The Upper Cumberland Regional Airport will increase hangar fees by approximately 50 percent to ensure the facility can cover its own operational and maintenance costs.
Airport Director Dean Selby said the board appointed an independent committee to study construction costs, depreciation cycles, and regional rent comparisons before deciding on the new rates. Selby said the base rent for the smallest hangars will jump from $225 to $350 per month to help fund roughly $150,000 in necessary repairs for Hangar Row A.
“I’m torn between the pilot side of me wanting rates to be affordable and the business side of me trying to understand where that balance is between making it cover its cost versus being fair to everyone,” Selby said. “So it’s kind of, as with anything in business, it’s a balancing act.”
Selby said the airport manages approximately 85 hangars ranging from small units to large box hangars that house multiple aircraft. Selby said TDOT previously commissioned a study to determine where local hangar rates should be set based on specific demographics and airport conditions.
“T-DOT has repeatedly said that they want to see the airports in the state of Tennessee run like a business, not like a government agency,” Selby said. “And what we mean by that is they want them to try to cover as much of their expenses as possible.”
Selby said the airport is required by federal grant assurances to operate as revenue neutral as possible to avoid becoming a burden on local taxpayers. Selby said the facility is currently in good shape, but the cost of construction and property has outpaced previous small increases based on the Consumer Price Index.
“The purpose of the airport is for business and to increase the use of the airport by the general public, fire, police, all of the different types of aspects that you have to use aviation for,” Selby said. “Now, what the general aviation population does is they supplement the use of this airport by their activities.”
Selby said the airport is experiencing significant growth, noting a recent day with 21 jet operations, which would have been unheard of 15 years ago. Selby said the growth is driven by regional and international companies moving into the Upper Cumberland.
“State funding continues to dwindle for general aviation airports and it’s being pushed more and more onto the local airport to figure out a way to self-fund its activities,” Selby said. “We’re trying to move this airport forward without being a burden to everyone but at the same time create a reasonably cost-effective solution.”
Selby said failing to raise rents would force the airport to delay critical projects like ramp expansions and terminal upgrades. Selby said the airport needs more space for aircraft storage and parking, as visitors have recently been forced to park on the sides of the road due to a lack of available spots.
“We don’t want to divert that money that we generate off of jet fuel into subsidizing or helping build an asset that we’re not generating the revenue back from,” Selby said. “We want to put that into something that generates revenue so that it can continue to build and keep that snowball going.”