Birmingham has agreed to extend its lease to the Birmingham Airport Authority by 25 years, from 2045 to 2070, to unlock new investments by aviation companies.
The extended lease will allow the airport authority to sign new contracts worth $72 million in investments by airline companies, Birmingham Airport Authority CEO Ron Mathieu said.
“Atlantic Aviation is investing $40 million; Million Air is investing $32 million,” Mathieu said in an interview after the council meeting.
He said their investments include building new hangars and tearing down some of the older existing facilities. The extension allows the companies to contractually work on 30-year term loans to finance construction.
“Birmingham’s been on the rise as far as the airport’s concerned,” Mathieu said.
“You have definitely cast a vision for our airport and enhanced the vitality of our community,” said council member J.T. Moore.
Birmingham owns the 400 acres the Birmingham-Shuttlesworth International Airport sits on and leases it to the Birmingham Airport Authority for $10 a year.
“The airport is a big component of the economic development of our region,” Council President Darrell O’Quinn said.
The airport makes a strong impression on visitors to Birmingham, Moore said.
“It’s a big deal,” Moore said. “That’s the first welcome that they receive.”
Atlantic Aviation has begun work on a redevelopment and expansion of its facility, hangars, and ramp at Birmingham-Shuttlesworth International Airport.
The redevelopment is scheduled for completion in early 2027, according to the company.
Plans include a new executive fixed base operator (FBO) terminal, fuel farm with increased capacity, and two hangars – each roughly 30,000 square feet.
There will be office and shop spaces and 28-foot main doors for handling globally capable aircraft.
About seven acres of additional ramp area with concrete hardstands for large group charter aircraft will also be added.
The 7,500-square-foot new executive FBO terminal building will feature a design that infuses luxury with functionality and a “significant dash of legendary southern charm,” according to the company.
There will be an open concept lobby and reception area, a café, multiple conference rooms, and a large crew lounge and flight planning area. A new training area is included, along with expanded offices and locker rooms for Atlantic team members.
Texas-based Million Air will invest a minimum of $32 million in Birmingham-Shuttlesworth International Airport. Signing a lease as a fixed base operator, Million Air will add a total of 94,000-square-feet in new development at the airport.
According to the airport authority, Million Air plans to build a new 10,000-square-foot terminal for pilots, aircraft owners and guests, military, and corporate business travelers.
It will also erect a new 24,000-square-foot Community Lite Aviation Hangar for smaller, privately owned aircraft.
And it will build two new 30,000-square-foot Community Corporate Hangars.
The new terminal and hangars will replace old ones at the current east side location, some dating back more than 50 years. The new facilities will make room for servicing and storing General Aviation aircraft of all sizes.
FBO’s are similar to full-service fuel and convenience stations that specifically cater to general aviation, commercial and military aircraft, offering several services. Million Air currently operates similar aviation businesses in 38 airport locations across the nation.
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