The terminal lobby at Richmond International Airport. (Courtesy of Todd Wright/RIC)
Editor’s Note: This story has been updated to reflect the outcome of this morning’s Capital Region Airport Commission meeting.
Richmond International Airport’s controversial bid to take over certain airline fueling and maintenance operations from two longtime local operators – and potentially causing those two companies to go out of business – has been put on hold, at least for the time being.
The Capital Region Airport Commission voted unanimously this morning to defer consideration of a hot-button proposal that would allow RIC to assume control of so-called fixed-base operator (FBO) services from privately-owned Richmond Jet Center and Million Air Richmond.
The deferral came at the request of RIC CEO Perry Miller and was made in light of a steady stream of vocal opposition against the proposal in recent weeks.
Since the plan became public earlier this summer, aviation industry representatives and others flooded Miller’s office, as well as members of the airport commission, with letters of concern. They take exception to the idea of putting two longtime local companies out of business in favor of what would amount to a government-run monopoly controlling the bulk of the services at the small but busy airport.
Miller, who proposed the FBO takeover in the first place, ultimately relented and asked that the planned vote at this morning’s commission meeting be deferred “for future consideration.”
In his deferral request sent to commission members last week, Miller cited the opposition and its effects on a governing body that isn’t accustomed to controversy.
Perry Miller
“Before and during my tenure as President and CEO, the Commission has proudly governed by deciding matters on a consensus basis. Since starting with the Commission I have not observed a single decision by the Commission that entailed a dissenting vote. That is a remarkable achievement for multijurisdictional body, and a tradition that I honor,” Miller said.
“The pending resolution has generated opposition from some Commissioners, Airport stakeholders and the public,” he said, adding that certain commissioners have asked for additional information and time to further study the issue.
FBOs are the little-known, behind-the-scenes operations that help keep both private jets and commercial airliners running at RIC and airports across the country.
Million Air and RJC have been in business at RIC since the 1990s and 1940s, respectively.
They compete for general aviation and business aviation customers – those flying small private aircraft – and the large commercial airlines that fly into Richmond. For the big airlines, the two FBOs store fuel and work on equipment such as belt loaders, tugs, de-icers and stairs. They also provide on-call maintenance for the airlines 24 hours a day.
For private jets, they provide fueling, storage, maintenance and a terminal and parking area for the passengers and pilots of those smaller craft.
Million Air’s RIC facilities. (BizSense file)
Mark Cooke, a longtime local businessman who owns the Richmond Million Air franchise, said FBOs do grueling work that most airport visitors don’t notice.
“We have never been closed since the day we opened. It’s a 24-hour, 365-day-a-year business,” Cooke said. “Ninety-nine percent of the people do not know what we do, maybe 99 and a half percent.”
The Federal Aviation Administration requires that airports allow for more than one privately run FBO to ensure competition in price and service. The only way around that is when an airport decides to bring those services in-house.
Last year, before going fully public with the in-house plan, RIC issued and subsequently cancelled two RFPs for proposals from private bidders to build new FBO facilities on the airport’s east side. That’s opposite from where RJC and Million Air’s facilities are currently located.
The first RFP sought two private operators, while the second requested a single operator.
Both Million Air and RJC were among the respondents to the RFPs. Million Air proposed a new $30 million facility, while RJC pitched a $17 million project.
But both RFPs rounds were cancelled with little explanation, leaving the respondents bewildered.
Then last month, Million Air and RJC say they were thrown for a loop when they received a letter informing them that the commission would be voting just days later at is July meeting on a proposal to create an airport-run FBO beginning Feb. 1, 2026. That’s when Million Air and RJC’s current leases expire.
“We had no idea,” said RJC CEO Michael Clarke. “We went through two RFPs in good faith. We were blindsided.”
Both companies immediately went on the defensive, arguing the proposal will effectively force them to shut down. They rallied industry representatives to speak at last month’s commission meeting, prompting tense exchanges with Miller and causing commissioners to push the FBO vote to this month.
“If the resolution passes, we would essentially be out of business,” Clarke said. “Our grandfather started out here in 1946. He moved here from Oklahoma to start a small radio shop that has grown into Richmond Jet Center.”
Richmond Jet Center’s RIC facilities.
RJC has remained a family-owned and -operated business, with Clarke running the business side and his cousin Robbie leading the maintenance operations. The company has around 60 employees that Clarke said would either be out of a job or forced to leave RJC in the interim due to the uncertainty.
Cooke, who brought Million Air here as a franchise in the early ’90s, has similar concerns for his business and its nearly 60 employees.
“All of my employees are worried about whether they’ll have a job in 17 months,” Cooke said. “I can’t get any new customers… my customers that I have are being courted by other airports and the employees are being courted or looking for a new job.
“(Miller’s) handling of this has really hurt us. We are being harmed right now,” he said.
Both Clarke and Cooke say direct communication with Miller has been limited at best since his tenure at RIC began in 2019. They say he’s barely stepped foot in their facilities, let alone sought their input or offered a detailed rationale for his FBO plan. RJC even filed a lawsuit last month to ask a court to force the airport to turn over documents related to the RFPs and its rationale for the FBO proposal.
“We’re not sure what problem they’re looking to solve and we’re not sure what customers are in favor of the one FBO model,” Clarke said. “I would love to work with Perry and I would love to sit down with him.”
Cooke also is searching for answers.
“There are no airports in the country of Richmond’s size that have a government-run monopoly FBO,” Cooke said. “I have no idea why Mr. Miller wants to be the first and maybe the only one, because I believe it is a bad idea all around.”
Miller’s office, when asked to make him available for an interview with BizSense, replied with a FAQ document that offers some explanation for his proposal. It hinges on creating a newer, more modern FBO facility for private aviation customers coming into Richmond.
“Our FBO facilities are in many ways the front door to our region for a great many companies and individuals who are traveling to Richmond to conduct business and assess the region’s economic opportunities,” the FAQ document states. “It is critical that this gateway reflect the best that Richmond has to offer and we anticipate working with architects and interior designers to create a space that provides a world class, exceptional, modern, and secure facility…
“Other airports around the country have been moving aggressively in this direction, and it’s essential that Richmond keeps pace on this front,” it continued.
It added that the RFP responses from private operators didn’t meet those criteria.
“The review committee’s determination was that none of the proposals submitted met their expectations for a world class, exceptional, modern, and secure facility,” the FAQ states.
Cooke argues that the perceived need for a high-end FBO facility is overblown given recent customers trends in private aviation.
Mark Cooke
“All the correspondence from the airport seems to point to the fact that they want a beautiful, impressive facility, but they don’t mention that 90 percent of (private aviation) passengers do not come into the FBO and that trend has gotten more skewed with Uber and smart phones,” he said. “In the old days you’d have to come in and use the phone to call for a taxi or a limo.”
Adding fuel to the debate is the claim from a consultant hired by Miller’s office that the airport-run FBO will be self-sustaining and profitable at levels that are far beyond the financials produced by the current FBOs. Million Air, RJC and other opponents of the plan vehemently disagree with that financial assessment.
“His projections are not based in reality,” Cooke said. “They’re just dead wrong.”
Ultimately, Cooke said that if the airport were to take over those operations and come anywhere close to the projected numbers, service prices charged to the commercial airlines would have to go up.
And if the airlines are charged more, Cooke argues that they would then pass at least some of those increased costs on to consumers.
“If there is a monopoly, the airlines are sitting ducks,” Cooke said. “They’re just going to take whatever the price is and if they have to pay more, they’re going to want to get more. Richmond is not a fancy FBO town unless airlines pay for it.”
Both Cook and Clarke said their hope, at the very least, was that today’s vote would be deferred and their leases could be extended temporarily until a new RFP could be issued. Both said they would respond to a new RFP if one is issued.
It appears Miller has heard at least some of their concerns. In addition to asking for a deferral of today’s vote, his letter to the commission proposes short-term options that would allow Million Air and RJC to extend their leases for three to five years while the commission studies the situation.
The terminal lobby at Richmond International Airport. (Courtesy of Todd Wright/RIC)
Editor’s Note: This story has been updated to reflect the outcome of this morning’s Capital Region Airport Commission meeting.
Richmond International Airport’s controversial bid to take over certain airline fueling and maintenance operations from two longtime local operators – and potentially causing those two companies to go out of business – has been put on hold, at least for the time being.
The Capital Region Airport Commission voted unanimously this morning to defer consideration of a hot-button proposal that would allow RIC to assume control of so-called fixed-base operator (FBO) services from privately-owned Richmond Jet Center and Million Air Richmond.
The deferral came at the request of RIC CEO Perry Miller and was made in light of a steady stream of vocal opposition against the proposal in recent weeks.
Since the plan became public earlier this summer, aviation industry representatives and others flooded Miller’s office, as well as members of the airport commission, with letters of concern. They take exception to the idea of putting two longtime local companies out of business in favor of what would amount to a government-run monopoly controlling the bulk of the services at the small but busy airport.
Miller, who proposed the FBO takeover in the first place, ultimately relented and asked that the planned vote at this morning’s commission meeting be deferred “for future consideration.”
In his deferral request sent to commission members last week, Miller cited the opposition and its effects on a governing body that isn’t accustomed to controversy.
Perry Miller
“Before and during my tenure as President and CEO, the Commission has proudly governed by deciding matters on a consensus basis. Since starting with the Commission I have not observed a single decision by the Commission that entailed a dissenting vote. That is a remarkable achievement for multijurisdictional body, and a tradition that I honor,” Miller said.
“The pending resolution has generated opposition from some Commissioners, Airport stakeholders and the public,” he said, adding that certain commissioners have asked for additional information and time to further study the issue.
FBOs are the little-known, behind-the-scenes operations that help keep both private jets and commercial airliners running at RIC and airports across the country.
Million Air and RJC have been in business at RIC since the 1990s and 1940s, respectively.
They compete for general aviation and business aviation customers – those flying small private aircraft – and the large commercial airlines that fly into Richmond. For the big airlines, the two FBOs store fuel and work on equipment such as belt loaders, tugs, de-icers and stairs. They also provide on-call maintenance for the airlines 24 hours a day.
For private jets, they provide fueling, storage, maintenance and a terminal and parking area for the passengers and pilots of those smaller craft.
Million Air’s RIC facilities. (BizSense file)
Mark Cooke, a longtime local businessman who owns the Richmond Million Air franchise, said FBOs do grueling work that most airport visitors don’t notice.
“We have never been closed since the day we opened. It’s a 24-hour, 365-day-a-year business,” Cooke said. “Ninety-nine percent of the people do not know what we do, maybe 99 and a half percent.”
The Federal Aviation Administration requires that airports allow for more than one privately run FBO to ensure competition in price and service. The only way around that is when an airport decides to bring those services in-house.
Last year, before going fully public with the in-house plan, RIC issued and subsequently cancelled two RFPs for proposals from private bidders to build new FBO facilities on the airport’s east side. That’s opposite from where RJC and Million Air’s facilities are currently located.
The first RFP sought two private operators, while the second requested a single operator.
Both Million Air and RJC were among the respondents to the RFPs. Million Air proposed a new $30 million facility, while RJC pitched a $17 million project.
But both RFPs rounds were cancelled with little explanation, leaving the respondents bewildered.
Then last month, Million Air and RJC say they were thrown for a loop when they received a letter informing them that the commission would be voting just days later at is July meeting on a proposal to create an airport-run FBO beginning Feb. 1, 2026. That’s when Million Air and RJC’s current leases expire.
“We had no idea,” said RJC CEO Michael Clarke. “We went through two RFPs in good faith. We were blindsided.”
Both companies immediately went on the defensive, arguing the proposal will effectively force them to shut down. They rallied industry representatives to speak at last month’s commission meeting, prompting tense exchanges with Miller and causing commissioners to push the FBO vote to this month.
“If the resolution passes, we would essentially be out of business,” Clarke said. “Our grandfather started out here in 1946. He moved here from Oklahoma to start a small radio shop that has grown into Richmond Jet Center.”
Richmond Jet Center’s RIC facilities.
RJC has remained a family-owned and -operated business, with Clarke running the business side and his cousin Robbie leading the maintenance operations. The company has around 60 employees that Clarke said would either be out of a job or forced to leave RJC in the interim due to the uncertainty.
Cooke, who brought Million Air here as a franchise in the early ’90s, has similar concerns for his business and its nearly 60 employees.
“All of my employees are worried about whether they’ll have a job in 17 months,” Cooke said. “I can’t get any new customers… my customers that I have are being courted by other airports and the employees are being courted or looking for a new job.
“(Miller’s) handling of this has really hurt us. We are being harmed right now,” he said.
Both Clarke and Cooke say direct communication with Miller has been limited at best since his tenure at RIC began in 2019. They say he’s barely stepped foot in their facilities, let alone sought their input or offered a detailed rationale for his FBO plan. RJC even filed a lawsuit last month to ask a court to force the airport to turn over documents related to the RFPs and its rationale for the FBO proposal.
“We’re not sure what problem they’re looking to solve and we’re not sure what customers are in favor of the one FBO model,” Clarke said. “I would love to work with Perry and I would love to sit down with him.”
Cooke also is searching for answers.
“There are no airports in the country of Richmond’s size that have a government-run monopoly FBO,” Cooke said. “I have no idea why Mr. Miller wants to be the first and maybe the only one, because I believe it is a bad idea all around.”
Miller’s office, when asked to make him available for an interview with BizSense, replied with a FAQ document that offers some explanation for his proposal. It hinges on creating a newer, more modern FBO facility for private aviation customers coming into Richmond.
“Our FBO facilities are in many ways the front door to our region for a great many companies and individuals who are traveling to Richmond to conduct business and assess the region’s economic opportunities,” the FAQ document states. “It is critical that this gateway reflect the best that Richmond has to offer and we anticipate working with architects and interior designers to create a space that provides a world class, exceptional, modern, and secure facility…
“Other airports around the country have been moving aggressively in this direction, and it’s essential that Richmond keeps pace on this front,” it continued.
It added that the RFP responses from private operators didn’t meet those criteria.
“The review committee’s determination was that none of the proposals submitted met their expectations for a world class, exceptional, modern, and secure facility,” the FAQ states.
Cooke argues that the perceived need for a high-end FBO facility is overblown given recent customers trends in private aviation.
Mark Cooke
“All the correspondence from the airport seems to point to the fact that they want a beautiful, impressive facility, but they don’t mention that 90 percent of (private aviation) passengers do not come into the FBO and that trend has gotten more skewed with Uber and smart phones,” he said. “In the old days you’d have to come in and use the phone to call for a taxi or a limo.”
Adding fuel to the debate is the claim from a consultant hired by Miller’s office that the airport-run FBO will be self-sustaining and profitable at levels that are far beyond the financials produced by the current FBOs. Million Air, RJC and other opponents of the plan vehemently disagree with that financial assessment.
“His projections are not based in reality,” Cooke said. “They’re just dead wrong.”
Ultimately, Cooke said that if the airport were to take over those operations and come anywhere close to the projected numbers, service prices charged to the commercial airlines would have to go up.
And if the airlines are charged more, Cooke argues that they would then pass at least some of those increased costs on to consumers.
“If there is a monopoly, the airlines are sitting ducks,” Cooke said. “They’re just going to take whatever the price is and if they have to pay more, they’re going to want to get more. Richmond is not a fancy FBO town unless airlines pay for it.”
Both Cook and Clarke said their hope, at the very least, was that today’s vote would be deferred and their leases could be extended temporarily until a new RFP could be issued. Both said they would respond to a new RFP if one is issued.
It appears Miller has heard at least some of their concerns. In addition to asking for a deferral of today’s vote, his letter to the commission proposes short-term options that would allow Million Air and RJC to extend their leases for three to five years while the commission studies the situation.
First of all, I commend RBS for doing a story on the airport (finally!). I hope this is the start of more articles focusing on RIC, which is central to the Richmond business community and growth in the region! As for this issue, it is always best to let the free market dictate what is needed by those who will be using the two FBOs at RIC. RJC and Million Air both submitted responses to the RFP and seem willing to move facilities to the northeast side of the field. If omitting posh facilities for private pilots to use are… Read more »
The competition for FBO service is a good thing for the airport and for its customers. If the airport wants to provide a “Fancy” FBO, they need to spec it out in the RFP. Is it LEGO driving this train?
Traffic is growing well and the airport is busy. Newport News is now defunct bringing even more passengers. Now, why were the international upgrades completed? Let’s get some international destinations opened up!
Nothing beats the late night RIC experience of super slow baggage return after you’ve sat 50 feet short of the gate waiting for the one ground crew on duty. If the FBO’s are behind this, perhaps this move makes sense.
However, given that the airport also can’t manage to keep the bathrooms from falling apart (new year old b side men’s room hooks and toilets pulling off wall, water damaged cabinetry faces gone), or even just clean, them trying to self perform even more seems foolish.
FBO’s do not control gate operations nor baggage handling. Those are the responsibilities of the airline itself. If the bathrooms in the airport are any indication of how an FBO would be run under the airport, the passengers that use RIC should want no part of it.
Baggage return is a real issue at RIC. It has to be one of the slowest on the East Coast. Does anyone know if the FBO’s are involved in this or are these already RIC employees?
FBO’s are not involved in baggage handling. That responsibility falls upon the individual airlines.
Interesting. This saddens me because I remember I used to walk off the plane and bags would start coming out on the belt within 5 min of walking up to baggage claim, if they weren’t already out there upon our walking up to the belt. It was one of the things I loved most about our airport. I have not checked a bag for several years at this point so I’m disappointed to hear this.
The Airport Commission has no experience in running a demanding time sensitive business. The Commissions responsibilities are maintaining the airport terminals, the gates, service rentals to the airlines in addition to maintaining the parking facilities.. The Commissions business and income are from leases with the airlines, kiosks (car rental, restaurants etc.) fees for FBO etc. Federal rental fees for TSA Air Traffic Control and reimbursement for parking. The Commission leases out the responsibilities and collection of parking fees and shuttle services. Airlines are responsible for delivery of baggage and gate loading unloading. The Commission is simply a Landlord collecting fees… Read more »
This seems like a solution to a problem that doesn’t exist. But if consultents said to do it. I read this and I am not an expert by any means, but leave the small business alone the market says they are doing the right thing.
I know nothing about airport management. But I know something about effective business management. Perry Miller doesn’t have a clue about the latter, and may not be versed in the former, either. Who hired him? What are his supposed qualifications for this job? If he needs to hire consultants to give him a plan for continuous improvement, someone else needs to be in his position.
As a somewhat frequent user of Millionaire, I cant imagine what the issue is here beyond some power/control deal probably detrimental to the overall “view” of RIC especially from the private or semi-private (net jets) crowd. What will this achieve? Its nice to sit in a comfortable lounge with 3-4 other people, local artist paintings hanging on the walls, friendly folks and a serviceable coffee/beverage station. My pilots I’ve dealt with are in and out and more concerned if they can leave one engine running or not.The beauty of this private travel resides in it’s private nature. If RIC would… Read more »