Long Beach Airport struggles with general aviation
August 1, 2012, 04:55 pm
General aviation activity including landings and takeoffs of small private aircraft, continues to decline at Long Beach Airport, which provides 9 percent of the city's jobs, according to recent statistics by Business Journal. Aviation businesses, liked fixed-base operators, which sell fuel to customers and lease hangars, are facing profit challenges and may ask for a decrease in their property values.
Operations of general aviation aircraft, including small piston-engine planes, corporate jets, helicopters and other aircraft, decreased by 24 percent during the first six months of the year at the airport compared to the same time period last year, according to Business Journal. General aviation operations during the first half of the year were down nearly 42 percent compared to 2007.
In June 2012, there were 106,452 general aviation operations, down from 140,820 operations in June 2011 and down from 185,563 during June 2007. Other data shows that from 2000, when operations were at their highest level, to 2011, general aviation and air taxi traffic decreased nearly 34 percent.
John Tary, general manager of Toyota AirFlite, said the airport is facing increased general aviation fuel prices, vacancies and more competition in a slower market. Tary said there are four main FBOs at the airport selling gas, compared to only two in the past, with less fuel to go around. FBOs are still making the same profit , while the cost of aviation fuel increases.
“As a percentage we’re making less money and there’s a lot of factors that go into the ability to be profitable,” said Tary.
Tary added that decades ago there were nearly 1,200 private aircraft based at Long Beach, and now there are fewer than 400. He said there used to be five-year waiting list to get a hangar and now there are five vacancies.
As for the property leased by the businesses at the airport, Long Beach statements said that the airport offers the lowest rates in the area. The airport recognizes the continued downward trend of general aviation since 2007, but has made it viable for businesses during the trying times.
Michael Hodges, president and CEO of Florida-based Airport Business Solutions, a consultant for AirFlite, disagrees with the way the airport is generating property values.
“The technique they’re using allows the airport to create the value they want to create and justify the value they want to justify, so it doesn’t give a true indication,” Hodges said. “The biggest problem is the market is just so far down over 2007, which is when any volume actually occurred in the industry. It really doesn’t give a true representation of what the value is today.”
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