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Flagstaff staff outline airport revenue opportunities: hangars, advertising, food service and consultant support
Summary
City staff reported airport revenues are recovering and described near‑term revenue opportunities including paid parking, new food services, reintroducing advertising, hangar development and a proposed consultant to vet revenue ideas; no formal action was taken.
City staff briefed council on recent improvements and revenue opportunities at Flagstaff Pulliam Airport and said more work is needed to turn ideas into implemented revenue streams.
Heidi Hansen, economic vitality director, told council the airport has started reestablishing non‑airline revenues since the pandemic, citing paid parking implementation, new food services and the potential long‑term income stream from a 32‑acre developable parcel whose proceeds would feed the airport enterprise fund. Hansen said staff has compiled a long spreadsheet of revenue ideas but lacks the staffing capacity to evaluate them all.
Why it matters: the airport lost service from a second airline during the pandemic and faces stiff fixed costs for operations; diversifying and restoring non‑airline revenue is central to improving the airport enterprise fund’s sustainability.
Specific opportunities and staffing needs Hansen said the city is considering bringing back airport advertising (previously suspended after local business concerns) and that staff has reached “middle‑ground” language that could allow advertising to return. She also identified hangar demand—staff estimated a waiting list of more than 100—and said a public‑private partnership or third‑party manager could generate substantial hangar revenue.
Hansen recommended funding a consultant in the upcoming budget so the city can test market fees, benchmark against peer cities, and assess the revenue potential and operating model for hangar development, advertising and other fees. She and other presenters also noted the success of a new grab‑and‑go product and the restart of paid parking as tangible signs of revenue recovery.
Council response and next steps Council members praised staff for airport improvements funded in part by CARES Act money and encouraged continuing recruitment of airlines and better monetization of non‑airline assets. No formal motion or vote occurred; staff said they will return with consultant scope and specifics for council approval.
Ending: Staff will include consultant funding in the recommended budget for further market analysis and return to council with recommended fee and program changes.
