Title
AN ORDINANCE APPROVING THE SCHEDULE OF FUEL DISCOUNTS FOR FUEL SALES AT THE LEE’S SUMMIT MUNICIPAL AIRPORT. (F&BC 1-8-18)
Body
Key Issues:
· Fuel pricing and volume discounts are a major consideration when choosing to use an Airport and are used to attract and retain customers.
· The current Fuel Discount Program was implemented in 2014 and was designed to meet the needs of based aircraft that were capable of using a 4,000ft long runway.
· The Airport estimates that due to more corporate aircraft using the longer runway, the average Jet-A transaction will increase from the current 128 to 300-499 gallons per transaction.
· The Airport's Fuel Discount Program needs to be updated to reflect the change in customers using the Airport.
Proposed Council Motion:
FIRST MOTION: I move for second reading of AN ORDINANCE APPROVING THE SCHEDULE OF FUEL DISCOUNTS FOR FUEL SALES AT THE LEE’S SUMMIT MUNICIPAL AIRPORT.
SECOND MOTION: I move for adoption of AN ORDINANCE APPROVING THE SCHEDULE OF FUEL DISCOUNTS FOR FUEL SALES AT THE LEE’S SUMMIT MUNICIPAL AIRPORT.
Background:
The Airport is anticipating growth in Business and General Aviation aircraft using the Airport with runway 18/36 lengthened to 5501ft. Fuel prices and available discounts are a consideration when choosing to use an airport. The current Fuel Discount Program was implemented in 2014 and was designed around customers who primarily purchased 100LL and Jet-A for aircraft capable of using a 4,000 ft. runway.
The purpose of this program is to provide customers with fuel discount incentives to purchase more gallons of fuel per transaction. Today the average Jet-A transaction is 128 gallons and staff expects the average Jet-A transaction to increase to 300-499 gallons per transaction. In some cases, the Airport will be servicing aircraft capable of purchasing over 1500 gal. per transaction. The current fuel discount program only offers discounts up to 550 gallons per transaction. Because the Air...
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