It’s a simple question with a complex answer — would landing fees help boost revenue at the Frederick Municipal Airport?
At an airport budget hearing Wednesday, Alderman Phil Dacey posed the question of fees to airport manager Rick Johnson and economic development director Richard Griffin.
It might sound logical that asking pilots to pay to use the airport would be a slam-dunk way to generate funds, but Johnson said a fee would discourage traffic, which would have serious ramifications at a learning airport.
Pilots who use the airport for flight training could easily go somewhere else, Johnson said. They would take with them money they could have spent on fuel, food and maintenance at Frederick’s airport and nearby businesses.
A study from around 2008 found that the costs of taking in fees would be greater than the benefits, Johnson said.
Dacey suggested revisiting the issue by investing in a consultant to re-evaluate the costs and benefits of landing fees and other activities.
Jon Harden, airport commission chair, said landing fees were a bad idea.
“It’s harmful to the entire aviation community, and it will be harmful to the businesses that operate at the airport,” he said, adding that the Airways Inn restaurant would probably be hit especially hard.
One complication with fees, he said, is that the airport would likely need to hire a contractor to track fights and collect money, which would take a chunk of the revenue for its work.
Harden noted that most general aviation airports do not have landing fees. They are usually reserved for airports that service scheduled carriers.
“Me, as a pilot, I would avoid them,” he said. “It just sends the wrong message to the pilot community to begin with.”
Instead, the airport should look for creative ways to generate revenue, Harden said — ways that are “pilot-friendly” to attract more activity.
Hangar leases are a key source of income in the airport’s $1,927,000 budget proposal.
Overall income from airport services has been increasing, according to the mayor’s budget proposal for fiscal year 2016, from nearly $841,000 in fiscal year 2014 to an anticipated $958,000 this year.
Griffin chalked that up to bringing hangar rental rates in line with the market. The airport proposed a 4.4 percent increase in fees, he said.
Despite the increase, Johnson told the mayor and board at Wednesday’s meeting that he was confident no current users would be priced out.
The airport is setting aside money for a corporate hangar, he continued, which would increase rental revenue, fuel sales and maintenance income. There is already a waiting list for hangar space, he noted.
“To me, this screams public-private partnership,” Dacey said.
The airport could explore a partnership, Johnson said, but then the city would get less revenue in the long run. Frederick will have to decide whether to shoulder more initial costs for greater long-term benefits.
The airport budget’s wishlist includes two maintenance positions, and Alderwoman Donna Kuzemchak asked if a further increase in fees would fund the salaries for new staff.
Johnson and Griffin said they would research that issue.
Original article can be found here: http://www.fredericknewspost.com
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