FRONT RANGE AIRPORT - Fuel Prices

Self Serve Fuel Profits

The FTG self-serve system (SS) was constructed by a private party and began operating March 1995.

March 2005 the Airport received a loan from Wells Fargo Bank and purchased the system for $124,800. Before the system was put back into service filters were changed and upgrades were made.

The Airport's number one priority is safety and a close second is keeping the system user-friendly. The fuel is monitored daily for contaminates that would adversely affect the safe operation of aircraft. Filters are changed on a scheduled basis and the tank is periodically emptied, inspected and cleaned. The tank was last cleaned August 2009 at a cost of $2,950. A new hose reel was installed 2008 at a cost of $3,500.

The SS system had an 18.6% increase in gallons sold for 2009 over 2008, dispensing 78,446 gallons of fuel.

During 2009 the Airport purchased $237,215 of 100LL for the system and collected $270,694. Gross profit of $33,479 was offset by $17,363 of expenses for maintenance, personnel, credit card fees, insurance, utilities etc. Every dollar of the $16,616 net profit was invested back into the airport, paying maintenance of the runway system, equipment, buildings and grounds.

Other considerations:

• The State rebates fuel tax of $0.04 for each gallon sold, back to the airport that pumped it. Last year FTG received $3,138 tax rebate for fuel purchased from the SS. Like profit those funds were put back into the Airport for projects like crack sealing.
• If fueling were a standalone business the Airport would maintain a higher margin or profits. The Airport; however, is driven by operations and low cost fuel drives operations, which is the life blood of an airport.
• Some airport operated FBO’s are in a unique position to deliver low cost, quality fuel to aircraft owners and operators.
• FTG is one of those unique airports because of its management structure, cross utilization of employees, and assistance from Adams County.