Jackson Hole Airport FBO purchase considered
The Jackson Hole Airport Board has decided to purchase the assets of Jackson Hole Aviation, the airport’s existing Fixed Base Operator (FBO). The Town of Jackson and Teton County Board of County Commissioners will hold a joint information meeting November 20 to consider their approval of the decision.
The action came after the board learned that, under FAA rules, when its new fuel facility became operational in mid-2018, the board would be required to accommodate a second FBO on airport grounds.
The board determined the purchase price of $26 million, plus the cost of fuel and parts inventory at closing, was likely to result in a strong return on investment. It also decided that the purchase would allow the board to pursue community based management of the FBO operation and avoid the conflicts and duplication of facilities that would be inherent in have having two FBO’s attempting to operate in a small area.
The rules create an exception if the airport itself owns and operates the FBO.
The Airport Board is proposing to pay the debt service on the bonds from revenue generated through operation of the FBO. If approved by the town and county, that action would not require a vote of the people.
The board has estimated the purchase would result in a revenue budget increase of $29 million. Because the deal would not close until April 2018, there would be an anticipated loss of $63,300 in 2018 due to start up costs that would be recouped later.
You can see the background information here.
