Airport extends business’s lease temporarily

Stout Flying Service’s lease at the Lewiston-Nez Perce County Regional Airport was extended Tuesday in an attempt by the board overseeing the transportation hub to avoid going to court.

The airport authority board voted to allow the business that sells aviation fuel and charter flights to remain at the airport until Nov. 3, instead of Sept. 4, so that the two sides have time for mediation.

The airport will be negotiating terms for an exit strategy for Stout Flying Service, not considering an option that would allow it to stay, said board member Mandy Miles.

Paula Stout, an owner of Stout Flying Service, declined to comment Tuesday on the advice of her attorney.

The airport authority board ended the lease of Stout Flying Service in July over a dispute about insurance and is requiring the business to vacate its building on airport property.

Airport officials have stated that Stout Flying Service didn’t maintain public liability and property damage insurance from Jan. 2 to May 21, which, according to them, was required by the airport lease.

Not enforcing the lease provisions could put the airport at risk of losing millions of dollars in Federal Aviation Administration grants for infrastructure, according to airport officials.

Still, many people have sided with the Stouts, including close to 1,500 who signed a petition supporting them that was circulated on social media.

Stout and her husband, Ralph Stout, a pilot and owner of the business, have acknowledged a lapse in a small portion of the insurance, but they said the coverage that was missing only applied to mishaps in their building, like falls, and that everything else was covered.

They have also noted they didn’t have any accidents during the time in question.

The board’s decision about the lease came at a meeting where members also selected ArkStar of Dallas as its new air service development and marketing consultant, on the recommendation of Airport Director Michael Isaacs.

The airport will pay the firm $75,000 for one year to help Lewiston maintain its present flights, increase the number of destinations available on direct flights and market the use of the airport to passengers.

Right now, Lewiston has three round-trip Salt Lake City flights a day on SkyWest after losing Boise and Seattle service provided by Alaska Airlines’ Horizon Air two years ago.

The choice of ArkStar followed a lengthy discussion that focused on a comparison of the track records of ArkStar and Volaire, an Indiana firm that also sought the contract.

ArkStar has secured eight new routes in two years, compared with Volaire, which has won 104 new routes in three years and bid $86,175.

One of the routes ArkStar recruited was between Denver and Pierre, S.D., where Isaacs was the airport manager before taking the Lewiston job.

Part of what separates ArkStar is the advertising work it does after it attracts new flights that encourages travelers to use them, as well as the firm’s connections in the airline industry, Isaacs said.

Its managing partner, Gary Foss, is the former vice president of planning and marketing at American Airlines, and the firm is doing work now for SkyWest, Isaacs said.

A third firm that bid was Sixel, the airport’s existing consultant, which was eliminated and wanted to be paid $81,900 for the contract.

“(Isaacs) has worked with Sixel, and is underwhelmed by their efforts put forth to date,” according to an executive summary Isaacs put together for the board about the consultants.

Board members Katie Seekins and Chris Hayes said they would have preferred having more information on the two finalists, but voted with the majority to pick ArkStar.

“It’s hard, on paper, to know which one is going to be successful for us,” Seekins said.

In other business, board chairman Gary Peters told the board he had received a resignation letter from Deb Smith, who is leaving the board because of the coronavirus pandemic increasing her job responsibilities at the Clearwater Economic Development Association.

Peters thanked her for helping get the airport back on track after a difficult period that included the loss of the Boise and Seattle flights as well as decisions to fire Stephanie Morgan, an airport manager, and Robin Turner, an assistant airport manager.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.