Gas bearings have inherent dynamics that gives rise to low damping and potential instability at certain rotational speeds. Required damping and stabilization properties can be achieved by active flow control if bearing parameters are known. This paper deals with identification of parameters in a dynamic model of an active gas bearing and subsequent control loop design. A grey box model is determined based on experiments where piezo actuated valves are used to perturb the journal and hence excite the rotor-bearing system. Such modelling from actuator to output is shown to efficiently support controller design, in contrast to impact models that focus on resonance dynamics. The identified model is able to accurately reproduce the lateral dynamics of the rotor-bearing system in a desired operating range, in this case around the first two natural frequencies. The identified models are validated and used to design a model-based controller capable of improving the damping of the gas bearing. Experimental impact responses show an increase in damping by a factor nine for the investigated conditions.