Generating money is the primary goal for any General Aviation Airport, so having the airport owner fund, build and manage a hangar project is frequently the best approach. If the owner is not supportive, then finding a private source for funding, construction, and operation will be the most attractive alternative. The key will be your financial analysis.
After exploring the alternative approaches, it is critical to assess the financial impact of each on the airport’s operation. Take the past financial history of the airport’s operation, include the impact of the new hangars, and project the result.
You will need to get budget-type estimates for the various alternatives you reviewed in the prior step. Look into revenue, operating expenses, and capital costs/loan obligation payments. Remember to include an estimate of increased fuel sales revenue (and the other miscellaneous items that would increase) based on the number of aircraft based at the airport. A cost-effective source for such information can be obtained from prior projects at your airport or neighboring air- ports, adjusted for inflation and differences in scope. Use an airport consultant or engineering contractor to generate budget type estimates.
Once you have gathered the pertinent information, run the financial projections out at least 10 years, applying inflation-based adjustments for operating expenses and revenues. During this 10- year period, you likely will see that existing loans may be fully paid off, generating the potential for increased positive cash flow and other benefits. These are all important to document in the final business plan as justification for the project.