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FBO (Mercury Air) doubling hanger rent to run off GA at BHM.......is this legal?



 
 
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  #1  
Old August 8th 03, 07:41 PM
TripFarmer
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Default 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


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  #2  
Old August 8th 03, 07:45 PM
Mike Rapoport
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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  
Old August 9th 03, 03:29 AM
G.R. Patterson III
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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  
Old August 9th 03, 04:14 AM
Mike Rapoport
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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:[email protected]
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  
Old August 9th 03, 04:46 AM
[email protected]
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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  
Old August 9th 03, 07:59 AM
C J Campbell
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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  
Old August 9th 03, 12:39 PM
Bob Noel
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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  
Old August 9th 03, 01:20 PM
Dan Thompson
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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  
Old August 9th 03, 01:23 PM
Dan Luke
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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  
Old August 9th 03, 01:58 PM
Ray Andraka
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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
email
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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