LEXIS-NEXIS® Congressional Universe-Document

LEXIS-NEXIS® Congressional

JUNE 9, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 1911 words

HEADLINE: PREPARED STATEMENT OF
MR. MICHAEL DIKUN
AIRPORT MANAGER
ADIRONDACK REGIONAL AIRPORT
BEFORE THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE
SUBCOMMITTEE ON AVIATION
SUBJECT - HEARING ON GENERAL AVIATION AIRPORTS

BODY:

I would like to thank the esteemed members of the House of Representatives Aviation Subcommittee for allowing me the opportunity to address issues I feel are vital to the preservation and promotion of General Aviation Airports. General Aviation airports are a critical link in the transportation infrastructure of our nation. The varieties of general aviation aircraft and their usage range from someone flying an ultra light aircraft she built herself to the next town for breakfast to the CEO of a multi-national corporation flying non stop from Los Angeles to London for a strategic planning session. Obviously, their requirements of an airport are very different.
For the many thousands of Americans who own and operate their own aircraft, airports provide many necessary services. Safe landing areas, aircraft parking space, aircraft storage, fuel availability and terminal amenities such as rest rooms and food service all play a role in supporting general aviation. Many of these citizens use their aircraft solely for recreation. Private aircraft provide their owners with a wonderful freedom that most people only dream about. This is the freedom to travel to distant places on a weekend adventure, the freedom to rise above the crowded highways and view our beautiful country from the perspective of eagles, and the freedom to share this perspective with young people who also dream of flying. The recreational pilot has few needs when it comes to airport facilities. He needs a facility that is safely maintained. This means the landing surface is smooth and obstacle free. It can be grass, gravel or pavement. Airfield lighting for nighttime operations allows the airport to provide service to a wider range of users. When she arrives at the airport, fuel should be available to allow the pilot to continue on to her destination or return to her home field. Parking space on the ramp should be available and can sometimes be at a premium, as can hangar space in the event of bad weather. Rest rooms and food facilities are a benefit, but certainly not essential for safe flying.
There are hundreds of airports across America that support this segment of general aviation. Most of these airports are owned by some sort of government entity. Some are privately owned. All are faced with the fiscal requirements of airfield and equipment maintenance. These requirements can range from a few shovels of dirt to fill rough spots on a dirt and gravel landing strip to a complete pavement overlay of runways and taxiways. The owners of these facilities must constantly juggle the maintenance cost of the airport with the revenue the airport generates. Maintenance costs are also effected by the airport's geographic location. Airport maintenance vehicles for snow removal in snow country are very expensive. Many municipalities do not have the fiscal resources to procure such dedicated equipment. It is crucial to the operation of our aviation system that state and Federal assistance continue to be made available to smaller airports for the purchase of necessary equipment.
Small GA airports have limited revenue sources. Airport fees such as landing and parking fees account for a small percentage of airport revenue. Many airports do not charge landing fees for single engine aircraft. If they did, many aircraft owners would avoid use of the airport. Parking fees are usually in the range of $5.00 / night with a maximum of $25.00 / week. Airports charge based aircraft a tie down fee on a monthly basis. These fees can range from $25.00 -$100.00 per month. The airport revenue generated by these user fees is very limited and does not support the operation of the airport in a significant, reliable amount.
Hangar space is another method by which airports can generate revenue. Airport owned hangar space can be a significant revenue source. Transient aircraft are charged hangar rates based on the size of aircraft and duration of stay. Overnight accommodation usually ranges from $25.00 / night for single engine aircraft to over $100.00 / night for larger twin engine aircraft. Hangar development is a major capital expense. Hangars are normally configured in two ways; "T" hangars and conventional hangars. "T" hangars are constructed as single aircraft storage units housed in one long rectangular structure.
The cost of construction for these unheated hangar units is approximately $25,000 / unit. This cost includes the site preparation and limited taxiway access. This cost can be adjusted based on the type of door used, and other such factors. The revenue an airport operator can expect from leasing these units will vary from $100.00 to $300.00 per unit. These hangar units may be financed through the airport owner, a commercial capital venture, or a fixed base operation (FBO) located on the field. In the last two options, the airport owner's revenue would be significantly reduced, as would the capital expense. The airport owner would only realize revenue from leasing the land on which the hangar is located. If the airport owner chooses to build and lease the units for increased revenue, the owner also faces increased cost of maintenance of the units.
Large, multi-aircraft conventional hangars are also revenue sources for airports. Conventional hangars are primarily used for transient aircraft storage and therefor generate a larger percent of airport revenue, as transient storage is leased at a much higher rate. The same financing options would be available for these units as for "T" hangars. The cost of building a large unheated conventional aircraft hangar will be approximately $50-60 per square foot. If the facility is heated, it will obviously add a great deal more to the cost. The advantage of a heated facility would warrant a much higher storage charge, and so the airport would realize a higher rate of return. Another hangar related revenue source is to lease land for private hangar construction. Most municipal airports would love to be able to lease hangar space. Unfortunately, most municipalities can not afford to build them. State grants are sometimes made available for hangar construction and any assistance from the Federal government usually comes from block grants assigned to states. The benefits of available hangar space at an airport would be increased usage, as some aircraft owners insist upon aircraft storage. Increased revenue from land use for private hangars would also benefit the airport. Tax revenues for the community would also increase due to the increased property value. Fuel availability is critical to any airports survival. If fuel is not available, aircraft usage will be limited to local aircraft which are based there or the occasional transient conducting local business. Aircraft fuel sales are normally handled by the airport or a FBO located on the field. If the airport operates the fuel concession, all revenues will go to the airport. This can be a significant revenue source. This revenue comes with the price of maintaining the fuel facility and equipment as well as staffing the fuel service facility. If the fuel is handled by a private enterprise such as a FBO, the airport will realize revenue from a fuel flowage fee assessed to the vendor.
The issues I have discussed here are relevant to any airport. Properly maintained landing areas, adequate ramp space, increased hangar space, and fuel availability are infrastructure requirements all airports face. Funding for such items should be assessed based upon an airport's use, the perceived benefits to the community, and the possibility of increased revenue for the airport. The goal of all airport operators is self sufficient operation. Municipal operators need assistance to develop the airport infrastructure to be able to maximize revenue and service. When the airport operator is able to maximize revenue, it is able to do more development with less outside assistance.

At the other end of the general aviation spectrum is corporate aviation. As the scope of business in the United States and the world becomes more diversified, aviation becomes more critical. Corporate flight departments are becoming necessary to conduct business. A community that cannot support a corporate flight operation will not be considered for a business location. Aviation is driving today's economic engine, and will continue to do so as we enter the next millennium.
The airport infrastructure requirements of these flight operations are extensive. Instrument Landing Systems (ILS), Airport Weather Observation Systems (AWOS / ASOS), and paved runways of at least 5000 feet in length are the legal minimum requirements for all weather flight operations. As you all know, American business can not prosper if we must wait for good weather. For a corporation to compete on a national or international level requires the ability to travel at a moments notice to anywhere in the nation or the world. Airplanes and airports make this possible. The FAA must continue to work with airports to assess the airport's use and whether improved airport capability will have a direct benefit to the surrounding communities.
The FAA is investigating the feasibility of Global Positioning System (GPS) approaches to airports. This technology will hold the key to all weather operations at airports throughout the United States. Continuing to fund this research is vital to the growth of the United States aviation system. Funding for ASOS or AWOS at airports with all weather capability requirements is also important to the aviation system's ability to deal with future growth. More and more areas of our country will need to have all weather airports as our national economy continues to grow and prosper. Improved runways are also required for an airport to provide the safety margins needed for today's corporate aircraft. Most flight operations have a minimum requirement of 5000 foot runway length for all-weather operations. In addition to improved runways, airports will need larger aircraft parking areas. This ramp space will provide safe areas to park the larger aircraft now in use by corporate America. Ramp space extensions will cost approximately $25 / square yard to develop in the New York / New England region.
The FAA has a system in place to evaluate many of these issues. Airports develop 5 year Capital Improvement Programs and Airport Master Plans to help guide them in planning for major airport infrastructure developments. A great deal of emphasis and federal fiscal support is directed to the air carrier airports of our nation. I believe this support is justified and necessary for our nation's aviation system to survive. But all to often, the role smaller airports play in our aviation system is neglected. The growth of our aviation system, and the capability of our general aviation airports to support the needs of America's 21st century economy will depend on the support of our nation's government. The aviation trust fund must be used for the purpose for which it was created; the improvement and growth of the United States aviation system. I believe the most critical, far reaching legislative act in recent years in support of airports is before you at this time. HR-1000 or 'AIR-21' places the necessary emphasis on the needs of our airports. The proposed funding levels and other items addressed in this bill will allow airports of all size to plan for the future.
END

LOAD-DATE: June 16, 1999