The article in the Dec. 22 edition of the Vineyard Gazette headlined “Facing Cash Flow Shortage, Airport Plans to Borrow Money” is factually correct but does not include some key facts and may have left the reader with the impression that the airport is facing a serious financial crisis. This is not true.

The airport is in excellent financial shape.

The airport has generated an income surplus for years and has not required any local subsidy — a unique situation among U.S. airports.

The airport’s financials go through a thorough financial audit each fiscal year. They are public and are reported as part of the county’s financials. All audited financial statements are posted on the county website (dukescounty.org) on the treasurer’s office page. The last four pages of the audit report are specific to the airport.

The article referred to the current cash on hand as $365,000 and monthly expenses of approximately $200,000. What was not stated was that the average monthly revenue is approximately $385,000. In addition, the FAA and MassDOT currently owe the airport approximately $800,000 which represents money that the airport has already paid.

Cash flow and profitability are two different financial issues.

The specific conditions that have recently occurred at the airport that have impacted cash flow are the construction of the new fire station, the need to upgrade the wastewater facility to meet state regulations, and upgrades to the terminal to accommodate increased passenger traffic and new security requirements. Using debt financing, the airport will be able to raise the cash necessary to pay for these improvements now and then pay off the debt using the revenue surplus generated over the coming years. It is a normal occurrence for an organization to raise cash for growth using

debt financing. This is very similar to what a family would do when buying a house and taking out a mortgage.

The size of the new fire station is based upon the FAA requirements (which funded 90 per cent of the total cost). The building has to accommodate all the airport’s firefighting and snow removal equipment that is currently owned. In addition, it has to be able to last for the next 30 or more years.

Lastly, and most importantly, the airport now has a very competent and professional team managing the daily operations.

All the current members of the airport commission take our responsibilities to Island residents, the seasonal people, Island visitors and the traveling public very seriously. All meetings are posted on the airport’s website (mvyairport.com), are open to the public and input is welcome.

Bob Rosenbaum
Chilmark

The writer is a member of the airport commission and chairman of its finance committee.