Monday, May 13, 2013

Boeing Corp. concerned about new airport tenant: Gary/Chicago International (KGYY), Indiana

The Gary/Chicago International Airport authority took a big step on Monday towards landing a new corporate jet operation for its airport, contingent on resolving potential conflicts with its most prestigious tenant.

By two 7-0 votes, the authority board at its regular meeting approved lease agreements with East Lake Management & Development Corp., one for an existing hangar and the other for a ground lease for a hangar the company wants to build.

However, Boeing Corp., which houses its corporate jet fleet at the airport, has safety and security concerns about the East Lake Management & Development hangar being located so close to theirs, according to Al Stanley, an airport consultant who has been involved in negotiations with both companies.

Specifically, Stanley said Boeing is concerned about mixing their large aircraft with the smaller aircraft that would be using aprons and taxiway areas in common once the East Lake Management & Development hangar is up and running. Boeing's aircraft are jetliners outfitted as flying offices that can whisk Boeing executives and staff anywhere in the world.

"We want to make sure everyone is happy and can live together," said Gary airport authority board member Cornell Collins before the vote was taken at the airport administration building.

Boeing is also involved in ongoing negotiations for a new lease at the Gary airport, with its previous hangar lease having expired in April. It is now operating there on month-to-month hold-over provisions in the previous lease, Stanley said.

Under its deal, East Lake Management & Development will pay the airport authority combined lease fees of $71,932 per year.  It will also manage the airport's 60 hangars for small aircraft for a 20 percent slice of revenues.

The airport also should earn additional revenue from landing and parking fees from planes using the East Lake Management & Development hangar.


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