Business is picking up at McKinney National Airport, and city officials aim to keep the momentum.
A billboard reading “The time is ‘Wright’” has moved along Dallas North Tollway in recent weeks, touting the airport as an alternative destination for corporate aviation once the Wright amendment ends in October.
The city hopes to take on aviation customers who don’t want to deal with a busier Dallas Love Field. Southwest CEO Gary Kelly announced this week the airport will have 50 more flights, or 100 more operations, per day when gate restrictions are lifted.
“As it gets more crowded, they’re going to have more delays,” said Ken Wiegand, McKinney National Airport (TKI) executive director. “We’re just trying to take advantage of the situation.”
The airport, one of McKinney’s primary attractions for economic development, has already garnered national attention since the city purchased it in November. McKinney Air Center, the airport’s fixed-base operator (FBO), and the airport’s 78-foot air traffic control tower were named No. 1 in their respective categories in the Pilots’ Choice Awards on FltPlan.com, an online general aviation service.
Monarch Air, a leading provider of aviation services, last week selected McKinney National Airport (TKI) for a major expansion: it will lease a significant portion of a 53,750-square-foot hangar and office facility at the airport to offer a wide range of services including aircraft maintenance, flight training, charter service, fleet management, acquisitions and private sector sales.
“McKinney’s commitment to growing McKinney National Airport provided an outstanding opportunity for us to grow our business to meet the increasing demand for our firm’s services,” said Trey Sawtelle, Monarch Air president, in a released statement.
The airport has the infrastructure and city-backed desire to accommodate that growth – for now. Its 7,000-foot-long runway and location in Collin County, the state’s fastest growing county, have likely helped attract internationally based companies like Hisun Motors Corp. and Toyota, who both are moving their North American headquarters to the county.
But the airport’s hangars are full. City officials have discussed in recent weeks the next steps for adding hangar space and other assets crucial to the airport gaining significantly more business come this fall.
“We need to build some hangars,” Wiegand said. “We can’t sell anything unless we’ve got something to sell.”
Officials, who last week presented to the city council end-of-year airport budget and expense estimates, said that revenues are close to initial projections. They anticipate a $137,000 surplus in revenues over expenditures and a $1.45 million operating fund balance by the end of the year, said Rodney Rhoades, city chief financial officer.
The city expects to see a “positive cash flow,” he said, even in 2016, when it will start paying principal on debt issued upon purchase of the airport.
“We are already seeing an increase in interest and activity at the airport since our acquisition,” McKinney Mayor Brian Loughmiller said in an email, adding that the city previously didn’t get revenue from hangar leases and fuel sales. “I still believe that in the long term, the acquisition will pay off in additional economic development and tax revenue for the city.”
The city will transfer about $585,000 from its general fund to help cover airport operation costs – down from the $600,000 average – and Wiegand said the airport annually brings in about $520,000 in ad valorem taxes not included in its revenue stream, so the shortfall number “isn’t quite as big as it looks.”
“We’re hoping the FBO can take care of everything,” he said. “That’s going to be our cash cow.”
Torchmark Corp. and Texas Instruments are among the airport’s major corporate tenants, and Loughmiller said the city is interested in bringing in corporate aviation for Toyota and “any other corporation that moves into the area.” Though corporate aviation is its main priority, the airport’s availability and related services like Monarch are also attracting businesses to McKinney, he said.
On Thursday, the McKinney Airport Development Corporation Board approved its strategic plan for next fiscal year, and included in its stated mission is the possibility of attracting future commercial aircraft.
For now, though, it could at least be a more convenient option.
“In major markets such as Chicago and New York, corporate jets use alternative airports to avoid conflicts with air carrier operations and improve efficiency,” Wiegand said in a city release. “We will see the same trend here at McKinney National Airport as Love Field gains new air carrier operations.”
Source: http://starlocalmedia.com
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