News - Stephenville International Airport

Stephenville Airport Corporation has asked the provincial government for money to keep its doors open while it negotiates with a third-party operator.

Airport board members met with provincial government representatives last week to lobby for interim financing for the airport, following a motion from Stephenville Council.

Council made the motion at a recent special meeting held to discuss the airport's business plan. It was decided at that time the town would no longer provide funding to the airport and that they should instead turn to the province for funds.

"What we're looking for from government is ... 100 per cent funding," said Shawn Tilley, board chair. "Basically, our airport, we don't have enough revenue generated to contribute at all to any external funding application."

Not having the funds to contribute could mean the airport may be ineligible to receive funding from programs that are based on cost-sharing, which Mr. Tilley says right now is a definite worry for the board.

He says he thinks the business plan shows that the issue of funding could best be resolved through a combination of either government or private sector funding. He said negotiations with US based KAZ Aviation are ongoing.

"I think it's incumbent on the community to understand that a private sector solution - whether it's a whole takeover or partial - is probably going to be in the cards," he said.

"I think it's an excellent alternative, anyway. There's private sector airports all over the world. They run really well and profit and make things happen."

He says it is with that knowledge he feels the community should come round to the idea that should a private company such as KAZ take over airport operations, it could mean long-term sustainability as opposed to what is happening with the airport at present.

"We're always in financial crisis, but we're moving quickly into the abyss," he said.

Mr. Tilley says the board must now wait to hear back from the province on the issue of interim funding. If none comes through, he says it could mean layoffs or the facility's closure.

MHA Joan Burke told the Georgian late last week that from that meeting, government must now decide if they can provide the funding to allow the airport time to negotiate with that third party.

"We certainly understand that we don't have a lot of time here to make a decision and I anticipate we'll have a decision from government probably in the next week or two," she said.

The airport had been subsidized by the Town of Stephenville since September, when it came onside with grant money to help the facility with repairs to its hillside signal lights and to help make it through the winter. That initial $200,000 investment grew to include funds for the creation of a business plan and accompanying audit. Speaking to the local Rotary Club recently, Stephenville Mayor Tom O'Brien said the town's investment into the airport since September of 2009 had grown to $400,000 - about 16 per cent of the town's total property tax revenue.