King Aerospace signs Highfill lease
HIGHFILL — Northwest Arkansas National Airport has landed a new tenant that will perform aviation maintenance, customization, and refurbishment for corporate, military and government clients, airport officials announced Tuesday.
King Aerospace Commercial Corp. has signed a lease agreement for two hangars.
“We are so proud to have King Aerospace coming to our airport campus, creating jobs for our region and bringing a new level of energy to aviation businesses at XNA,” said airport CEO Aaron Burkes. “We expect this announcement to stimulate other aeronautical industries to explore the amazing opportunities for industrial growth at the Northwest Arkansas National Airport.”
The facility should be ready for occupancy May 1. The hangar spaces will be used to upgrade aircraft with everything from airborne defense systems to next-generation information systems. The facility, to be called KACC ARK, also will provide maintenance and VIP interior refurbishment to accompany these specialized modifications.
The company plans to start with 20 employees at the airport and expects to add more.
“Everything came together to make this opportunity right for us,” said King Aerospace President Jarid King in a news release Tuesday. “This carefully planned growth broadens our support for customers and gives us the chance to touch even more lives.”
In preparation for King Aerospace’s occupancy, the hangars have undergone significant upgrades including shop facilities, spray booth and exhaust systems, LED lighting and stateof-the-art fire suppression systems, according the release from King Aerospace. The hangars can hold multiple, wide-body aircraft, such as the Boeing 747, 767 and 777.
In-house technicians and artisans will customize airplane interiors and install the special equipment needed on highly specialized government or quasi-government aircraft, according to the company.
The hangars have been dormant for years following the closing of Ozark Aircraft Systems in 2004. Ozark was the North American maintenance center for International Lease
Finance Corp. Ozark provided engineering, modification and maintenance services for a variety of aircraft and custom-built interiors for aircraft such as Boeing Business Jets.
King Aerospace is subleasing the hangars from Ozark, according to Alex English, a spokeswoman for XNA. The airport’s lease with Ozark is for $18,258 per month. English said she is not privy to details of the sublease agreement between King and Ozark.
The sublease is good for five years and contains three fiveyear extension options allowing for a total lease term of up to 20 years, Burkes said.
“These hangars make us feel like the proud parents of twins,” said Jerry King, founder and chairman of King Aerospace, in the release. “We see the possibilities and will be good stewards so we fully realize their potential. The interest we’ve seen in the market gives us confidence that we’re the right team in the right place with the right services.”
Both private and government entities have approached King Aerospace about modification projects, but confidentiality requirements preclude naming names, Jerry King said.
The hangars have access to XNA’s 8,800-foot runway and benefit from an air traffic control tower, 24-hour gated security and firefighting protection. Each hangar offers 58,368 square feet for a total of 116,736 square feet. There is also 78,000 square feet of engineering, shop and office space.
Northwest Arkansas National Airport offers a centralized location to serve customers nationwide, according to King Aerospace. An average of 50 daily flights to major cities from coast to coast make it easy for company representatives and support personnel to get in and out, the company said.
Former Ozark CEO Dennis Davis said many of its highly skilled aviation workers never left the area after the closing of Ozark Aircraft Systems.
“This world-class facility is purpose-built for the kind of work King Aerospace plans to do,” Davis said. “It’s a true winwin.”