Girding Their Loins For New Competition At San Jose
Preparing for the advent of yet another FBO at Mineta San Jose
Airport in California, Jet Center and ACM Aviation have announced
they will combine forces, creating an FBO with two locations at the
"ACM has experience in the jet-management business," Dan Ryan,
president of Jet Center, told the San Jose Business Journal. He was
referring to aircraft maintenance, scheduling and supplying pilots
for corporate jets. "(ACM) needs to build a new hangar. We have
experience at doing that. We believe we can save ourselves (money)
by combining operations."
Mineta San Jose is considered one of the top five destinations
nationwide for corporate air traffic.
"There are a lot of people who decided not to own planes over
the past few years," Mr. Ryan says. Still, corporate jet traffic
accounts for nearly 33 percent of all traffic at Mineta San Jose
and the Jet Center still maintains a waiting list for space in its
three hangars. He was quoted in the San Jose Business Journal.
ACM had already submitted plans to the airport for construction
of a hangar with more than 59,000 square feet of space for parking
aircraft and approximately 34,000 square feet of office space.
In all, ACM had planned to spend approximately $12 million on
Jet Center, which will become the lead entity in the project,
says it plans to go ahead with construction, although the project
will be redesigned to include less office space, according to
"Essentially, we're going back to the drawing boards," he says.
The redesigned project should be submitted sometime this year,
according to the business publication.
Of course, then there's the sale of jet fuel, a big business at
"(ACM) and the Jet Center competed for the fuel business," said
Douglas Rice, a former county Airport Commissioner who keeps tabs
on airport business. "Airport officials are afraid to mention the
word competition when it comes to the Jet Center."
City officials took the merger announcement in stride. "It looks
like they are just shuffling the deck over there," said Councilman
Chuck Reed, the council's Airport Commission liaison, also quoted
in the Business Journal.