Landmark purchase of PS Air will be completed on Friday

CEDAR RAPIDS - A proposed merger of the two fixed-base operators at the Eastern Iowa Airport should be completed on Friday following action Monday by the Cedar Rapids Airport Commission.

Houston-based Landmark Aviation has reached an agreement to acquire PS Air, a privately owned Cedar Rapids FBO. The agreement was contingent on the airport commission approving a 20-year lease assignment with Landmark for three buildings that house PS Air's operations and a separate, three-year fuel farm lease agreement.

The commission approved the 20-year lease assignment in June, but continued to negotiate the fuel farm lease to assure that aviation fuel pricing would continue to be fair in light of lack of competition.

Fixed-base operators provide aircraft services such as fueling, hangars for aircraft storage, tie-down, parking, rental and maintenance.

Airport Director Tim Bradshaw said the fuel farm lease, which was approved Monday, contains the assurances that the airport commission desired. The airlines serving the airport also have reached agreement with Landmark.

"We were afraid that pricing could drive some of our providers out of the market," Bradshaw said. "We wanted to make sure we had some protection measures in place to assure that would not happen.

"If we were to lose an airline over fuel pricing, that would have a detrimental effect on the whole community."

Landmark had sought airport commission approval to complete the merger by July 1. When the airport and Landmark could not reach agreement on the fuel farm lease terms required by the airport, the merger was held up.

The airport's leases with PS Air are set to expire in 2017. Landmark requested an extension to 2031 to allow it to amortize financing it needs to buy PS Air.

Landmark Aviation is one of the largest FBO chains in the world, with 41 locations in the United States and 11 in Europe and Canada. The company, legally known as Piedmont Hawthorne Aviation, bought Signature Flight Services's operations at the Eastern Iowa Airport in May 2000.

Gordon Peterson and Joe Spreitzer started PS Air, 3411 Beech Way SW, in 1991. It acquired Tibben Flight Lines in January 1996. The company has grown from two full-time employees to more than 25 full- and part-time associates.