KAZ Aviation encouraged by potential airport agreement STEPHENVILLE FRANK GALE The Western Star

Steve Bowlin, left, vice-president of operations with KAZ Aviation poses for a photo with Larry Smith, airport manager. — Star photo by Frank Gale

Steve Bowlin said his employer is looking for “diamonds in the rough,” and feels Stephenville airport falls perfectly in that category.

The vice-president of operations with KAZ Aviation, whose headquarters is in Nashville, Tenn., said he has been looking at an opportunity for business at Stephenville airport for about six or seven years.

When he helped form KAZ Aviation in early 2007 with principle owner Charles Carroll he brought forward the idea of looking at a fixed-base operation at the Stephenville airport. That conversation, however, turned to the need for a significant investment in fuel storage and supply.

“It was evident nobody knew what the future of the airport was to be,” Bowlin said.

He said the company is interested in helping the airport grow and is interested in turning it into a purchase, but to still have community involvement.

“It doesn’t take long to see the potential of this airport,” Bowlin said. “It just needs the right marketing plan to let everyone know Stephenville airport is open for business.”

The company is aware the core business in Stephenville is in the international market with heavy and corporate aircraft. KAZ also sees a need for some domestic airline service.

“We would be looking at a service that would be complementary for the people of the local area rather than have competing schedules with Deer Lake,” he said. “I think it could work out to be a win-win for both airports.”

As for conncerned if the business did not work, Bowlin said there would be some type of a reversion clause to return the airport to the Town of Stephenville or the Stephenville Airport Corporation.

“Our intent is to grow the business, and we know we’ll be competing even on the international business with Deer Lake, but view it as more of a healthy competition versus adversarial,” he said.

The plan for the airport involves three phases of capital improvements. Firstly, it will look to increasing fuel capacity and supply along with improvements in ground equipment. Those improvements, which would be almost immediate would cost in the range of $700,000 to $900,000.

Phase 2 involves a construction upgrade of the facilities, including a facelift and modernization of the commercial terminal, and construction of a second fixed-based operation for corporate and international traffic, which would be a new building.

“This would have pilot and customer amenities and the style of the building would look like a ski lodge,” Bowlin said. “We anticipate to begin this work after the first year with a capital investment amount of between $1.8 and $2 million.”

Phase 3 will be centered on airport development, and the attraction of international freight operators.

“Our market research shows these types of aircraft fly directly over Newfoundland and Stephenville would be a perfect place for them to stop,” Bowlin said. “With the asset of an 11,000-foot runway with the capability of handling anything from a corporate plane to the space shuttle, this airport is ideal.”

A warehouse-type operation would we required to sort freight to move it from one aircraft to another. Phase 3, depending on the size of the freight operation, would be in the area of a $1 to $2 million investment.

Bowlin said staff levels at the airport would be brought back up, and then be conducive with the growth of the business.

He says he was encouraged by talks this week with the Long Range Regional Economic Development Board, Stephenville Town Council, Bay St. George Chamber of Commerce, Stephenville Airport Corporation and the Atlantic Canada Opportunities Agency.

Bowlin says he hopes a deal is forthcoming.

“If we can reach an agreement it could be in place as early as three weeks with closing in 60 days after reaching such an agreement, giving us a target date of February 2010,” Bowlin said.

He said the company sees potential in Stephenville airport and views this as an investment in the future.