By Brian M. Boyce
TERRE HAUTE — Ongoing negotiations for the sale of Terre Haute International Airport’s Fixed Base Operator might reach a positive conclusion this month, the agency’s director said Wednesday.
“I hope we do,” airport executive director Dennis Wiss said of a potential announcement at the board’s Nov. 18 meeting.
The facility’s Fixed Base Operator, or FBO, is a collection of services and assets, including the fueling center, flight school and maintenance facility, he explained. “All that collectively is the FBO.”
The collection represents 17 airplanes, between 25 and 28 employees and about 500,000 gallons of annual fuel sales, he said. The value of used planes on a resale market is fluid, but Wiss estimated the worth of those in question to be between $900,000 and $1.1 million.
Wednesday afternoon, jet fuel was selling at $3.54 per gallon, and Avgas, or aviation gasoline, was $4.15 per gallon at the Terre Haute facility, he said, adding that the price and margin on those products vary from airport to airport in conjunction with a number of factors.
Wiss, who assumed the director position in June, said the agency attempted to sell the FBO last year but had no offers. This year, the group closed the bid process in September with one offer on the table from a local entity.
“It’s enough to say we’re still working with it,” he grinned, noting that all involved have understood the bid offer to be a negotiation in progress since its submission. Wiss said he’ll meet with the potential buyer again Friday.
Airport FBOs vary in ownership structure, he said. The facility he left in Show Low, Ariz., had a city-owned FBO, but the airport in Bloomington, Ind., has two that are privately-owned. “It’s a mix,” he said, explaining the advantages and disadvantages to both. While the services bring a considerable amount of revenue, they also represent proportional costs. Private-sector owners have more freedom to operate, grow and market a business than do cities and municipal departments, he pointed out — particularly when tax revenue is down.
The airport’s 2010 budget projects revenues of $3.2 million against $4.5 million in costs, even after about $300,000 in budget cuts, Wiss said.
At last week’s board meeting, Wiss said the deficit is partly due to lower tax revenues, but also a lack of facility revenue.
The airport has no plans for an air show in 2010, but Wiss said the group hopes to host more “airport open houses” and smaller shows to promote the facility while conserving costs.
In the meantime, the Indiana State University flight school program is very strong, and that’s a relationship any potential FBO buyer will want to develop. “They know we’re looking for a new opportunity and this gentleman has talked to them,” he said.
Wiss added that Terre Haute’s airport is in a good location with strong facilities, and both factors make it a great opportunity for investment growth.
“Terre Haute is a great place to fly into,” he said.
Brian Boyce can be reached at 812-231-4253 or brian.boyce@tribstar.com.
