"Pilot wants to bring cheaper fuel to Nevada airport"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Sunday, February 24, 2008

Pilot wants to bring cheaper fuel to Fallon airport
By CHRISTY LATTIN
The Carson City (NV) Appeal


A local aviator is hoping to bring more competition for fuel prices to the
Fallon Municipal Airport through the installation of a new fuel station with
a credit card reader.

"Capitalism and competition is the American way," stated Dan Urquhart in his
proposal presented to the Fallon City Council Tuesday. Urquhart owns Silver
Sage Aviation and has been flying from the Fallon airport since 1973.

"This is an opportunity for the city to put in a first-class operation, to
update and upgrade," Urquhart said to the council.

He said the price of fuel current sold at the Fallon airport by Fallon
Airmotive is higher than fuel prices found at other airports around Northern
Nevada. He provided a price sheet from June 2007 which shows local aviation
fuel at $4.29 per gallon, compared to $3.25 in Lovelock, $3.80 in Yerington
and $4.25 in Carson City.

Urquhart also said the second fuel station would provide an alternate system
in case the existing system fails to function.

"If the customers want full service, it's there," Urquhart said. "But if
they want self service, they can use the credit card reader system."

City Attorney Mike Mackedon said the council could not take action to change
the existing airport operation contract it has with Fallon Airmotive, owned
by Walt Wardwell.

The contract states the fixed base operator (FBO) will run the daily
operation of the airport and provide fuel service on an on-call basis 24
hours a day. The FBO, Fallon Airmotive, pays $200 a month in rent, but is
able to charge $20 for each after-hours call, keeps one-third of the airport
fees charged and retains 94 percent of the fuel sales. The remaining 6
percent returns to the city.

While the contract does not explicitly state the FBO has exclusive rights to
sell fuel, it does not mention whether outside or alternate fuel sales will
be accepted.

Mayor Ken Tedford Jr. said prior to the FBO contract first drawn up in 1989,
pilots complained fuel wasn't always readily available at the airport. He
also said the FBO contract needs to remain attractive to entice quality
operators to keep the airport operational.

"We can't let the FBO agreement get cherry-picked to where he can't make it
financially and anything of value is out of the agreement," Tedford said. He
added that unlike bids to construct streets, the city hasn't seen a great
demand for bidders on the FBO contract. He said there are perhaps two now
who would entertain bidding on the contract.

Mackedon told Urquhart in the Tuesday meeting that the next step would be
for city staff to review the FBO contract and analyze whether fuel
concessions are exclusive to the FBO or can be opened to others. He said it
would take about 60 days to complete the contract review and draft a new
one.
"I'm just trying to buy fuel cheap," Urquhart said.

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