Lebanon
Although the Council was presented with a plan to increase the fee owners pay to land in West Lebanon, they instead decided to hold off on a decision and seek more information.
“I’m a little surprised to see an ordinance without any kind of backup like forecasting and projections,” City Councilor Karen Liot Hill said. “I guess I don’t really feel comfortable yet (moving forward).”
By increasing landing fees, the city stands to gain anywhere between $19,000 and $54,000, an important step toward making the airport a self-sustaining operation, according to Airport Manager Rick Dyment.
While the city sets the fee, it is collected by private company Granite Air Center, which then keeps 25 percent. Prices to land in Lebanon now range anywhere from $10 for small, twin-engine planes to $125 for airline jets.
On Wednesday, Dyment proposed increasing the fee between five and 25 percent. Under the potential plans, the lowest fee would be set at $11 and the highest could jump to $231.
But councilors said they would need more information before picking a plan, and asked to see comparisons with competing airports and a breakdown of what types of planes land in Lebanon. Others questioned why such data wasn’t prepared ahead of time.
“In a way, I really want to move forward with this,” said Liot Hill, who added that officials didn’t properly prepare.
The city also was cautioned against a large, across-the-board increase by Jason Archambeault, co-owner of Granite Air Center. Pilots are known to shop around and there are several nearby airports they could choose to land at instead, he said.
Some councilors pushed back, though, saying a fee increase could amount to as little as an additional $1 charge for some pilots.
“These fees haven’t been adjusted since 2002. Over that period of time, we have incurred an ever increasing debt on repairs and work that we have done at the airport,” Councilor Bruce Bronner said. “It’s time to go across-the-board and increase the fees.”
Plans to increase fees were one of several proposals Dyment presented to the council last month in an effort to shore up the airport’s finances. He also suggested negotiating higher lease agreements and potential development of airport property.
The airport, which has a $1 million operating budget, is expected to run a $250,000 deficit this year, according to figures presented to the Council last month.
The council ultimately voted on Wednesday to further discuss the fees during its Aug. 1 meeting, with a goal of holding a public hearing at 7 p.m. on Aug. 15 at City Hall.
Councilors also voted on Wednesday to recommend that Cape Air continue servicing the airport for the next four years.
The airline’s contract to provide commuter flights to Boston Logan International Airport and Westchester (N.Y.) County Airport expires on Nov. 30, and the federal Department of Transportation is looking for the city’s input before inking a new deal.
Cape Air’s presence in Lebanon is subsidized by the federal Essential Air Service, which provides funds to small, rural airports across the country.
Over the next four years, the airline predicts it will need $15 million in subsidies to keep operations running.
The airport itself also receives yearly subsidies, if Cape Air attracts at least 10,000 passengers.
It’s done so every year since 2012, with about 10,250 passengers flying into or out of Lebanon last year.
On Wednesday, officials made the case that Cape Air provides a great service to the Upper Valley.
Four flights leave the city every day for Boston, where Cape Air shares a terminal with JetBlue, which offers access to 55 nonstop destinations.
Cape Air also offers two daily flights to Westchester, where complimentary ground transportation is available to Midtown Manhattan, a roughly one-hour drive.
Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.