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#1
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FBO (Mercury Air) doubling hanger rent to run off GA at BHM.......is this legal?
When federal dollars are involved at an airport (BHM) can an FBO do practices
like this to discriminate against GA? There are no other t-hangers at the airport other tan the ones this FBO (Mercury Air) has. As a business person I would think they can do what they want to do, but wondering if there's something that can be done to stop this practice. The GM has made it clear that he doesn't want GA at his FBO. Thanks in advance. Trip |
#2
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Why is doubling the rent discriminitory?
Mike MU-2 "TripFarmer" wrote in message ... When federal dollars are involved at an airport (BHM) can an FBO do practices like this to discriminate against GA? There are no other t-hangers at the airport other tan the ones this FBO (Mercury Air) has. As a business person I would think they can do what they want to do, but wondering if there's something that can be done to stop this practice. The GM has made it clear that he doesn't want GA at his FBO. Thanks in advance. Trip |
#3
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TripFarmer wrote: When federal dollars are involved at an airport (BHM) can an FBO do practices like this to discriminate against GA? There are no other t-hangers at the airport other tan the ones this FBO (Mercury Air) has. Well, it's been my experience that only GA aircraft are small enough to fit in the typical T-hangar. If they're pricing things high to run off GA, then those T-hangars are sitting empty. Somehow, I don't believe this is what's happening. If there are planes in those hangars, the FBO is simply pricing the hangars commensurate with the market. No discrimination, no problem. George Patterson They say that nothing's certain except death and taxes. The thing is, death doesn't get worse every time Congress goes into session. Will Rogers |
#4
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Hangers (like anything else) should rent at market rates. I would be perfectly OK if a FBO provided a free hanger to someone who bought enough fuel. Don't get me wrong, I dont like my costs going up more than anybody else but they own the hangers and have the right to operate their investment as they see fit. Mike MU-2 "Jay Honeck" wrote in message news:RzUYa.99518$uu5.14424@sccrnsc04... Why is doubling the rent discriminitory? Depends. Did the FBO also double the jet-hangar rent? -- Jay Honeck Iowa City, IA Pathfinder N56993 www.AlexisParkInn.com "Your Aviation Destination" |
#5
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On 8-Aug-2003, "Mike Rapoport" wrote: Hangers (like anything else) should rent at market rates. Except when hangar supply is artificially limited by a public airport's governing authority, either because they give a single FBO a monopoly or because they prohibit additional hangar construction. In such cases it is very reasonable to regulate hangar fees to avoid gouging. -Elliott Drucker |
#6
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"Dave S" wrote in message ... | This may be a VERY unpopular opinion, but if you take the business and | economy point of view.. if you have a waiting list, you arent charging | enough. Plain and simple. Supply versus demand. | Not that unpopular. I look at these airfields with 10 year waiting lists for hangars, and I can't help but think that the rent is way too low. But what do I know? I only have twenty years of experience developing, building, syndicating, owning and managing commercial and multi-family residential real estate. Frankly, the way most airports are managed, they deserve to fall prey to developers. The way some aviation people talk, you would think that they were socialists who believe that airports are an entitlement required to subsidize the poor. If airports were managed properly, they would charge market rent for hangars and other space. They would be profitable, and more hangars and office space would be built, lowering prices over all until an equilibrium was reached. |
#7
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In article , "C J Campbell"
wrote: If airports were managed properly, they would charge market rent for hangars and other space. how is market rent set for a product/service whose supply is restricted? They would be profitable why is profitability assured? , and more hangars and office space would be built, I'd love to see you try to survive a meeting where you propose this to the anti-airport NIMBY goons around KBED. lowering prices over all until an equilibrium was reached. lower prices? really? -- Bob Noel |
#8
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By regulation. The question is, is hangar supply at a particular airport
more like a municipal utility (water, garbage collection) or more like a free market commodity? "Bob Noel" wrote in message ... In article , "C J Campbell" wrote: If airports were managed properly, they would charge market rent for hangars and other space. how is market rent set for a product/service whose supply is restricted? They would be profitable why is profitability assured? , and more hangars and office space would be built, I'd love to see you try to survive a meeting where you propose this to the anti-airport NIMBY goons around KBED. lowering prices over all until an equilibrium was reached. lower prices? really? -- Bob Noel |
#9
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wrote:
Hangers (like anything else) should rent at market rates. Except when hangar supply is artificially limited by a public airport's governing authority, either because they give a single FBO a monopoly or because they prohibit additional hangar construction. In such cases it is very reasonable to regulate hangar fees to avoid gouging. Amen. Such monopolies are relatively common, it seems, and tend to suppress general aviation around the country. In my city, for example, one FBO controls all the rented tiedowns and hangars at both airports via a sweetheart deal with the city Airport Authority. Attempts to build more hangars are stonewalled and rents are artificially high. -- Dan C172RG at BFM |
#10
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Neither. A free market commodity would permit others to build hangars so that
it was not a monopoly. A municipal utility would not be restricted in its availability, and the users have at least indirect control of the rates through their local government. The problem with hangars, at least in this neck of the woods, is that the supply is artificially restricted to the point that there are decade long waiting lists for hangars with exorbitant rents. The only alternative is tying down outside, which with New England winters is very tough on airplanes. Dan Thompson wrote: By regulation. The question is, is hangar supply at a particular airport more like a municipal utility (water, garbage collection) or more like a free market commodity? -- --Ray Andraka, P.E. President, the Andraka Consulting Group, Inc. 401/884-7930 Fax 401/884-7950 http://www.andraka.com "They that give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." -Benjamin Franklin, 1759 |
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