The Santa Monica city council next week will discuss new “threats” to the city’s efforts to retain control of Santa Monica Airport (SMO), as well as its plans to set up its own fueling services there, a top advisor to the city said. The city has issued October 15 eviction notices to the two existing fixed-base operators at SMO, but is believed to have extended them until November 4. These evictions are further believed to be part of the city's so-called "strangulation strategy" as it attempts to close the airport by July 2018. Meanwhile, the FAA has opened an investigation into the city’s actions surrounding SMO.
The city, which maintains that it will run its own FBO that sells environmentally friendly fuels, has asked Long Beach, California aviation property management company Aeroplex Group to develop a business plan for a new FBO at SMO. Aeroplex, which has leaseholds at Van Nuys and Long Beach airports, already had been providing property consulting and management for SMO.
Aeroplex would not run the SMO FBO; that would be the city’s responsibility. Instead, Aeroplex is tasked with providing a plan that includes requisite employees, training, equipment, regulatory compliance, fuel procurement and cost analysis.
In its investigation into the city, the FAA has demanded a lengthy list of details on its plans to run an FBO. “We're always willing to discuss issues with the FAA at any time,” said Nelson Hernandez, senior advisory to the Santa Monica city manager on airport affairs. But, Hernandez added, “We are committed…to exercis[ing] our right to replace private FBOs with any legally required aviation services using city staff.”
Hernandez acknowledged since the FAA has issued its notice of investigation and served the city with two subpoenas, “new threats have been made against the city. They include threats of additional litigation and even more FAA proceedings against the city.” The city council will discuss these activities at its October 25 meeting, he said, and "provide information about the available options so that the council can make an informed decision about how and when to proceed with next steps for implementing their policies.”