Growth at Indy Executive Airport will benefit local businesses
By Katy Frantz
Owners of Montgomery Aviation and Zionsville residents, Dan and Andi Montgomery, foresee future development at Indianapolis Executive Airport and the surrounding communities. The airport is the second largest in the region.
The Montgomerys work as a team to grow their business.
“Dan is the dreamer, I am to make it work,” Andi said. “He is the heart; it is his vision that propels this airport. I am the one who tries to figure out how to pay for it, or what we need to do, or what the steps are to go through with it.”
Since Hamilton County purchased the old Terry airport in 2003, it has seen a significant amount of growth as airport operator Montgomery Aviation poured in resources. The 600-acre plot resides south of State Road 32 and just west of the Hamilton County line.
Legislation passed this year will support aviation in Indiana and help grow the airport and businesses in Hamilton County.
With the development of new businesses along the U.S. 31 and 421 corridors, Indy Executive Airport has seen an increase in transient traffic as professionals fly in for a day or two of business.
The Montgomerys said they also expect to see an increase in traffic once Westfield’s Grand Park is completed and operating next spring. Sports teams and spectators will pass through the airport, and hotels and restaurants built nearby will be a resource for pilots and businessmen passing through the area.
“People need to realize that this (airport) is an economic factor for the community,” Dan said.
Eliminating taxes
The bill passed in Indiana’s legislative session this year removed a gas tax, which will save aircraft owners approximately 40 cents per gallon and eliminate a seven percent tax on aircraft parts and labor.
The elimination of the tax will make aviation maintenance and repair shops more competitive as well as influence pilots to buy fuel at the airport, Andi Montogomery said.
In the past when an airport in Ohio or Illinois could instantaneously knock seven percent off its sale price – because it did not have a sales tax on certain parts – it was hard for Indiana to compete.
The same principle applies to fuel. Pilots would fly over Indiana to avoid the extra tax. Even Indiana-based pilots would buy fuel outside the state rather than purchase with the extra tax. With those taxes lifted, it creates room for growth in the airport as well as the county.
“Fuel is the most important driver in keeping an airport alive and sustainable,” Sean White, Communications and Marketing Director at Montgomery Aviation said. “That is a main source of revenue.”
Brian Bosma, Speaker of the Indiana House of Representatives and Senate Leader Brandt Hershman both played key roles in influencing the passage of the bill, which makes it easier for pilots and aircraft owners to operate their business in the state.
“I am pleased that we were able to address job growth in Indiana through innovative economic incentives, like the restructuring of ‘avgas.’ It is imperative that Indiana not be considered a state that people simply fly over but rather a state that attracts, retains and recruits new business,” Speaker Bosma stated in a news release.
Growth engine for region
While Indianapolis Executive Airport expands to serve more corporate planes, they remain loyal to the small business owners and the broader community. Of the 100 airplanes they service, 70 percent are privately owned.
Dan and Andi Montgomery see a direct link between the growth of the airport and the community, and they try to connect the two as often as they can. Frequently Indianapolis Executive Airport will host roundtable events with local politicians, as well as board meetings, lunches, and events for groups such as the Zionsville Women In Network (ZWIN), Boone County EDC, Zionsville Chamber, and other economic development entities, etc. They regularly make the facility available for school groups, field trips, boy scout troops, as well as open the door to any charitable organization that requests their space for fundraisers or benefits. Local fire and police (both at the county and town level) also use the ramp space for training and special safety courses.
“The airport doesn’t succeed if there is not business to come to, and certainly the airport being here helps business come,” White said. “They both benefit each other.”
A study done by the Aviation Association of Indiana, Conexus, and INDOT in November showed that Indianapolis Executive Airport supports about 2,400 jobs annually and provides $430 million in economic impact to the region.
The growth in local business is closely linked with the growth at the airport and the impact is mutual, the study concluded.
$8.4M airport deal approved
On Oct. 2, The Hamilton County Council voted 6-1 to approve an $8.4 million purchase of hangars and the terminal building at Indianapolis Executive Airport.
The deal calls for a $6.625 million bond by the county to buy the structures from Montgomery Aviation. According to the proposal, the county would buy the buildings and then lease them back to the Montgomerys, who would pay $420,000 per year with revenue from hangar leases with private plane owners. The county will pay $100,000 per year to make up the difference of the estimated $520,000 annual payment for the bonds.
“There is no impact to tenants or our events. Since the Montgomery’s are leasing the space back from the county, the transition to customers, tenants, etc. will appear seamless,” Sean White, Communications and Marketing Director at Montgomery Aviation said. “There is no impact to Zionsville residents that I can think of. Even Hamilton County residents have no tax impact because the lease payments cover the bond.” Indianapolis Executive Airport is in Boone County, but Hamilton County purchased the airport in 2003.
Partners in the Community
The Indianapolis Executive Airport hosts many charitable events throughout the year, including the Annual Open House and Fly-In supporting Down Syndrome Indiana, “Art of Motoring” supporting Art with a Heart charity, ACE Aviation Academy, and the Zionsville Education Foundation Fall Frolic, to name a few. The Fall Frolic will be held Nov. 2.
