BLOUNTVILLE — The long and winding road to changing Tri-Cities Regional Airport governance to an airport authority may be near a successful end.
And a road winding through some prime airport-owned property on the south side of the airfield soon will be relocated, something that may improve the airport’s long-term performance as an economic engine for the region.
Patrick Wilson, executive director of the Airport Commission, gave the NETWORKS – Sullivan Partnership board a history and update on the airport Thursday during a meeting at Northeast State Community College, followed by a progress report on the proposed change of governance from an association to an airport authority that has been in the works, discussed, debated and delayed since 2003.
Of six commercial airports in Tennessee, only Tri-Cities is not governed by an authority.
This May, the General Assembly approved an amendment to the law regulating airport authorities that addresses an out-of-state owner, which in the case of Tri-Cities is Bristol, Va.
Since then, the governing bodies of Bristol, Va., Bristol, Tenn., Kingsport and Johnson City have approved a resolution to form an airport authority, while the Sullivan County and Washington County commissions are to vote on the matter in November.
All six must pass the resolution before the airport can apply for an airport authority charter.
“It’s as close as we’ve ever been to becoming an airport authority,” said Wilson, who when the move started was assistant director under the now-retired John Hanlin.
Advantages to the new governance include reducing owner liability for finances, while the owners would maintain the same representation on the Airport Commission. In addition, grant applications would not require approval of all six owners, the airport could issue its own bonds instead of running them through Sullivan County, and many other activities would be streamlined.
Wilson said a project has been approved and got federal grant funding to move Hamilton Road for a new runway apron that will make the airport safer and more convenient to air cargo plans using the south side facilities.
Over the past 10 years, about $35 million worth of capital improvements have gone into the south side area. The airport has more plans for that mostly air cargo section, and construction of new corporate hangars also is under way.
Eventually, the 25-acre Aviation Park I will be joined by Aviation Park II, 140 acres currently split by Hamilton Road.
Wilson said the current association method under which the airport has operated is akin to a multiple-entity partnership, which started in 1934’s groundbreaking with Sullivan County, Kingsport, Bristol, Tenn., and Johnson City.
The facility, which opened in 1937 and got a new terminal building in 1968, picked up additional owners as time went on, but since 1966 hasn’t had any direct financial support from the owners or local taxpayers.
Instead, fees and charges assessed by the airport cover an operating budget of almost $5.8 million, while capital needs are met by state and federal grants.
The airport has an 8,000-foot main runway and 4,500-foot secondary runway, as well as 20 buildings spread over 1,300 acres.
More than 35 businesses are located on the airport property, employing 240 full-time and 120 part-time workers, while the Airport Commission employs 44 full time and 20 part time.
The facility has about 1,114 passengers each day spread among 32 flights, and as of 2009 was 169th in passenger volume out of 395 commercial U.S. airports.
It has American Airlines service to Chicago, Delta to Atlanta, US Airways to Charlotte and leisure/low-cost carrier Allegiant to Florida. Patrick said targeted markets for future service are Dallas/Fort Worth, New York, Washington, D.C., and southwest Florida.
He said increased fuel costs have prompted carriers to cut flights 13 percent since 2007, with predictions that the capacity won’t be restored until from 2012 to 2015.
Incentives to new carriers include up to one-year waivers of landing fees, advertising assistance, start-up cost and low-cost part-time ticket sales and ground service.
A low-cost carrier generally needs about 576 passengers a day to major metropolitan or vacation destinations, while Tri-Cities to the top 20 destinations has only 214 passengers a day.
Next week, the Airport Commission will apply for a U.S. Department of Transportation Small Community Air Service Grant worth $432,000, although $50,000 in non-airport “community partnership” money is needed and so far $15,000 has been committed. Airport marketing is putting in another $100,000, with $32,000 added for landing-fee waivers.
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