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Budget gets adjustment after changes at Provo airport

By Genelle Pugmire - | May 17, 2022

Harrison Epstein, Daily Herald

The Provo Airport logo is shown inside of the TSA scanning area in the new Provo Airport terminal on Tuesday, April 26, 2022.

When Allegiant Air and Breeze Airways announced on May 6 they were making the newly-finished Provo airport their Utah home bases, and adding nine planes to the airport with at least 13 destinations, the city budget changed.

The greatest change, according to Public Works Director Dave Decker, were the revenue fees that would be collected.

The recommended, proposed fee changes include:

  • Parking — from $8 to $10 a day.
  • Airplane landing fees — from $0.65 to $0.97 per 1,000 pounds landed weight for all aircraft over 12,500 pounds.
  • Terminal Fees — from $0.75 to $1.83 per enplaned passenger.
  • Office Space Lease — new $20 per square foot per year
  • Fuel Flowage Fee — from $0.08 to $0.05 for air carriers and $0.08 for non-air carriers
  • Ground Lease Fee — from $0.45 to $0.55 per square foot per year
  • Hangar Rent — 25% increase
  • Remain Over Night (RON Fee) — new $50 per night
  • Rental Car Concessions Fee — from $50 per stall per month to 10% of gross revenue plus $20 per stall per month.
  • Retail Concession Fee — new 5% of gross revenue
  • Customer Facility Charge — new $3.50 per rental day.

“Fees are bumping up,” Decker said. “We are trying to budget in a relatively conservative manner.”

When questioned by the council if the airlines knew about these fee increases before signing contracts, Decker said they did.

Perhaps the fee increase that affects those coming to the airport the most is the parking. The old terminal lot has 344 spaces, the new lot has 508 spaces.

“Both airlines see a need for more parking,” Decker said. “Bike parking is available, but no bike lockers at this time.”

Decker said if the parking lots were only 33% full at all times, at $10 a day, that would be a revenue increase of $600,000. If all spaces were full all day the maximum revenue from parking would be $1.85 million.

The Federal Aviation Administration, while not fully requiring it, has said that the they are not comfortable will the present low staffing level.

The 2023 budget is seeking two police officers specifically for the airport, four more full-time jobs and one part-time job. The part-time job will be for a wildlife biologist to help with the Delta rejuvenation project. One of the jobs needing a change would be a new Airport manager. Brian Torgerson is currently serving as the interim manager.

Decker shared with the council how the two airlines fit in at the airport.

Allegiant

Allegiant (G4) launched three markets in 2013. By the end of 2022 they will have expanded to 12 destinations including four recently announced (LAS, PDX, SAN and SFB). They serve each market with at least two weekly flights. The base will start with five aircrafts.

Breeze Airways

Breeze Airways started in June 2021. They serve 21 U.S. airports currently, with plans for international expansion over the next year. Provo service launches later this year to three daily, major nonstop and two one-stop markets, all with strong leisure and business segments – SFO (Aug.), LAS (Oct.), LAX (Nov.), HPN via LAX and SBD via SFO.

Provo’s service to 13 markets by Allegiant and Breeze is estimated to generate an economic impact of $130.8 million and support 1,020 local jobs, Decker said.

Future projects that will need to be done at the airport include:

  • Piping the moat surrounding the airport
  • Parking lot expansion
  • Delta Restoration involvement
  • Future staffing
  • Hangar expansion and associated infrastructure
  • Utility extensions
  • Master plan updates
  • Maintenance of documentation
  • Continued training
  • Long-term terminal expansion and additional services

Decker said there is much to do, but Provo will benefit from the growth of the airport. “We need to step up and look like a regional airport, that’s what the FAA wants,” he said.

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