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Tue, Aug 29, 2017

Jackson Hole Airport Board Considers FBO Purchase

Airport Would Manage All GA Activities If The Deal Goes Through

The Jackson Hole, WY airport board is considering purchasing Jackson Hole Aviation, the sole FBO on the field, and ending a search for a second FBO at the airport.

Airport Director Jim Elwood was recently approached by Jackson Hole Aviation president and CEO Jeff Brown about having the airport buy the business. The Jackson Hole News and Guide reports that at the board's August 16th meeting, Elwood said that FAA guidelines allow airports to be the sole operator an FBO on the field. "It's done at a number of airports across the country," he said.

Elwood said that the airport would be able to "maintain self-sufficiency" if it were the operator of the FBO. If there were two, the ramps would run less efficiently, and there is a potential of an increase in traffic if two FBOs are operating. That could be a detriment to the airport, which leases property from environmentally-sensitive Grand Teton National Park.

The airport has been actively seeking a second FBO for the field as is recommended by FAA guidelines encouraging competition. Wyoming Jet Center CEO Greg Herrick had submitted a proposal in the spring, but the board determined that it should request bids for the business, as it would in any similar situation. It was during that process that Brown approached Elwood with his proposal.

The plan has its critics, led by Herrick. Many private aircraft owners have also complained of price gouging on the part of Jackson Hole Aviation due to its position as the only shop in at the airport. One pilot, Physician Brent Blue, has moved his airplane to another airport because of the high prices charged by Jackson Hole Aviation. He said that all the piston-driven aircraft have been driven off the airport by the FBO's business practices.

Blue also suggested that the airport could take over the operation without spending a dime. Jackson Hole Aviation leases all of its infrastructure from the Airport board, and its lease expires in April of next year. However, the company does have a right of first refusal on another five-year lease.

The airport board is currently doing its due diligence on the proposed purchase, and it is anticipated that a decision will be made at the board's September meeting.

(Image from file)

FMI: Original Report

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