A group of pilots at Colorado’s Centennial Airport has taken its fight over steep hangar rent increases to court, escalating a dispute that has drawn the attention of the Federal Aviation Administration (FAA) and aviation advocacy groups.
The lawsuit stems from a series of administrative complaints filed earlier this year after tenants at the Denver jetCenter FBO were notified that monthly rent for the airport’s “Town Hangars” would increase from $660 to $1,200 beginning April 1. Tenants contend the increase is unreasonable for hangars at a publicly funded airport and argue it violates the FAA’s requirement that aeronautical fees be “fair and reasonable.”
The recently formed Centennial Pilots Association says the dispute is about more than a single rent increase. The organization argues that rapidly rising costs and changes to lease terms threaten the long-term affordability of basing aircraft at Centennial Airport and could price many general aviation pilots out of the airport. The group has established a legal defense fund to help finance the case.
The Aircraft Owners and Pilots Association (AOPA) caught wind of the issue and together with the Colorado Pilots Association challenged the proposed increase, sending a joint letter to airport leadership questioning its justification. The organizations argued that many of the FBO’s premium amenities primarily serve turbine and corporate operators rather than piston aircraft owners renting the town hangars, and urged the airport sponsor to ensure the rates comply with federal grant assurances tied to public funding.
After negotiations failed to resolve the dispute, tenants filed a Part 13 airport compliance complaint with the FAA, which remains under review.
“While the FBO’s argument that they are exempt from airport grant requirements because they, too, are tenants fails to pass a commonsense test, it will be an expensive proposition to prove that in court,” said AOPA Northwest Mountain Regional Manager Brad Schuster. “If jetCenters of Colorado prevails, it is only a matter of time before other FBOs impose egregious fees with no attempt to justify them.”
Would be relevant to know the hangar rates over tha past 10 years or so. Certainly at smaller airports rents are seldom increased to avoid a pilot revolt. But inflation is real and if you wait many years to keep up with inflation and finally increase the rent to where it should be, it’s total shock. Not saying that’s true in this case but the fact is that corporate aviation tends to pay what the market will bear. And it’s a lot. A medium size corporate bird will gladly pay $15k/month and the large boys such as Gulfstreams are in the $30k/month range at metropolitan airports.
Joe Jetstar offers a very real truth. I am curious if the Centennial Pilots Association has researched and offered to construct their own hangars.
is the publicaly funded airport raising the rates for the FBO or is it just greed ?
I have a very dim view of thinking that the inflation we are and have experianced in the cost of goods has anything to do w the costs of hanger use.
So what is the cost of the hanger and what of that cost in affected by inflation!
Steel nope it is made
Grease how
Much ca be used
Repairs how often is the FBO fixing the hangars
Land rent
Only if the land the airport is on is rented
If the FBI is trying to raise INCOME to cost
Other costs that is another arguement but waht costs. Fuel that is in tha price at the pump etc
Paint and maintenance of the facility
If that w
Has increased this much then the contracts need to be reviewed
82 percent is gouging
Unfortunately the land the port-a-ports and small hangars occupy is much more valuable if it’s turned into giant Gulfstream/Global/ Falcon 900 sized hangars à la Sky HarboUr or Signature so their asset (land) is underperforming greatly while their neighbors are throwing up super large hangars and making a killing. If the government wants to underwrite general aviation, they are welcome to but this is a private enterprise. It’s funny that a relatively well off group now understand how poor people feel when their neighborhoods are gentrified.