Aviation Support Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,400 aviation support services in the US provide airport operation, repair, maintenance, storage and ferrying services. Primary services offered include maintenance and repair; fixed base operators (FBO) services; airport administration and operation service; and handling services for goods (cargo, baggage). Other services include air traffic control, runway services (cleaning, snow removal), de-icing, and parts inventory management services.

Regulated Environment

The US aviation industry is heavily regulated by the Federal Aviation Administration (FAA) which sets the standards for repair and operation of all aircraft and parts.

Advances in Technology

Advances in technology have fundamentally changed the need for maintenance, repair and overhaul services.

Industry size & Structure

The average US aviation support services provider employs about 58 workers and generates $7-8 million annually.

    • The US aviation support services industry consists of about 4,400 firms that employ 255,000 workers and generate over $32 billion annually.
    • The industry is moderately concentrated at the top and fragmented at the bottom; the top 50 companies account for about 57% of industry revenue.
    • Large MRO firms include AAR and Aviation Technical Services (ATS). Foreign firms, such as HAECO, offer aviation support services through domestic subsidiaries and joint ventures.
    • The top 100 US aviation markets typically contract with a chain fixed base operator (FBO), such as Signature Flight Support and Atlantic Aviation.
                                Industry Forecast
                                Aviation Support Services Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                May 5, 2024 - Firms Increase Prices
                                • Aviation support services modestly raised their prices during 2023, according to the US Bureau of Labor Statistics (BLS). Labor costs increased during 2023 as employment increased slightly during the period while average wages for nonsupervisory employees increased significantly, according to the BLS.
                                • The Federal Aviation Administration (FAA) is finalizing new rules requiring charter, commuter, air tour operators, and aircraft manufacturers to implement Safety Management Systems (SMS), a safety tool aimed at reducing accidents. SMS are a set of policies and procedures to proactively identify and address potential operational hazards. US airlines have been required to have SMS since 2018 and some aerospace companies already voluntarily have SMS programs. The National Transportation Safety Board has urged the FAA to require and verify the SMS systems in all revenue passenger-carrying aviation operations.
                                • The recovery in global air travel continued in 2023 with traffic edging closer to matching pre-pandemic demand, according to The International Air Transport Association (IATA). Total traffic (measured in revenue passenger kilometers) increased 36.9% year over year in 2023 and was at 94.1% of pre-pandemic (2019) levels. US traffic increased 30.4% year over year in 2023 and was 3.9% above the full year 2019 level.
                                • US Securities and Exchange Commission (SEC) officials said in late 2023 that the agency's long-anticipated climate rules may scale back some of the most demanding greenhouse gas emissions disclosure requirements that it had proposed, according to Reuters news service. Aviation support services serving as contractors to government agencies are likely to be impacted, as a forthcoming rule proposal from the Biden administration that would require public companies and contractors supplying goods and services to the federal government to disclose greenhouse gas (GHG) emissions and other climate-related risks is expected to follow the climate change risk disclosure requirements proposed by the SEC. Federal contractors are advised by industry experts to devise and execute procedures to document and track GHG emissions information both companywide and those attributable to specific procurement contracts.
                                Get A Demo

                                Vertical IQ’s Industry Intelligence Platform

                                See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                Build valuable, lasting relationships by having smarter conversations -
                                check out Vertical IQ today.

                                Request A Demo