CAA: GA News, "New York’s Stewart Airport sets private precedent"

["Stephen Irwin" <Stephen.Irwin@pmail.net>]

Friday, April 14, 2000

New York’s Stewart Airport sets private precedent
GA News


NEWBURGH, New York — With the signing April 1 of a formal lease, Newburgh’s
Stewart International Airport (SWF) has become the first commercial field to
be privatized under the Federal Airport Privatization Pilot Program.

The privatization program, established under the FAA Reauthorization Act of
1996, is designed to turn over development and operation of handpicked
airports to private interests.

A former Air Force base 60 miles north of New York City, Stewart
International is a vast and underutilized facility that occupies 9,600
acres. Its fortunes are seen as a key to the region’s vitality. Governor
George Pataki has been a strong supporter of the privatization effort, and
the FAA approved the state’s turnover plan in 1997.

“The governor feels Stewart has not reached its potential as an airport, and
private-sector expertise will allow it to take off,” state spokesman Mike
Fleischer said. “The purpose is to enhance operation and improve economic
development in the Hudson Valley.”

The lessee, National Express Group, is a British company that operates bus
and rail systems in Europe. An airport operator in the Philippines and
Australia, it is convinced the potential for growth justifies the 99-year,
$35 million lease (plus 5% of gross revenues after 10 years, or when
emplanements reach 1.38 million passengers annually, which would be twice
the current total).

“We see a tremendous future for Stewart,” said John Williams, National
Express Group’s transition director. “This is the crossroads to the
Northeast and Canada. It’s got a 12,000-foot runway, perfect road access, it
’s everything you would look for in an airport.”

The cash payments and the state’s share of revenues will be used for
improvements at Stewart, as well as for operations at Republic-Farmingdale
Airport in Long Island. Republic-Farmingdale is now the only airport that
the state owns and operates. Stewart will remain eligible for improvement
funds from the FAA, but the grants will pay only 40% of projected costs.
Publicly owned airports receive 90% funding from the FAA for approved
projects.

Williams said National Express Group will spend upwards of $60 million on
improvements to the airport, beginning with an overlay of the 12,000-foot
primary runway. That project is expected to cost $8 million to $9 million.

The runway takes a beating, in part from the Air National Guard C5-A
Galaxies that are based at the airport. In return for free use of the
airport, the Air National Guard will continue to provide fire and rescue
service on the field.

“If you’re going to divert anywhere with an emergency, Stewart is the place
to come,” Williams said.

The airport will also conduct full topographical mapping to support new GPS
approaches. Airport-based businesses will make additional investments of
about $75 million on the field, according to National Express Group.

While much of the potential for airport growth will come from commercial
passengers and cargo services, a strong general aviation presence on the
field is also expected. Rifton Aviation Services, an FBO, is building a
100,000-square-foot hangar on the airport to house business aircraft.

According to Williams, many corporations have been in contact with the new
management to inquire about basing operations at the field.

“We have them coming out of our ears,” he said. “We’re delighted.”

While enthusiastic about his new position, Williams, who previously managed
two airports in the United Kingdom, including a major GA facility at
Blackpool, says he’s made it a point not to learn to fly.

“I steadfastly refused because it would have broken my personal bank account
and probably become an all consuming hobby,” he said.


   Post your opinion on this story in the CAA General Aviation Forum
http://www.californiaaviation.org/cgi-bin/dcforum/dcboard.cgi?conf=DCConfID2

*****************************************
California Aviation Alliance: General Aviation Airport List E-mail Commands
To subscribe to the GA News List, send an email, from the email account you wish to receive your posts on, addressed to listserv@californiaaviation.org and place the following in the first line of the body of the message:
 Subscribe ganews YourFirstName YourLastName YourJobTitle YourAirport/Company 

To unsubscribe from the GA News List, send an email, from the email account you have been receiving your posts on, addressed to listserv@californiaaviation.org and place the following in the first line of the body of the message:
 Unsubscribe ganews YourFirstName YourLastName