Did Victorville Use Airport Funds Properly?

The FAA told Victorville, CA officials this week to expect an agency investigation into the city's use of a $1 million grant intended to support airline service that has been slow to come to Southern California Logistics Airport.

Mayor Mike Rothschild, however, maintains there has been no waste of public funds. "There's no violation of federal rules," he said. "We're not trying to deceive anyone."

Since receiving the grant, one airline began flights from Victorville. Sacramento-based Valley Air Express received a $400,000 subsidy from the city in 2002, according to the San Bernardino County Sun, and received the same amount each year the airline provided service.

It's where that money came from -- and how it was used -- that the FAA is questioning. Valley Air Express stopped flying from the airport last fall, after its twice-weekly service to Las Vegas, using one aircraft, never caught on.

To qualify for the FAA grant, an airline operating from Victorville must carry at least 10,000 passengers annually. Valley Air Express fell well short of that -- but Victorville was able to continue using the funds, according to city spokeswoman Yvonne Hester, by including troops that arrived and left the airport during maneuvers at nearby Fort Irwin -- about 60,000 soldiers.

Mayor Rothschild asserts it was the city that took the financial hit from the airline leaving Victorville, not the FAA. "The subsidy came out of Victorville's tax increments from new development projects, not from the federal grant," he said.

When it was clear the airline was struggling, Hester said the city gave the startup company a chance to get back on its feet.

"They went back to the drawing boards to market their service," she explained. "We recognized they were a startup business and gave them extra time, continuing the subsidy in good faith."

With Valley Air Express out of Victorville (and apparently out of business), the city must find a new airline fulfilling the FAA's requirements in order to continue receiving federal funds. According to Mayor Rothschild, three other aviation firms are interested in launching airline service out of Victorville.

"We hope to open a new passenger service under new management by summer," he said.

When pressed about the FAA's inquiry, Rothschild maintained the city has complied with FAA guidelines.

"The FAA isn't concerned about this," he said. "We know all the rules, and abide by them. The grant funds are well-invested to get the airport up and going.

"We have the rest of this calendar year to start up new airline service without losing the grant," he added. "But we could lose it if there's no operating service by the end of the year."

FMI: www.airnav.com/airport/KVCV