INTEREST IN FIXED BASE OPERATOR BUCKS OPPOSITE NATIONAL TREND

When Air Evac Lifetime Corp. considered becoming a fixed base operator at the Cape Girardeau Municipal Airport, company officials had to consider a disturbing trend.

William R. Chritton, Jr., chairman of the board of directors for Air Evac, in 1980 there were more than 10,000 FBOs in the country. But today there are only about 4,500.

"The trend is expected to drop as low as 2,000 FBOs serving 6,000 public-use general aviation airports by the year 2,000," said Chritton.

Revenues from fuel sales are no longer enough to give FBOs a sufficient return on their investment, he said. Today's FBO must offer such services as turbine maintenance or interior completions and charter services to stand out among the diminishing crowd.

So why would Air Evac and Prestige Air Services, yet another company bidding to become an FBO at the Cape Municipal Airport, want to get into such a risky business?

"It all goes back to why we're in business right now," said Chritton. "We do not do anything to fail. What you have to rely on above anything else is your integrity. If you lose your integrity, you've lost your soul."

Air Evac is in the process of buying the assets of Cape Central Airways, the current FBO at the Cape Girardeau Airport. Cape Central Airways and the city of Cape Girardeau are engaged in a lawsuit over an eviction notice. But if the city would approve Air Evac's bid, the legal battle would likely settle.

Neither Air Evac officials nor Prestige Air Services president Duane Beussink care to discuss the legal battle between Cape Central Airways and the city.

Beussink, who is bidding to operate a new FBO at the Cape Girardeau Airport, is venturing into new territory. But that doesn't worry the Cape Girardeau resident and businessman. "I see this as a very good aviation market to be in," said Beussink.

Air Evac, which operates out of West Plains, Mo., owns the emergency medical helicopter used by St. Francis Hospital. A weather-related Air Evac crash in December of 1988 ended in the deaths of two crew members and a patient.

Chritton said the crash was a serious setback for the company. But a flawless record since then has led to a safety award and a stamp of approval by the Federal Aviation Administration. Chritton said that he, Air Evac President James Lentz and Sherman Watson, director of operations, had 30,000 miles of flight experience.

Air Evac went over 5,000 hours in the air without an accident since the fatal crash in December of 1988. "We're not at all proud of the accident, but we are proud of our overall record," said Chritton.

Like Prestige Air Services, Air Evac would offer a myriad of services including aircraft maintenance, aircraft charter, conference facilities and flight instruction.

But what gives Air Evac an advantage is that the company has already discussed working with Leopold Corp.

William Frolich, an aviation consultant who is helping organizing Leopold Corp.'s bid to become an executive fixed base operator at the Cape Girardeau Municipal Airport, plans to provide a sophisticated array of services that could be shared by Air Evac.

Prestige Air Services has not had preliminary talks with Leopold Corporation. But Beussink said he plans to head an FBO at the airport in the near future.

"We will be operating as soon as the city council gives us its approval and the FAA gives us a 135 certificate," said Beussink, who said he would need three to five months to begin an FBO operation at the airport.

A 135 certificate is required by the Federal Aviation Administration for fixed base operations. The filing and approval process takes between 30 to 60 days. Air Evac, which already has a 135 certificate, only needs to have its 135 certificate updated.

Since the city depends on federal funds, it isn't able to limit the number of FBOs at the airport. However, Chritton said only one full-service FBO would be able to thrive for any length of time in a regional market such as this.