"Tennessee's Tri-Cities Mulls Forming Airport Authority"

Tuesday, April 10, 2007

Tri-Cities Mulls Forming Airport Authority
By Benet Wilson
Aviation Week & Space Technology


Tennessee's Tri-Cities Regional Airport is one step closer to establishing
an airport authority to handle its day-to-day operations. And Detroit
Metropolitan Airport offered Tri-Cities a preview on the process to move
from government oversight to an airport authority.

The airport is currently run by an unincorporated joint venture between four
cities and two counties, including a city in another state - Bristol, Va.,
said Executive Director Patrick Wilson.

The structure was set up in 1935, when the airport was first built, said
Wilson. "The airport itself is not considered a legal entity, which makes it
a challenge on how we conduct business, acquire land and accept federal
grants," he said. "But we're fortunate that the four cities and two counties
cooperate, but there are times when it is cumbersome to get six approvals,
and there are gray areas in an unincorporated joint venture."

Detroit and Willow Run Airport were owned and operated by Wayne County as
the Dept. of Airports under the direction of the Wayne County executive,
said spokesman Michael Conway. The 15-member Wayne County Commission
approved contracts and major purchases, he added. 

The Dept. of Airports was just one department among many vying for the
attention of the county executive and the county commission, Conway
recalled. "The airport had outgrown its operating structure and needed to
operate more efficiently - like a business--in a fast-paced world. At the
time, 25 of the top 50 airports were operated by authorities," he said. "We
had modernized our airfield and terminals to successfully compete in a hub
environment. It was time to modernize our management structure."

Michigan Public Act 90 established the Wayne County Airport Authority, a
political sub-division with all of the powers to manage, operate, maintain,
enter into contracts and agreements, provide law enforcement, fix rates,
accept grants and other duties, said Conway. "Immediately after the public
announcement to establish an airport authority, the Wayne County Commission
passed a resolution opposing this action. On March 26, 2002, the governor
signed the legislation creating the Wayne County Airport Authority to manage
both airports," he said. 

That April, the Wayne County Commission filed a lawsuit challenging the
legality of the state legislature's decision to transfer the license to
operate both airports away from the county, said Conway. "There were
subsequent legal actions also, but none were successful. In August 2002, the
FAA awarded operating certificates for both airports to WCAA," he said.

Both airports were removed from the political arena and are now operated in
a business environment, said Conway. "Since the authority's inception, we
have created our own payroll department, IT department, human resources,
labor relations, and a business and air service development department," he
said. "Operationally, we have increased non-airline revenue, decreased
spending, and reduced the cost per enplaned passenger to one of the lowest
among large airports nationally."

Tri-Cities' airport commission is developing a strategic plan to evaluate
the legal structure of the airport and see what is best for its long-term
development, said Wilson. "As an airport commission that isn't a legal
entity, the cities and counties can be held liable for any lawsuit filed
against the airport commission and be held financially liable for debt or
obligations," he explained. "Having an airport authority will create a legal
entity to manage and develop the airport. It will make it quicker for the
airport to accept federal and state development grants. 

Wilson said he didn't know of any other airport that was owned by as many
entities as Tri-Cities Airport. "We are doing presentations to our city and
county commissions to see if they see the value in going to an airport
authority. Four of the six entities have endorsed looking at creating an
airport authority," he said. "We are creating draft documents to form the
authority. We need specific state legislation from Tennessee, and we hope
for that by January 2008." It will be a lengthy process, Wilson admitted.
"We sent information on an airport authority to the final two counties, and
we are waiting to be scheduled on their agenda," he said. "But if everything
comes into place, we could have an airport authority by mid-2008."

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