As the Billings Logan International Airport continues to grow, city leaders are bringing in national experts to evaluate changing the way it is run.
The City Council on Monday evening approved a contract for up to $622,000 to hire a consultant to look into establishing an airport authority and help navigate the transition.
BIL is currently owned and operated by the city. An airport authority is an independent entity charged with airport operations and oversight, often governed by at least five commissioners who are appointed by local government officials.
Steven Baldwin Associates, a national firm specializing in airport management and governance based in Albany, New York, was selected as the consultant for BIL. The money will come from airport-generated revenue.
The work is expected to take place over the next 18 months and the contract includes a year of support after changes are put in place.
“It’s really time for our airport to make the transition,” Billings Aviation and Transit Director Jeff Roach said.
Airports tend to look at switching to an authority as they grow and get busier, he said, often around the time they reach one million passengers a year.
BIL saw record increases in traveler and aircraft activity last year. With an all-time high of 980,676 passengers going through the newly updated airport in 2024, food, beverage, gift shop and rental car sales skyrocketed.
BIL is also now the 55th busiest cargo airport in the nation.
This year, the airport is on track to reach the one million passenger mark. During the peak of the summer travel season in July, rental car sales broke records, bringing in more than $4 million in revenue for BIL alone, Roach said.
Switching to an airport authority would allow BIL to be run more like a business and respond to industry changes more efficiently, he said.
But, authorities don’t have as much access to grant money and they don’t have government resources to fall back on.
About 40% of airports nationwide operate under an authority. That includes all of the other commercial airports in Montana except for West Yellowstone, which is run by the state and offers seasonal service.
Montana allows for an easy process for transferring from a municipal or government-owned model to an authority, Roach said. Most of the other commercial service airports transitioned in the 1970s and early 1980s soon after the state passed the statute that allowed airport authorities to be developed.
The process includes opportunities for the public to weigh in.
Roach said BIL has grown to the point that it no longer needs the support of city government. The airport is self-sufficient, meaning it doesn’t rely on local tax dollars to cover costs.
So, switching to an authority would allow BIL to focus on its business as it grows, without the ties of city government Roach said. In addition to the airport, the city could choose to include MET Transit under a port authority.
While the city considers making the change, Roach plans to continue efforts to expand air service. He’s working with Southwest Airlines in hopes of recruiting a second low-cost carrier to the market on the heels of Allegiant Air’s recent success. He said he’s also courting the Canadian carrier WestJet, which could bring service to Calgary, connecting BIL to a major international hub.
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Amy Nile
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