Gov. Beshear Joins FEAM Aero for Grand Opening of $45 Million Expansion at CVG Airport Creating 250 Full-Time Jobs

Company's new three-bay hangar grew from original $40.2 million project announced in 2022

HEBRON, Ky. (March 28, 2024) - Today, Gov. Andy Beshear joined local officials from Boone County and leaders from F&E Aircraft Maintenance (FEAM Aero) to celebrate the grand opening of the company's new $45 million three-bay hangar at Cincinnati/Northern Kentucky International Airport (CVG), a facility that is creating nearly 250 full-time positions, including at least 124 Kentucky-resident jobs.

"We continue to see existing Kentucky industries grow and create quality jobs across the state, and the aerospace sector is no exception," said Gov. Beshear. "FEAM Aero is the latest example of a company with an existing presence in the commonwealth to continue to invest and believe in our communities. This expansion will provide a huge boost to the Northern Kentucky economy and provide high-quality, well-paying jobs to the region. I am thrilled to be here today celebrating this grand opening and am excited to see FEAM Aero continue to succeed here in Kentucky."

Leaders at the company, which currently employs 300 people at CVG, noted that the new operation will provide ample aircraft maintenance capacity and resources for its growing airline customer base in support of cargo operations such as Amazon and DHL. Additionally, alongside further initiatives currently in planning stages related to aircraft maintenance training, the new facility will provide viable employment opportunities for the next generation of aircraft mechanics throughout the region.

The new three-bay hangar at CVG will house Boeing 767 aircraft. The location includes 150,000 square feet of back shop space, 5,000 square feet of office space and 175,000 square feet of ramp access. Jobs created at the new hangar include aircraft mechanics and technicians, ground support equipment mechanics, administrative personnel and management.

FEAM Aero's investment comes at a critical time of passenger and cargo growth at CVG. In 2023, the airport experienced a 15% increase in passenger volume over 2022. CVG is also the fastest growing cargo airport in the world, ranking as the 6th largest cargo airport in North America.

"Today's unveiling of our new hangar at CVG Airport marks a pivotal moment for FEAM Aero, reflecting our unwavering commitment to excellence and community growth," said Cam Murphy, president of FEAM Aero. "With capacity to support key airline partners, this expansion not only creates quality jobs but also ensures seamless operations. We're grateful for the support of Gov. Beshear and local officials as we continue our mission of delivering top-tier aircraft maintenance services."

Founded in 1992, FEAM Aero is a leading provider of aircraft line maintenance services in the United States. The company operates maintenance bases at 36 locations in the United States, the United Kingdom and throughout Europe, including two hangar facilities, and employs more than 1,300 technicians and engineers companywide. FEAM Aero aims to deliver more flight time and less downtime to customers with services that include line maintenance, technical training, global aircraft-on-ground support, technical support services and base maintenance.

CVG CEO Candace McGraw emphasized the strong partnership with FEAM Aero to support growth at CVG:"FEAM has been an incredible partner throughout our years of rapid growth. We are grateful for their positive contribution to the economic impact on our region. Most importantly, the FEAM team led by Fred and Cam Murphy is a company with whom it is a pleasure to do business; they have a positive can-do spirit that is infectious."

Boone County Judge/Executive Gary Moore highlighted why CVG has expanded its presence in Northern Kentucky: "I congratulate FEAM Aero on the opening of its second aircraft maintenance hangar and its tremendous growth at CVG. FEAM is invested in our community and creating good-paying jobs to keep commerce and passengers moving at CVG."

Kenton County Judge/Executive Kris Knochelmann mentioned the job creation coming with the project: "CVG continues to be an economic engine for our region, generating a $9.3 billion impact in 2022 alone. The FEAM Aero expansion will add to this total in 2024 by contributing even more high-paying jobs for Northern Kentuckians."

BE NKY Growth Partnership President and CEO Lee Crume thanked FEAM Aero for adding aircraft capacity at CVG: "The cargo growth at CVG is an important economic driver in the Cincinnati region that the FEAM Aero team will keep flying around the U.S. and the world. The new jobs being created are an excellent opportunity for individuals in our region, and FEAM's partnership with EPIC Flight Academy will provide significant new education and employment opportunities in Northern Kentucky."

FEAM Aero's investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $30.5 billion in announced investments, creating more than 52,500 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth's history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On's transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC's $2 billion, 2,000-job gigafactory project in Warren County; Toyota's $1.3 billion investment in Scott County; and INFAC North America's $53 million investment in Taylor County, among others.

The Governor's administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody's Investors Service upgraded Kentucky's credit outlook from stable to positive.

This month, Site Selection magazine ranked Kentucky third nationally and first in the South Central economic development projects per capita in its 2023 Governor's Cup rankings. Previously, Site Selection placed Kentucky first in the South Central region and top 5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a "Supply Kentucky" initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March 2022 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company's investment and annual job targets.

Additionally, KEDFA approved FEAM Aero for tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, FEAM Aero can receive resources from Kentucky's workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on FEAM Aero, visit FEAM.aero.

A detailed community profile for Boone County can be viewed here.

Information on Kentucky's economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

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