JACKSON HOLE, WYO – A special joint board meeting of the Board of County Commissioners and the Town Council has been called for Monday, November 20 at 2pm in order to consider a budget amendment and approval of the Jackson Hole Airport board’s decision to move forward with the purchase of Jackson Hole Aviation for $26 million.
The meeting will take place at the Council Chamber in Town Hall.
Background
In May 2017, the Jackson Hole Airport Board determined that under the applicable FAA prohibition on granting “exclusive rights,” when its new fuel facility became operational in mid-2018, it would be required to accommodate a second Fixed Base Operator (“FBO”) on the airport. The FBO is the provider of fuel and services for commercial and private aircraft at the airport. At that time, the Jackson Hole Airport Board directed staff to develop a Request for Proposals for the second FBO.
Thereafter, the airport’s current FBO, Jackson Hole Aviation LLC, approached the airport’s executive director and suggested that the inefficiencies associated with two FBOs operating in the small available area could be avoided, if the board purchased and operated the single FBO on the airport. An exception exists to the FAA’s “exclusive rights” prohibition, if the airport itself owns and operates the FBO.
The Jackson Hole Airport Board then paused the issuance of the RFP, while it investigated whether the purchase of the assets of Jackson Hole Aviation was legally and financially feasible and in the best interests of the community and stakeholders.
At its meeting of November 1, 2017, the board considered both options. It decided that purchasing the assets of Jackson Hole Aviation at a price of $26 million (plus the cost of fuel and parts inventory at closing) was likely to result in a strong return on investment. The board also believed that such a purchase would allow it to pursue community based management of the FBO operation, and avoid the conflicts and duplication of facilities which would be inherent in having two FBOs attempting to operate in a small land area. If the purchase is closed, the board would operate the FBO, which will help manage the character and footprint of the FBO, and control the quality and value of services provided to the airlines and general aviation users.
Revenues the board receives from the FBO operation, would be reinvested into airport facilities and programs, including those directed at reducing noise, to ensure the airport remains
