financing of a GA airport

hi,
i am a GA pilot in austria.
we have been discussing fees, charges etc. where applicable in the USA.
basic question: where does a local / municipal airport that is almost or
even exclusively used by GA make money to keep the airport running?
as you don't have landing fees, is it the fuel purchased by pilots, the
fbo's?
regards
wolfgang, ex loww, vie, vienna, austria

"Wolfgang K." wrote in
:

i am a GA pilot in austria.
we have been discussing fees, charges etc. where applicable in the
USA. basic question: where does a local / municipal airport that is
almost or even exclusively used by GA make money to keep the airport
running? as you don't have landing fees, is it the fuel purchased by
pilots, the fbo's?

Make money? In aviation??? What a strange concept!

Okay, seriously...

There are a number of different models used in the US. First off, let's
look at sources of income to the airport (excluding landing fees, which
VERY few airports in the US have):

o Fuel, oil sales
o Hangar rental
o Tiedown rental
o Building lease (to FBO's, maintenance facilities, etc.)
o Lease of overrun land (farming)
o Sale of pilot supplies, food, etc. (if direct)

Additionally, if the airport is open to the public, it is eligible for
public tax monies. This is the MAJOR source of support for most
airports, amounting to 90 to 95% or the total capital budget. This
money is basically a recognition of the fact that everyone in the area
benefits by having the airport, not just those who actually have an
airplane. [Similarly, everyone in the community pays school taxes, even
though they may not have children.]

These small GA airports run a substantial range of size and scope.
Comprising about 90 % of the airports in the US (airports with no
commercial airline flights), some are little more than a runway and a
tiedown area, may or may not have a self-serve fuel pump, and someone
comes by every week or so and mows the grass. Others are thriving
economic entities with tens of millions of dollars in their yearly
budget.

As you are no doubt aware, however, many US airports are under attack
for the perceived value of the land. Real Estate developers want the
land to build housing and commecial property. City governments,
strapped for cash, may want that also - since it would bring in
additional sales and property tax revenue.

For a small airport to be successful in a small to midsize town I think
it must become a PART of the community. I've talked to many people who
didn't even know their town HAD an airport. I've seen some very rundown
airports improved and revitalized by new management into something that
the town is not only aware of, but indeed proud of. To do that, the
community must be involved in the airport. Some things that help that:

o Social functions held at the airport. Such things as community
picnics and fairs. [Remember all that overrun land? Turn part of it
into a park. That's compatible use that attracts the non-flying public,
and makes the airport an asset to them.] I've even seen large hangars
where the planes were pulled out on a couple of warm Saturday nights and
community dances held.

o Put in businesses that attract both non-local pilots *and* non-pilot
locals. The most obvious of these are restaurants - where again the
airport view is turned into an asset. [An airport near where I am has
opened a WW-II styled hotel and diner on the airport grounds. The hotel
appears to be quite successful, and attracts more than just pilots.]

Those are just some ideas. To be successful I think the two biggest
factors do not so much hinge on money but rather on:

o A dedicated airport management and/or board
o A supportive city government

jmk




-----------------------------------------------
James M. Knox
TriSoft ph 512-385-0316
1109-A Shady Lane fax 512-366-4331
Austin, Tx 78721
-----------------------------------------------

hi james,

i do appreciate your elaborate piece of information.
thanks a lot.

if you happen to come to austria, drop me a line, if intended, will help you
to get a glimpse of austria from above.

regards
wolfgang, loww, vie, vienna, austria

"James M. Knox" wrote in message
...
[...]
Additionally, if the airport is open to the public, it is eligible for
public tax monies. This is the MAJOR source of support for most
airports, amounting to 90 to 95% or the total capital budget. This
money is basically a recognition of the fact that everyone in the area
benefits by having the airport, not just those who actually have an
airplane.

Just to elaborate a tiny bit (but James's post left very little to elaborate
on ):

The "recognition" is just like the recognition that freeways and other roads
benefit everyone in the area. While many Americans lack the knowledge to
see it this way, airports are just as important an element of the public
transportation infrastructure as roadways and waterways, both of which are
readily acknowledged as worthy of public monies.

I haven't once heard of a neighborhood banding together to try to close a
public road. For some reason, those same people who would never think of
trying to close a public road think it makes perfect sense to try to close
an airport.

Pete

In article ,
Additionally, if the airport is open to the public, it is eligible for
public tax monies. This is the MAJOR source of support for most
airports, amounting to 90 to 95% or the total capital budget. This
money is basically a recognition of the fact that everyone in the area
benefits by having the airport, not just those who actually have an
airplane.

The "recognition" is just like the recognition that freeways and other roads
benefit everyone in the area. While many Americans lack the knowledge to
see it this way, airports are just as important an element of the public
transportation infrastructure as roadways and waterways, both of which are
readily acknowledged as worthy of public monies.

I haven't once heard of a neighborhood banding together to try to close a
public road. For some reason, those same people who would never think of
trying to close a public road think it makes perfect sense to try to close
an airport.

I know a few groups that want to close a few roads actually But the
main difference between a road and an airport is the road is used by
everyone, while 'only the rich' use the airport. It's not even a 'real'
airport (with jets and airline service) it's justs there for the wealthy
to play with their toys. etc. etc.
Most people are just not aware of how small local airports help the
area. Roads and schools (which almost everyone actually uses themselves)
have more direct benifits. To be fair, a lot of people in the USA have
trouble investing in anything that does not produce direct results...

"'Vejita' S. Cousin" wrote in message
...
I know a few groups that want to close a few roads actually But the
main difference between a road and an airport is the road is used by
everyone, while 'only the rich' use the airport. It's not even a 'real'
airport (with jets and airline service) it's justs there for the wealthy
to play with their toys. etc. etc.

You are speaking of perception here, of course, not reality.

Most roads in the US are roads that I do not use. But they are available to
me if I choose to use them. Likewise, just because a person does not use an
airport themselves, that does not mean the airport is unavailable to them
should they choose to use it. That's ignoring, of course, the rest of the
story, the benefits an airport provides even to people who never set foot on
the airport grounds.

Most people are just not aware of how small local airports help the
area. Roads and schools (which almost everyone actually uses themselves)
have more direct benifits.

Just as the rest of the transportation infrastructure does. That's my
point.

Pete

On Wed, 12 Nov 2003 11:16:11 -0800, "Peter Duniho"
wrote in Message-Id:
:

While many Americans lack the knowledge to
see it this way, airports are just as important an element of the public
transportation infrastructure as roadways and waterways, both of which are
readily acknowledged as worthy of public monies.

When SATS* is eventually implemented, municipal airports will become
indispensable. But there won't be any place left to build them,
because the city governments chose to close them and build strip
malls. :-(


*
http://sats.nasa.gov/
http://www.unomaha.edu/~unoai/sats/
http://sats.larc.nasa.gov/main.html

On Thu, 13 Nov 2003 01:42:12 GMT, Larry Dighera
wrote:

On Wed, 12 Nov 2003 11:16:11 -0800, "Peter Duniho"
wrote in Message-Id:
:

While many Americans lack the knowledge to
see it this way, airports are just as important an element of the public
transportation infrastructure as roadways and waterways, both of which are
readily acknowledged as worthy of public monies.

When SATS* is eventually implemented, municipal airports will become
indispensable. But there won't be any place left to build them,
because the city governments chose to close them and build strip
malls. :-(

If the airport's a better economic deal for the city than the mall,
it'll be eminent domain and bring on the bulldozers. Stuff gets torn
down all the time for freeways.

Don

On Thu, 13 Nov 2003 02:31:55 GMT, Don Tuite
wrote in Message-Id:
:

On Thu, 13 Nov 2003 01:42:12 GMT, Larry Dighera
wrote:

On Wed, 12 Nov 2003 11:16:11 -0800, "Peter Duniho"
wrote in Message-Id:
:

While many Americans lack the knowledge to
see it this way, airports are just as important an element of the public
transportation infrastructure as roadways and waterways, both of which are
readily acknowledged as worthy of public monies.

When SATS* is eventually implemented, municipal airports will become
indispensable. But there won't be any place left to build them,
because the city governments chose to close them and build strip
malls. :-(

If the airport's a better economic deal for the city than the mall,
it'll be eminent domain and bring on the bulldozers. Stuff gets torn
down all the time for freeways.

We can hope.

But do you think there might be a little opposition to siting an
airport within the residential zone that has now been permitted to
surround the mall? Or would the municipality displace those residents
too. Can you imagine the EIR involved in reestablishing an airport in
an urban area today? Tomorrow? :-(

"James M. Knox" wrote in message
There are a number of different models used in the US. First off, let's
look at sources of income to the airport (excluding landing fees, which
VERY few airports in the US have):

o Fuel, oil sales
o Hangar rental
o Tiedown rental
o Building lease (to FBO's, maintenance facilities, etc.)
o Lease of overrun land (farming)
o Sale of pilot supplies, food, etc. (if direct)

Additionally, if the airport is open to the public, it is eligible for
public tax monies. This is the MAJOR source of support for most
airports, amounting to 90 to 95% or the total capital budget. This
money is basically a recognition of the fact that everyone in the area
benefits by having the airport, not just those who actually have an
airplane. [Similarly, everyone in the community pays school taxes, even
though they may not have children.]

[snip]

In addition to the capital budget typically being subsidized by both
federal and local governments, most small airports have their
operating budget subsidized by the local government (operating
expenses are not eligible for federal funds). Some GA airports are
self-sufficient on the operating side of things, but they are few and
far between. So, part of everyone's local tax dollars are going to the
local airport to support its operations.

This only applies to publicly-owned airports in the US. Private
airports, even if they are open to the public, are not eligible for
federal money and generally can't get state or local money.