FBO Titans Clash At California’s San Jose Airport

 - February 21, 2013, 3:31 PM

On the heels of the announcement that Signature Flight Support’s bid for an $82 million FBO development project at San Jose (Calif.) Norman Y. Mineta International Airport was endorsed by the airport’s evaluation committee, Atlantic Aviation, the incumbent services provider on the field, has filed an appeal of the decision, asking that its proposal to last summer’s request for proposal process be reconsidered.

Signature–whose offer included a partnership with Blue City Holdings, a company representing the personal aircraft of the principals at Google–calls for a 29-acre facility that includes 240,000 sq ft of hangar space and a 10,000-sq-ft executive terminal.

Atlantic, which opened a $20 million facility at the airport in 2008 and claims $60 million in investment overall at San Jose, said its existing 250,000 sq ft of hangar space is only 60-percent occupied at present.

Atlantic CEO Louis Pepper told AIN that a new FBO lease should not be granted until the fate of the airport’s idle Runway 11/29 is determined. He fears that if the airport decides to expand the runway rather than permanently close it, the airport could requisition property from the adjoining Atlantic leasehold.

Atlantic’s appeal could be discussed publicly tomorrow at the next committee meeting, but no decision will be made until the city council votes on the matter at a future meeting.

But for now, there are no delays to plans for Signature’s new facility at the airport. “Signature Flight Support is proud to have scored 991 points out of a possible 1000 in a public and very transparent bid process.  We are looking forward to Signature San Jose becoming part of the vibrant Silicon Valley community at one of the United States’ most underserved airports. Signature San Jose will create new jobs and a positive economic impact.  We plan to bring the benefits of our global network to San Jose and offer a world-class flight support experience and a new choice for customers travelling to the valley,” said Signature Flight Support president and COO Maria Sastre.