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AIRPORT MANAGEMENT DEAL OK'D AT SAN BERNARDINO INTERNATIONAL
Posted: September 30th, 2009
| The authority overseeing San Bernardino International Airport on Wednesday approved a five-year contract to turn over daily management of most operations to Virginia-based Aviation Facilities Co., starting Sept. 1. The contract calls for the company's management division, AvPorts, to oversee daily operations of the main passenger terminal, hangar oversight and other management duties now overseen by the San Bernardino International Airport Authority. The authority would retain ownership of all buildings, including service hangars and the nearly completed main passenger terminal, and retain final say on long-term planning at the site, the one-time airfield of the closed Norton Air Force Base. The contract calls for AvPorts to receive a general manager reimbursement of $250,000 per year. |
| As an incentive to increase business activity at the airport, AvPorts would receive an amount equal to 50 percent of net income from future airport operations. About 30 airport workers currently employed by the authority would become employees of AvPorts, with pay and benefits equal to their current packages. Except for some overhead costs, AvPorts assumes all management expenses, including employee wages. One employee who spoke at Wednesday's meeting said he and his co-workers were caught off-guard, learning of the contract five days ago. "We already feel threatened about losing our jobs because of this economy," said Tom Ryan, a maintenance worker from Running Springs. Don Rogers, interim airport director, said the contract calls for workers to receive their existing pay and benefits. In cases where comparable benefits aren't available, workers are to be compensated in cash. He said human-resource workers would meet with workers to discuss pay and benefits. Aviation Facilities Co.'s management arm currently manages seven other airports around the country, including those in Westchester and Albany in New York, the Atlantic City airport and one large terminal at Newark International in New Jersey. AvPorts has been in business about 80 years and was originally part of Pan American Airlines, according to its Web site. John Harden, chief operating officer for AvPorts, said the company specializes in commercial airport management in the Northeast. It was acquired last year by Aviation Facilities Co., which operates mainly cargo airports. Airport officials said that hiring a private management firm has always been considered, but authorities have received little interest from the aviation community to take on management duties. "We're at a crucial launch point for this airport," said Pat Morris, San Bernardino mayor and chairman of the airport board, at Wednesday's meeting. A request for proposals was issued in December, but officials said no acceptable proposals came forward until Aviation Facilities expressed interest. Bill Ingraham, aviation director for the airport, said that interest may be growing as the main terminal and other amenities get closer to completion, although no commercial carrier has yet announced service to the airport. At least one undisclosed domestic passenger carrier is seriously looking at adding flights in San Bernardino, officials have said. Ingraham said Aviation Facilities, through its industry contacts, would assist the airport in getting new commercial carriers and other on-site development. "They will help us sell the airport (to the business community)," Ingraham said. The proposed contract calls for Aviation Facilities to receive a management fee but no other significant compensation until the airport is fully operating and generating revenues. Aviation Facilities, managing the airport through a San Bernardino limited-liability corporation, would also be paid certain overhead costs, including insurance, human resources administration and marketing. Reach Lou Hirsh at 951-368-9559 or |
| lhirsh@PE.com |
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