The Upper Cumberland Regional Airport Board continued discussions Tuesday night about potentially increasing rates for airport-owned hangars.
Airport Director Dean Selby presented a break-even analysis to members. Selby said the analysis reviewed revenue generated by T-hangar operations while excluding major expenses such as jet fuel sales, FBO costs, and capital expenditures. Based on those figures, Selby said the break-even point was estimated at about $245.67 and increases to $267.09 when annual maintenance and depreciation costs are included.
“I just kind of, showing that what we are from $225 to $267.09, if you put the $250,000 in there, then you’re supplementing it, that rest of that amount with either jet fuel sales or what we get from government contributions,” Selby said.
Selby noted the rates reflected in the analysis are still significantly lower than what the state recommends. Board Member Martin Ing said it appears Selby is working to keep the hangar rates as low as possible.
“I mean, we have guidance that it should be even more,” Ing said. “It seems like you are bending over backwards to discount it by whatever mechanisms you can.”
Selby said maintaining lower hangar rates has also made it more difficult for the airport to secure state grants, noting that state officials frequently question airports about rental pricing when they request assistance.
“We hear that consistently being hammered that, you know, you’re asking for state assistance to do stuff, yet, you know, where are your rents? Where are your rents?” Selby said. “We are hearing that consistently, and that seems to be a trend that is not going away.”
No action was taken Tuesday night, and the board is expected to continue discussing potential hangar rate increases at future meetings.