Dubois County Flight Services could scale back operations in 2013

The Dubois County Airport Authority heard Dubois County Flight Services (DCFS) would not be renewing the lease with the Airport Authority unless new terms could be reached to cut the losses the company has suffered the past five years.

Steve Wagner presented the board with a letter from DCFS President Doug Bawel stating the company needs a plan to substantially reduce losses incurred over the past five years and without one DCFS would scale back operations as a service provider at the airport. The losses were incurred through the downswing in the economy and exacerbated by a major customer erecting their own fuel storage and pump station along with a new hangar at the airport.

DCFS became the fixed-based operator (FBO) at the airport in 1992 under a 20-year lease agreement which is up in March of 2013. As the FBO, DCFS provides services such as fueling, aircraft storage, aircraft sales, maintenance and even flight instruction. DCFS also owns several planes to rent and the plane used for flight instruction. Most of these services would be lost but Wagner stated the company would still maintain a repair station, aircraft management company and dealership.

Bawel, the CEO of Jasper Engines and Transmissions, stated in a letter to the Airport Authority that Jasper Engines has subsidized DCFS operations in response to the losses but can no longer continue the uneconomical arrangement. DCFS would like to find an amicable arrangement with the Airport Authority to reduce those losses but the Airport Authority is bound by FAA Grant Assurances.

“If we provide financial support or subsidies for Dubois County Flight Services, under these grant assurances we have to provide it to all potential companies that want to operate as an FBO at the airport,” Airport Manager Travis McQueen said. “We can’t give preferential treatment to one company and not another or we lose federal grants.”

The board will begin planning the 2013 budget in July and according to Micheal Cummings this will be a major part of the budgetary process. If a new FBO cannot be found the airport would be facing increased insurance costs and the potential need to hire personnel and begin providing the services DCFS provided.

The board and airport manager will be gathering information to begins plans to replace DCFS or assume those responsibilities as FBO. McQueen and Cummings will be attending Airventure Osh Kosh, an aviation tradeshow and celebration, and plan on using contacts there to find a potential business to step in as well as commercial contacts in the aviation industry interested in taking advantage of the airports “Shovel Ready” status.