From Adversity to Advantage

It’s true -- FBOs and cities can kiss and makeup. How McGill Aviation and Fernadina Beach government parted stormy seas in an effort to rebuild their relationship and better the community

Have you ever visited Fernandina Beach, Fla.? It is a uniquely Floridian resort destination on Amelia Island that boasts upscale hotels and spas; pristine beaches; festivals galore; unlimited golf; and a boutique downtown crammed with history, shopping, restaurants and charm.

Located 3 nautical miles south of the central business district of Fernandina Beach, you can find Fernandina Municipal Airport (FBMA), a city-owned, public-use airport and designated reliever airport for Jacksonville International Airport.

FBMA was developed during World War II by the U.S. Navy F4U Corsair, and originally served as a training facility. Following World War II, the airport facilities were transferred to the City of Fernandina Beach in accordance with the Surplus Property Act of 1944. Today, the airport supports the economic growth of Fernandina Beach and Amelia Island by providing direct air access availability to residents, business persons, tourists and conventioneers.

Upon visiting McGill Aviation, one immediately notices this 21-year-old FBO’s professionalism in the construction and tree-trimming on the field. The pleasant experience continues upon entering the FBO facility where one cannot help but notice the congenial and supportive relationship between City Airport Operations Specialist, Robert Kozakoff, and FBO employees. This type of relationship is rarely the norm, so Airport Business dug into the McGill Aviation difference, and here is what we learned.

Focus on the FBO

The cohesive relationship one witnesses between McGill Aviation and city officials did not always exist. As a matter of fact, there were many stormy years fraught with challenges between the City of Fernandina Beach and the family-owned FBO, including seven years of litigation. McGill Aviation found itself, like many FBOs, trying to operate as a profitable business, within the adversarial constraints and communications barriers placed on it by a city board that lacked a solid understanding of what it took to profitably run an FBO. It goes without saying, that this bitterness was further reflected in the local community’s view of the airport and FBO.

But the tide changed for the better with the on-boarding of a new city manager, Joe Gerrity, in 2012. Gerrity has made it his mission to repair and rebuild the relationship between the two entities, and educate the public about the economic value of the airport. He did so through transparency at public hearings and airport events that brought together the FBO, the airport and the community. Gerrity drew upon his own expertise as a former McDonald’s franchisee and a businessman with a keen appreciation for the FBO and airport as viable business entities that must profit, to demonstrate how these businesses benefit the community.

Communicate Commitment

Equally as committed to bringing the city and FBO together for the betterment of all parties involved, and the community at large, were FBO Owner John McGill and his son, Sean McGill, president of McGill Aviation. Despite years of disagreement over leaseholds and fuel pricing, the McGill’s believe that when the island does well, the airport and the FBO also do well. Today, they are grateful to have people to work with within the city whose prevailing attitudes are in sync with their own.

Being located at a coastal resort airport gives this FBO a unique niche, where the McGill’s serve a customer base that is 80 to 90 percent transient. In contrast, most FBOs serve a smaller transient customer base and a much greater tenant base. This niche has fostered a strong desire to invest in a newer modern facility designed to complement the city’s plan to build a new ramp and welcome center. The McGill’s wish list also includes transient hangars, a restaurant, a conference center, and possibly an on-field hotel.

But a fly in the ointment remains. With only five years left on their 20-year lease, and no new long-term lease on the horizon, investing in improved facilities is in a holding pattern; there is not enough leasehold to realize a financial return on investment.

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