Despite concerns about low-fare airlines pulling out of Knoxville or reducing service, the Metropolitan Knoxville Airport Authority approved a five-year lease agreement Wednesday for space to accommodate ground-handling operations for low-fare carrier Frontier Airlines at McGhee Tyson Airport.
Also Thursday, the Airport Authority approved a $15.5 million contract with Knoxville general contractor Denark Construction to build a vehicle maintenance, equipment storage and office building at McGhee Tyson.
After a week in which AirTran Airways announced it will end its Knoxville-to-Orlando service June 3, and in which a Frontier Airlines official said that airline, which began flights from McGhee Tyson in June, might scale back operations to seasonal service only, the Airport Authority wasted no time in approving the long-term lease agreement for Frontier.
Bill Marrison, Airport Authority president, told the board that American Eagle Airlines wants to lease an additional 189-square-foot space in the ticket office area of McGhee Tyson to accommodate the ground-handling operations for Frontier. This would be done as part of the standard five-year lease agreement and the additional rent would be $631.53 per month or $7,578.31 per year, he said. The board approved the lease unanimously.
The Airport Authority board also gave unanimous approval for the contract with Denark. The project would replace a maintenance facility built in 1982 with one that would provide for vehicle maintenance, electrical repair equipment, equipment maintenance, administrative offices and for snow removal equipment storage. The current facility is nearing the end of its useful life, Marrison said.
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