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Consultants outline options to convert Billings airport to authority; FAA approval, finances, and staff impacts remain open
Summary
A consulting firm told the Billings City Council it will deliver phase-one recommendations about whether to convert the city-owned airport to an airport authority, noting FAA operating-certificate steps, potential transfer of property subject to federal grant assurances, an estimated 12-month transition and a possible target of July 2027 if council approves.
A consulting firm presented its phase-one findings to the Billings City Council on March 23, explaining the process to evaluate whether the city should move its commercial airport from city sponsorship to an independent airport authority.
The consultant said phase one is an evaluation and recommendation stage that assesses the current governance model against alternatives, including an airport authority model used by most other Montana commercial airports. The consultant said stakeholder interviews, a financial review and a legislative analysis are under way and that the advisory committee — which includes representatives from the aviation and transit board, Visit Billings, the Chamber of Commerce and two council members — has been meeting weekly.
Why it matters: the consultant said an authority can offer more operational flexibility and regional participation, but a transition carries legal and financial steps, including an FAA operating-certificate application under 14 CFR part 139 and attention to federal grant assurances tied to airport property. The consultant estimated recommendations will be presented to council by the end of May and said a transition, if approved, would take roughly 12 months with a possible effective date in mid‑2027.
Council members pressed staff and consultants on several points: who the consultants will interview and whether one-on-one meetings with councilors pose an open-meeting risk, how stakeholder feedback will be aggregated, the costs of transition, and how employee compensation and benefits would be protected during any transfer. Consultant answers emphasized reporting trends rather than individual comments, and city staff said they will provide legal guidance to avoid prohibited serial meetings.
On ownership and grants: council members raised that the city owns airport property and that federal grant assurances often restrict disposal or non‑airport uses of land acquired with federal funding. The consultant said best practice for an ownership change would be a fee-simple transfer or a lease but cautioned that grant assurances and revenue-diversion rules could complicate transfers, potentially requiring repayment of federal funds if not handled correctly.
Next steps: the consultant will finish the financial review and transition-cost estimates, continue stakeholder interviews and present phase-one recommendations to the council at the end of May. Staff and the consultant will follow up with legal counsel on open‑meeting law implications and provide individualized briefings where consistent with state law.
