OAK and Its FBOs Benefit from Strong Relationship

Will the day come when airports and their FBO tenants are run as a comprehensive business that leverages the strengths of the commercial and GA sectors? Who knows?

Here is a look at an FBO support package that might currently pass as the industry standard: Oakland International Airport (OAK) claims that it helps its two FBO tenants, Business Jet Center (BJC-OAK) and KaiserAir, finance public events and advertising that includes the airport's brand. OAK staff supports marketing events held at or sponsored by BJC-OAK and Kaiser and touts both facilities in community newsletters.

“We also assist FBOs by entering into lease amendments to add new and/or upgrade existing premises to support their growth,” OAK spokeswoman Rosemary Barnes said. Both FBOs recently added hangars to their operations.

“When the port's financial condition allows, we have provided our FBOs with a rent credit in connection with remodeling the airport's World War II vintage hangars,” she said. For example, $780,000 was issued to Business Jet for the development of a new terminal and other upgrades.

In turn, OAK collects rent and fuel flowage fees and benefits from the improvements that its tenants make to the premises.