Cutter Enters the FBO Contract Management Arena

In the January 2006 issue of AIRPORT BUSINESS ("Inside the Industry"), we feature a discussion of the decision by Million Air to enter into a contract with the authority that operates Albany International Airport in which Million Air is taking over FBO and airline ground services. The significant aspect here is that it's solely a contract to provide services; it is not the assumption of a leasehold or the purchase of facilities. In the article, Million Air officials relate that they see the potential for more such opportunities in various markets in the U.S. Last fall, Memphis-based Wilson Air Center entered a similar contract with Charlotte Douglas International Airport to provide FBO services. According to the WAC, the fixed base operator "will manage the short- and long-term strategies" of the airport and the city, the airport sponsor. Last week, Cutter Aviation - long a stalwart of the FBO business in the Southwest - finalized an FBO services contract agreement with WingsPoint Aviation Services at the Collin County Regional Airport in McKinney, some 20 miles northeast of Dallas. It will be marketed as Cutter's seventh FBO location, although the actual leasehold remains with the original owners. Airport director Ken Wiegand welcomes the change as part of the Cutter network and sees no initial conflicts with the arrangement. With the emergence of private equity firms as owners of fixed base operations, and with increasing pressure on airports to explore new ways to increase revenues and deliver first-class services, the FBO contract services trend is one worth watching. And, with the pending arrival of the new very light jets, it could be a trend well-suited for another emerging trend. Thanks for reading. A postscript: The February issue of AIRPORT BUSINESS, in the mail this week and which commemorates our 20th year of publishing, has a minor typo in the "Inside the Fence" column. Don Campion and Banyan Air Service are located at Ft. Lauderdale Executive, not Orlando. We regret the faux pas.