CHAPTER IV - The Genesis and Nature of the Fixed-Base Operator

Abstract

This chapter discusses the evolution of fixed-base operator and its present-day activities. Many of the continuing characteristics and managerial practices of fixed-base operators were created by the aftermath of World War I and particularly by government surplus aircraft disposal. The fact that ex-military training planes completely flooded the market at low prices was a great stimulus to civilian flying. However, few fixed-base operators in the period between World War I and World War II had earnings comparable with those obtainable with similar investment and similar effort in many other lines of business. The infant airline industry during the 1920's in large part grew from and built upon a foundation provided by the fixed-base business. Many of the early entrepreneurs, pilots, and mechanics came directly from fixed-base activities. The fixed-base operators likewise played a very important role in the rapid wartime expansion of military aviation. Early in the evolution of the business, flight instruction became the major source of income. A number of operators, especially at larger trade centers, have more recently begun to specialize in aircraft sales and a few have concentrated on repair business and parts sales. Most operators also make aircraft available for cross-country rentals and charter business. However, the volume of these two activities seldom accounts for a substantial part of the operator's income.