The Pee Dee Regional Airport Authority unanimously passed its $2.9 million fiscal year 2012-2013 operating budget Wednesday evening that features fee increases and other cost-saving measures to offset a slight deficit.
One way to generate additional airport revenue to combat the $59,516 budget deficit was to raise the $8 daily parking rate to $9 a day, which the board approved after debating a possible $2 increase. The new rate is projected to generate an additional $24,000 in revenue, while still being competitive in the region.
"If I'm going on vacation and I'm going to be gone four days and pay $36 dollars instead of $32, I don't think that's going to change my plan," airport executive director Eddie Gunn said. "We haven't had a parking increase, I can't tell you when it was but it's been a long time...we certainly would like to stay in the market and stay on the low end of the market."
Myrtle Beach, Charleston and Columbia airports each have an $8 long-term parking day rate, but charge as much $21 for a daily rate.
The new rate will go into effect on Monday and will be reflected among the fractional time rate of $.75 per 20 minutes until 201 minutes -- at which point it will be the daily rate. Parking will continue to be free for those with visible handicap tags.
The labor rate fee will also increase Monday at Florence Aviation, the airport's only Fixed Base Operator (FBO). The current labor rate is $60 an hour, one of the lowest rates in the region in comparison to airports of similar and larger sizes. The rate hasn't been adjusted in at least four years, Gunn said, and the approved increase to $70 an hour will translate into an additional $12,000 in revenue -- based on current projections -- and also reflect the market.
"Our FBO labor rates were much lower than the rest of our competitors around," Gunn said. "We're trying to get back into at least recouping some of our costs from that."
The FBO serves the general aviation community with refueling, maintenance and other support services. The rate increase would also increase revenue from US Airways Express flights that occasionally request service.
Additional cost savings will come from the recovery of $35,000 in legal fees, covered by insurance, from the lawsuit settled this year by the U.S. government regarding Transportation Security Administration (TSA) lease fees. Though it is nonrecurring savings, it, along with the approved fee increases and savings from a phone contract switch, add up to $66,500 savings for the year.
The airport also sent its final payment of $100,000 to the Department of Justice as part of the airport's settlement for overcharging the TSA for several years on leased airport space. The airport will now continue monthly payments to the government, per the settlement, and then be reimbursed the difference from the TSA.
The TSA will also install a full-body scanner to screen passengers at the airport's security checkpoint.
"We didn't ask for it; they just said we'd try to have it in by November," Gunn said.
According to calculations by Gunn, boardings for the current year are on track to match or beat last year, but this doesn't translate into new airline scuttlebutt. Nor has news about US Airways and American Airlines signing of nondisclosure agreements to exchange information last week.
"I have no idea how that will affect us. It might be positive," Gunn said.
Last year Florence Regional Airport handled 68,169 passengers. Gunn anticipates a possible 2 to 3 percent increase this year.
Copyright 2012 - Florence Morning News, S.C.
