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Flagstaff staff propose consultancy, hangar strategy and new airport revenues to boost operations
Summary
Economic development staff said the airport has multiple near-term revenue opportunities — hangar development demand, vending/‘grab-and-go’ success and possible advertising — and recommended hiring a consultant to prioritize options. Council members urged pursuit of hangars and more flights.
Economic vitality staff told the council Friday that Flagstaff Pulliam Airport has several near-term revenue opportunities, and they recommended hiring a consultant to evaluate and prioritize actions such as hangar development, advertising, concession expansion and other revenue-generation measures.
Heidi Hansen, economic vitality director, said the airport team has compiled a long list of revenue ideas but lacks staff capacity to evaluate them all. “We are recommending to you…to get a consultant that actually has time to look into all of those revenue ideas and to look at, like, cities to see where we should place ourselves,” Hansen said.
Why it matters: Staff reported the airport’s paid parking and new concessions are performing better than expected: a pilot grab-and-go retail unit sold out quickly after opening, and parking usage in one lot is nearing capacity on some days. Staff also reported a waiting list of more than 100 hangar requests and suggested the city consider partnering with a private developer or third party to accelerate hangar construction, which would generate substantial revenue when developed.
Airport operations update: Staff noted the airport still faces limited airline service following the loss of a second airline during the pandemic but is pursuing additional carriers and flights. They also reported the airport’s CARES Act funding was used to upgrade facilities and that a small visitor-center/retail push has already shown demand; advertising at the airport, suspended during the pandemic, is being reconsidered with proposed zoning and signage adjustments.
Council reaction and next steps: Several council members urged staff to pursue hangar expansion and to return with details about partnership models. Staff said they will seek a consultant to produce a business case and pricing analysis, and then bring recommendations to council for decisions on leases, partnerships and possible adjustments to airport enterprise operations.
Ending: No formal approvals were made; staff will return with consultant scope, financial projections and recommended next steps for hangar development, advertising and concessions.
