Related Disputes Throw Wilmington Int’l Project Into Doubt

Two tenants at Wilmington International Airport (KILM) in North Carolina, Modern Aviation and ARQ Aviation MX, are embroiled in a multi-faceted dispute that also involves airport management and could jeopardize a proposed $90 million project by ARQ to build a variety of hangars for up to 80 general aviation aircraft along with a full-service terminal.

The owners of ARQ operate a flight school at the airport, Cape Fear Coastal Aviation (CFCA), which leases hangar space from Modern, operators of a nationwide FBO network. The lease is slated to run until May 2026 when it would move into the completed ARQ facility. CFCA is also ARQ’s partner in a grant-funded Professional Pilot Program with Cape Fear Community College (CFCC).

ARQ submitted site plans for its project in 2022 and was awaiting approval, when unexpectedly, according to local sources, the airport suddenly refused to approve them with the explanation that the hangar doors did not comply with FAA recommendations.

In the meantime, a dispute emerged over the lease between Modern and CFCA, and ARQ believes the disapproval stems from the dispute.

Modern terminated CFCA’s lease early, claiming it could do so under the terms of the lease agreement. CFCA filed a lawsuit in March 2025 claiming it has not violated any stipulations of the lease. The school also filed a complaint against ILM with the FAA in April claiming the airport is allowing Modern to evict them in favor of another flight school.

The project seemed to be on track until CFCC, the community college partnered with CFCA in the pro pilot program, appointed Michele Bourk director of the pro pilot program. She is the spouse of ILM Airport Director Jeffrey Bourk.

ARQ and the airport have gone back and forth several times over the hangar doors, with both sides claiming to be correct. But for now, the sides have not been in contact since late April and the project apparently has been on hold.

Airport management insists it has acted in a fair and impartial manner and is refuting the claims in CFCA’s FAA complaint.

Director Bourk wrote in a press release, “While ILM is not able to comment on CFCA’s pending FAA complaint, I remain confident in the legality of ILM’s actions and its commitment to supporting the general aviation community at the airport. We expect our general aviation tenants to comply with the law and to treat each other with professionalism and respect. We will not hesitate to take appropriate action to ensure compliance.”

FMI:  arqmx.com/