Real estate developer and recreational pilot Jim Hankins has the convenience of a small airport close by, and a newly renovated terminal at the Vicksburg Municipal Airport on U.S. 61 South makes him proud to use the facility.

“It’s a fantastic airport,” he says.

The 60-year-old airport on U.S. 61 South has cut the ribbon to show off its updated terminal financed through a portion of the $1.3 million federal Community Development Block Grant, awarded following Hurricane Katrina in 2005, and an in-kind match through the City of Vicksburg.

In addition to Hankins, the airport serves about a dozen other local recreational pilots and many more fliers passing through.

Hankins is part of a small cluster of local plane owners and area corporations who believe the airport and Vicksburg Tallulah Regional — across the Mississippi River in Mound and 25 percent funded by the City of Vicksburg — are critical to the value of a community, though they are not big money-makers and are rarely used by the average citizen.

“Most small towns have let go of their airports,” said Hankins, whose family owns Jim Hankins Airport Service, an aircraft supplies company in Jackson. “It’s something you have to keep up with the public.”

In addition to aviation hobbyists, the airports serve a small portion of area corporations by providing the convenience of proximity for executives and potential investors to fly in.

“Any aviation-type facility in any community, whether large or small, is an asset to have,” said Ross Tucker, director of economic development for Greater Jackson Alliance, a public/private entity created to coordinate economic development within the state’s central area, which includes Warren County. “You become attractive when a private plane can land in your community.”

University of Southern Mississippi economics instructor Sondra Collins agreed.

“The airports indirectly bring in money to the community,” she said, “especially if these people who fly in are people who stay in your hotels and eat at your restaurants.”

Frank May, VMA’s contracted operations manager, estimates an average of 300 flights have come through the airport each year for three years, down significantly from when he began his aviation career in 1977, he said.

“We were doing at least 700 to 800 flights per month,” he said. “It was the overall economics over the years that caused it. There’s an old saying that goes, ‘When the company cuts back, the flying department is the first place to get cut.’”

Today, 14 hangars are rented at Vicksburg Municipal.

At VTR, airport manager Randy Woods said about 4,000 flights were recorded at the airport last year, doubling the previous year’s numbers.

In 1998, Vicksburg Municipal was in danger of closing after the Mayor Robert Walker-led city board voted 2-1 to convert the land into an industrial site.

Soon, a lawsuit against the city was filed by 16 businesses frequently using the airport. After five years, the case landed at the Mississippi Supreme Court.

“It was a significant inconvenience if the airport was to close,” said Mike Cappaert, owner of Cappaert Manufactured Housing who uses VMA frequently. “I’ve been using it since it opened.”

The high court decided that the city had the authority to close the airport, but the administration of Laurence Leyens, who was mayor from 2001 to 2008, opted to keep both airports open, citing a need for both, and accepted a $650,000 state grant for VMA improvements with the caveat that the airport would stay open for seven years.

Last year, the city’s allocation to Vicksburg Municipal was $150,000, down from $260,000 in 2009, city accountant Doug Whittington said. The airport barely broke even with expenses totaling $383,310, slightly under income and city allocation at $397,699. Income is generated mainly from fuel sales and hangar rentals.

At VTR last year, the city, one of four partners, kicked in $37,137.74, about $5,000 more than the $32,990.36 in 2009, said Woods, who is one of four employees of the airport.

The other partners are Warren County, Tallulah and Madison Parish.

Income and allocations for 2010 totaled $528,861.86, Woods said, and expenses for 2010 were unavailable.

In 2009, $538,744.29 was spent to operate the facility and $439,773.22 was collected through income and allocation.

Vicksburg’s current mayor, Paul Winfield, said the city continues to fund both facilities, which are only about 20 miles apart, because, he said, of a commitment when using federal dollars.

“When you accept that money from the federal government, they expect you to continue with your project,” he said, “and, if you don’t, then they want a refund.”

Hankins parks his two planes, a twin-engine and a single-engine, at the VMA hangar formerly used by the Mississippi River Commission and pays $325 per month for both.

His monthly rent payments, along with that from 13 other plane owners, and fuel sales together keep the airport afloat.

In 2010, Whittington said, the airport collected $211,262 from fuel sales and $36,437 from hangar rentals, totaling $247,699.

The previous year, fuel sales rang up $181,640 and rent brought in $16,546, which is less than in 2010 because the 10-bay T-hangar did not open until July 2010.

At VTR, fuel sales, which include Jet-A and sale to the military, totaled $422,045.83 in 2010 and $331,984.04 in 2009. Hangar rental in 2010 brought in $17,984.10 in revenue and $24,418.91 in 2009. Also, VTR leases property on their grounds as a form of additional income. Property leases in 2010 brought in $45,376.33 and $42,525.14.

Since fuel is the revenue driver, VMA manager Curt Follmer believes the acquirement of a new, upgraded fuel farm paid for through a Mississippi Department of Transportation multi-modal grant will help increase revenue.

On Feb. 7, the Board of Mayor and Aldermen received six sealed bids to build a new fuel farm, access road and truck parking area on the airport grounds.

Fordice Construction Company of Vicksburg submitted the highest bid, $608,317, and Malouf Construction of Ridgeland submitted the lowest, of $490,713.50. Other bidders include Hemphill Construction of Jackson, Gulf South Construction Co. of Madison and Dirtworks Inc. and Riverside Construction Co., both of Vicksburg.

The new fuel farm will include a self-service component that Follmer said should increase fuel sales.

“This would certainly provide a service to people who fly at night,” he said adding that the airport is not staffed during nighttime hours. He is unsure of the increase, saying only the service is an amenity to increase flight traffic.

Also to beef up flight traffic, Follmer, who is the airport’s only employee, said the airport is gearing up for the installation of an aviation weather system called Automated Weather Observing System. Follmer said he is pursuing a Federal Aviation Administration grant to purchase the system.

VTR has one, and Woods said it’s another added amenity for the pilot.

“The AWOS tells you what the temperature is, the cloud basis, wind and rain,” he said. “I’m sure it helps.”

Sid Beauman, alderman of the South Ward where VMA is located, opposes the city’s share of funding to VTR, a move that was favored by Mayor Paul Winfield and North Ward Alderman.

“The thing I have the most objection with is — during the previous administration — before we invested new money, they would come to each entity and get approval,” he said. “I think since it’s located in Louisiana, it should be up to Louisiana and not Mississippi.”

He does, however, support the city airport.

“I think it serves a purpose,” he said. “If you have a community, you need an airport.”