Executive Q&A: John Knight

John Knight, director of the Arkansas Department of Aeronautics, has served for more than 20 years with the agency. The department’s mission is to create a safer, more desirable atmosphere for state aeronautical activities while improving airports to better serve Arkansas communities and industry.

What’s the state of the general aviation industry in Arkansas

In a word: Good. Not excellent, but good. Fuel prices have driven down activity. People are flying less. We have seen a decrease in our agency’s revenue stream, especially in the last eight months to a year. Our revenue is off $3 million from where it was last year. Fuel has become so expensive; it’s peaked. Our agency is funded entirely by aviation fuel taxes. About 95 percent of the money that flows in here, goes right back out to match grants and fund airport improvements. The only way we have to gauge that non-commercial business is the sale of fuel and aircraft services. The largest decrease is in aircraft sales. Sales will come back some, but we’re not sure how fast. We’re in the process of trying to put together some projections. Our budget was $15.6 million this fiscal year.

What are some of the highlights of current FAA-supported improvement projects in Arkansas?

There are about $40 million in federal money that will come into the state next year, and that will cover 78 different airports in Arkansas. That’s what we’re expecting to get from the FAA, money that has to be matched by the state. About 50 percent of that airport improvement projects money will go to four airports in the state: Northwest Arkansas Regional Airport, Clinton National Airport in Little Rock, Texarkana and Fort Smith. About $10 million is going to the new airports being built in Conway and in Colt (St. Francis County). The Colt Airport will replace municipal airports in Forrest City and Wynne. The remaining 72 airports will split $10 million. There are 91 airports in the state, but only 78 qualify for federal money. The matching program now requires a 10 percent match at the state level under the new transportation bill.

What’s the latest on efforts to maintain passenger service at some of the state’s airports?

We certainly support the Jonesboro, Harrison, Hot Springs and El Dorado airports. Right now, there is a measure of subsidized service at those airports, but it could go away. That has been a real question up in the air with Congress, not only in Arkansas but in the nation. All of us have felt the FAA cutbacks.

What does the future look like for employment opportunities in aviation-related fields in the state?

Good to excellent because airplanes are so expensive. People aren’t flying as many new planes, and that drives up the maintenance on older aircraft. There are opportunities for pilots too because the military is training and graduating fewer pilots. More pilots will have to come from the civilian sector. The future in aviation is business travel, light business jets. Business travel is going to be more important than ever, with the securities issues and everything. It won’t be overnight, but we’re starting to see a turnaround. It just hasn’t hit the revenue stream yet.