Expansionary Mode Continued from page 37 Hangar 5 construction at Tampa International Airport (TPA) the requirements at those locations,” Kroeppel explained. “Hangar con- struction has also just started at our Long Island bases at Farmingdale (FRG) and West Hampton (FOK).” When asked about the wide geographical separation between Sheltair’s dominant presence in Florida, and smaller one in metro- politan New York, Kroeppel replied, “Since our home is in Florida, our concentration has been there. At the same time, with the volume of travel between the northeastern U.S. and Florida, a secondary busi- ness focus has been in the New York City and Long Island areas.” In tandem with Sheltair’s expand- ing network of general aviation support facilities, the company continues to build an alliance with Jet Aviation, the Zurich-based global charter, aircraft management, maintenance and FBO network. “Jet Aviation’s culture is very simi- lar to Sheltair’s,” explained Kroeppel. Aviation Business Journal | 3rd Quarter 2017 “This relationship is beneficial to both our customers since our combined networks complement each other, and each company offers broad and differ- ing services to meet customer needs. Along with this combined FBO net- work, Jet Aviation can now offer their customers assistance in facility devel- opment and property management, and we can also offer our customers aircraft charter, aircraft maintenance, aircraft management and crew sup- ply services through Jet Aviation.” Sheltair, itself, has built its net- work through roughly a 50/50 combination of acquisitions and new construction. Whether to buy an existing property, or build new, said Sheltair CEO Holland, depends on the location. “For an existing facility, it depends on the type and volume of business it is doing, and whether we can improve upon that,” he remarked. “But, for any new project, we do an extensive amount of research to see if there is demand at a given location. We’ve created a good knowledge base concerning the things we need to look for, and the questions to ask.” For instance, the company takes into account the number of outgoing and incoming flights at the airport, and the number of aircraft based there. Holland explained: “We run that, and other information, through our business models to see if the proj- ect is viable. If we feel comfortable with what we find, then we go in and get the plans and permits to proceed.” Along that line, Sheltair has also looked at sites for non-FBO development at the request of airport managers. “Those are nor- mally smaller hangar projects, around 50,000 square feet,” said Holland. “If there is demand for the facility, we will build it.” Most of Sheltair’s hangar projects are catering to the large-cabin busi- ness jet market, although the com- pany continues to build facilities sized to the smaller jets and turboprops. At the same time, Sheltair is eyeing mega projects. “We cur- rently have one-million square feet of hangar space at Fort Lauderdale Executive Airport (FXE), and we are looking to add another 200,000 square feet there,” he said. “FXE, in fact, is the largest Sheltair loca- tion that does not include an FBO.” Going forward, the company con- tinues to seek opportunities involving FBOs and property development—but not without due diligence. “We are trying to be very prudent with any opportunities we pursue,” Holland stressed. “Construction costs are Continued on page 41 39
