"Self-service fuel could ground prices, let Illinois airport revenues soar"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Tuesday, July 8, 2008

Self-service fuel could ground prices, let airport revenues soar
By TIM KANE
The McHenry County (IL) Northwest Herald


LAKE IN THE HILLS - Pilots had been flying off to other airports for cheaper
fuel, which was causing a loss of revenue at the village-owned airport.

As part of an experiment since March 1, the village has dropped prices at
airport pumps to match the average self-service fuel rate in the area, which
has caused a 90 percent increase in fuel sales.

Gerald Sagona, village administrator, is working on a plan to keep the cash
flowing in by including a self-service island in the airport expansion plans
so that the village can continue to stay competitive with its fuel prices.

Only full-service fueling is available at the Lake in the Hills Airport, and
a majority of those responding to a recent survey said they bought fuel at
other airports where less-expensive, self-service fueling was available.

About 93 percent of pilots surveyed at the village-owned airport said they
preferred self-service fueling because of lower prices.

Of the 143 pilots surveyed, 133 said they would pump their own fuel at Lake
in the Hills Airport should self-service fueling be provided.  

Currently, fuel at the airport is pumped by an attendant employed by
Northern Illinois Flight Center, the contracted fuel provider.  

The village plans to double the size of the 45-acre airport as part of a $20
million expansion plan to make room for safety buffers and a self-service
fuel island, said Dave Gregoria, airport manager.

The village gets 10 to 15 cents a gallon from fuel sales for prop-driven
aircraft under its current contract, according to village documents.

Last year, the village took in about $28,000 from prop-airplane fuel sales,
Gregoria estimated.

On Monday, fuel at Lake in the Hills Airport still was selling at the lower
rate, at $4.79 a gallon.

About nine airports within 35 miles of Lake in the Hills Airport offer
self-service fuel at lower rates.

Sagona likened putting fuel into a small aircraft to putting fuel into an
automobile, with the one big difference being that the aircraft needs to be
grounded to decrease the chance of the fuel combusting.

"The general aviation community does not have a problem pumping fuel into
their own  aircraft," Sagona said.

Sagona will ask the Village Board tonight to allow him to enter into
negotiations with Howard Seedorf, president of Northern Illinois Flight
Center, to work out a deal that would allow the village to take over fueling
operations for prop-driven aircraft and provide self-service fueling.

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