Albany County Airport Authority Approves Budget of $41.7 Million for Next Year

COLONIE - The Albany County Airport Authority on Monday approved a $41.7 million budget for next year that will reduce rents and landing fees charged to airlines.

The board also gave the green light for upgrades to airport fueling facilities.

Next year will be the first full year the authority will be responsible for the fueling and aviation services previously controlled by Aircraft Services International Group, and virtually all of the increase from last year's $37.2 million budget stems from the new revenues and expenses involved in that operation, said Chief Financial Officer J. Dwight Hadley.

The 2006 budget does not anticipate increased revenue from airlines, Hadley said.

Four airlines operating at Albany International Airport - Delta, Independence Air, Northwest and United - now are operating in bankruptcy, and many airlines have cut back on flights and are using smaller planes. That reduces income from landing fees, which are based on weight.

Also, airport boardings are flat this year, remaining at just over 1.5 million passengers, and are not expected to rise much next year.

But Hadley said income growth from parking, rental cars, concessions and other sources is offsetting the sluggish airline revenues.

That allows the airport to reduce terminal rental rates and landing fees, lowering the airlines' estimated cost per boarding from $8.36 this year to $7.16 next year.

"This should serve well in attracting new or expanded airline service," Hadley said in his briefing to the authority board.

The fueling upgrades stem from the authority's acquisition of the airport's major service facilities for private aviation from ASIG - the authority now contracts with Texas-based Million Air to manage the terminal and fuel farm - and the abrupt decision by another fueling and de-icing service provider to shut down.

Rochester-based US Airports Flight Support, which provided fuel and other services for airplanes operated by the New York State Police, CommutAir and Independence Air, closed in November.

The company took its portable fuel tanks and trucks and now is suing the airport, claiming the authority introduced unfair competition when it acquired the ASIG facilities.

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