Hickory to build, operate fuel depot at airport

HICKORY, N.C.,None — The City of Hickory is getting into the aviation fuel business.

Hickory City Council approved a grant agreement Tuesday night that would combine city money with federal funds to build a new aviation fuel farm at Hickory Regional Airport. The new fuel depot will be owned by the city and operated by certified Hickory staff.

Hickory will spend $34,391 on the project. The federal share coming through the N.C. Division of Aviation is $309,515.

The city's involvement with an airport fuel farm, according to information presented to the City Council, is "to ensure a reliable supply of AV-Gas and Jet-A fuel to its customers."

There are two fuel farms at the airport now. Both are owned and operated by River Hawk, listed as the fixed-based operator. One facility was constructed in the early 1990s and the other in the mid 1980s. According to Hickory officials, both fuel farms need maintenance and upgrading. Neither is in compliance with EPA regulations on fuel tankers and fuel trucks.

River Hawk has filed for Chapter 11 bankruptcy reorganization. Chapter 11 acknowledges that a business cannot pay its creditors. The business can continue to control its operations as a "debtor in possession," but is under the oversight of bankruptcy court.

Information given to the City Council states, "As of November 10, 2011, the (EPA) requirements must be met or the FBO (River Hawk) will be out of compliance and could potentially face fines from EPA." The report said River Hawk has run out of Jet-A fuel in the last several months.

Hickory officials call the situation "urgent." They would not speculate if the city could eventually administer the sale and distribution of all fuel at the airport in the capacity as fixed-base operator, or if it could find itself in competition with an FBO such as River Hawk.

Bids on the project must be taken, and the new fuel farm is targeted for completion by mid-December.

This is not an unexpected move by Hickory. A 2006 Hickory Regional Airport Task Force report recommended marketing of the airport and the promotion of its assets, including "increasing revenue (at the airport) by selling fuel to general aviation aircraft."

The fuel depot proposal, among items on the council's consent agenda, was adopted unanimously.

FAST FACTS

Hickory Regional Airport opened on May 17, 1940. Currently, there is no commercial carrier operating at the airport, but charter service is available. The airport is home to business and private aircraft. It averages approximately 125 aircraft operations per day, according to the FAA.

River Hawk Aviation Inc. as the airport FBO, provides flight service and air charters, aircraft management and fractional ownership, aircraft maintenance, hangar space and fuel, among other services.

AV-Gas is gasoline fuel for internal combustion piston engine aircraft. It is volatile and is extremely flammable at normal operating temperatures, indicating the strict EPA and safety regulations for handling at airports.

Jet-A is a kerosene fuel specifically for turbine engines. It is one of the two most common jet fuels used in commercial aviation in the United States, suitable for jets and turboprops – airline, private and charter craft.

A fixed-base operator, according to the Federal Aviation Administration, is a business that provides aeronautical services at an airport such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft maintenance, or flight instruction. FBO status is awarded by a public-use airport's owner, also called a sponsor. In this case, that's the city of Hickory. The sponsoring municipality may be the FBO.

WSOC