Kalamazoo, MI · Member since 2016 · 45 posts · 13 votes
I came across an uncontrolled airport for sale and was curios about it. How would I underwrite it? What cost can I expect for maintaining the airport? What can I expect from the government?
The best way to make a little money in aviation is to start with a lot of money. Is it a private airport, or public use? What is the identifier? Grass or paved runway? Instrument approaches or visual? Any aircraft currently based at the field, any hangars? Fly-in community, or airpark type of place?
Several small public airports have sold in northern Ohio in the past decade, and most are doing okay. Hangar space is at a premium in the area, but maintenance and insurance costs are rapidly rising. Several large hangars have been converted to indoor sport fields.
Most communities hate the local airport for the noise, and local governments hate them for the cost. Very tempting to tear up a runway, build houses, and collect the tax revenue. Look at what's happening in Santa Monica, and what Daley did to Meigs Field.
The best way to make a little money in aviation is to start with a lot of money. Is it a private airport, or public use? What is the identifier? Grass or paved runway? Instrument approaches or visual? Any aircraft currently based at the field, any hangars? Fly-in community, or airpark type of place?
Several small public airports have sold in northern Ohio in the past decade, and most are doing okay. Hangar space is at a premium in the area, but maintenance and insurance costs are rapidly rising. Several large hangars have been converted to indoor sport fields.
Most communities hate the local airport for the noise, and local governments hate them for the cost. Very tempting to tear up a runway, build houses, and collect the tax revenue. Look at what's happening in Santa Monica, and what Daley did to Meigs Field.
I spent almost 40 years in aviation and most of that time I operated out of small airports. As a revenue generator I think you're pursuing the wrong thing. If you love all things aircraft, then it could be a paying hobby but aviation is expensive and margins are thin. I stopped flying and went into full time REI.
I maintained a grass airstrip for nearly 20 years. It's a lot of mowing and trimming. There may be an opportunity to rent hangar space. Fuel sales would be a loser most likely. I have no idea about liability insurance with multiple users. Does the strip need to stay open in the winter? Snow plowing would be expensive and time consuming. It also can't be scheduled like mowing can. Although I'm pro aviation, this sounds like a money pit. Oh, deer and turkeys love long strips of mowed grass but aren't compatible with planes.
The best way to make a little money in aviation is to start with a lot of money.
This is awesome. Reminds me of a Richard Branson quote responding to the age-old question of how to become a millionaire - "Start with a billion dollars..."
@John Pelaez thanks for asking a really interesting question. Not just because I'm a retired aerospace professional with a perennial interest in aviation as well as RE investment, but because it's refreshing to see something other than a "starting out" question in the forums. Thanks for posting. Cheers, Dave
@John Pelaez with it being in Michigan my first thought is to understand how many grow houses you can fit on the land and underwrite it that way! Much better revenue generator! in all seriousness what a great idea, would be interesting if you could find a way to make the business model profitable for that area...anyway to start a brewpub or something that overlooks the airstrip?