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HomeMy WebLinkAbout2000-03-02 MinutesMEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: OTHERS PRESENT: McKINNEY: FREDERICK: SMITH: McKINNEY: AIRPORT BOARD MINUTES March 2, 2000 RICK McKINNEY, TRUMAN SMITH, DON LYALL, CHARLES WALLACE FRANK BURGGRAF DALE FREDERICK, BRENDA MOSS, ALETT LITTLE, TONYA POSEY, LOUISE POWERS LaNITA McKINNEY-TENANT; JOHN ECKE and RON THORNELL-TENANTS; TERRY COLLIER -TENANT; FRANK SPERANDEO III -TENANT; CHUCK CHADWICK, GARY COOK, and PERRIN BLOUNT-FAYETTEVILLE AIR SERVICE; KENNETH SHOSSOW-WINGS AVIONICS; PAT ROSS -ROSS EXEC AVIATION; JOHN KALAGIAS-AIR MUSEUM ITEM #1: Call to Order. ITEM #2: Minutes of the February 3, 2000 meeting A motion to approve the minutes with one correction, changing the amount of $300,000 to $3,000,000 as the amount spent on improving the approach (page 3), was made by Mr. Smith and seconded by Mr. Wallace. The motion carried. ITEM #3: Old Business a. Advertising of airport facilities Said an advertisement had been placed in Trade a Plane and two different ads would be coming out in the NW Arkansas Times. One of the ads would be in their annual Progress Report, which they print approximately 2,500 additional copies used as mail -outs to inquiries throughout the coming year. The first ad will also run in their companion newspaper, the Benton County Daily Record. Asked about website advertising? Asked staff to investigate the cost for advertising in the Wall Street Journal? • • • • b. Minutes required for Airport Board Meetings • FREDERICK: Reported the City Attorney's Office said the existing process needs to stay • • in place as written minutes are required. McKININEY: ITEM #4: New Business a. Task Order #1 to McClelland Consulting Engineering contract for the engineering of the extension of Ernest Lancaster Drive. FREDERICK: Explained this would be the first Task Order to the contact which will be on the City Council's agenda March 7th. It would provide for the engineering of the Lancaster Drive. The extension will continue around the east side of the hangar ramp and then south. It would give landside access to areas of the airport property designated for industrial development. WALLACE b. Task Order #2 to McClelland Consulting Engineering contract for the engineering of T -Hangar "E". Reported the plans for the Large Scale Development have already been through two committee meetings The Sub -Division Committee Meeting is scheduled for March 16`". There is room on the ramp for three more hangars the size of the last one. The Airport will still qualify for FAA's General Aviation AIP and discretionary funding. c. Presentation: Charles Wallace. Airport Board Position Paper Stated he hoped the paper would be approved by the Airport Board to be sent on to the City Council and he would be available to speak to the City Council. He said the Airport needs a simple plan for market and developing the Airport, with active support from the City Council. He stated the mayoral candidates have recognized the importance of the Airport and appreciated the councilmen attending the Airport Board Meetings. He related that the Mayor had appointed a marketing committee of Dale Frederick, Alett Little, Jim Benton and himself. He offered to show up one day a week to take Airport staff to other airports to visit, saying he thought it would be a good idea to have someone from the Airport Board along with the Airport staff. Said the Airport needs airport management with a positive, determined attitude. He explained he wanted time lines and check points with goals, i.e. ten telephone calls made a week. Staff needs to be networking, knowing who is moving where. Fayetteville is a center point in the United States, south of bad weather, a nice town to visit. -2- • • NLYALL: McKINNEY: CHADWICK: McKINNEY: MS McKINNEY: LYALL: McKINNEY• LITTLE: CHADWICK: Suggested visiting other airports to see what works there, relating a conversation he had with a friend in Glendale, Arizona that owns 267 hangars. A motion to approve the Drake Airport Board Position Paper and recommend the City Council adopt the Position Paper was made by Mr. McKinney and seconded by Mr. Smith (the Position Paper is attached as part of the minutes). Stated Fayetteville Air would assist with fuel for the marketing related trips, and that if air transportation was needed to bnng in Large groups they could give some assistance from their charter service at Springdale. The motion carried. d. Presentation: LaNita McKinney. Proposal to the Arkansas National Guard Explained that she had been a member of the 131" Signal Company and was still acquainted with personnel in the National Guard. She said she would like to hand deliver a letter to the Adjutant General at Camp Robinson in North Little Rock asking the military to consider Drake Field as a location to place a medical detachment, or to use Drake Field for any other military use. She said many years ago Drake Field had been considered as a location for a medi-vac unit. She also stated airports with military based there attracted a lot of attention. Said the letter should also confirm the Mayor of Fayetteville was also interested in the military locating a medical unit at Drake Field. Asked if this would produce revenue for the Airport? A motion was made to have the letter hand delivered by Ms. McKinney to Major General Morrow from the Airport Manager and the Mayor requesting Drake Field be considered for possible use of a military medical unit or for other military use. The motion was made by Mr. McKinney and seconded by Mr. Smith. The motion carried. e. FBO proposal to locate in the terminal. Explained she had been meeting monthly with representatives from the FBO and the February meeting had been missed. Said that in September or October the FBO had committed to put forth a -3- • • • • drawing of what Fayetteville Air's commitment would be to relocate in the terminal and hired an architect and had met with Ms. Little three times. He explained the plan was not set in stone, and displayed the drawing which would include sleeping rooms reception area, T.V., exercise and recreation rooms, restrooms, classrooms and meeting rooms. The City would be responsible for constructing the walls. He referred to the amount the Airport had in the CIP budget for improvements at the FBO building. Said the FBO doesn't want to move too quickly as they wanted this to be a good-looking executive style Phillips facility which has to be up to certain standards. Said the fuel sales were not supporting the need for the facility now, but they expected to grow. Stated the FBO was investigating working with the A & P school and sharing rental of the green hangar. Said the FBO had moved their maintenance operation to their Springdale location because when the airlines left the FRO had to drawback. He said the FBO would like a thirty year lease. Answering Ms. Little, the FBO has one crew car available, and at times they have had three available during ballgames. They also have an arrangement with Avis Rent a Car for cars to be available at the FBO, and they have a similar arrangement with Hertz, or any other car rental willing to deliver cars to the Airport. Explained there seems to be a big move for the corporate aircraft to go to Rogers. Those landing here now usually have business at the U. of A. or with someone here on the field. Answenng Mr. Lyall, his company does have the FBO's at the Fayetteville, Springdale and XNA airports, and there is more air traffic at the Springdale airport than at Fayetteville. The reason the FBO moved their maintenance to Springdale was because they operate a 135 charter and freight operation from Springdale and those aircraft are based there. LYALL: Asked if the small operation they have here in Fayetteville was costing them money? CHADWICK: Explained he was not the manager, just the public relations and attorney for the FBO. They were working on a brochure, but they had not done a direct mail -out. The FBO sets up a hospitality table for the ballgame weekends and they get positive responses from that. Said from a personal standpoint, he would like to dive in and do everything, but from a business standpoint, it is not feasible because the demand is not • -4- • • • • there. There are some things they wouldn't need right now for the facilities in the terminal, such as a conference room and offices on the south end. The FBO is willing and it is the FBO's intent is to take over the restaurant in the terminal because the FBO could maintain control and see that it met the standards required by Phillips Petroleum for their service center. Said the airport restaurant in Springdale gets a good deal from the City of Springdale and a lot of activities take place at the Springdale airport because of the restaurant. SMITH: Asked what the FBO projected as a growing period, as he was not sure where the funds would come from to do renovations on the terminal. CHADWICK: Said a cost estimate had not been done. He said the Springdale operation was outgrowing their facilities and maybe in the next year they would have to locate some of their aircraft back at Fayetteville and would have to get a 135 certificate to expand their services here. He said a trade out for the cost might be possible as they would be in the terminal from 6:00 a.m. to 10:00 p.m. and the FBO could perform building maintenance. FREDERICK: Explained the FBO had been offered space in the terminal in February 1999 when the airlines begin relocating to XNA. Answering Mr. McKinney, all of the leases have a clause for sub -leasing, with pnor approval meeting the Airport's and the City's requirements. He said the FBO could move their FBO operation into the terminal before the next Airport Board Meeeting. McKINNEY: Stated he would love to see the FBO in the terminal. He also said sleeping rooms were very common in FBO facilities. LITTLE: ROSS: Said the City is ready to move forward and related she and the FBO had several meetings in December, and she also wanted the record to reflect that at one time it would have been derelict to have moved forward with this project. Asked why not put this out for bids from others, or what if there was someone not expecting the City to put up money, could they come in, and could part of the fuel farm be paired off? FREDERICK: Explained operating an FBO on the Airport was not exclusive. CHADWICK: Answering Mr. McKinney, said the sales from fuel does pay the rent some months, and to Mr. Ross, the FBO has a long term lease on the fuel farm, but might sub -lease part of it. Said if the fuel farm is moved, that looked like it would be getting into a hostile situation. -5- • • • SCHOSSOW: SMITH: McKINNEY: LYALL: McKINNEY: FREDERICK: LITTLE: Explained he had been working with British Petroleum to set up a service center at Drake Field. They have made several trips to visit the airport. The Airport could have two FBOs. In regards to fuel farm being moved if the sports arena is built, that was a mis-conception. Asked for a time frame and cost estimates for the next meeting. Reminded everyone to look at the "Position Paper". The FBO is the front door to the Airport, and he didn't think what the current FBO was providing was satisfactory. The Airport needs to do something to get it going. ITEM #5, a: Presentation: Dale Frederick, Marketing Drake Field Offered his appreciation to Mr. Wallace and Mr. Benton for helping to get a vehicle together in the form of the Marketing Committee. Said he and Ms. Little had visited with John Paul Hammerschmidt in Hanson, and that meeting brought together a meeting here with the Northwest Arkansas Council. They are a consulting firm that looks into the development needs for in northwest Arkansas. They are adding Drake Field to their list. The Northwest Arkansas Technology Center will be renting the hangar lust north of their existing facility. The school is working with the NW Arkansas Council for help in getting their students some college credits. The A & P Center has hired a marketing person to begin March 16" and we will be visiting with him. Said they were working on a list of aviation related businesses and would call them for appointments. Introduced John Ecke and Ron Thomell as new tenants on the airfield. They do aircraft detailing on the field. Expressed her appreciation to Mr. Wallace in helping to clear their focus and to Councilman Bobby Davis for assistance in the meeting with the Mayor. Explained the Airport had a Mission Statement which has being revised to reflect the new direction the Airport is taking. The Airport does have a Strategic Marketing Plan and an Airport Master Plan which will be used to assist in planning for the airfield. Everyone needs to work together in a positive way. A website is the most up-to-date way for any client to gain information. The City's website includes the Airport, but it is not what is • -6- • • • KALAGIAS: needed to promote the Airport, and work has begun on a new website. Activity needs to be developed that would support a restaurant in the terminal. Advertising has already begun locally and nationally. There has been 141 pilots identified in Washington and Benton Counties and contact is being made with them in regards to locating at Drake Field. She said the Pilots Association has had several meetings and believe this organization will be a positive thing for the airport. We need to take advantage of the media with press releases. They also help us by covering the meetings. Ctvic clubs can always use speakers and information about the Airport can be delivered through those meetings and asked for volunteers. We need to promote the businesses we have already on the field Announced the Air Museum was negotiating with the Confederate Air Force to bring in a King Cobra, a WWII fighter plane, for the Air Fest scheduled for June 10-11'". The FBO helps sponsor the Air Fest by assisting with fuel. On April 15 - le a Radio Control Model Show will be held at the Museum. FREDERICK: Answering Mr. Smith, the Mayor and Public Works Director are looking at the area south of the terminal as a possible location for the sports arena which would leave the car rental overflow area available for parking. This should not have any impact on the fuel farm. McKINNEY: Meeting adjourned at 3:37 p.m. Don Lyall, Secretary -7- //--- 0a ate • • • • • • proposed Wallace 2/14/00 Drake Airport Board Position Paper Situation: The City of Fayetteville, owner of Drake Field (FYV), is in a strong position to capitalize on the present opportunity to develop an outstanding General Aviation (GA) airport. The airport condition is far above average in every way and there is money in the bank, a most unusual situation for a municipal airport following the exit of commercial aircarriers. What is needed (for success): A CLEAR VISIONARY PLAN AND STRONG LEADERSHIP The plan should include: • Acceptance on the part of all concerned that Drake field should be primarily developed as a GA airport • Simple plan for GA marketing and development • Positive, active support from The City Council, the Mayor and the Airport Board • Airport management with a proactive attitude and a clear understanding of the plan and a determined attitude to make the plan a reality • Timelines and checkpoints so that progress can be measured • Business 'Plan for Fayetteville Mr Service at Drake Field::. Fayetteville, Arkansas Business Plan for Fayetteville Air Service November 1999: Introduction Facilities Plan' Current Services Proposed Services Marketing Plan ; .. • Business. Plan for Fayetteville Air Service. . November,1, 1999 f atroditetion • -Fayetteville Air Seance has operated and managed the FBO at Fayetteville'.s Drake -Field fo/the` past fourteen consecutive • years. During that time, therehave been many changes in the. aviation ..industry: in general; and certainly in our. specific regiones Over that course of time; whether it was good news or bad; the management of Drake Field and the management of Fayetteville Air Service have worked together in the spirit of providing excellent service to their. customers, • •preparing for the,future, presentingsolutions problems which enhance the position of all • interested parties.; This time.is no different The loss of revenues which,have taken place at Drake:Field have affected all companies doing business on the airport.The presencantsituation be viewed from many differing perspectives; Fayetteville Air Service chooses; to view itas a'challenge--to put the company's management_ skills and bxpertise 'as well as its knowledge. of the aviation industry, to the best use. We choose to view. the present situation as` an opportunity to write the future of Drake Field along with our :::neighbors on the:airport , • .The conimitment,of Fayetteville Air Service to. Drake Field has not changed: <;It is our company's-.. goal to continue, to do business at Drake Field, and to help build the new Drake Fieldfuture by promoting theairport alongside the airport's management • This business plan will outline options we think are in the best interest of the airport'and its future. As partner in this future; we have identified the areas in which we believe real, measurable :can be realiied throw s cific targeted strategies for." in nbusiness progress ghe P. ° g Si gr....owgew As we embark on this future together, we at Fayetteville Air Service are excited about its potential, andready to work toward. achieving success. • • • • • Facilities Plan for Fayetteville Air Service. We, propose to move the FOO from US 'present location. to the main airport terminal, to occupy; the space to the south of the main lobby : Our architect, TRC .8c will draw plansfor this 'Spaces TOUr expense We willsubmit theseplans for approval `,Specific uses of the space in our : arclritecturalplans williriclude ustomerservice.cotinter Passengervvaiting area Conference room . ;Vending ',dining area / snack, bar; kine service personnel,area Management offices , Pilot weather/briefing room Pilot lounge Pilot Locke` room with shower. 'Pilot gyri' Pilot sleeping quarters P 44 owork area iIf(desk),with'fiber ,optic connections • Restaurant • aintenance Hangar We propose to continue to lease the current maintenance: hangar until Summery 2001, at la rate of 37 per month. -Fayetteville'Air Service recognizes that AATC may need the facility pnor to Summer 2001., (See Proposed Maintenance Services; page 4) To replace that hangar, we pro pose that the current FBO building be razed; and a new maintenance hangar be builfon that stte As .,yey:lthoW,k.WereseEirched renovating the cutrent.FBObutlding in,1997 Atthat tine; It was determined that,the cost to renovate would exceed S 100,000 We believe that:space' would.be better used for a; maintenance hangar, because it already has airside and landside acrpes'; To support our:pioposed maintenance services commitment, this new maintenancebiiildmg will deed to be 80feet z 100.feet;.and will need to include natural gas; 220 electric an air:delivery, system; and minimal office space (which should be attached to the buildings ektenor.) • - n..r Wewill sign.a long-term lease for this building; but we must requests reduced lease'rate for the imhal•two Yearsof the agreement, to give FAS tittle to tad the maintenance business up to a• level which will?support'a higher leasepayment.?': - Business. Plan for Fa iievtlle Au Service - Page Two • • Scope of Services, Current Services: ' • Aircraft iirchas has achieved ale prices region: ours;se powered Wlth baC tulhps advanta Mill on i Line Se tl wide range arking, e-�cuig tandard Mainte At this tori anger o complet Pilot an The arming catering of th Aireraft,Rental and Charter Services The pnncrpals of Fayetteville Air Service hold an FAA Part 135 Air Charter Certificate an4 offer charters from afleef of over•twenty aircraft including King Airs and Cessna•402's. Single engine aircraft are also:available for rental;including a:Cessna 150 and�Cessna 182 ; P. ft Fueling , F ille Air:Service became a Phillips 66 aviation fuels dealer in May 1996; and through the.. 4;j:.p Ung power treated by volumes including Springdale Air -Service and Regional Jet Center,' eved Phillips distributor status.. This designation allows for.signifcantly redpced whole s which are passed on to the end user; malting FAS highly.competitive,with others in the:• • Aircraft fueling services are provided between the hours of 6:00; am and 10:00pm. t After YMh rviceis provided as requested:.. Both' Jet A fuel .(forjet aircraft) and Avgas (forpiston • rti :aircraft): are available. Fuel .is pumped through three company owned refueler tnrcks,;: z.: kiip:trucks available from Springdale Air Service or Regional Jet Center, or. directly from P on'short notice. This brand affiliation also.provides-quality branded fuels as well as other . . ges toitlie aviation consumer, including consistency of supply; credit' cards, and.$50 in additional liability coverage. • rvices of line services are currently provided, including aircraft marshaling, tiedown,- p • towing, oxygen and nitrogen refills, ground power Units, aircraft cleaning, catering and AlPaine personnel are trained.to FAA:Part 139 and National Fire Protection Association 4 1 sS •`407 :. nance Services e, ro•uti•ne maintenance. and emergency callout services are provided'at the maintenance t h n demand: All necessary maintenance tools and,equipment are kept;on site, as.well as a' e'stockbf`parts and benc h supplles for comp leting maintenance obs. d Passenger Services ; Current FBO Building offers•a passenger waiting area, separate pilot briefing area with flight •p ::arid:weather briefing satellite system. Coffee; ice and vending machines, as well' as , ' • ' services•, are `offered:.Rental cars are available for passengers, and'crewmembersmayuse- c i ;'one 'e freecrew cars that are available. Business PlanforFayetteville Air Service Page Three • • .ea stt roposedSefyic In orderto play our part in, generating traffic and activity at Drake Field, wp are proposing adding , services,• and enhancmg some other services already piovidedby.Fayetteville'Air Service:. -Some ofthese.proposed changes mustinvolVe changesin facilities, in.order:to be effectively pursued:. • We believe these facilities changes will assist in "building the future" at Drake: Field ;si r •..• 41, Maintenance Services F yette'lle Air Service proposes tenot'only renew its commitment to provide maintenance services,on Drake Field lint to generate new customers for the airport through maintenance. services provided; by FAS.;Representatives ofFAS are negotiating with the Arkansas Aviation Technology Center: These negotiations are directly related with FAS and "AATCfointly:sharing the present maintenance facility, and FAS providing a full-time Aviation Maintenance Teelmithan. aTlie Aviation Maintenance Technician would also,perfonti a dual tole as an instructor for AATC. We are committed to addingas many mechanics tostaff as business requires;and we plan to -hire '. ..r mechanics from the AATC, , ,_e_s ..•aro .•�. - .. .. Yr: , FASaend AATC recognize, that future growth of eachbusiness will require additional maintenance sgpace AFAS expects by -the Summer.of 2001 -that a new maintenance facility willneed to be • .constructed is would be a result of two events . (1) The growth of FAS maintenance business /Is r taie.additional space; and,.(2) The growth of AATC.should,require the entire:e i tinge:, fiicility thereby'necess feting a move on'the part of FAS. K; tiro addition to being a necessary method of economic Preservation; this arrangement will set an - {rn.Y� C... fexample of how businesses can work together. for their future and the future'of Drake Field • All maintenance service work provided to. customeia based at. Drake Field will be pnced at rates.= , scountedIiomthe regular shop rate., These rates are discussed'in the Marketing Plan; `-Fayetteville Air`Service also proposesio stock parts and supplies necessary•• to aircraft owners, for ' err convenience in maintaining their aircraft: These items will be offered for sale of prices which' �t ,'are discounted to ctistomers:based at Drake Field. Fayetteville Ari Service is committedto generating maintenance business through marketin. outlined in the Marketing; Plan (page Six.) F1,; � ;Pr Pilot Sernces•° Geneiatmg trafFic and activity at Drake field being' the'goal, we are: proposing to expand our pilot e+•.'.'}4y t —?L td £` is o a; ,. .. x .. s, i, E F$accommodatroiillO enhcepilots to'choose Drake Field over other locations.: We propose to ?;provide in our:FBO "pilot perks' including a pilot locker room corriplete with shower,..two pilot • tsleep4i areae, a pilots' weight room; andpilot,workspacewith desks and computer connections: We believe Uiese types of amenittes, along:with our other services, will pull some basiness from 4 ' otheGL�,rkansas locations as wellas the central U S•re o C. ,� gt nt2usmess Plan for Fayetteville Air Service • s rMa • Page Four flurlry'r 4_%v. . t :3 a 444 Z•M41 4. rroposed�Serv►ces (continued). N ✓ hg,IS'ehool •1 Fayetteville Air Service proposes to subcontract with local FAA flight ns, e oftthe FX Sfacilities:-classrooms, conference room, .weather %brie We wilt also:piciVi rental aircraft:on site for their use. Restaurant �r>_ , '= A»,;rests' ni'antlocated m, the mam terminal wouldbe a welcome addition We propose to mclude. he$ a tta rant area in the space we lease, and to be responsible for managing that operation as a , btlessor of suis This would relieve; other airportpersonnel of that responsibility, and we are willing fo assiune the responsibility for this venture as part of our -commitment to the airport .By -. ; mss,, , rdbing this .4.can allow subsidies for the restaurant operation:as they startup, while the City will ecerue a'consistent lease payment from FAS We will have architect plans drawn for ttie space at , YY 1Nj�yYi�? �[ i z w.-, ! expense> tC;74. ; instructors, allowing thein • fing room, waiting areas, etc ommpter,Sernces ._s r-''...±'9'ai �r e owners of Fayetteville Air Service currently operate a successful commuter service, daily , mx t. 8nt y, through Fnday) at Spnngdale Air Service Weare researching the possibility of proved: , n mmuler seryrces from Fayetteville's Drake Field to Little Rock and Dallas These sernces. X co rld'bewprovide0. con)unction with the; Spnngdale commuter flights, (repgsition to 1, ake F;leld t�,ptcicupPadditional passengers) or may be'flights onginating at Drake Field -3 We.beheve there is ;. urrt demand for this service, and if it is found to be,feasible, we will begin a marketing plan to ; ; inl Icauot these flights Zarketing Services t r aye tevlle'Air Service bank -way g y:committed to work with the Drake Field°mans ement team.in r way,we doe tato res the.`; mar (i the airport While these efforts are dust getting under xpec p ds" f tlu eff rt al " g withthe ft:. As stated •the Introduction to thrs plan, all comps ` togetheiwe w. ll define the, future airpo_ • . ffire4214;1(.11514.;''' o on nles doing bumess on the:sirport have felt the effects of the past year revenue losses; and'' hies G of this rt. ' r • 1 -a .40tTEy4�! :9 ti.. xfi • • ,:N • • Business Plari'for Fayetteville Air Service Page Five' • :SEYYT - ease�ueLSales from,October 1999 (baseline volume by 25%: r. , % t..iUAJ urate b'e$ c3 rT _. .. At a&Pilots"{Through Amenities. c{ f1Completeptlot facilities at main terminal; including"pilot perks" Send mvrtation to all Pilots in our company databaseto come and try out fi. the new facilities ..4 Follow visits with "How did we do.. form to pilots Evaluate comments:from:forms'to generate new strategies.' Attrac:Corporate Business` • !*' €onhnue working with City of Fayetteville's Economrc.DevelopmentDrrec• tor on „cooperative:efforts ;to;attractcoiporate business to the; airport A �ot%baseci busyness through deep discounts on'fuel.f& based aircraft only, :-' crease Maintenance Volume by 20%aver October 1999 (base line), azr r u + 3ttategres ' s i e iii44i1 to eompany's. database infoirning of services offered and pncin; Urs 't=6: e'ki customers arid.mform of serviceroffered and pricing ;;ii§ittlocal corporate customers.to inform of services offered and pricing • f.` 41. Proposed Avgas Pnces' i + , ' Local Market Average; $2 35 ] G Based Customers. •$1 91< grTransient Customers :. _ $2.33 , s ° ,Maintenance Pricing Strategy • Local Market Average: • •$54:per hour Based Customer. $40sper hour' ..:• • Transient Customers $52=per hour + • Partitricing Strategy.' • Local Market Overage: Gost.plus 25%';� Based ;Customers Cost':plus 10%' Transient Customers Cost1plus 25%0,`' posed Lease Payments.,. • 'i. Lease prices which weremeaningfiil on ahrs airport three months ago rio longer are valid in the Y s market which exists today While we are mteI bn,domg:ouT part to Build the future of Drake ; Field, our first concern is to stay;in business Therefore we must request that current lease payments be adjusted to take into account thereductron in;;sales which we have: experienced •• Pricing Strategies : • aeI Pricing Strategy Proposed Jet A Prices • Local Market Average: $2:20 BasedCustomers $1.80 Transient.Customers: A $2.11 rir rr- Nye• request that lease payments be reduced to thefollowmg levels, for a limited time, until the volume of business on the airportcan:be increased. . FBO•andFuel Farm: $1,300per month;. Maintenanoe'Building: $ 750 per. month;,` We are ready and willing to work with you on turning these proposalsinto our working agree, ment;:upon which wewill begin to build the new future of Drake Field.' • Business Plan: for Fayetteville Air Service; T e,