(continued)

Kincardine Airport struggles
to be competitive

By Liz Dadson

Kincardine council

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It's a struggle to keep the Kincardine Airport competitive but that's the aim of a change in fuel prices, says airport manager Blake Evans.

Speaking to Kincardine council at the last meeting Sept. 21, he said the municipality currently charges 28 per cent above wholesale costs. 

With fuel prices ever increasing, staff recommended council amend the rates and fees bylaw to better reflect market conditions and set the price at 30 cents above the wholesale costs for both Jet A and 100 Low Lead fuel. 

Council should also give the airport manager the authority to match airport prices based on a five-cent (higher or lower) discretionary range to offset the wholesale fluctuations in fuel prices.

A comparison in fuel prices showed that Kincardine is basically competitive with such airports as Owen Sound and Goderich, but not Hanover and Collingwood

Evans said what hurts the most is that those airports have restaurants and offer a "Fly and Dine" package that Kincardine cannot.

"It's important that we have the ability to lower our fuel prices to entice pilots to come here instead of Hanover," he said. "A five-cent leeway helps with that. We need to attract and retain pilots."

Councillor Kenneth Craig supported the recommendation and is interested to see what effect it has, but he is not sure Kincardine will be any further ahead.

Evans said the "Fly and Dine" aspect of other airports is a tough thing to compete with. 

"Pilots like to eat their breakfast and talk to fellow pilots," he said. "The effect of a restaurant and the price of fuel is very real. That's where our competition is."

In other airport concerns, the municipal hangar (located closest to Highway 21) needs a new door and frame. The existing hangar door is about 40 years old and in poor condition.

The recommendation from staff was to take up to $15,000 from the airport reserve fund and replace the door. Two estimates have been received and the cost is about $13,000 to $14,000.

Community services co-ordinator Steve Murray said the issue is a serious one, given the hangar door came down and nearly hit Evans.

Evans said the door is old and a custom-size. He said a year ago, the door had been pushed up too far and the rollers came off, causing it to come down rather abruptly.

Council members discussed putting this off until the 2012 budget talks.

Evans said the door might last until then. If the project were approved now, the door would not be replaced until late fall anyway. The 42-foot-by-16-foot door has to be custom-made.

"Is that hangar going to last beyond the new door?" asked councillor Jacqueline Faubert.

"Yes, it's quite sound," said Evans, adding that the frame the door is attached to needs to be inspected and that could add to the cost.

 

Murray said the door could last until 2012 budget time, but it's tricky to open.

Council deferred the item for two weeks while staff confirms a definite cost amount including the hangar door and frame.

And finally, council has given conditional approval to the construction of two taxiways to support further hangar development at the west end of the airport.

One taxiway would provide access to a hangar built in 2010, the other would provide access for an additional six hangars. Estimated cost is $50,000 for the two taxiways and would be included in the 2012 budget.

Murray said the proposed hangar development lease is conditional on the municipality investing in the third taxiway at the airport.

Councillor Ron Coristine asked why contracts are being made that hold the municipality hostage for building these taxiways.

Murray said the taxiways are not built to road standards, and in fact, the second one was done by the public works department.

Council agreed to support the new taxiways, subject to further discussion with the public works department. The issue will come back to council at its Oct. 5 meeting.

Faubert said a strategic plan is needed for the airport.

Evans said he is working on that and will have something ready for council soon.



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Thursday, September 29, 2011