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"Interim agreement set for Carlsbad airport FBO"



Friday, January 5, 2007

Interim agreement set for Carlsbad airport FBO 
By Kyle Marksteiner 
The Carlsbad (NM) Current-Argus


CARLSBAD - An interim agreement has been reached between Chandler Aviation
and Carlsbad Aviation over the fixed based operator contract with the
Carlsbad Municipal Airport. 

In November, Carlsbad's city council approved Chandler Aviation, owned by
Doug and Terry Chandler, to become a fixed base operator at the airport.
Phil Carrell, owner of Carlsbad Aviation, however, signed a non-exclusive
10-year lease agreement with the city in 2003 to serve as FBO. There's no
rule that the airport can't have two FBOs, but it would be unrealistic given
the size of the airport. 

A fixed base operator provides services such as hanger rental, fuel to small
jets and other services. The city continues to be responsible for the main
terminal and runways. 

Carlsbad city administrator Harry Burgess said he didn't have any details on
the transfer between the two private parties, but understood that Carrell
had basically terminated his FBO lease as part of the arrangement and turned
it over to the Chandlers. In November, Carrell said he would be willing to
bow out if a competitor would purchase the assets of Carlsbad Aviation for
$350,000. 

"The Chandlers are running it under the terms of Phil's lease until Feb.
15," Burgess said. 

The new arrangement went into effect at the start of 2007, Burgess said. 

The city and the Chandlers, meanwhile, are still negotiating over the terms
of the formal contract that will go into effect after Feb. 15. 

Neither Carrell nor the Chandlers could be immediately reached for comment
Thursday. 

In other airport news, the New Mexico Department of Transportation recently
issued a $19,803 grant award to the Cavern City Air Terminal. 

The city will use the money, Burgess said, to add signs, striping and other
navigational aids to the facility.

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