"Blue Grass Airport to raise commercial airlines' fees"

Thursday, June 19, 2008

Blue Grass Airport to raise commercial airlines' fees
By Jennifer Hewlett
The Lexington (KY) Herald-Leader


Landing fees and rental rates are going up for commercial airlines that
serve Lexington's Blue Grass Airport, and a few airport employees can expect
to receive raises soon.

Those changes are reflected in the airport's operating budget for fiscal
year 2009, which the board that oversees the airport passed Wednesday. The
fiscal year begins July 1.

Landing fees for commercial airliners will be increasing from $2.67 per
1,000 pounds to $2.99 per 1,000 lbs. Annual rates that airlines pay the
airport to rent space, which includes ticket counters, offices and waiting
areas at gates, will be going from $36.84 per square foot to $38.08 per
square foot.

The budget projected revenue of a little more than $13 million and expenses
of just more than $12 million. That closely matches actual revenue and
expenses for the current fiscal year so far.

The new budget includes an additional $18,000 for pay increases for 16
airport employees, including janitors, public safety officers and
dispatchers.

On Tuesday, airport officials got word of a grant offer of just over $3.5
million from the Federal Aviation Administration for taxiway relocation and
improvements. Airport officials had anticipated for some time receiving just
over $2.5 million from the FAA Airport Improvement Program's entitlement
fund. They learned about six weeks ago that an additional $1 million from
the program's discretionary fund would also be offered.

"We knew it was coming, but we didn't know exactly when it was coming," Blue
Grass Airport planning and development director John Slone said of the
federal grant.

The airport board voted Wednesday to accept the money.

Last year, the airport got about $3.5 million from the AIP entitlement fund
and $100,000 from the AIP discretionary fund.

Two taxiway improvement projects, one of which will also provide space for
general aviation aircraft parking and corporate hangars, are expected to be
completed before the 2010 World Equestrian Games.

"We're totally out of space for construction of hangars in our existing
general aviation area," Slone said.

One taxiway project is expected to cost about $9.9 million, and the other is
expected to cost $1.1 million, with the money to come from bond issues as
well as federal funds.

In other airport news:

. Public relations businesswoman Nancy Wiser, has been nominated by
Lexington Mayor Jim Newberry to replace airport board member Tommy Gandolfo,
whose term has expired. Board member P.G. Peeples was chosen as the board's
new secretary, a position that was held by Gandolfo.

. Airport executive director Michael Gobb has been appointed to the American
Association of Airport Executive's board of directors for 2008-2009.

AAAE is the world's largest professional organization representing more than
850 airports and hundreds of companies and organizations that support the
airport industry. Gobb was already a member of the board of directors of
AAAE's worldwide affiliate, the International Association of Airport
Executives.

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