Opening up Chattanooga to the aerospace industry, a new aircraft maintenance center at Lovell Field is expected to draw about 200 private aircraft the first year, officials said Monday.
"I think the East Coast will be a natural driver" for business, said Bob Rasberry, chief executive for West Star Aviation, which plans to invest $22.5 million into the air maintenance, repair and overhaul facility for corporate jets.
West Star is buying a 40,000-square-foot hangar at the airport to begin operations by year's end, starting with about 50 workers with plans for up to 225 employees by the end of 2020, he said.
West Star Aviation
* Privately held aircraft maintenance, repair and overhaul company* 800 employees* Major facilities in East Alton, Ill., and Grand Junction, Colo. Smaller operations in Columbia, S.C.; Aspen, Colo.; Chesterfield, Mo.; and Chicago, Ill.* CEO Bob Rasberry and partners in 2005 acquired West Star* Voted No. 1 in its sector by Professional Pilot magazine for two consecutive years* Visit www.weststaraviation.com/careers/ to view job openings
The CEO said wages for the jobs are expected to average about $26 to $27 an hour.
To meet projected growth, Rasberry said the company is looking at building a paint facility and another maintenance hangar within five years.
He expects to see $5 million to $10 million in revenue in year one, boosting that to $25 million to $45 million at the end of five years, he told the Airport Authority.
West Star Aviation specializes in the repair and maintenance of air frames, windows and engines, as well as major modifications, avionics installation and repair, interior refurbishment, surplus avionics sales, accessory services, paint and parts.
The Chattanooga facility will hold mixed-use space used for administrative and customer offices, engineering avionics, cabinetry and upholstery shop functions, as well as accommodate storage of customer aircraft parts.
Airport officials on Monday OK'd a new ground lease for West Star, which is buying the hangar from a business linked to Cleveland, Tenn., businessman Allan Jones.
"Having a state-of-the-art repair facility like this in Chattanooga will bring many CEOs to the area to have their company jets worked on," said Jones, who helped the city woo West Star. "We took the [hangar] off the market for nine months."
Terry Hart, the airport's chief executive, said West Star will touch each part of Lovell Field's business. West Star customers will fly in and out of the city, the company will use air cargo for parts and the new facility will buy fuel at the airport, he said.
"It will drive additional business," he said.
Authority member Mike Mallen, who earlier visited a West Star facility with other officials, said the company is bringing the aerospace industry to the city.
"This is best in class," he said. "It's stellar."
A 15-acre site near the hangar can be used for expansion, officials said.
Randy Boyd, the state's commissioner for economic and community development, said an incentive package was offered West Star. He declined to be specific, saying those are still being negotiated.
But, Boyd said, the state Legislature earlier this year passed a measure that removes sales taxes from air maintenance work.
The legislation was key because it put Tennessee in line with surrounding states, said Charles Wood, the Chattanooga Area Chamber of Commerce's vice president for economic development.
"That's one of the reasons why the state doesn't have that industry here," he said.
State Rep. Patsy Hazlewood, R-Chattanooga, cited the high wages tied to the jobs. She said that West Star will help diversify the area's economy.
Dan Jacobson, the Airport Authority chairman, said he, too, is excited about the new jobs.
"We look forward to additional growth and vitality," he said.
Chattanooga Mayor Andy Berke said the city doesn't just want to expand the employment base, but hike wages as well.
"That grows quality of life for everybody," he said.
Hamilton County Mayor Jim Coppinger said West Star will add "something we didn't have in the region."
"We know you had a lot of opportunities to go elsewhere," he said.
Rasberry said West Star looked at a lot of cities for the facility. He noted Chattanooga's location between Atlanta, Nashville, and Birmingham. He also said West Star officials like the city's cost of living and quality of life.
"We're a company located in small cities," he said.
Rasberry said the business is growing and his other facilities have no more capacity.
"We're stacking planes on the ramp," he said.
The company CEO said he already has heard from one large Tennessee business which had been taking its planes out of state for maintenance, but now has committed to West Star.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.