Kenai Airport Commission presses options as Crowley cites low fuel margins and high upgrade costs
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Summary
Commissioners were told Crowley, the airport fuel vendor, earns roughly $50,000 from fuel sales and says that does not justify a $200,000–$300,000 tank and system upgrade; staff will pursue an RFP for a temporary fueling solution and expects more information by Dec. 1.
KENAI, Alaska — The Kenai Airport Commission spent a substantial portion of its Nov. 13 meeting focused on the airport’s uncertain fuel service after Crowley, the vendor that provides fueling, signaled it may not invest to replace aging equipment.
Airport staff told commissioners that Crowley reported about $20,000 in avgas and roughly $30,000 in jet fuel sales in a recent period, figures staff said fall far short of the $150,000–$300,000 cost estimates for above‑ground tanks or transfer‑pod installations. “They made 20,000 in, I think, avgas. I think they made 30 in jet fuel,” Mary, an airport staff member, said of the vendor’s recent receipts. Staff said those revenue levels make a private upgrade financially unattractive to the vendor.
Why it matters: Fuel availability affects general‑aviation pilots, flight instruction, floatplane operations and the airport’s attractiveness to transient aircraft. Commissioners said losing self‑service options could undercut the city’s broader investments in runways and facilities and deter pilots from basing or visiting Kenai.
Commissioners also raised the callout fee — the extra amount charged when staff must arrange a fuel delivery. Staff corrected an earlier reference to a lower figure, saying the vendor told the city the callout fee is $450. “That’s just unconscionable,” one commissioner said, arguing the fee makes small refuels economically unviable for many GA pilots.
What staff proposed: With the underground tank at the end of its useful life, staff said removal has been pushed back to 2026 and the city expects to issue a request for proposals (RFP) seeking a temporary fueling location. The staff presentation said FAA approvals will likely be required for some options and that a range of technical and fire‑safety reviews are in progress.
Next steps and timeline: Mary said she expects more information from Crowley around Dec. 1 and will report back to the commission at the December meeting. Commissioners asked staff to explore RFP responses that could preserve fuel access — for example, keeping the floatplane basin gate open and improving access so pilots can taxi to available fuel — and to clarify regulatory hurdles and likely costs.
Context and constraints: Staff explained costs commonly cited for modern above‑ground installations ranged from roughly $150,000 for simpler tanks up to $300,000 for more complex transfer systems, and fire‑marshal and insurance requirements can further raise expenses. Staff emphasized that Crowley has said it does not earn enough on current sales to justify that investment.
What was not decided: The commission did not vote on a specific funding plan or assume the city would take on retail fueling; staff repeatedly said the city is considering solicitations and options rather than committing to operate fuel sales itself.
The commission will revisit the issue at its Dec. 11 meeting, after staff follows up with Crowley and compiles responses to an RFP if one is issued.
