Airport director reports slight June traffic dip, outlines taxiway, checkpoint and fuel-farm plans and funding steps

Jose Sadev, the airport director, told the Bangor City Business Economic Development Committee on Monday, Aug. 4 that passenger traffic showed a small decline in June but that longer-term trends remain positive, and he outlined multiple capital projects and near-term financing steps.

“We did see a slight dip in the numbers for the month of June,” Sadev said, attributing the decline in part to runway construction and to broader industry softening. He said the airport has seen an increase in flights and aircraft size overall and that staff will “continue to monitor to make sure that it's just a blip, not a major thing.”

Sadev described active project planning on several fronts. On a proposed consolidated rental-car facility, Sadev said city attorneys determined “the authority is already in place through, ordinance for us to levy the charge,” and that the airport plans to hire a third-party consultant to analyze transaction data and recommend a fee structure and draft agreements modeled on examples such as Portland’s airport.

On airfield work, Sadev said engineers’ very early estimates for a taxiway project—based on a recent Portland project—fell “somewhere between 15 to 25” (million dollars). He emphasized the taxiway work can proceed without complete closures—so it should be less disruptive than recent runway construction—and that the airport will discuss grant opportunities with the Federal Aviation Administration at a meeting in about a month.

Sadev also reported that the TSA checkpoint on the terminal’s second floor is becoming a bottleneck as passenger volumes rise. The engineering firm selected for that project has prepared initial designs; Sadev said the checkpoint project is in the “15 to 20,000,000” range and will link previous first-floor terminal redevelopment with the newer connector beyond security.

On the airport fuel farm, Sadev said the existing facility—transferred from the military decades ago—requires relocation inside the airport perimeter fence because a pipeline from the fuel farm currently crosses a public road three times. He said initial, informal estimates he had seen previously were incorrectly very large; after technical review and attending a fueling-facilities conference, staff now believe the relocation-and-upgrade cost is nearer to $15,000,000. Sadev noted federal grant programs generally do not cover fuel-farm projects, so staff will evaluate bonding, airport cash or other financing strategies.

Sadev told the committee that fuel sales generate roughly $8 million to $10 million in annual revenue for the airport; he said although gallons sold may be below budget, net revenue from sales is above budget because of differing profit yields across customer segments. He said selection of an engineering firm specializing in fueling facilities is near completion and that design work will provide a refined cost estimate.

Sadev raised a federal policy issue: current law caps the passenger facility charge (PFC) at $4.50 per enplanement, a rate unchanged for over two decades. He described proposed federal legislation to raise the cap gradually—first to $5.50, then eventually to $8.50 tied to a price index—and asked whether the committee would support coordinating with industry groups and potentially sending a letter to the city’s congressional delegation. Committee members expressed support for advocacy but noted the issue will require coordination with national trade associations and other airports.

Committee members asked questions about costs, federal grant eligibility and timing; Sadev said staff will return with more detailed designs, consultant reports, and proposed agreement language for committee consideration. No formal votes were taken on any of the airport items during the meeting.