State could land aircraft-service company with 650 jobs

By Brice Wallace
Deseret News
Published: Thursday, Oct. 9, 2008 4:31 p.m. MDT
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Utah landed another aircraft service operation this afternoon — one that is expected to mean more than 650 new jobs for Provo over the next 15 years.

Officials from Duncan Aviation and state and local government, including Gov. Jon Huntsman Jr., announced the project at a Thursday afternoon news conference at the Provo Airport.

The Governor's Office of Economic Development Board on Thursday morning approved a tax-credit incentive of nearly $6.7 million for the project, which will include building a 320,000-square-foot aircraft-maintenance hanger, paint hanger and office facility at the airport.

The company is expecting average wages resulting from the $58 million capital investment to be more than 50 percent of the Utah County median wage, according to board documents. The state could yield $336 million in new state wages over 15 years and new state tax revenue of more than $22 million during that same period.

Established in 1956 as a Beechcraft distributor, Duncan Aviation, based in Lincoln, Neb., has more than 20 facilities across the United States. The company provides business aircraft support, including avionics installation, airframe and engine repair, interior alterations, exterior painting and parts services for businesses and government aircraft operators worldwide. The company has more than 2,000 employees.

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In July, the GOED Board approved a $8.3 million incentive — an $8 million tax credit and a $294,000 Industrial Assistance Fund grant — for Jet Aviation to put more than 650 jobs over 15 years at a facility at the Ogden-Hinckley Airport that would maintain, repair and overhaul business aircraft and be a service center.

Jet Aviation, a Swiss company, said in August it would be acquired by General Dynamics Corp., based in Falls Church, Va., but still hoped to have some of its planned activities in Ogden operating early next year.

Jet Aviation said in May that its maintenance facility would be 70,000 square feet of hangars and workshops that would provide heavy maintenance, component repair, refurbishment and painting for mid- to large-cabin aircraft. Jet Aviation said it would assume the existing operations of Kemp Jet Services. The executive terminal, hangars and offices occupy 51,000 square feet and include the terminal, fueling, a pilot "snooze" room, a pilot lounge, weather and flight planning and an on-site restaurant.

Jet Aviation employs 5,600 employees worldwide and has its U.S. headquarters in Teterboro, N.J.

E-MAIL: bwallace@desnews.com

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