Fuel costs cut flights at city’s airport|[05/02/08]
Published 12:00 am Friday, May 2, 2008
The surging cost of fuel is grounding civil aviation, too, and placing a blight on operations and income at the Vicksburg Airport on U.S. 61 South.
Airport board members discussed the topic Thursday.
“You can check the radar and see — we’re getting fewer and fewer (aircraft). Everybody within 100 miles of here — Natchez, Raymond and airports in Louisiana — there’s nothing,” said Frank May, airport manager.
The municipal airport and Vicksburg Tallulah Regional at Mound, which the City of Vicksburg jointly owns with Warren County, Madison Parish and Tallulah, both rely on profits from fuel and other services to visiting aircraft to fund almost all operational costs. With less fuel sold, that income evaporates.
The municipal board also voted to request an urgent meeting with city officials to try to resolve the issue of how to restock aviation and jet fuel because its reserve cash isn’t enough to pay for a new delivery. May said a minimum of 1,500 gallons is needed, which would cost about $6,000.
“That would tap 50 percent of our available balance,” said board member Jay Kilroy. “Ultimately this is (the city’s) responsibility. They need to understand the situation they’ve put us in.”
Aviation fuel was at $5.09 per gallon at the airport Thursday. The cost of jet fuel had risen to $5.31 per gallon.
The price charged locally is in line with the national averages, which are $5.13 for aviation fuel and $5.36 for jet fuel. Local prices have risen from $4.28 and $4.31 for jet fuel a month ago.
“There’s a massive fuel price increase, and we ain’t seen nothing yet,” Kilroy said.
Last month’s bills for the facility on U.S. 61 South equaled about $11,800, which included a $9,000 payment for fuel made to Eastern Aviation Fuels Inc. Deposits equaled $6,500, which puts the board at a cash deficit.
“We’re at a point now where we can’t buy a load of Avgas,” Kilroy said. “We can’t buy it. We don’t have the money.”
The airport tries to make about $1 per gallon, but credit card fees must come out of that. The board said it will set up a meeting with its contact from Shell, the company with which the board contracts gasoline services, to discuss the credit card fees. Members also discussed trying to increase their profit margin.