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Commission asks staff for market analysis of airport fuel flowage fee
Summary
Commission directed staff to analyze comparable airports and fuel flowage fee options after reviewing a Bureau of Aeronautics market survey; commissioners and the FBO cautioned that raising fees could reduce volume and have mixed revenue effects.
Commissioners reviewed a Wisconsin Bureau of Aeronautics rates-and-charges table and discussed whether Middleton’s fuel flowage fee can be adjusted to generate additional revenue for airport operations and improvements.
Commissioner Charles said the flowage fee is one of the instruments available to raise airport revenues and asked staff to perform a competitive-market analysis across a 50-mile radius. "The fuel flowage fee is one of those items that we have at our disposal for bringing money into the airport," he said. Staff and the FBO warned that higher flowage fees can discourage transient fuel purchases and reduce volume; the FBO noted recent and projected revenues tied to the current flowage structure and highlighted that distribution costs and market positioning affect price sensitivity.
The commission asked staff to expand the analysis to include regional comparables, fuel prices, and related revenue sources (land leases, solar/ag leases, tie-down fees) and return with findings, allowing the commission to weigh elasticity and enterprise-fund tradeoffs in a future meeting.
