Board Wants City To Operate Airport

At A Glance

Airport Board

Fayettevilles Airport Board on Thursday:

Agreed to keep hangar rental rates the same as last year.

Elected Bob Nickle chairman, Rick Bailey vice chairman and Joshua Mahony secretary.

Source: Staff Report

— Airport Board members on Thursday asked the city to take over operations at Drake Field instead of immediately entertaining offers from private companies.

The board agreed last month to terminate a contract with Million Air Fayetteville, the airports fixed-base operator since 2005. Million Air has repeatedly failed to pay rent and remit fuel fees on time.

The fixed-base operator sells fuel; parks aircraft; provides concierge, rental car and catering services and helps pilots coordinate with destinations.

Ray Boudreaux, airport executive director, said Thursday he was confident the city can handle Drake Field operations.

The change will require hiring four full-time and three part-time employees, according to an estimate by Boudreaux and James Nicholson, financial coordinator for the airport.

Board members supported a draft budget that anticipates $2.17 million in annual revenue and $2.04 million in expenses for a city-run operation.

Administrators said the loss of $110,000 in rent and fuel fees from Million Air would be offset by fuel sales profit.

Terry Gulley, Transportation Services director, said both revenue and expense projections were conservative. The estimates dont include upfront capital costs, which are expected to exceed $98,000.

Airport policy is to keep at least $500,000 in cash. Boudreaux estimated the airports balance at $613,000.

We can still make the capital investment that we need to and not go below a half-million dollars, he said.

Dave Powell, an owner of Summit Aviation, the fixed-base operator for the Springdale and Bentonville municipal airports, urged board members to seek bids before moving forward with city-run services.

(This is an) appeal to the commission to consider all options and then pick your best versus only considering one option internally without exploring requests for proposals from other providers, Powell said.

Taylor Scott, managing member of Fly Arkansas, the fixed-base operator for airports in Boone and Baxter counties, said if private companies can offer a better service at a lower cost than the city, they should be considered.

Bob Nickle, Airport Board chairman, said he didnt think the city had enough time to award private bids before Million Airs contract expires March 15.

Its a time factor as much as anything, Nickle said.

Boudreaux said the board could seek bids later if revenue and expenses dont come in as projected.

Were not saying, This is the way its going to be from now until the end of the world, Boudreaux said.

Scott said following Thursdays meeting his company has experience taking over airport operations on short notice. He said when a former operator at the Boone County Regional Airport quit about three years ago, Fly Arkansas took over the next day on a temporary basis. The airports governing body later selected Fly Arkansas as its full-time, fixed-base operator.

Both Scotts and Powells companies received positive reviews from entities they contract with.

Summit Aviation ... has been an excellent business partner, said Wyman Morgan, Springdales director of administration and financial services. We have had no issues with their payment of fees due the airport.

Scott said Thursday as Million Air Fayettevilles general manager warned last month that Drake Field risks losing a lucrative military contract if the city becomes the operator. If the contract doesnt immediately transfer to a new operator, it could take four to six months to resume military flights, Boudreaux said.

Military flights, which accounted for nearly 20 percent of Drake Field operations in 2012, contribute to the airports bottom line in two key ways: The city earns a percentage of all fuel sales to military aircraft, and military flights contribute to overall activity at Drake Field. According to Boudreaux, if activity falls below a certain threshold, the airport could lose some Federal Aviation Administration money for tower operations.

The budget Airport Board members reviewed Thursday anticipates fewer military flights with a city-run, fixed-base operator, but projects increased fuel sales to other aircraft by offering lower fuel prices than Million Air has in the past.

The City Council is likely to consider the Airport Boards recommendation Feb. 5.

Upcoming Events