Airport board closer to reaching KAZ deal

Officials with Stephenville Airport Corporation are closer to reaching a possible deal with KAZ Aviation, the American fixed-base operations business that expressed interest in taking over operations at the cash-strapped facility.

Corporation Chair Shawn Tilley told the Georgian that the board, along with members of town council, approved a letter of intent from KAZ at an airport board meeting last week.

He said the board and town have made modifications to the 20-page letter, which they have returned to KAZ.

"It's still in negotiating," he said of the deal and letter of intent.

Mr. Tilley noted some modifications include a possible royalty to Stephenville Airport Corporation, a piece from the town council regarding property tax for the airport facility and a piece regarding the transfer of the facility's assets should KAZ pull out some time in the future.

"Those are the three main issues," he said. "The letter of intent basically says we've come to an understanding on all those things, although it is not yet legally binding on either party. We're working to refine the language."

Mr. Tilley said the board hopes to hear from KAZ shortly and look forward to moving things toward eventually signing a contract.

"This is a big step for us, this is basically everybody coming together saying we can do a deal," he said.

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Mr. Tilley also said the airport board has been approached by a private sector business asking the board to supplement the cost of bringing flights into the region.

Mr. Tilley said the board is working with the Airport Citizens Action Committee to look at ways to support any possible outside investment.

"We are working on a joint approach to support any private sector initiative to increase domestic flights here," he said.

Mr. Tilley noted the board decided not to raise its airport improvement fee to $30 from $20, as was decided last November. He said the goal in keeping that fee low is to make the airport more competitive in its pricing.

While he could not comment on the identity of the business or possible deal, the Georgian confirmed that Atlantic Escapes Travel business owner Tony Young is negotiating a deal with Ontario's Porter Airlines to possibly bring flights into the Stephenville Airport for an undisclosed amount of time.

Mr. Young told the Georgian on Friday a deal with Porter was close to being reached.