A lifelong aviation enthusiast who joined&nbsp;AIN&nbsp;in 2007, Curt came to&nbsp;the publication&nbsp;from the broadcast industry where he was a national science and technology television reporter and producer. He writes on the FBO field, aviation finance, and sustainable aviation and occasionally contributes to&nbsp;AIN&nbsp;sister publication&nbsp;Business Jet Traveler. Curt was a member of the AINtv reporting staff that won the 2008 Aerospace Journalist of the Year award for Best Airshow Daily. That same year, he was a finalist for another AJOYA award. He earned an AJOYA for Best Business Aviation Submission in 2018 and was a finalist in that category in 2021. He received the National Air Transportation Association’s&nbsp; Aviation Journalist Award in 2012 and won a Pegasus Sapphire Business Aviation Award for outstanding journalism in 2021.
Before joining AIN, Curt worked with&nbsp;Consumer Reports’ television division, CRTV, and for several local television news staffs. An honors graduate of the State University of New York at Stony Brook, he earned a master’s degree in broadcast journalism from Boston University in 1995. Curt lives in New York State with his wife and two young sons.

Senior Editor

Curt Epstein

Changes in the FBO industry over the past several years due to massive influxes of private and industrial equity funding were the topic of discussion leading off the National Air Transportation Association's Aviation Business Conference yesterday in Nashville.
While such investment is not new to the segment, the FBO segment has become even more attractive due to its resilience, with business bouncing back strongly after Covid as private aviation flight hours have exceeded pre-pandemic flight hours. In many locations, demand for FBO services has outpaced supply.
As a result, infrastructure fund purchases have led FBO deals since 2021, causing the average number of multiples—the key contributor in determining an FBO sale price—to jump.
The sector is led by Signature Aviation and Atlantic Aviation, private-equity-backed mega-chains that are now showing more restraint at the FBO buffet, according to Nick Fazioli, head of aerospace and aviation with Jefferies. The two companies, which both <a href="https://www.ainonline.com/aviation-news/business-aviation/2021-09-27/atlantic-aviation-sale-closes">changed hands</a> over the past three years, are forgoing growth for the sake of growth in favor of a more strategic expansion.
“Part of it is just starting to be a little more selective around, ‘Does this make sense for my network, is this important for our customers, are the service and conditions on the airport conducive to what we’re trying to build as a portfolio?’” Fazioli said.
However, while the appetites of the two market leaders may have lessened, a second tier of consolidators such as Aero Centers, Modern Aviation, Hawthorne Global Aviation Services, Skyservice, and Avflight are eager for expansion. Chris Smith, managing director of global investment bank Harris Williams, expects to see at least two small FBO groups receive infrastructure fund investment in the coming months.
With approximately 3,000 FBOs in the U.S., Carl Muhs—v-p of business development with FBO consultancy Business Presentation Solutions—is seeing strong demand even among the smaller locations. “We’re seeing lots of new buyers, and they aren’t just large equity groups,” he told the audience. “We’re seeing folks that maybe have one location that want to add a second or third; we’re seeing consolidation on the field.”
Generally, those buyers are concerned primarily with the FBO core businesses of fueling and sheltering aircraft. “As important as flight schools, MROs, and charter/management is, a lot of these groups that are looking today really don’t want to do that business,” said Muhs, a former FBO owner himself. “It’s certainly a lot more involved; it takes a lot more capital, but the buyers are there—we have buyers for all those segments.”
He said while the magic number for fuel flowage for interested buyers is around 750,000 gallons a year, the key selling factor is the FBO’s remaining lease term. “If you are within five years, it’s time to start talking [with the airport sponsor] about that. Don’t wait until you are in that last year or two because that is where your value is.”

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