Australia leads, others follow
Was Little Rock’s ground-braking plan inspired by the Australian government’s seizure and sale of other people’s hangars? The aviators of Little Rock, Arkansas are left wondering who to throw little rocks at. The following article from the USA’s AOPA journal shows how Australia’s leadership in promoting government-enabled robbery has quickly spread to foreign shores.
Rule change would leave hangar owners out in the cold
By Sarah Brown
Give up the airport the hangar you built and then rent it back for a higher rate, or move it at your own expense: That’s the choice leaseholders at the North Little Rock Municipal Airport could be faced with as their leases expire if an airport commission proposal goes forward.
The airport commission has proposed changing the rules for long-term leaseholders by reverting ownership of hangars to the airport at the end of their lease term. Under new lease terms, tenants who built (and currently own) hangars on leased land could either turn ownership of the structures over to the airport and renew the lease—at a much higher rental rate—or tear down the hangar at their own expense. AOPA wrote to the commission June 7 to oppose the proposal.
“While many general aviation airports across the United States do have reversionary provisions in their land leases, it is extraordinary for an airport to modify their lease terms to add a reversionary provision at renewal after the lessee has invested in developing the leasehold,” wrote AOPA Vice President of Airport Advocacy Bill Dunn. “The lessee who entered into the original lease with the airport entered into that agreement and made his investment under one set of rules, which justified the expenditure. Adding reversion provisions ‘after the fact’ that changes the rules to the detriment of the lessee simply isn’t reasonable and could not have been foreseen as the investment was being made.”
When tenants signed their initial leases, they had no indication that they could be sent away empty-handed at the end of the lease. AOPA told the commission it should consider alternatives to springing this sudden change on leaseholders who have made significant investments in the property. If the commission pushes forward in adding reversionary provisions to leases, it should only consider them for new leases, not renewal of existing leases, Dunn said.
At least in Little Rock they get the option of taking their buildings home. In Australia we surrender them and if lucky some may even get their exorbitant bonds back. Again we lead the Yanks if not the world.
We off course have the benefit of a world class justice system which for less than a million dollars may even allow you your day in court. But even better our ACCC will step in to defend your rights as it does continually for all SMEs. “No Worries, she’ll be right mate”
It would appear that the ANZAC spirit only flourishes off-shore. G.A. could certainly use a lot of that right now.
[Congratulations to (ACCC)Graeme Samuels AO -- for his award for "damage" to small business, a spectacular effort! it takes a great deal of effort to keep up such pretence of support]
The airports problems are certainly compounded by the lack of a rational government policies. Recently I’ve been to Coffs Harbour where I was amazed at the lack of aircraft, this airport used to be really busy as you would expect of a busy regional centre. Apparently it is not friendly for general aviation (GA)these days.
Contrast Caloundra airport which has a vibrant and co-operative aircraft servicing industry (they advertise together) and it is a healthy, friendly environment for GA, close to town where it should be. Unfortunately the airport is under threat of closure from developers through the local council.
Caloundra also has a great air museum, but all of these advantages are not properly recognised.