No Market for Aviation?

AVweb Insider Blog: Avgas Prices — Why Aren't They Cheaper? - Your corner service station is offering 2001 prices; why isn't your FBO? Actually, a few are, and Paul Bertorelli explains why in the latest installment of our AVweb Insider blog.

The point is, inexpensive gas is out there and you can usually find it reasonably nearby. Why isn't it cheaper everywhere? This is one of the great mysteries of the aviation business, but it's mostly due to the microscopic, boutique nature of the avgas business. Like it or not, even though refineries peg their avgas prices to the contract numbers for premium gas, they are free to set market-will-bear pricing and they do.

Paul is right in this point. To take it a step further though, there is no real market for avgas or most anything else aviation. Most GA airports have only one fuel outlet, and they're only obeying the rules of business in charging whatever they can. Most any savings in flying to a different airport for fuel would be eaten up by the gas necessary to get there.

The same market forces are at work on the hardware we use. Many aviation manufacturers have gone bust planning for a mass market for their wares that didn't materialize. Expect the crop of VLJ hopefuls to be the next victims.

We would all benefit greatly to have more people flying. It would lower our fuel costs, lower our airplane costs, and reduce the pressure to turn airports into housing tracts.

Support the various pilot creation and mentoring programs the industry sponsors. And when unfamiliar faces show up at the airport, talk to them and make them feel welcome.