May 2010
In This Issue
What is a FBO?
The plane truth
Keeping general aviation
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World class businesses look to land at RNO

World-renowned aviation companies are looking to join the family of businesses at Reno-Tahoe International Airport.  
Last year, the French aviation manufacturer Dassault Falcon opened a maintenance facility at Reno-Tahoe International bringing high paying and high tech jobs to our community. Dassault may soon be joined by other high profile corporate aviation businesses.

Corporate aviation typically features large privately owned corporate jets that are sometimes valued as high as $40 million apiece. Many of these jets can fly non-stop from Reno to Rio de Janiero.   

 Dassault Falcon 

Fixed Based Operators (FBOs) are aviation businesses that offer a variety of services to aircraft at airports. Two FBOs have decided not to renew their long term leases at Reno-Tahoe International. Now, world class FBOs are seeking to locate their operations to the 62nd busiest commercial airport in the country.

Reno-Tahoe International has issued a Request for Proposal (RFP) to the FBO industry and has received a strong response from well known companies that will raise the profile of the airport while enhancing service on the field. While the companies cannot be revealed until the RFP process is complete, the airport hopes to announce a new FBO this summer.

"Our airport customers and community deserve the highest level of aviation service possible," Krys Bart, President/CEO of Reno-Tahoe International Airport, said. "A world class FBO will enhance our airport's reputation in the international general aviation community."  
The Plane Truth
  • Under no circumstances has any GA tenant been asked or told to leave RNO.
  • The Airport Authority has met three different times with large groups of pilots and held several one-on-one meetings with tenants to address their concerns.
  • General Aviation is a broad aircraft category that includes corporate jets, blimps, helicopters and propeller planes.
  • A majority of the pilots who have expressed concern over the FBO issue fly propeller-driven aircraft that generate only 0.2 percent of airfield costs. The aircraft weigh less than 12,500 pounds and do not produce landing fees. The only airport revenue they produce are fuel flowage fees.
  • If the airport constructs hangars for private tenants, the cost will be paid for by the airlines that are still trying to recover from the troubled economy. The airlines bring 4 million people through the airport and community each year supporting the casinos, hotels, ski resorts, stores and restaurants. Subsidizing private hangars will meet a strong protest from the airlines.
  • Hangar rents at both Jet West and Sierra Air are inconsistent. In some cases, similar size hangars may have rents that vary by hundreds of dollars per month. This inconsistency may be based upon fuel sales or relationships. By FAA regulations, and as a public airport, RTAA must charge all hangar tenants a fair and consistent price based upon appraisals.
PGA Tour Shop

Greetings!

In the world of airports, rumors can take-off like airplanes.

This edition of the airport's e-newsletter should help ground a rumor that Reno-Tahoe International Airport is kicking small aircraft off the airfield. Actually, the airport is offering rent reductions to a majority of the small aircraft owners and working diligently to attract more world class general aviation facilities to our community.

In this business, we face turbulence with honesty and a determination to provide our community with a safe, fiscally sound airport that brings 4 million people per year to our region.  We are happy to take any aircraft large or small-but rumors can look for somewhere else to land.

Krys Bart - small

Sincerely,
Krys T. Bart, A.A.E.
President & CEO
Reno-Tahoe Airport Authority
Airport working to keep General Aviation on the airfield

More than 76 percent of the hangar tenants at Reno-Tahoe international Airport will be receiving a two-year rent reduction July 1.

During these tough economic times, the airport will be reducing the rent for a majority of the hangars containing single engine and small twin engine propeller planes. Why? Because the businesses where they were tenants have decided not to renew their leases and the airport is working to standardize and equalize rents across the airfield.

These smaller aircraft are part of a Federal Aviation Administration (FAA) category called "GA" or "general aviation" aircraft. GA includes everything that flies other than commercial and military aircraft. These smaller airplanes only generate about 0.2 percent of the revenues needed to operate the airfield at Reno-Tahoe International. But the Board and staff at the airport are working hard to keep them based here.

GA Aircraft

Jet West and Sierra Air Center were the tenants' previous landlords. In an airport environment, Jet West and Sierra Air were called Fixed Base Operators or FBOs. An FBO provides aviation related services for aircraft at an airport. Jet West was operating on a 45-year lease and Sierra Air was operating on a 25-year lease with the Reno-Tahoe Airport Authority and both expire June 30.

After months of good faith negotiations between the Airport Authority, Sierra Air and Jet West, the FBOs made an informed business decision and decided not to renew their leases. Both FBOs leased hangars and now those hangars and the FBO facilities are reverting to airport ownership as prescribed in their leases.

Per FAA regulations, the airport must offer market based rental rates for any facilities it owns. So the airport has conducted a rent analysis and is lowering the rate charged to most of the hangar tenants on the airfield. The hangars at Jet West are in such disrepair that a rent reduction was obviously in order.

GA Aircraft

Hangar tenants can lock in these new rental rates for month-to-month deals or sign on for as long as two years. Due to the poor condition of the 45-year-old Jet West hangars, the airport is encouraging the tenants to consider several options before the two-year rate deal expires and they must be demolished.
  • Tenants can relocate to Reno-Stead Airport where they will have the first right of refusal on new hangars that will be constructed.
  • Tenants can move to hangars at Atlantic Aviation or Sierra Air at Reno-Tahoe International.
  • Tenants can also consider building their own hangars on vacant land at Reno-Tahoe International.
"We don't want any of our general aviation tenants to leave the Reno-Tahoe Airport Authority," Krys Bart, President/CEO of Reno-Tahoe International Airport, said. "We have been working hard to create standardized, equitable rents and to offer long term solutions to keep GA operating at our airport." 
Reno-Tahoe International Airport receives no state or local tax dollars.
All operating revenues are generated from tenant and concession fees.