Move could spur competition to provide services
By Susan Latham Carr
OCALA - The Ocala City Council will decide at its Tuesday, May 15, meeting whether to adopt new, reduced minimum standards for the Ocala International Airport in hopes of making the facility more competitive.
During a workshop meeting Tuesday, Jeff Kohlman, owner of Aviation Management Consulting Group, discussed what the council should consider when changing or adopting minimum standards.
The standards outline the basic qualifications and requirements the city insists an operator of a commercial venture at the airport must meet.
For example, the current standards require that anyone who wishes to sell fuel at the airport must also provide maintenance and three services: flight training, aircraft rental and avionics. Those standards have been in effect since 1988, with a few revisions in 2000 and 2006.
What is being proposed is that anyone who wishes to sell fuel at the airport also must provide maintenance and one of the following services: flight training, aircraft rental, aircraft charter, avionics or aircraft sales.
The city’s current fixed base operator is Landmark Aviation, whose lease expires in about six years. Landmark is meeting the current standards.
The fuel rates being charged by Landmark, however, are considerably higher than neighboring airports, which causes pilots to refuel elsewhere. As of March 22, Landmark was charging $6.67 per gallon of Jet A fuel, compared to $4.95 in Williston, $5.84 in Leesburg and $6.35 in Gainesville.
According to Landmark’s lease, the city receives 3 cents for every gallon sold.
“I think the high fuel charges are a concern,” council president Suzy Heinbockel said.
Following the city’s request for proposals for a fixed base operator and the receipt of three, the council rejected all of them on Sept. 20, 2011.
Ocala Jet Center has since come back with another proposal to build a general aviation terminal and associated hangars, provide fuel and maintenance, and storage for larger airplanes on the west side of the airport.
“He will have to put a $500,000 investment just for the fuel farm,” Airport Manager Matthew Grow said about Ocala Jet.
Terry Crawford, chairman of the city’s Airport Advisory Board, told council members he had concern there was not enough fuel being sold to support two fixed base operators.
“I don’t mind the competition,” Crawford said after the meeting. “It’s difficult to support two.”
Crawford, who has been on the airport board more than 30 years, said Landmark provides a good level of service.
Grow said about 1 million gallons of fuel need to be sold in order to support two fixed base operators.
“We were there,” Grow said. “Business was there.”
In 2007, Landmark sold 1 million gallons of Jet A fuel. In 2011, the firm sold 568,000 gallons. So far this year, it has sold 191,000 gallons.
Asked if he thought the airport could support two fixed base operators, Grow said, “It depends on the business model.”
Heinbockel said the airport would be less likely to support two operators if they are required to duplicate services.
“If we give some flexibility to the second company, they could provide services that are not currently being provided,” Heinbockel said.
Grow said changing the minimum standards could facilitate additional business development at the airport.
Kohlman told council members that minimum standards are encouraged, but not required, by the Federal Aviation Administration. However, to be eligible for certain FAA funds, the city must meet certain assurances that ensure the airport is operated and maintained in a safe manner and is not unjustly discriminatory to anyone who wishes to provide aeronautical services to the public. He said the minimum standards should not be written to favor an existing operator or someone wishing to enter the market. He said that, generally, standards are reviewed about every five years and overhauled about every 10 years.
Although Mayor Kent Guinn said the city is looking to change the standards to allow for competition, Heinbockel said Grow has been urging the council to change the standards since January, 2005.
Landmark General Manager Tracine Anderson referred questions to corporate headquarters, which had not responded by deadline.
Source: http://www.ocala.com
During a workshop meeting Tuesday, Jeff Kohlman, owner of Aviation Management Consulting Group, discussed what the council should consider when changing or adopting minimum standards.
The standards outline the basic qualifications and requirements the city insists an operator of a commercial venture at the airport must meet.
For example, the current standards require that anyone who wishes to sell fuel at the airport must also provide maintenance and three services: flight training, aircraft rental and avionics. Those standards have been in effect since 1988, with a few revisions in 2000 and 2006.
What is being proposed is that anyone who wishes to sell fuel at the airport also must provide maintenance and one of the following services: flight training, aircraft rental, aircraft charter, avionics or aircraft sales.
The city’s current fixed base operator is Landmark Aviation, whose lease expires in about six years. Landmark is meeting the current standards.
The fuel rates being charged by Landmark, however, are considerably higher than neighboring airports, which causes pilots to refuel elsewhere. As of March 22, Landmark was charging $6.67 per gallon of Jet A fuel, compared to $4.95 in Williston, $5.84 in Leesburg and $6.35 in Gainesville.
According to Landmark’s lease, the city receives 3 cents for every gallon sold.
“I think the high fuel charges are a concern,” council president Suzy Heinbockel said.
Following the city’s request for proposals for a fixed base operator and the receipt of three, the council rejected all of them on Sept. 20, 2011.
Ocala Jet Center has since come back with another proposal to build a general aviation terminal and associated hangars, provide fuel and maintenance, and storage for larger airplanes on the west side of the airport.
“He will have to put a $500,000 investment just for the fuel farm,” Airport Manager Matthew Grow said about Ocala Jet.
Terry Crawford, chairman of the city’s Airport Advisory Board, told council members he had concern there was not enough fuel being sold to support two fixed base operators.
“I don’t mind the competition,” Crawford said after the meeting. “It’s difficult to support two.”
Crawford, who has been on the airport board more than 30 years, said Landmark provides a good level of service.
Grow said about 1 million gallons of fuel need to be sold in order to support two fixed base operators.
“We were there,” Grow said. “Business was there.”
In 2007, Landmark sold 1 million gallons of Jet A fuel. In 2011, the firm sold 568,000 gallons. So far this year, it has sold 191,000 gallons.
Asked if he thought the airport could support two fixed base operators, Grow said, “It depends on the business model.”
Heinbockel said the airport would be less likely to support two operators if they are required to duplicate services.
“If we give some flexibility to the second company, they could provide services that are not currently being provided,” Heinbockel said.
Grow said changing the minimum standards could facilitate additional business development at the airport.
Kohlman told council members that minimum standards are encouraged, but not required, by the Federal Aviation Administration. However, to be eligible for certain FAA funds, the city must meet certain assurances that ensure the airport is operated and maintained in a safe manner and is not unjustly discriminatory to anyone who wishes to provide aeronautical services to the public. He said the minimum standards should not be written to favor an existing operator or someone wishing to enter the market. He said that, generally, standards are reviewed about every five years and overhauled about every 10 years.
Although Mayor Kent Guinn said the city is looking to change the standards to allow for competition, Heinbockel said Grow has been urging the council to change the standards since January, 2005.
Landmark General Manager Tracine Anderson referred questions to corporate headquarters, which had not responded by deadline.
Source: http://www.ocala.com
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