George Ford wrote a new blog post: Merger of airport fixed base operators in holding pattern

CEDAR RAPIDS ? A proposed merger of the two fixed-base operators at the Eastern Iowa Airport remains on hold as negotiations between the airport and Landmark Aviation have failed to reach an agreement on performance standards.

Houston-based Landmark Aviation has reached an agreement to acquire PS Air, a privately owned Cedar Rapids FBO. The agreement is contingent on the Cedar Rapids Airport Commission approving a 20-year lease assignment with Landmark for three buildings housing PS Air?s operations.

In the interim, Landmark and PS Air continue to operate as FBOs at the airport. Fixed base operators provide aircraft services such as fueling, hangaring, tie-down, parking,?rental and maintenance.

Commissioners?on June 25 approved a resolution assigning the building leases from PS Air to Landmark Aviation through 2031, with provisions setting specific performance standards to assure fair, competitive pricing and levels of service. Airport Director Tim Bradshaw on Monday said Landmark has not agreed to the performance standards set by the airport.

?We do not have an agreement,? Bradshaw said. ?The negotiations are not going anywhere.?

In the interim, Landmark and PS Air continue to operate as fixed-base operators at the airport. (George C. Ford/The Gazette)

Landmark had sought airport commission approval to complete the merger by July 1. When the airport and Landmark could not reach agreement on the terms required by the airport, the merger did not occur.

?This will be a 20-year marriage, so we want to make sure we have adequate measures in place,? Bradshaw said. ?Any change in the lease agreement would require it to come before the commission again.?

The leases with PS Air are set to expire in 2017. Landmark requested the extension to 2031 to allow it to amortize the financing needed to purchase PS Air?s assets.

The Cedar Rapids Airport Commission will meet Friday for its regularly monthly session. Bradshaw said the Landmark matter is not presently on the meeting agenda.

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Source: http://thegazette.com/2012/07/09/merger-of-airport-fixed-base-operators-in-holding-pattern/

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