Butler County airport failing to break even

June 8, 2012

June 08--Butler County Regional Airport is looked at by officials as an asset to promote economic development, but old debt and operating expenses remain a sticking point to those who question if the county should continue to be in the airport business.

County budget projections for 2012 show the airport not breaking even this year and this has been the case at least for the past five years. Assistant County Administrator Pete Landrum said the budget calls for the county to allocate $14,000 from the general fund to airport operations.

Some have called for the county to sell the airport, but doing that would be more costly to the county because of federal grant money it would have to repay, according to Commissioner Don Dixon.

"I have resigned myself to the fact the county is probably in the airport business for the long haul," Dixon said. "It's moving in the right direction."

The county took ownership of the 650-acre airport located in the cities of Hamilton and Fairfield in 1999 and has since pushed to make it profitable.

The operating budget for 2012 is $269,861, with projected revenues of $246,000. Revenue has increased annually since 2010 while the county's budgeted operation costs have decreased. The county owes $1.87 million in debt on the airport.

Landrum said revenue for the year is up $11,000 over projections for the year.

With one just one employee, administrator Ronald Davis, the county contracts with a fixed based operator, Cincinnati Jet Center, that takes care of aircraft and pilot services.

Davis oversees capital improvement projects and FAA and state grants, which pay for large scale improvements and pavement maintenance, taxi runway improvements, public parking additions, security projects and ramp improvements to accommodate larger heavier planes.

The county-owned land is leased to companies for development of structures, including hangers that can house 20 to 30 seat corporate jets.

Companies with corporate aircraft housed at the airport include AK Steel, Omya, Applebees, Great American Jet, Inc., M.B. Auctioneers, S.D. Aero, J.T.M, Bohlke Veneer and Brands Insurance.

Other frequent corporate airport users include, Proctor & Gamble, Smuckers, Lowe's, Kroger, Office Depot, Family Dollar, Duke Energy, Meijer, Dollar General and Pet Smart, according to Davis.

The airport also has several aviation companies based at the facility, including Roberts Aviation (turbine maintenance), Reynolds Jet Management, Elite Aviation (piston maintenance), American Views (aerial photography) and two flight schools, Blue Sky Aviation and Hogan Flying Service.

"We are the business entrance to the region," Davis said. He added growth and improvements to the airport have created a more professional operation that has attracted larger corporate customers.

He said for businesses, "time is money" and flying into a smaller airport centrally located in the Butler/Warren/Hamilton county region is convenient.

Upgrades in navigational systems have also made the Butler County airport more approachable in all types of weather than other regional airports.

While a slow economy does have some effect on the corporate flying business, Davis said fuel sales are the most likely read of a down swing. He said fuel sales are going up. The county receives 8 cents per gallon of the sales, which is facilitated by Cincinnati Jet Center. Last year 395,000 gallons were sold.

County Commissioner Charles "Chuck" Furmon said he is pleased with the progress of the airport operation.

"It is quite an asset to the area," Furmon said. "I do believe it helps a whole lot with economic development and attracting companies that are considering located in Butler County."

Commissioner Cindy Carpenter said in the past few years the airport has seen an upswing in business that will likely continue because it is situated to handle business growth in Liberty and West Chester townships.

"It is definitely an economic development asset," Carpenter said.

But Dixon remains vocal about making the operation profitable, not just "break even."

"I just think it is a business for the private sector, not county government," Dixon said.

Contact this reporter at (513) 820-2168 or [email protected]

Copyright 2012 - Dayton Daily News, Ohio