August 13, 2008

Airport Enters Fuel Business

Lancaster Airport Authority is getting into the aviation fuel business, to remedy recent shortages there.

The authority voted Monday to create LNS Alliance Aviation, which will sell fuel provided by supplier AvFuel of Ann Arbor, Mich.

Within 30 days, AvFuel will provide gas and jet fuel, plus $40,000 to advertise LNS Alliance Aviation.

The airport expects to sell about 380,000 gallons of jet fuel and 80,000 gallons of aviation gasoline in its first year.

Two businesses, Airways Inc. and Tower Aviation, now sell fuel at the airport, but authority officials said pilots have complained that fuel is either unavailable or insufficient.

To get into the aviation fuel business, the authority agreed to buy two existing Airways tanks for $85,000, and a fuel farm and a fuel truck from Tower Aviation for $125,000.

Airport manager Dave Eberly said selling fuel will provide increased income for the authority, but "we're more motivated in meeting our customers' needs and growing business at the airport."

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