

“The current market has led to revisiting traditional practices and altering the business as necessary,” he added. “As a result, many FBO operators sitting on the outside looking in may not be fully aware of all the changes that are taking place; or they want to know in which direction they should take their business. Whether you’re a major player or a smaller operation, understanding the larger trends and how they impact businesses of all sizes is paramount. Take the time to understand or find the right counsel to help you make sense of the evolving industry.”

NATA’s Castagna echoed the importance of having a good handle of the larger issues, regardless of the ownership or size of an FBO.

“What I’ve seen with the two big chains is that during their acquisition and any subsequent realignment, and even with a large swing in focus and personnel, you can still be very successful,” he pointed out. “However, these leaders need to look at the business model from a totally different optic. Managing the current business and looking ahead is a constant balance our industry always needs to strike.”

Ozores illustrated how the wave of PE ownership went into full swing when business aviation underwent a renaissance period during the pandemic.

“Turn the clock back to 2020 when Covid basically brought the airlines to a halt. All of the sudden, you see companies and individuals quickly turning to private and business aviation, which never came to that same stop,” Ozores explained. “This illustrated the great value of business aviation in the face of so many challenges and how it’s more resilient to these types of mega shocks.”

“People still needed to move around, business still needed to get done, and a lot of emergency products and services needed to get to where they were so sorely needed,” he said. “We had been looking at some potential acquisitions before the pandemic, but I think this definitely put it on the front burner.”

Ozores and the panel also dispelled a notion that private equity ownership means a decline in personal service in favor of financial gain.

“With their business knowledge and the fact that they are buying a tangible asset, these PE firms have also ensured that service standards are maintained,” Ozores explained. “These standards can also be deployed more consistently from FBO to FBO; homogenizing the level of service and having it elevated to a common standard. That’s something at which the PE firms are adept– managing a process and integration, being more strategic in managing accounts, and leveraging the best technology and data to enable better revenue management. The firms are really good at extracting value because that’s how they pay for their investment.”

Beyond the current landscape, the panel implored FBO owners and operators to take a hard look at their businesses today and tomorrow.

“The state of private travel means we’re looking at a positive trend, with a demand story for the seeable years,” said Ozores. “The key message is to be honest with yourself about the potential of your market. Are you in a high demand market or are you unlikely to truly transform and attract a lot of interest? I think being honest will allow you to adapt and increase the value of your business–on its own or as an attractive and potential acquisition to one of the players making FBO deals.

“Just because you’re an independent FBO doesn’t mean that you can’t take some of the lessons learned around dynamic pricing or ways to bring in technology to streamline some of your operations,” he added.

Leadership Fireside Chat

Given the need for a symbiotic and productive relationship between the nation’s airports and the on-the-ground businesses that serve them and their customers, the leaders of the organizations representing and protecting those interests met for a productive fireside chat at NATA’s Aviation Business Conference.

NATA President and CEO Curt Castagna and Todd Hauptli, President and CEO of the American Association of Airport Executives, discussed the value of a solid connection between airports and airport businesses, and how both can collaborate and work together to maximize economic benefit for the local community and its citizens.

It was an especially valuable session for attendees as it applied to a wide range of airport interests, sizes, and challenges. The leaders agreed that the most important element of a successful airport-business partnership is to foster a culture to encourage investment and economic potential, competition, and diversity.

“The value of business and general aviation that was illustrated during the pandemic needs to be maintained and dialogue to keep relationships healthy must be continued. It’s the only way the business environment for FBOs and other organizations at airports can remain robust.”

Castagna and Hauptli stressed that while competing interests may appear at face value, both constituents work toward the same goal: a healthy airport environment that effectively serves the local population and business community. This is especially in the case of the new political environment, where community and business interests could often be seen at odds.

“We may not always agree on every issue, but we have so much more in common than what may keep us apart,” Hauptli echoed. “It’s extremely important that we continue to talk and stay focused on our common goal of a healthy aviation ecosystem. The fireside chat, and getting issues out in the open and discussed, was certainly emblematic of our unity.”

“This was certainly not the first time that Todd and I have discussed these issues and mutual focus,” Castagna added. “It was natural extension of our conversations.”

The Power of NATA Committees

One of the most important and relevant discussions of the conference was the Committee Forum, during which the important work by those championing NATA’s policy and issues work was explored.

The tangible impact of NATA and its direction is informed by its committees, representing a diverse swath of the aviation business ecosystem. As the community faces a wide range of evolving issues, as well as compelling opportunities, it is important for members to learn from those doing this work. Each corner of the industry is characterized by unique needs and benefits, but all intrinsic to a vital transportation system.

“As a new administration takes office in 2025, NATA’s roles as industry experts and educators will be vital, and the committees’ insights and efforts will be central to fulfilling the  responsibilities we have established for ourselves and members,” Castagna said. “Our committee leaders and members will continue to serve in integral roles in developing our messaging and assisting in our advocacy.”

Committees help drive NATA’s focus by providing the knowledge and insights to foster long-term strategic partnerships with airports and service providers that lower barriers to innovation, progress, and profitability. Thriving airports mean thriving local communities, as well as a healthy industry.  

Committees leaders and members work on the front lines of such vital and pressing issues as workforce recruitment and development, advanced air mobility implementation, the impact of proposed changes to air charter regulations, and safely transitioning to unleaded aviation fuel. 

Representing NATA’s committees were:
Advanced Air Mobility: Toni Drummond (Co-chair)
Air Charter: Andrew Schmertz (Chair)
Airport Business: David Sierzant (Chair)
Maintenance : Phil Stearns (Chair)
Environment: Todd Smith (Chair)
Security: Roy Rosales (Vice Chair)
Safety: Steve Berry (NATA)

This first-of-its-kind session brought together leaders to report on their specific progress in 2024, and in a united way, look ahead to the coming year and strategize opportunities for cooperation and consensus. 

In early 2024, NATA took a deep dive in reviewing and revising its committee structure, honing its focus on bolstering association advocacy and developing committee-led resources and education. 

Castagna knows first-hand the power and value of the organization’s committees, not only to help move airport businesses forward today, but to set the strategy for the next generation of NATA’s leaders.

“Our committee leaders are those who will guide our organization in the coming years, and become the next board members,” he stated. “I’m personally passionate about that idea since that was how I got my start. I began my NATA involvement on the airports committee some years back and, due in large part to my work on the committee, was ultimately recruited to be on the board and then selected to lead this great organization.

“It’s vital that our members see an opportunity to become more involved with NATA beyond general membership,” he added. “Those who will lead our future success are those rolling up their sleeves with us today. I invite those interested to raise their hand.”