Denver pilots shocked by hangar rate hike

The Denver jetCenter FBO at Centennial Airport offered no details on the rationale for increasing monthly hangar rent when it notified tenants in mid-December that the rate will increase from $660 to $1,200, effective April 1, pushing the price 140 percent above the 2021 rate of $500. While the airport authority agreed to comply with FAA regulations and policies when it accepted various grants, including that fees and charges for aeronautical services be "fair and reasonable," jetCenters of Colorado has been slow to respond to the 47 affected tenants, or to an inquiry from airport management.

While most FBOs charge fair and reasonable fees, the exceptions command attention: Joined by the Colorado Pilots Association, AOPA Northwest Mountain Regional Manager Brad Schuster informed Centennial Airport Executive Director Michael Fronapfel of the pending rate increases in December, and Fronapfel agreed to contact the FBO to inquire about the justification for the rent increase. Fronapfel informed AOPA in late January that the tenants could expect word from the FBO (which has not responded directly to AOPA calls or emails) that the required advance notice of lease termination will be reduced from one month to 24 hours, and that the FBO would "look into" elaborating on the justification for the huge rate hike.

After it became clear that jetCenters was unlikely to provide relevant details to justify the rate hike or delay its effective date, Schuster advised members to file an expedited Part 13 complaint January 28, which alleges violation of the FAA Rates and Charges Policy, and the FAA acknowledged receipt on January 29.

"Although Mr. Fronapfel has been extremely communicative and assisted us greatly during our inquiry, unfortunately, this kind of price gouging by FBOs is not unique to Denver," Schuster said. "Sometimes it's hangar rent, sometimes it's so-called 'special event fees.' It is all too easy for an FBO to take advantage of their control of public airport resources, including hangars, to reap huge profits through outrageous rates and ignore the airport's obligation to comply with federal grant assurances and FAA airport policy. I appreciate that the Centennial tenants made me aware of the situation sooner than later."

AOPA Senior Vice President of Government Affairs Jim Coon explained in the October 2024 issue of AOPA Pilot magazine why pushing back on egregiously high airport prices set by private companies that serve the public is a priority:

“Through the lens of wanting control or increasing revenue, or the lens of wanting a smaller government, privatization looks good. But through the lens of a system intended to be fair for all users, these economic practices will undoubtedly choke off GA as we know it," Coon wrote. “We need all pilots to become AOPA members because we are stronger in numbers, and we need to continue to let our elected leaders hear our voices."

The Part 13 complaint asks the FAA to direct the airport to compel the FBO to maintain the current hangar rent rate at least until October; to stay the pending rate increase pending a full compliance review; and to require the airport "to facilitate a formal consultation process … to establish a fair and reasonable escalation path for whatever a fair and reasonable rate increase looks like as well as a future path for fair and reasonable rate escalation methodologies."

Schuster added, “AOPA is hopeful the parties can reach an agreement through the Part 13 process sooner than later as it's in everyone's interest to find common ground."