Airports need loans to meet service demands
The fortunes wrought by the energy and related industries have fomented a wonderful revolution in air transportation in Wyoming, the administrator of the state's aeronautics division said Tuesday.
"Our booming economy is attracting the level of airline service we always wanted," Shelly Reams said.
The state now has the opportunity and obligation to ensure air transportation can be rooted in communities for the long term, Reams said.
The opportunity comes from revenues from the boom itself.
The obligation arises from the needs of airports to rehabilitate runways and taxiways, construct hangars, improve security gates in terminals, upgrade fuel systems, deal with leaking underground storage tanks, build de-icing pads and obtain better aircraft service equipment, Reams said.
All airports need improvements, Reams said before making a report to the Joint Minerals, Business and Economic Development Interim Committee at its meeting in Casper.
Natrona County International Airport operations manager Chance Warne said later Tuesday he agreed with Reams.
The NCIA applied for a loan of more than $700,000 for an above-ground fuel tank farm, but the costs and regulations probably have pushed that figure to about $1 million, said Warne.
During her presentation to the committee, Reams said the aeronautics division of the Wyoming Department of Transportation already has requested $18 million for its operations in Gov. Dave Freudenthal's budget due early next month.
However, a recent spate of requests for loans from airports for such improvements prompted the aeronautics division to outline a need for $10 million more for its loan program, Reams said.
The division recently identified $65 million worth of needed improvements, many of which can be paid by air service business at airports, she said.
But $10 million would help augment that, so Reams offered the idea for the joint interim committee's consideration.
The loans are from the Permanent Mineral Trust Fund, and are repaid with interest, she said.
Committee Co-chairman Rep. Tom Lockhart, R-Casper, told her that he would have given more time for the division's report had he known of the request for funding.
Reams responded she was told to wait to ask for money until she could prove the needs of airports struggling to meet the demands that come with a growing economy.
Joe Coyne, executive director of the Converse Area New Development Organization, said Reams' testimony about the turnaround in air service surprised him.
In retrospect, Coyne realized, he has not heard the kinds of complaints common in the past, and knows of more people driving from Douglas to Casper to fly on a commercial airline.
Better times
Wyoming airports' recent good fortunes - and subsequent infrastructure needs - sharply contrast with the rural air transportation woes that dogged Wyoming communities throughout the 1990s:
- Commuter services came to airports and left.
- When airports were left with only one passenger service, the remaining carrier jacked up ticket prices.
- High prices and spotty service resulted in thousands of potential passengers from small communities driving to Casper or Jackson to board a plane, and encouraged others to drive to Salt Lake City or Denver for the same reason.
- Communities' efforts to set up financial support to retain airlines stalled.
- The Wyoming Business Council's early attempt to fix the problem resulted in recruiting Great Lakes Aviation from Iowa, but some state officials did not disclose the company's severe financial problems.
- Half the state's 10 commercial airports needed federal Essential Air Service subsidies.
- The Sept. 11, 2001, terrorist attacks damaged people's trust in flying.
Those days seem as long-gone as the biplane.
"We are such a viable market that airlines are coming in," Reams said.
Only two Wyoming airports need federal subsidies now, she added.
Reams wants to see those trends continue with airport improvement, she said.
"It will feed us into the future," Reams said.
NEWS TRACKER
Last we knew: Wyoming struggled to maintain air transportation service for its rural population and stagnant economy in the 1990s and until several years ago.
The latest: The booming economy has reversed air service woes, but has created demands on airports to improve equipment, terminals and runways.
What's next: The aeronautics division of the Wyoming Department of Transportation will ask the Legislature to consider an additional $10 million for its loan program to meet airports' needs.
Reporter Tom Morton can be reached at (307) 266-0592, or at Tom.Morton@casperstartribune.net.
Posted in Local on Wednesday, November 29, 2006 12:00 am
© Copyright 2009, trib.com, Casper, WY | Terms of Service and Privacy Policy