A recently opened coffee stand at Juneau International Airport is energizing people with more than just caffeine, as a dispute about it lacking proper authorization to operate is stirring up support from dozens of people who want to see it remain open as officials are insisting rules need to be followed since otherwise the airport could lose most of its funding.
Flying Squirrel Espresso, owned by a Juneau woman with two drive-through coffee kiosks with the same name, opened in early June in the new Alaska Seaplanes cargo/concourse area of the airport. It is one of two food concessionaires before the security checkpoint, making them the only ones available to passengers taking flights on small air carriers such as Alaska Seaplanes and Island Air since they don’t pass through the checkpoint.
Customers at Flying Squirrel on Thursday said the stand is open both longer hours — particularly in the morning – and more days of the week (5:30 a.m.-5 p.m. every day) than the Cup O’ Joe restaurant/bar (9:30 a.m.-5:30 p.m. weekdays) operated by North Carolina-based Tailwind Concession on the airport’s upper floor. Flying Squirrel’s ground floor location next to the small air carriers was also cited by some people as a convenience.
“Ever since Flying Squirrel started I’ve been coming just to grab — not coffee — but chais or lotus drinks in the morning just because it’s nice,” said Amber Maki, parts and logistics manager for Coastal Helicopters. “It’s close and nearby, and I don’t have to worry about driving to another location.”
Juneau International Airport Manager Patty Wahto discusses a recently opened coffee stand that lacks proper authorization during a Juneau Airport Board meeting Thursday evening. (Mark Sabbatini / Juneau Empire)
The problem is the coffee stand doesn’t have an official tenant or subtenant agreement with the airport, posing a liability risk that could result in the Federal Aviation Administration withholding the airport’s federal funds — which account for 93.75% of its total funding, said Patty Wahto, during a Juneau Airport Board meeting Thursday evening where the issue was discussed.
“We are required by the FAA to grant assurances about anyone doing business at the airport,” she said. “There has to be an agreement. There has to be fees paid. There has to be insurance in place — that’s the (city’s) code. So it’s not like someone can just set up shop anywhere in the airport and just start doing business.”
“I want that to be very clear that this is not in opposition to any services. It’s trying to get into compliance.”
Wahto, in an interview, said the airport isn’t planning to shut Flying Squirrel down during the coming days or weeks. But she said steps to resolve the operating requirements need to be taken, beginning foremost with the owner obtaining insurance to protect the airport from liability.
Terra Peters, owner of Flying Squirrel, said in an interview Friday she reached the agreement to open the airport location with Alaska Seaplanes, rather than through airport management. She said she is now working with management at Alaska Seaplanes to determine what steps need to be completed to fulfill the requirements stated by Wahto.
“They really know what they’re doing,” Peters said, noting they operate at a dozen communities in Southeast Alaska. “And they definitely would make sure that I’m following all the rules. So if I’m out of compliance they’re going to look into it.”
About 25 people attended Thursday’s board meeting in person, while more than 50 participated online, nearly all due to the issues surrounding Flying Squirrel. The board passed a motion directing Wahto to work with Alaska Seaplanes to achieve the necessary FAA approval of the coffee stand, which Wahto — and some board members — said is already happening.
However, there are tensions between Alaska Seaplanes and airport management, with an attorney for the company stating in a July 10 letter there are “blatantly biased and inaccurate characterizations of facts and law” in the information provided by Wahto to the airport board.
The lease Alaska Seaplanes signed for the 26,000-square-feet add-on cargo facility it operates “expressly authorizes the use of the facilities for various logistical and administrative needs of an aviation business, as well as ‘reasonable and customary uses existing historically or at present elsewhere on the airport property,’” according to the letter by Tereza Simonyan, a representative of the Buchalter law firm in Seattle.
Wahto reviewed and approved architectural plans that included a coffee area, Simonyan added. Furthermore, the letter states, since the add-in facility is privately owned it falls under different municipal regulations than the main airport that is owned by the City and Borough of Juneau.
In response, Wahto emphasized at Thursday’s meeting the entire airport falls under the FAA’s jurisdiction and as such compliance with regulations is essential. She also said the involvement of an attorney on Alaska Seaplanes’ is stalling her efforts toward a resolution since discussions are now taking place between the attorney and CBJ legal staff.
Andy Kline, marketing manager for Alaska Seaplanes, said during public testimony at the meeting attorneys were involved because “we don’t believe we’ve been given proper notice to prepare a full response at this time.”
“So our attorney is currently in contact with the city attorney’s office,” he said. “And because this could go into litigation we’re going to make no further comment at this time.”
However, further tension was raised before and during the meeting by characterizations about Tailwind Concession that went beyond the hours the company’s pre-security establishment is open (it also operates a food and beverage counter in the main departure lounge past the security checkpoint that is open daily at intermittent hours between 4:30 a.m. and 8:30 p.m.).
“That’s our building, we own it and there’s no way in hell we’re going to allow Tailwind to operate in our building,” said Kent Craford, co-owner and president of Alaska Seaplanes, during public testimony at Thursday’s meeting. “The bottom line is this is a service that we’re providing for the traveling public and is meeting a need that is not being met by that bar upstairs that only serves day drinkers which isn’t even open until 9:30.”
The manager at Cup O’ Joe referred questions by the Empire to Tailwind’s corporate office, which did not respond to messages left Friday.
Gregory Hake, a pilot with Alaska Seaplanes, told airport board members he served on a similar board in Georgia and as such understands the challenges involved.
“I appreciate the board’s willingness to spend the time that does seem outsized on this issue,” he said. But “these are the kinds of things that we have to talk about because we are designing an experience here that does have to be in conformance and compliance with a lot of rules and regulations. But sometimes we have to push a little bit to make things work. And if Alaska is known for anything…it is for the fact that we know how to make things work in these communities to serve our specialized needs.”
• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.
