Opinion: The Boulder airport decision needs more complete analysis
I’ve been following the council’s process around the Boulder airport and have been frustrated by the lack of good background info regarding the options. So, I did a bit of research. Thanks to all who helped me, including a long-time climbing partner, who is a pilot and an attorney and was involved in the Aspen airport fight.
Regarding the “straw poll” that the council took at a recent
study session: Some attempted to treat this as a decision to accept a grant
from the FAA, which, per the FAA’s terms, would require continuing the airport
operations indefinitely, and under FAA jurisdiction.
The council should read its own rules. Charter Section 16
states, “The council shall act only by ordinance, resolution, or motion.” The
Boulder Revised Code Sec. 2-2-8 requires a council motion to approve the city
manager’s signing of any lease of three years or longer. And the council is
only empowered to make such motions at official meetings, not study sessions.
The reason that FAA jurisdiction is an issue is that the FAA
sees these local airports as part of a nationwide system; it then uses Federal
funding (our tax money) to promote its goals. So, the FAA might oppose local
desires, e.g., to limit the times of use and/or size of planes, etc. And the
FAA has dragged its feet on ending the use of leaded gas, now saying by 2030.
(The U.S. officially ended it for cars 30 years ago.)
The FAA now requires, in exchange for grants, a commitment
to run the airport under its jurisdiction for an indefinite period into the
future. This commitment used to be limited in time; Boulder’s was to expire in
2040.
But … there is one easement Boulder purchased in 1991 for
$5,800 that is a bone of contention. The city sued to clarify its obligation
because FAA money was apparently involved in this purchase, and the FAA is
claiming that this pittance created a perpetual obligation to keep the airport
open under the FAA’s terms. The court dismissed the case without prejudice; the
judge found that the city’s current FAA obligations remain in effect for
another 15 years anyway, so the case was not “ripe” for a decision.
Given the current craziness in the federal government and
the federal courts, waiting to re-litigate until this insanity recedes makes
sense to me.
So, what are the alternatives if the city does not want to
incur further obligations to the FAA and be subject to their rule? According to
one City document I read, the airport has been receiving about $250,000 per
year from the FAA and state government to subsidize the airport. Other than
that, it is financially self-sustaining, from revenues from hangar rentals,
etc. The question then is: How could the city replace that $250,000? (By the
way, this is only about 0.05% of the city budget.)
My immediate thought was to charge the planes that use the
airport what are called “landing fees.” Collecting landing fees is easy. I
talked to Vector Airport Systems, the biggest company that does this. They
charge between 10% and 20%, depending on account size and service levels.
The Boulder airport (KBDU) has something over 60,000
“operations” per year (takeoffs plus landings). To get $250,000 plus a 20% fee
comes out to $10 per landing. Boulder charges $15 to go to a rec center, so $10
per landing doesn’t seem that burdensome.
According to Vector, at least half of KBDU’s traffic is
transient, meaning originating from other airports; therefore, those pilots are
not paying hangar fees and are likely not purchasing fuel at KBDU. They are
mostly performing training operations and then heading back home. Landing fees
are perhaps the only method for collecting revenue from such users.
Vector also supplied some examples of airports like KBDU
that 1) don’t have commercial service, 2) the majority of traffic is from
smaller aircraft, and 3) implemented landing fees without a weight minimum,
charging aircraft of all sizes. Notice the recent trend: Santa Monica,
CA (2003), Heber City, UT (2024), Kissimmee, FL (2025), Spanish Fork,
UT (2025), Torrance, CA (2024), Van Nuys, CA (2026), Mesa, AZ (coming
in 2026). I’ve heard Longmont is considering them.
A look at the future airport budget tells me that the
airport will run an annual deficit of something like $400,000 per year over the
next 8 years. To collect that, I assume that the “operations” will go up to
something like 70,000 per year, as I read in one projection. That’s 35,000
landings, or $13-14 per landing (including max 20% Vector fee). Hardly
outrageous.