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TAC Air Lands Long-Term Deal at Clinton National Airport

4 min read

TAC Air of Dallas has committed to invest $11 million in capital improvements and more to benefit general aviation and commercial air service at Clinton National Airport in Little Rock.

In addition to upgrading facilities, the Texas company with Arkansas roots will donate more than 40 acres as part of a long-term operational agreement with the Little Rock Municipal Airport Commission.

The pecan grove acreage that will be given is on the eastern airport perimeter, near the northeast corner of Fourche Dam Pike and East Roosevelt Road.

“They gave it to us to sweeten the pot,” said Ron Mathieu, executive director of Clinton National.

The transfer of ownership hasn’t officially occurred for the land, but the contractual mechanics are in place to make it happen during the next few years.

The property will expand the airport’s holdings and provide flexibility for future development.

Another component of the agreement will shift some capital investment obligations from the airport to TAC Air. In exchange, the contract terms give TAC Air flexibility to invest and recoup more money over a longer time frame.

“They will be making significant investments moving forward,” Mathieu said. “Our whole position in this is if you want to continue being successful, you want to build in flexibility for the future.”

TAC Air will deploy the first $3 million to expand fuel facilities for both private aircraft and commercial airlines as well as make ramp improvements and renovate the executive terminal for general aviation.

“We are planning to provide a radically improved experience on the west side of the airport,” said David Edwards, TAC Air’s director of marketing.

“We’re still working with the architects on what our best options that construction permitting will allow. But the experience of business customers will be world-class as far as facilities, amenities and customer service go.”

TAC Air is scheduled to make additional investments of $4 million each during 2016-25 and 2026-35. The land transfer to the airport would count as $1.25 million toward the company’s 2016-25 commitment.

TAC Air has kept busy during the seven months since it entered the Little Rock market and consolidated its fixed-base operations at the airport.

The company acquired the Little Rock operations of Supermarine in August and expanded its presence by purchasing the operations of Central Flying Service in January.

The tandem transactions produced $5 million in cost savings for the airport, capital expenditures required under agreements with Supermarine and Central Flying.

The resulting TAC Air agreement relieved the airport of those financial obligations and pushed the savings to $6.2 million when the pending land transfer is counted.

The new lease agreement for the Central Flying operations alone will deliver a conservative $18 million in new revenue for the airport during its lifespan, according to Mathieu.

In addition to the reworked lease terms that benefited the airport, the Central Flying transaction was also a catalyst for helping make the land deal happen. The acreage is a Central Flying asset included in the sale to TAC Air.

Central Flying is leasing portions of its former property from TAC Air and continuing to operate its aircraft sales and maintenance, charter service and flight training business.

TAC Air has taken over Central’s fueling, hangar and ground handling services for general aviation as well as the airline fueling services of Central’s affiliate, Airport Services Inc.

Formed in 1939, Central Flying was the oldest fixed-base operator in Arkansas. Now, TAC Air is the FBO in Little Rock.

“I’m not sure if there is enough business for two FBOs right now, but we have room to add another when that situation changes,” said Bob East, a member of the airport commission.

The Little Rock airport once had three FBOs until Central Flying’s 2002 acquisition of Midcoast Aviation. Omni Air was replaced in 2006 after selling to Supermarine.

TAC Air made a run at building a new FBO operation in Little Rock in 2005 but was unable to make the numbers and site logistics work.

The company also made an earlier run at buying Central Flying but was unable to strike a deal.

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“The marketplace is forcing consolidation, and what’s happening in Little Rock is a very good example of that,” said TAC Air’s David Edwards.

“The truth of the matter is you don’t compete against FBOs at the same airport as much as you compete with the FBOs where the planes are coming from or going to.”

Arkansas is home to three TAC Air FBOs, more than any other state. Started in Texarkana in 1986, the company operates at the Texarkana and Fort Smith regional airports.

Little Rock marks the 14th airport among TAC Air’s chain of FBOs, and its extended footprint was appealing to the Little Rock Municipal Airport Commission.

“People here will have access to a network, and TAC Air will honor the same arrangements at their 14 facilities,” Mathieu said. “Their total focus is on customer service, which is something we’re really focused on.”

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