Letter: Keeping current airport operator would not be in best public interest
Honorable councilmembers and airport commissioners,
– The city is currently evaluating options that were generated from a request for proposals (RFP) process that has been ongoing for just a little over a year. As an airport business owner involved in and knowledgeable about our airport environment, I felt it was important to share my perspective and opinion as a matter of perspective for the decision-makers.
My interest is to help the airport grow and thrive as a vital and all-inclusive community asset. I have had ample opportunity and the privilege to participate in and observe this process from the beginning. I appreciate the city’s effort to reach out to stakeholders and cognate airport partners to assist in their evaluation leading to the next airport full-service fixed-based operator. An FBO is a business on the airport that provides aviation fuel, maintenance, and other services required by visiting aircraft and aircraft based right here in Paso Robles.
There is only one full-service FBO authorized by the city to provide these services. The big difference in this offering is that it provides for a much longer term if a company is willing to make a significant financial investment in airport infrastructure. This might include an enhanced terminal building, aircraft hangars, and other facilities. This term could be up to 40 years, so it is extremely important to select the right company to provide service to the airport.
Paso Robles is a mid-sized municipal airport that mostly serves piston engine, general aviation aircraft, some larger twin-engine aircraft, in addition to turboprop and other turbine aircraft (jets), No large Boeing or Airbus airliners here. We don’t have scheduled airline service and there is no plan to establish such. We don’t have a control tower. We rely on pilots to provide aircraft separation while operating to a safe take-off and/or landing. Over 70% of the daily operations are made by piston-engine general aviation aircraft. 99% of our local, tax-paying, Paso Robles-based and registered aircraft are also, not surprisingly, piston engine general aviation aircraft. These numbers reflect the current aviation market appropriate for our area.
When the deadline came for the submission of proposals to address the city’s requested conditions, two companies responded: ACI Jet (Aircraft Consultants Incorporated) and Loyd’s Aviation from Bakersfield. ACI Jet is the current contractor and they have been on the airport for 13 years. After the two proposals were submitted, The city began its evaluation with a financial capabilities analysis, reference check, and overall compliance to the city’s stated desires. Both proposals were considered viable so a deeper look into each response was undertaken. To assist in the process, the first of two committees was formed. This first group performed a paper review of each proposal to determine if the contractor had complied with the conditions of the RFP. Loyd’s Aviation was rated higher than the ACI Jet proposal. A second committee was formed that provided the respondents an opportunity to present their proposals in person. This committee was allowed to ask clarifying questions of each company. Once again, Loyd’s Aviation was rated higher in this second evaluation.
In December of 2023, a joint session of the city council and the Paso Robles Airport Commission was held. At this meeting, it became public that ACI Jet was not the preferred choice of either evaluation committee. In response, ACI Jet renewed a public lobbying campaign. Earlier in the process, ACI Jet was admonished by the city for not complying with the anti-lobbying provisions of the RFP. The decision before the council was to select a provider and begin negotiations, leading to a formal contract. All the specifics pertaining to services provided and facilities developed would be determined in these negotiations. Here is where the process has become bogged down in political theater and corporate shenanigans.
At that December 2023 session, the City Council determined that they needed more information before they could approve negotiations with a selected vendor. They formed an ad hoc committee made up of two council members and two airport commission members. The ad hoc committee sought additional information and clarification. The city attorney and an outside airport consultant were engaged to compare and interpret the particulars of each proposal. This same consultant had just completed an extensive airport analysis at KPRB earlier in the year.
This is where the fireworks really began. ACI Jet has had 13 years to prove its value to the city. Two separate evaluation committees determined that a better choice for the Paso Robles Airport was Loyd’s Aviation. Since ACI Jet could not prevail in the fair, legal process, they have embarked on a campaign of disinformation, propaganda, and misrepresentation of their history and intentions for the future of the Paso Robles Airport. The process of awarding government contracts is not and should not be based on popular public opinion.
Outside public lobbying to gain government favor is unethical and, in some cases, illegal. Contracts are not awarded based on public pressure. The best proposal that complies with the requests of the represented government officials prevails. Allowing a large corporation to bully and intimidate a local government body into a decision is a dangerous precedent to set.
The ACI Jet-sponsored misinformation campaign began with Bill Borgsmiller gleefully participating in an interview on KPRL radio that could only be described as a hit piece. In what I would call a classic work of yellow journalism, Borgsmiller did his best to cast doubt on the legitimacy of the RFP process and the competence of the city officials. The tactics that ACI Jet has employed can best be described as deny, distract, and discredit. The mayor was painted as having a conflict of interest supposedly due to his family business in the airport economic area. The city manager was depicted as a Bakersfield sympathizer because of his previous employment over 25 years prior. The airport manager has been maligned as being biased against the current FBO. The volume and depth of the deny, distract, and discredit game plan have been astounding.
Most recently, ACI Jet has expanded its lobbying and propaganda efforts through a flashy online social media and radio campaign. They posted what they represented as their proposal and attempt to shame the other respondent for not posting theirs. Any claim made that their proposal is better is baseless because they don’t exactly know what is in the other proposal.
By their own admission, the other proposal has not been released to the public. Deny, distract, discredit. Many letters favoring ACT Jet have been generated by this propaganda machine through what appears to be artificial intelligence. These letters can only be categorized as misinformed volumes without substance.
I have nothing but respect for the other company in the process, Loyd’s Aviation. They have put in significant effort to understand our airport environment, its needs, and the city’s character. Loyd’s management has taken the time to speak with most every aviation-related business on the airport. I have run a flight school at Paso Robles for the past six years and I have never had a conversation about my business with anyone from ACI Jet. Loyd’s Aviation developed a proposal that completely complied with the city’s RFP from the start of the process. They prevailed in two separate evaluations. They have endured the attacks of ACI Jet with poise and class. They are not a small company. They have provided ramp services, aircraft management, airport property management, and aircraft maintenance to all types of aircraft for over 65 years.
They have provided service to small piston engine general aviation aircraft all the way to large commercial and military jets, including Air Force 1. Their business model is based on safety, integrity, and customer service for any operator in the aviation spectrum. Loyd’s mission statement says it all: “Our mission: The mission of Loyd’s Aviation is to maintain the highest level of safety and customer service in the aviation industry. It is with pride and integrity that we honor this commitment to our customers and offer the best products as efficiently as possible.”
In comparison, ACI Jet maintains a business model that focuses on handling, managing, maintaining, and selling high-end business jets. Don’t get me wrong, they are very good at what they do. The point is that their provided services and the exclusion of others are not market-appropriate for Paso Robles. It has become obvious to me over the years that ACI Jet views piston-engine general aviation aircraft as a liability and nuisance to their business goals. Their vision statement pretty much sums it up: “ACI will be the premier Bombardier maintenance and parts provider on the West Coast while serving as a bespoke aircraft operator that is well known for its distinctive FBOs and depth of connections and resources through its Freeman Holdings Group (FHG) family.”
The Freeman Group is a Million Air FBO franchisee that has 14 separate civilian facilities across the country and serves two military installations in Southern California. The Freeman Group, according to their website, does not provide any kind of aircraft maintenance whatsoever. They specialize in handling and fueling large corporate and military jet aircraft. In 2019, ACI Jet sold a significant stake in their business to the Freeman Group. It can be concluded that decisions at ACI Jet are no longer made solely on a local level. To say that they are a local company is just another statement of half-truth. More deny, distract, and discredit.
To me, all of this seems counter-intuitive to the overall health and well-being of the Paso Robles aviation environment and the city the airport serves. I can guarantee you that every one of ACI Jet’s pilots started their training in a small two or four-seat piston-engine aircraft. Who is going to provide service to the flying public if we eliminate support for primary training aircraft? Nobody does their initial training in a multi-million-dollar jet aircraft. How will our future pilots be trained? General Aviation piston aircraft are also at a price point that makes aviation more accessible to a much wider portion of the population. Either through flight training or a scenic flight, almost anyone can afford to get into an airplane and experience the joy of flight. On average, completing a private pilot training course would cost someone between $12,000, – $14,000. Expensive, yes, but you can’t even buy a tire at that price for one of ACI Jet’s corporate turbine aircraft. Catering only to a class of citizens that can afford a multi-million-dollar jet is not in the public interest.
There is room for everyone at the Paso Robles Airport. The self-serving bad behavior of ACI JET should not be rewarded with a long-term contract. Loyd’s Aviation is a capable company that has acted with integrity and can provide service to all segments of the airport community and our community at large. I ask the Ad Hoc Committee and the City Council to approve entry into formal contract negotiations with Loyd’s Aviation toward becoming the next full-service FBO at the Paso Robles Airport.
Sincerely,
– Kendall K. Pearson, Owner, Air Paso Flight Services
Editor’s note: Opinion pieces and letters to the editor are the personal opinions of the authors and do not necessarily reflect the views of the Paso Robles Daily News or its staff. We welcome letters from local residents regarding relevant local topics. To submit one, click here.
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