When Allegiant Air and Breeze Airways announced on May 6 that they were making the new Provo airport their home base in Utah and adding nine planes to the airport with at least 13 destinations, the budget for the city has changed.
The biggest change, according to Director of Public Works Dave Decker, was in the fees that would be collected.
Recommended and proposed fee changes include:
- Parking — $8 to $10 per day.
- Aircraft Landing Fee – $0.65 to $0.97 per 1,000 pounds of landing weight for all aircraft over 12,500 pounds.
- Terminal fees — from $0.75 to $1.83 per passenger boarded.
- Office space rental – new $20 per square foot per year
- Fuel Debit Fee — $0.08 to $0.05 for air carriers and $0.08 for non-air carriers
- Land Lease Fee – $0.45 to $0.55 per square foot per year
- Hangar rent — 25% increase
- Stay overnight (RON fee) – new $50 per night
- Rental Car Concession Fee – $50 per booth per month at 10% of gross revenue plus $20 per booth per month.
- Retail concession fee — new 5% of gross revenue
- Guest Installation Fee – new $3.50 per rental day.
“The fees are going up,” Decker said. “We try to budget relatively conservatively.”
Asked by the board if the airlines were aware of these fee increases before signing the contracts, Decker said yes.
Perhaps the increase in fees that most affects those who come to the airport is parking. The old terminal lot has 344 spaces, the new lot has 508 spaces.
“Both airlines see a need for more parking,” Decker said. “Bicycle parking is available, but no bike lockers at this time.”
Decker said if parking lots were only 33% full at all times, at $10 a day, that would represent a $600,000 increase in revenue. If all spaces were full all day, the maximum parking revenue would be $1.85 million.
The Federal Aviation Administration, while not totally requiring it, has said it is not comfortable with the current low level of staffing.
The 2023 budget provides two police officers specifically for the airport, four other full-time jobs and one part-time job. The part-time job will be that of a wildlife biologist to assist with the delta rejuvenation project. One of the jobs requiring a change would be a new airport manager. Brian Torgerson currently serves as Acting Director.
Decker told the board how the two airlines fit together at the airport.
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 every market with at least two weekly flights. The base will start with five aircraft.
Breeze Airways started in June 2021. They currently fly to 21 US airports, with plans for international expansion over the next year. Provo service will launch later this year in three major daily nonstop markets and two one-stop markets, all with strong leisure and business segments – SFO (Aug), LAS (Oct), LAX (Nov. ), HPN through LAX, and SBD through OFS.
Provo’s service to 13 markets by Allegiant and Breeze is expected to generate $130.8 million in economic impact and support 1,020 local jobs, Decker said.
Future projects to be carried out at the airport include:
- Piping of the moat surrounding the airport
- Extension of the car park
- Participation in the restoration of the delta
- Future endowment
- Hangar expansion and associated infrastructure
- Utility Extensions
- Master Plan Updates
- Documentation maintenance
- Continuing education
- Long-term terminal expansion and additional services
Decker said there is a lot to do, but Provo will benefit from the airport’s growth. “We need to step up and look like a regional airport, which is what the FAA wants,” he said.