When It Comes to Airport/Tenant Relations ...

… it is increasingly evident that many in the fixed base operator community are anxious to find a new common ground when it comes to leases and the roles FBOs and airports play. At least, that’s the message heard during discussions at the NBAA convention in Las Vegas. Or put another way, FBOs want a level playing field and some are concerned that taxpayer dollars may be giving some airports an advantage. On the subject of lease lengths TAC Air president Greg Arnold says, “The FBO industry is asking for best practices to be adopted.†One issue, being pursued by a coalition of primarily the major U.S. FBO chains and NATA, is a recognition that long-term leaseholds are critical for private investment. The coalition estimates that some one billion dollars in capital is sitting on the sidelines waiting to invest in U.S. airports if a common ground can be found for the length of an FBO lease that allows the companies to capture a fair return on investment. Arnold emphasizes that the coalition “wants to work with the airport groups†on the issue, and speculates that airports don’t necessarily want their decisionmaking dictated by Washington – a position to which FBOs can relate. Of the TAC Air experience in dealing with airports Arnold relates, “There are airports that haven’t necessarily wanted to work with us … while others have been very helpful.†The two sides will again get the chance to debate the issue at next week’s ACI-NA convention in San Diego in a conference session, as they did recently at the AAAE National Airports Conference in Tucson. Meanwhile, a related issue for FBOs is the concern that grant dollars are being used to afford airports the opportunity to compete with their tenants by building infrastructure without their own capital investment. At Chattanooga, TAC Air has filed a Part 16 complaint with FAA over the building of an FBO terminal using grant dollars that has been contracted to Wilson Air Center to manage for FBO operations, in direct competition with TAC. Says Arnold, “Pure and simple, it’s not fair to force FBOs to compete with a subsidized entity.†It’s a similar concern at Ft. Myers, FL, where Private Sky Aviation, the FBO at Southwest Florida International Airport, competes with the airport-operated FBO at nearby Page Field, a GA facility located some ten miles away. Vincent Wolanin, chairman/CEO of Private Sky, is concerned that the FBO facilities were built with tax dollars for the necessary infrastructure while the airport competes unfairly because it does not have to pay the same fees to the authority to operate. “It’s very deceitful to do what they did,†comments Wolanin. Private Sky has filed a federal lawsuit. Wolanin’s intent: “We feel that this is going to mushroom to other communities. We’ve decided we’ve had enough. I decided we wanted to make law about this.â€Â  And he adds, “We don’t have a problem with competition as long as it’s fair.†As airports and FBOs look to redefine the landscape under which they operate, it is evident there are issues to be resolved. Getting the dialog visible would seem to be a first step. It’s just a shame that FAA and the federal courts may have to ultimately decide their fate. Thanks for reading. jfi