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DBIA ground leases a significant source of airport income

Although many people may not realize it, the new Courtyard by Marriott Hotel is among the many tenants at Daytona Beach International Airport. The lease of Airport land for a wide variety of businesses is a substantial revenue source for the county-owned airport.

The Cancun Lagoon (formerly Rio Bravo) and Olive Garden restaurants, the Hilton Garden Inn, Hampton Inn and the rental car companies all have long-term leases with DBIA.

Over the past several years, non-aviation land use and revenues have been on the rise. The county is courting a number of prospective new tenants, including a fourth airport hotel. Other new uses include a recreational vehicle park between the entrance and exit road on Midway Avenue and a planned office technology park on the south side of the airport.


Dean Marchetti, 
Daytona Beach Jet Center general
manager.

County officials pointed out the Airport, although a department of Volusia County Government, is an enterprise fund. This means DBIA is run with revenues it generates from airport operations, not local property taxes. So land leases are an important revenue source.

On the aviation side, the future looks bright. "From an air service standpoint, we are fortunate to have won the confidence of major carriers such as Continental and Delta," said Stephen J. Cooke, director of business development for DBIA. Since 2000, Cooke said Delta Connection Carrier Comair has added nonstop service to Cincinnati. Delta Connection Carrier SkyWest has added nonstop service to Dallas/Fort Worth. Continental Express has added nonstop service to New York City (Newark Liberty International Airport). Vintage Props & Jets also has expanded its charter service to the Bahamas by offering more frequency and larger aircraft.

"All of this adds vitality to the airport, improves service for residents, tourists and business travelers and has a positive effect on economic development efforts," said Cooke.

An Economic Impact Analysis by the Florida Department of Transportation in August 2000 for Florida's public airports estimates that DBIA accounts for 4,000 direct and indirect jobs and generates an annual payroll of $90 million with overall airport annual economic impact to the community at $300 million.

Corporate aviation and general aviation are an important element of the airport's economic impact. There are three fixed based operators at DBIA - Daytona Beach Jet Center, Yelvington Jet Aviation and Executive Flightline Services.

Dean Marchetti, general manager of the Daytona Beach Jet Center, said business is brisk these days. Fuel sales have climbed steadily, rebounding nicely since the tragedies of September 11, 2001, which rocked the aviation industry.

"Service business also is good and our avionics business is booming, as more aircraft owners are upgrading communications and navigation equipment," he said.

"The general upswing in corporate and general aviation is having a positive effect in all areas of our business."

As a result, Daytona Beach Jet Center, a holding of Sheltair, Inc. LLC, is adding more corporate hangars and is designing a new executive terminal.

Across the field, Yelvington Jet Aviation also is expanding. This FBO has done well since it commenced operations in 1998. Yelvington has two buildings and is constructing a third. It concentrates on the corporate aviation market and has designed its facilities for business professionals and corporate flyers.

In May, Yelvington Jet Aviation was selected as the second best fixed based operator in the United States through a well-recognized bi-annual survey conducted by Aviation International News (AIN). The AIN survey included 283 FBOs throughout the nation and is based on thousands of survey responses from pilots and flight departments who use these types of facilities.

Having the main campus of Embry-Riddle Aeronautical University, the world's leading aviation and aerospace university, adjacent to DBIA is a big plus. Embry-Riddle and Daytona Beach International have many common interests.

Among them is the innovative concept of making DBIA a "teaching airport," where ERAU students get a hands-on experience in airport operations and management.

 

 

Department of Economic Development
700 Catalina Drive, Suite 200
Daytona Beach, FL 32114
Telephone:
386-248-8048
FAX: 386 238-4761
Toll Free: 800-554-3801

Phil Ehlinger
Director
doed@volusia.org

 

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