Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 1335]

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1332

BOARD OF TRUSTEES

[April 21

for the next four schedules, and $25 for the remaining. Since 1951 it has been on the basis of $50 per schedule. The University has taken the position that the landing fee charged should be adequate to recover any direct expenses caused by the use of the University Airport by Ozark Air Lines. Ozark protests this basis of computing the fee. There is an attempt to place landing fees at other stations served by similar airlines on a percentage (2 per cent) of the "on line" revenue, not including mail and cargo revenues, collected at the station. This move is fostered by some feeder lines, including Ozark, and by one member of the Civil Aeronautics Board as a means of reducing the landing fee costs which must be paid by the airlines. The principle behind this reduction is the belief that municipalities served by airlines should assist in subsidizing the airline operation by charging lower landing fees at municipally-owned airports. Based on 2 per cent, landing fees paid to the University would vary from $100 to $125 a month depending on Ozark's sales. The University has taken the position that its Airport is not similar to a municipally-owned airport and that it can not pay from funds appropriated by the state for the operation of the University items of expense which are incurred as a result of the use of the Airport by Ozark Air Lines. University representatives have carefully examined such expenses and have concluded that a fee of $45 per flight per month will be required to meet the direct expenses caused by Ozark's use of the Airport. If Ozark will agree to provide the University with a carbon copy of the weather reports which Ozark receives, the University could allow a credit of $5 a flight per month which will place the proposed landing fee on the basis of $40 per month per flight. While individual items which make up the total costs may vary from year to year, in total the payment of $40 per month per flight is the minimum which University representatives believe is necessary to recover out-of-pocket expenses because of this operation. On the basis of twelve flights this proposed rate would mean an income of $540 a month with the University allowing a credit of $60 a month for the weather reports. T h e University's position has been discussed with representatives of the two local Chambers of Commerce and no objections have been raised. It should be noted that Ozark has continued throughout this operation to be slow in the payment of the amounts which are due to the University. As of April 1, 1954, Ozark owed to the University $5,238 for services rendered and gasoline purchased as early as December, 1953. In spite of repeated follow-ups by the Business Office, it has been impossible to get this account on a current basis. The Director of the Institute of Aviation and the Comptroller recommend that after review of the costs to be charged, Ozark Air Lines be given thirtv days notice that it must discontinue using the University of Illinois Airport unless it (a) agrees to payment of a landing fee determined on the basis of costs, and (b) places payment of amounts due on a current basis. I concur and recommend this action. Representatives of the O z a r k Air Lines having requested a hearing on this matter, Messrs. Laddie Hamilton, President, P a u l J. Rodgers, Executive Assistant to the President, and Dean Holsher, District Sales M a n a g e r , all of O z a r k A i r Lines, appeared before t h e Board and made statements in support of their request for further reductions in charges to be made for the use of the A i r p o r t . Director L. A. Bryan of the Institute of Aviation also m a d e a statement. At the conclusion of these presentations, on motion of M r . Johnston the Board voted approval of the recommendation m a d e by the University officers. CANCELLATION OF SABBATICAL LEAVE OF ABSENCE P e t e r E . Yankwich, Assistant P r o f e s s o r of Physical Chemistry, who was granted a sabbatical leave of absence d u r i n g the second semester of 1954-1955, subsequently found it necessary to w i t h d r a w his request and his leave has been cancelled w i t h o u t prejudice. T h e S e c r e t a r y has so indicated in the minutes of the meeting of M a r c h 20, 1954, at which time the leaves were granted.