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By way of updating our readers on the
issues we have been addressing regarding our
Airport Lease,
reprinted below is a recent article published on this subject:
AIR CONWAY
By J.K. Jones,
Log Cabin Democrat Bill
Cope's business requires that he keep his head in the clouds and his
feet on the ground. That would seem to require quite a stretch. And
it's a position made all the more awkward by the talk of a new
airport, which could well be a pie-in-the-sky project - and a long
term one, at least.
In short, as manager of fixed base
operations (FBO) at the Conway airport, Cope can certainly make the
case that he's being pulled in a lot different directions at once.
Just last Monday, he flew a plane to
Florida and back before lunch, then took off his pilot's cap and
settled in behind his desk in the terminal building.
Asked to explain simply an FBO, Cope
likens the business to an old-style service station, but instead of
serving the automotive public, his customers are aviators and their
aircraft. He employs a staff of six.
"We fuel 'em, we fly 'em, we hangar 'em,"
said Cope, whose first solo flight came at age 16.
There is, however, little that is
simple to managing an airport - or so Cope would spend the afternoon
trying to show to a couple of Conway alderman visiting the facility.
Until recently, Cope's contact with
city representatives had been limited to a monthly back-and-forth
exchange of checks, with the occasional "past due" notice passed
along.
The business relationship began in
1999 when Cope's Aircraft Services, Inc. paid $280,000 to Acxiom
Transportation Services to take over the Conway airport lease and
management contract.
The lease basically assigns Cope the
right to utilize the city's assets at the airport for about $2,400 per
month plus another 5 cents for every gallon of fuel sold. In turn, the
management agreement pays Cope about $1,900 per month to keep the
city's property clean, neat and safe.
But in April the council voted to give
Cope notice that the contract would be canceled in 90 days because of
slow payments on the lease, sometimes running months behind.
A sharp letter from Cope's attorney
pointing out the city's tendency to be slow on its payments of Cope's
management fee brought the matter back to the council for further
discussion May 11. At that meeting, Cope assured the council that
procedures would be in place to guarantee timely payments.
Cope's explanation of the difficult
business climate for airport operators, along with a heart-felt and
business-sensible plea from his wife and partner Tina Cope and other
supporters, prompted the council to ask the mayor to work out any
differences with Cope.
Cope characterized the process as
"very stressful" and "difficult," but still managed to find the silver
lining in the thunderhead that had built ahead of his small-business
dream.
"We've worked out all of the issues,"
Cope said. "Nothing but good things have come out of it. We
communicated very little in the past - my talks with mayor and
aldermen have focused on that."
Mayor Tab Townsell agreed, saying the
new contracts essentially didn't change much other than the attitudes
of both sides.
"The largest change is a confidence by
me and the council that Mr. Cope is committed to paying his
obligations on time," Townsell said. "We agreed to take another shot
and let's just do our jobs."
Last week, the council reviewed the
draft agreements and voted 5-2 to withdraw officially the termination
order. Cope took the opportunity to invite the council the visit his
operation to see what the city's money was paying for - and, in turn,
how the city might help Cope with needed improvements.
Ward 1 Aldermen David Grimes and Andy
Hawkins, who had reservations about ambiguous language in the draft
and had voted in the minority, took Cope up on his offer.
The two are not aviation novices:
Grimes and his company, American Management Corporation, own a plane
at the airport. Hawkins has a pilot's license.
And much of what they saw wasn't new
to them. The heart of the facility is the 5,000 square foot terminal
building where they found the basics for any small airport: An
information desk, a large, open waiting area with a work station for
filing flight plans over the Internet, a pilots' lounge featuring a
treadmill and television, and even an upstairs bunk.
Aircraft ranging from 1940s Piper Cubs
to the latest Falcon jets are housed in the 10 buildings around the
facility.
Standing in the shade of the main
hangar, Cope offered a lesson on the basics of the operation -
essentially fuel sales and hangar rentals - and said he tries to lure
aircraft owners from Little Rock with promises of convenience, better
service and lower prices.
The problem is, with hangar space
about 95 percent full, Cope said he can't grow his business without
more and improved facilities. Uncertainty as to plans for a new
airport means he's constantly fighting to keep his business out of a
stall and eventual tailspin.
"I've had a dozen people in the last
year ask why there isn't more hangar space," Cope told the aldermen.
He noted particularly the dilapidated tin structure at the airports
west end of the field, saying the location would be ideal for a new
hangar, but no one including himself is willing to build one, as long
as there's a chance a new airport will be available before such an
investment could pay for itself.
He also took the aldermen for quick
spin around - and above - the facility, offering a pilot's eye-view of
faded runway paint, high trees on approach, and a taxi way that's so
narrow and bumpy Cope turns off the lights on it so pilots won't try
to use it at night.
"We're basically staring at a wall
until somebody says 'yes, we're moving' or 'no, we're not,'" Cope
said. "If it moves, great - let's get it done. Indecision has stifled
people from relocating airplanes to Conway."
Industry trends
Denver-based Randy D. Bisgard is
senior vice president for Airport Business Solutions, a firm that
provides management consulting services for airport operators. He
backs Copes assertions that times are tough for the industry,
especially for smaller operators and after 9/11. He cited rising fuel
prices and soaring insurance costs as a "double whammy."
"Fuel is by far the prime generator
for an FBO," Bisgard said. "But full service has really gone by the
wayside. A lot more are picking and choosing niches."
Bisgard said that it's not all
uncommon for pilots to want to get into FBO management - what's
difficult for many is having to spend enough time on the ground to
look after a very "hands on" business.
He compared running an FBO to running
a good restaurant: The manager simply needs to be there because there
are so many details, from personnel and training to many regulations
that govern the industry.
And regardless of an FBO manager's
skill, some small facilities simply cannot meet the demands of the
corporate client: Long runways, instrument guidance systems, even
convention facilities and community amenities are important lures -
but completely outside the realm of the FBO.
"If you're an FBO, one man can pump
500 gallons into a jet in a few minutes, or the same man can spend the
same time on a small plane," he said. Therefore, big planes mean
bigger profits.
Cope would like for the city to
understand that there's no waiting around when it comes to airport
safety, and he plans to present the council with a list of basic
needs. He also wants the council to understand how important the
airport is as a symbol of the community.
"What every citizen in Conway needs to
realize is the airport is the gateway to the city," Cope said. "When a
company comes to visit a business, those people don't drive -they fly
their airplanes. We are the first impression that people get."
And while Grimes says he can
appreciate Cope's position, he notes the city is in a bind as well.
"Basically, something as important as
the location of the airport takes time," Grimes said. "Conway needs
pretty quickly to figure if and where it's going to move, or make the
best of what we've got."
Townsell agreed, and said he will give
Cope's requests due consideration.
"Obviously, we cannot let a dip in
safety happen," Townsell said. "There are things that we could do if
we weren't going to relocate that would be very beneficial.
"The delay unfortunately is stringing
out everyone."
~ May you have clear skies and a favoring
tailwind ~ |