Paso Robles loses thousands in airport revenue

June 30, 2026

ACI Jet’s plan for a renovated Paso Robles Airport terminal

By KAREN VELIE

A 2024 vote by the Paso Robles City Council has cost the city hundreds of thousands of dollars in fee and tax revenue. Losses all but one council member said would not happen.

Not long after former City Manager Ty Lewis selected Mark Scandalis, a former employee of the water district, to manage the Paso Robles Municipal Airport, Lewis sought to put the city’s fixed based operator at the airport up for bid.

Both Mayor John Hamon and former City Councilwoman Sharon Roden argued that Loyds Aviation, which is based in Bakersfield, had a superior mechanics team for small airplanes and was a better cultural fit with the city than locally owned ACI Jet.

Lewis said the airport commission, which is made up of small plane owners, preferred Loyds Aviation. Hamon and Roden owned small planes at the time.

At first, both councilmen Chris Bausch and Fred Strong voted in favor of ACI Jet, which for more than three years contracted with the British Royal Air Force to conduct training exercises at the Paso Robles Airport, an activity that brought approximately $3 million annually to the local economy.

ACI Jet also courted several military groups to conduct trainings and operations at the Paso Robles Airport, actions that brought approximately $6 million a year to the local economy.

The proposals for the fixed base operator contract specified monthly rents, fuel sales fees, and agreements to invest in the city-owned airport, such as the construction of new hangars.

While the rents were nearly identical, ACI Jet offered to invest $17.6 million into the airport with construction to start within a year, including the renovation of, and an addition to, the terminal. The lease would then run for 40 years, at which time the capital improvements would become the property of the city.

Loyds Aviation offered to invest $8.9 million, with construction to start within two years of their 45-year lease.

In 2024, the Paso Robles City Council voted 3-1, with Chris Bausch dissenting, to select Loyds Aviation over ACI Jet as the city’s fixed based operator. Hamon recused himself.

At the time, Councilman Fred Strong said the British Royal Air Force and the military were not there because ACI Jet was better equipped to service large aircraft, but because they liked Paso Robles.

The British Royal Air Force currently trains and stays on the Central Coast, but in San Luis Obispo where ACI Jet is the fixed base operator. While some military and rescue planes continue to buy fuel at the Paso Robles Airport, a significant number now operate out of San Luis Obispo.

Aside from losses to the hotel and restaurant industry, Paso Robles fees for fuel sales at the airport have fallen. The following yearly totals provided by the city do not include December, which in 2024 had numbers that were impacted by the change in operators:

ACI Jet in 2024

• Aviation fuel sales of 158,246 gallons
• Jet fuel sales of 827,192 gallons
• $119,645 in fuel fees paid to the city

Loyds Aviation in 2025

• Aviation fuel sales of 114,346 gallons
• Jet fuel sales of 449,402 gallons
• $66,449 in fuel fees paid to the city

Loyds Aviation’s numbers have improved in 2026, but still fall short of fee revenue paid to the city by ACI Jet, according to comparisons of the first five months of each year:

ACI Jet for first five months of 2024

• Aviation fuel sales of 60,989 gallons
• Jet fuel sales of 318,454 gallons
• $44,320 in fuel fees paid to the city

Loyds Aviation for first five months of 2025

• Aviation fuel sales of 48,093 gallons
• Jet fuel sales of 116,373 gallons
• $19,311 in fuel fees paid to the city

Loyds Aviation for first five months of 2026

• Aviation fuel sales of 56,079 gallons
• Jet fuel sales of 150,394 gallons
• $23,646 in fuel fees paid to the city

ACI Jet is known for its robust maintenance of large planes and jets, which are known to bring in the bulk of fuel fees.

“While the small plane owners have a stake, the airport belongs to the residents of Paso Robles,” said Bill Borgsmiller, the CEO of ACI Jet. “You have to run it in an efficient manner for the whole community, and not to subsidize the small plane owners.”

After multiple large plane and jet owners moved their operations to the SLO Airport, ACI Jet set up a planning room for military operations. Fuel revenue is up substantially at the SLO Airport, Borgsmiller said.

Paso Robles Airport Manager Scandalis said he believes their fuel sales are down because of the economy.

A year and a half into its contract with Paso Robles, Loyds Aviation has discussed plans, but has not broken ground, on contracted capital improvements. City sources said Loyds is hoping to amend its 45-year contract.

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