← Back to Squawk list
  • 38

Huge financial losses for taxpayer subsidized FBO at CHA

Размещено
 
Chattanooga Metropolitan Airport officials admit their plan to use millions of taxpayer dollars to compete against a private company that services private jets is already losing money — more than $300,000 thus far, and counting. (tennessee.watchdog.org) Ещё...

GLF5Pilot
Промоутер

Sort type: [Top] [Newest]


lyfate
patrick kelley 4
From what I have learned, the private operator in this case (TAC Air) is subsidizing their landlord's general operating fund with the highest flowage fees ($0.13/gallon) of any airport in Tennessee and possibly in the USA. They remit 2% of their gross monthly revenues, pay a monthly landlease and submit to the airport authority's privilege to financially audit tennants annually. The Authority at this airport has been attempting to create the appearance that they are not a part of the local government with an ability to impose taxes; however, this Airport Authority Corporation's Board of Directors is appointed by the Mayor of Chattanooga, TN. The Authority's President (which is currently vacant) is selected by the Mayor's appointed Board with input from the Mayor. The fees (taxes) at this airport are set and approved by the airport's Board of Directors; therefore, every member of the general tax paying public that buys an airplane ticket or parks in one of the airport's vehicle parking lots does and will subsidize these losses.
Ответить ↓•Постоянная ссылка•Report
lyfate
patrick kelley 1
...in attempt to be accurate, the Board of 'Directors' at this airport are actually Commissioners. They are identified as the Chattanooga Airport Authority Board of Commissioners, serving at the pleasure and request of the city Mayor. According to Websters Dictionary, com.mis.sion.er n 3: an official in charge of a department of public service
Ответить ↓•Постоянная ссылка•Вверх•Report
WALLACE24
WALLACE24 3
Got a little "smell" to it.
Ответить ↓•Постоянная ссылка•Report
preacher1
preacher1 5
typical government response,"it's only money".Problem is that their losses are about
$200 grand over what they originally anticipated. They say they are on target yet can't produce documentation to where they ever said that. Bureaucratic CYA. IMHO
Ответить ↓•Постоянная ссылка•Вверх•Report
WALLACE24
WALLACE24 4
That was in 5 months of operation. It'll be ok though when the big economic boom hit!LOL
Ответить ↓•Постоянная ссылка•Вверх•Report

preacher1
preacher1 2
oh yeah!!!lol
Ответить ↓•Постоянная ссылка•Вверх•Report
Derg
Roland Dent 1
I have told people for years that the USA was and is no more than another paradigm of the former USSR..a bit like a black and white negative seen in reverse.
Ответить ↓•Постоянная ссылка•Вверх•Report
WALLACE24
WALLACE24 0
Looks like we are headed that way. The powers that be will not stop until they break the system.
Ответить ↓•Постоянная ссылка•Вверх•Report
preacher1
preacher1 1
Do you know of a guy up in your part of the world, owning Riverside Transport at Owensboro and Kansas City, named Terry Wallace? My partner has apparently sold to them and I know absolutely nothing about them. She has the majority so I'm along for the ride and all is good. I'm just debating on taking the money and running, but I have been asked to stay, so there is some indecision.
Ответить ↓•Постоянная ссылка•Вверх•Report
WALLACE24
WALLACE24 1
I am out of town so sorry for delay. Does not ring a bell with me though. If I learn anything I'll shout. Hope all goes well with the sale.
Ответить ↓•Постоянная ссылка•Вверх•Report
preacher1
preacher1 1
I can't remember the story but you commented to someone about Hilliary Clinton having to use her time getting KLIT renamed. I though you were joking at the time until I actually heard it on the news reference something the other day. I cannot figure it out. You can walk down the street and can't hardly find anyone that will admit in public that they ever voted for him, yet he was a 3 or 4 term governor here and a 2 term president that took out an incumbent when he was supposed to be the scarificial lamb, and now hardly has anything to do with down here, yet the mention of the Clinton name just makes some folks go ga ga.
Ответить ↓•Постоянная ссылка•Вверх•Report
WALLACE24
WALLACE24 1
Wayne, I think it's like new math. Everyone thinks they have found a new way to operate anything and the old rules don't apply. In the long run my guess is that we will find that the rules that applied to character, economics, religion, politics, etc. in days gone by are still relavent. Life doesn't always deal fairly but the true answers always come out the same.
Ответить ↓•Постоянная ссылка•Вверх•Report
ltcjra
ltcjra 2
It would be interesting to review meeting records, when the subsidized FBO was being discussed, to see if anyone mentioned a five year period of losses before profitability appears. // I am apalled that the state agency dedicated to providing funding does not verify information on grant requests before giving away the money. Is their only function to decide if the idea is plausible?
Ответить ↓•Постоянная ссылка•Report
tlillis4
Thomas Lillis IV 1
The minutes may be found here: http://www.chattairport.com/www/docs/104/cmma-board-of-commissioners

The short answer is, no. Five years is the term of the FBO franchise not the time to profitablility.
Ответить ↓•Постоянная ссылка•Вверх•Report
ltcjra
ltcjra 1
Here is what the story by tennessee.watchdog.org read:

// Airport Authority officials told Tennessee Watchdog this month that the new FBO will continue to lose money for its first five years of operation before it turns a profit.

“From the beginning we talked about a five-year window,” Siebold said.

“Any business that you look at has a startup period where they are getting their feet under them and introducing themselves to the market, and you’ll sustain some early losses in the startup phase.”

Siebold and other Airport Authority officials, however, could not provide any documentation that they had made such a claim while seeking state grant money to start the project. // (Siebold is Christina Siebold, Airport Authority spokeswoman)

The Aviation Authority spokesperson made the "five years to profitiability" claim according to the story. And the last paragraph implies the Authority did not disclose all information to the state agency. Whether that was intentional, unintentional, or a political ploy is left to one's imagination.
Ответить ↓•Постоянная ссылка•Вверх•Report
twincessna
william koehler 1
The gov CAN NOT DO IT BETTER. IF THEY WOULD UNDERSTAND, THEY WOULD NOT WASTE OUR MONEY.
Ответить ↓•Постоянная ссылка•Report
jmilleratp
jmilleratp 1
While this boneheaded adventure is costing the taxpayers LOTS of money, I do have to say that the spokeschick on the video is at least attractive. Even though she's blowing very hot air!
Ответить ↓•Постоянная ссылка•Report
preacher1
preacher1 1
John: you are very correct on both counts.lol
Ответить ↓•Постоянная ссылка•Вверх•Report
Derg
Roland Dent 0
Yup...I could watch the politician lady from Alaska for hours..I mentioned this to a lady friend: "you realise she has fake parts" came the reply. Oh well...us men are easily taken in.
Ответить ↓•Постоянная ссылка•Вверх•Report
tlillis4
Thomas Lillis IV 1
Here's a kicker - they used (siphoned might be considered perjorative) money from the ARRA. "Stimulus" at work, you see. From what I can see (someone jump in if they have better information), they are "stuck" calling this a start-up cost and changing their story to "it will take five years to be profitable". Categorized as "startup cost" they can fund the loss from the $10 million the feds gave them. The February 2011 minutes seem to bear this out. If is is a true "operating loss" then it would have to come from the Authority. I'm having difficulties finding the biennial operating budget for CHA but, seeing the city appropriated over $600K for them last year I'd guess they are showing a loss. Oh, well, it's only taxpayers money.

ARRA expires Sept 30, 2015 (or sooner depending on how the 2012 election pans out). It will be interesting to see what the good-and-great at CHA say then.
Ответить ↓•Постоянная ссылка•Report
tucsonguy
Ralph Addison 1
Tax payers are paying out tens of millions of dollars on airports that their local Senator or House Member got pork barrel money to run/create a runway at the airport. Some of these airports service only one customer or business and not open to public use.
But we, the tax payers, have no say once those crazy law makers are in office. Other than to defeat them the next election.
But I suspect this is peanuts to what else we are wasting monies on. So much of it is hidden, out of sight for us to see.
Ответить ↓•Постоянная ссылка•Report
devsfan
ken young 1
All subsidies must go away....Taxpayers are already funding the airports. There should be no second bite at the apple. If an airport cannot compete, let it shut down.
Ответить ↓•Постоянная ссылка•Report
Seafleet
Michael Shellard 1
The Office of Mayor is cropping up too much for me and as for serving at the pleasure and request of the City Mayor and its losing money at this rate I think it is time for Mr Mayor to go as it appears he is the boss? I agree with another comment something smells no it doesnt it stinks!
The People of Chattanooga need to wake up and ask questions using a lawyer if necessary.
Ответить ↓•Постоянная ссылка•Report
KennyFlys
Ken Lane 1
Has government ever run a business with success? Let's include the IRS' running a whorehouse and CIA's running drugs in the analysis.
Ответить ↓•Постоянная ссылка•Report
GLF5Pilot
GLF5Pilot 1
Apparently things are getting pretty stirred up with some grass-root efforts in CHA. Here are a couple of other links I found that might be interesting:

http://chattanoogansforfairaviation.com/
http://www.facebook.com/pages/Chattanoogans-for-Fair-Aviation/115405241847888
Ответить ↓•Постоянная ссылка•Report
pilot0987
pilot0987 1
Perfect example of why people are retards.
Ответить ↓•Постоянная ссылка•Report
Derg
Roland Dent 0
This is a HOOOT. All the while I was thinking that you USAers did not go in for supporting failing enterprises. FGS sake this is ridiculous. Never thought I would see this kind of WASTE in the USA.
Ответить ↓•Постоянная ссылка•Report
ibpilot72
ibpilot72 1
It happens on a daily basis, without the imput of the taxpayers. The government ALWAYS knows what is best for the taxpayers.(COUGH...COUGH....COUGH!!)
Ответить ↓•Постоянная ссылка•Вверх•Report
gftt
gftt -1
Government in the USA whether city, state or federal can waste more money before breakfast than Nobama can print in a year.
Ответить ↓•Постоянная ссылка•Вверх•Report
pilot0987
pilot0987 1
It is always easier to spend someone elses money then your own.
Ответить ↓•Постоянная ссылка•Вверх•Report
WALLACE24
WALLACE24 1
A big game of "follow the leader"!!!!!
Ответить ↓•Постоянная ссылка•Вверх•Report

Вход

Забыли пароль?
Нет учетной записи? Зарегистрируйтесь сейчас (бесплатно) и получите доступ к конфигурируемым функциям, уведомлениям о статусе рейсов и другим возможностям!
Стать частью FlightAware
Вы знаете, что реклама помогает FlightAware в отслеживании рейсов?
Вы можете внести свой вклад в бесплатную работу FlightAware, разрешив показ рекламы на FlightAware.com. Мы следим за тем, чтобы наша реклама была полезна и не мешала работе с сайтом. Вы можете быстро включить рекламу на FlightAware или приобрести привилегированное членство.
Отменить