Caribbean Fixed Base Operators (FBO) Market 2022-2028
Caribbean Fixed Based Operators (FBO) Market Size, Share, & Analysis by Application (Business Aviation and Leisure Aviation), and by Type (Fueling, Hangaring, Tie-Down, and Parking, Aircraft Rental, Aircraft Maintenance, and Others) Forecast Period (2022-2028)
The Caribbean Fixed Base Operators (FBO) Market is anticipated to grow at a CAGR of 5.5% during the forecast period (2022–2028). The market value was $164 million in 2021 and is estimated to reach $238 million in 2028. The term FBO is given to a commercial enterprise that has been granted the right by an airport authority to operate at that airport and provide aviation services, such as fuel, parking, and hangar space, to the general aviation (GA) community. At a smaller airport or remotely located small community, it is usually the town or the airport authority that provides basic FBO services. However, at larger airports, there are often several privately owned FBOs in competition for the business of both permanently based and transient general aviation aircraft.
The Caribbean region is bolstered owing to the rising demand for business and private jets, including both small and large aircraft. The steady rise in air traffic has created a requirement for new aircrafts. As a result of that, several market players are expanding their business in the Caribbean regions such as St. Thomas Island, the Turks and Caicos Islands, among others. For instance, in February 2021, Standard Aviation opened a new luxury FBO at Cyril E.King Airporton in St Thomas, in the Caribbean. The project was funded four years ago through a public and private partnership between the Virgin Islands Port Authority and Standard Aviation. It is the largest free-span building, with no interior columns, in the Caribbean.
Furthermore, in October 2021, Signature acquired IAM Jet Centre and its affiliated companies, adding five new sole-source Caribbean locations to the network on Barbados (BGI), Grenada (GND), Tortola (EIS), Jamaica (MBJ), and the recently opened St. Lucia (UVF). IAM Jet Centre was founded in 1989 as the first dedicated full-service provider for business aviation in the Caribbean and has an established reputation in passenger and ground handling. As part of the transaction, Signature also assumed control of IAM Jet Centre’s VIP suite services for commercial travelers at BGI and GND, which align with ELITE Class service.
Through this, the companies strengthened the network with the addition of five new sole source locations in the Caribbean through the acquisition of IAM Jet Centre and its affiliated companies in October, which included VIP suite services for commercial travelers in Barbados and Grenada, similar to the ELITE proposition.
Market Segment Outlook
Based on the application, the market is bifurcated into business aviation and leisure aviation. Among these, the leisure aviation sub-segment held the largest market share of 79.7% accounting for around $130.6 million in 2021 and is estimated to reach $191.4 million in 2028. The increasing number of individuals with high net worth in developing countries is one of the key factors boosting the business of the global aviation sector. Additionally, organizations such as Grand Turk Cruise Center and the Ministry of Border Control and Labor, along with the immigration department, are extensively working with the International Business Aviation Council (IBAC) and the International Civil Aviation Organization (ICAO) to improve transportation regulations to implement luxurious and safety solutions. For instance, in May 2022, the Bermuda Civil Aviation Authority recently advised that visiting civil aircraft must comply with ICAO Annex 6 Part I and II SARPs regarding TCAS II beginning April 1, 2028. Similarly, several countries in the Caribbean are also creating new requirements to harmonize with International Civil Aviation Organization (ICAO) standards and recommended practices (SARPs).
Based on the type, the market is sub-segmented into fueling, hangaring, tie-down, and parking, aircraft rental, aircraft maintenance, and others. Among these, the fueling sub-segment is estimated to hold the largest share of 38.8% in 2021, accounting for a market value of $63.6 million in 2021. The number is further estimated to reach $93.0 million in 2028, growing at a CAGR of 5.6% during the forecast period (2022-2028). Fueling and aircraft maintenance are the two major services offered by the FBO. Major market players are also inclined towards launching new fueling services in the Caribbean region. For instance, in June 2022, Eagle LNG Partners LLC partnered with the Royal Caribbean Group to provide fuel bunkering for the aircraft companies, including the first aircraft debuting in 2028.
On the contrary, the OEMs are increasingly focusing on the development of new-generation aircraft with reduced fuel consumption, large size, and low noise and low carbon emissions, which is expected to bolster the demand for the hangar sub-segment.
Caribbean Fixed Based Operators (FBO) Market Size, Share, & Analysis by Application (Business Aviation and Leisure Aviation), and by Type (Fueling, Hangaring, Tie-Down, and Parking, Aircraft Rental, Aircraft Maintenance, and Others) Forecast Period (2022-2028)
The Caribbean Fixed Base Operators (FBO) Market is anticipated to grow at a CAGR of 5.5% during the forecast period (2022–2028). The market value was $164 million in 2021 and is estimated to reach $238 million in 2028. The term FBO is given to a commercial enterprise that has been granted the right by an airport authority to operate at that airport and provide aviation services, such as fuel, parking, and hangar space, to the general aviation (GA) community. At a smaller airport or remotely located small community, it is usually the town or the airport authority that provides basic FBO services. However, at larger airports, there are often several privately owned FBOs in competition for the business of both permanently based and transient general aviation aircraft.
The Caribbean region is bolstered owing to the rising demand for business and private jets, including both small and large aircraft. The steady rise in air traffic has created a requirement for new aircrafts. As a result of that, several market players are expanding their business in the Caribbean regions such as St. Thomas Island, the Turks and Caicos Islands, among others. For instance, in February 2021, Standard Aviation opened a new luxury FBO at Cyril E.King Airporton in St Thomas, in the Caribbean. The project was funded four years ago through a public and private partnership between the Virgin Islands Port Authority and Standard Aviation. It is the largest free-span building, with no interior columns, in the Caribbean.
Furthermore, in October 2021, Signature acquired IAM Jet Centre and its affiliated companies, adding five new sole-source Caribbean locations to the network on Barbados (BGI), Grenada (GND), Tortola (EIS), Jamaica (MBJ), and the recently opened St. Lucia (UVF). IAM Jet Centre was founded in 1989 as the first dedicated full-service provider for business aviation in the Caribbean and has an established reputation in passenger and ground handling. As part of the transaction, Signature also assumed control of IAM Jet Centre’s VIP suite services for commercial travelers at BGI and GND, which align with ELITE Class service.
Through this, the companies strengthened the network with the addition of five new sole source locations in the Caribbean through the acquisition of IAM Jet Centre and its affiliated companies in October, which included VIP suite services for commercial travelers in Barbados and Grenada, similar to the ELITE proposition.
Market Segment Outlook
Based on the application, the market is bifurcated into business aviation and leisure aviation. Among these, the leisure aviation sub-segment held the largest market share of 79.7% accounting for around $130.6 million in 2021 and is estimated to reach $191.4 million in 2028. The increasing number of individuals with high net worth in developing countries is one of the key factors boosting the business of the global aviation sector. Additionally, organizations such as Grand Turk Cruise Center and the Ministry of Border Control and Labor, along with the immigration department, are extensively working with the International Business Aviation Council (IBAC) and the International Civil Aviation Organization (ICAO) to improve transportation regulations to implement luxurious and safety solutions. For instance, in May 2022, the Bermuda Civil Aviation Authority recently advised that visiting civil aircraft must comply with ICAO Annex 6 Part I and II SARPs regarding TCAS II beginning April 1, 2028. Similarly, several countries in the Caribbean are also creating new requirements to harmonize with International Civil Aviation Organization (ICAO) standards and recommended practices (SARPs).
Based on the type, the market is sub-segmented into fueling, hangaring, tie-down, and parking, aircraft rental, aircraft maintenance, and others. Among these, the fueling sub-segment is estimated to hold the largest share of 38.8% in 2021, accounting for a market value of $63.6 million in 2021. The number is further estimated to reach $93.0 million in 2028, growing at a CAGR of 5.6% during the forecast period (2022-2028). Fueling and aircraft maintenance are the two major services offered by the FBO. Major market players are also inclined towards launching new fueling services in the Caribbean region. For instance, in June 2022, Eagle LNG Partners LLC partnered with the Royal Caribbean Group to provide fuel bunkering for the aircraft companies, including the first aircraft debuting in 2028.
Based on country, the Caribbean Fixed Base Operators (FBO) market is segmented into Cuba, Haiti, Dominican Republic, Puerto Rico (US), Turks and Caicos Islands, and others . Among these, Cuba held the market share of 22.0% in 2021, accounting for a market value of $36.1 million in 2021. This number is further estimated to reach $50.4 million in 2028, growing at a CAGR of 4.9% during the forecast period (2022-2028). Cuba comprises largest airline in Caribbean. Several government organizations concerning the aviation industry of Cuba are the primary factors bolstering the growth of the regional market. For instance, in July 2021, the government of Cuba, in collaboration with Mexico and the US, increased aircraft services in the country. Through this, the country aims to retain its position in the airline industry along with the establishment of various maintenance and safety services through the establishment of FBO.
Key Players Outlook
Prominent players in the Caribbean Fixed Base Operators (FBO) market include Signature Aviation Ltd., Dassault Falcon Service, Bohlke International Airways, Swissport Executive Aviation, ODYSSEY AVIATION, and ParagonAviation Group, among others. These market players are adopting various strategies to sustain themselves in the competitive market. These companies are embarking on aggressive strategies such as partnerships and product launches in the FBO market to gain a leading position across the globe. For instance, in August 2022, Atlantic Aviation expanded its FBO footprint in the Caribbean by acquiring Blue Heron Aviation at Providenciales International Airport (PLS) in the Turks and Caicos Islands. Through this, the company aims to serve business aviation clients in George Town (GCM) and Cayman Brac (CYB), Cayman Islands.
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