Airport Business

DEC 2017 - JAN 2018

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AIRPORT GURU December 2017/January 2018 airportbusiness 35 This includes using a competitive selection process to attract tenants that make significant capital investment and offer quality services at reasonable prices. Airport sponsors must also establish fair and equitable lease rates and charges appropriate to the local market, as well as address mixed land use in their long-term master and business plans. When airport operators view their tenants as business partners, they achieve mutual success and advance the airport's mission to achieve both economic and social sustainability. CASE STUDY - THE AIRPORT SPONSOR/ TENANT RELATIONSHIP Currently, the Aircraft Owners and Pilots Association is calling for the FAA to regulate the price of aeronautical services provided by FBOs, such as fuel and ramp fees, to achieve unfettered airport access. While this suggests private pilots would receive the lowest costs available, it actually constrains the airport's ability to serve the aviation community and achieve its goals. The investments made by aviation and FBO facilities not only serve local pilots, but are gate- ways to economic investment in the communi- ty. As leases come up for renewal, an increased number of airports are requiring FBOs to make significant capital investments which revert back to the sponsor at the end of the ground lease. Each airport and each market is different. Thus, based on local and regional knowledge, FBOs construct pricing that enables them to provide quality ser- vice at a reasonable rate of return. The economics of airport business place great importance on master lease terms and available revenue streams to create viable airports. While FBOs frequently comply with guaranteed service levels and facilities dictated by airport minimum standards, their business model does not guaran- tee income. Sparing airports the risks of an open and volatile market, they provide a steady revenue stream in the form of rent. The rates and charges collected by the airport sponsor are reinvested to help create a healthier airport. In circumstances where pilots feel they do not have access to the best prices for fuel and other FBO services, the situation is best mitigated locally through the airport sponsor, which is obligated by federal law to ensure access on fair and reasonable terms. This does not equate to the lowest prices, but does require FBOs to offer equal rates to similarly-sit- uated pilots. If the situation is not resolved, a last resort is the formal FAA Part 13 or 16 complaint. This does not remove responsibility for the fair and equal treatment of pilots and other airport users from the realm of the airport sponsor. Rather, air- ports are held accountable for supporting policies and programs that best serve the diverse needs of the entire aviation community. At Van Nuys Airport, for instance, progress on a 30-acre development project dedicated to pro- peller aircraft is climbing full speed ahead. This site, still under construction, provides hangars, tie-downs and office facilities for up to 270 pro- peller aircraft and related businesses. It also fea- tures a self-serve fueling station for private pilots. By relocating approximately 85 portable hangars from other leaseholds, this facility enabled other development projects to move forward and gener- ate substantial economic impact. PRACTICES TO ACHIEVE ECONOMIC SUSTAINABILITY Creating an environment where airport businesses can thrive provides benefits to airport sponsors, users and operators, while creating high-skilled, high-paying jobs in the community. A business-friend- ly environment attracts public-private partnerships to the airport, including those advancing green technology and neighborhood compatibility. The following are a few practices to propel an airport toward econom- ic health and promote policies that are both responsive to business and responsible to the community: • Develop and enforce airport min- imum standards promoting the highest levels of safety, security and service for all airport users. • Ensure the airport has a current business/redevelopment plan and schedule of rates and charges reflecting its vision and mission. • Consider a transparent RFP process to solicit business proposals for real estate that is designated for both aeronautical and FAA approved non-aeronautical uses. • Review and maintain compliance with all airport grant assurances and regulatory measures estab- lished by federal, state and local government agencies with jurisdic- tion over the airport and its users. • Think globally, but work locally with airport users and operators, public officials and prom- inent business, civic and community organiza- tions to form an airport business support team. Finally, aviation industry leaders and policy- makers should take advantage of organizations throughout the world, such as ACRP, that contrib- ute guidance and research on subjects of importance to airports. Curt Castagna, president and CEO of Aeroplex/Aerolease Group, is a member of the Los Angeles County Airport Commission, president of the Van Nuys and Long Beach Airport AssociaƟons, and a board member of the NaƟonal Air TransportaƟon Associa- Ɵon. A cerƟfied private and instrument-rated pilot, he has instructed courses in aviaƟon administraƟon at Cal State Los Angeles for over two decades. Curt Castagna ABOUT THE AUTHOR The utmost in safety without complexity. Designed with traditional fixed fuel storage tanks or portable tanks for offshore or remote location applications. X 3-STAGE FILTRATION Eliminating the need for electronic probes or water floats requiring quarterly testing X DIFFERENTIAL PRESSURE GAUGES Offering both Peak-Hold and high DP shut-down DESIGNED TO ELIMINATE SAFETY GAPS IN FILTRATION AND PUMPING SYSTEMS BRAVO ZULU FUELING SYSTEMS, INC. Interchangeable components for rapid deployment or easy exchange saves time and money even to the extreme of offering Portable fuel storage (DNV Tanks) . Flexible leasing plans eliminate large capital expenditures, allowing for changes in usage and equipment conducive with changes in your business climate. FOR MORE INFORMATION CONTACT: X Walter P. Chartrand X 281.386.8512 X Rob Schultz X 732.618.4507 BRAVO ZULU FUELING SYSTEMS, INC. "WELL DONE"

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