DENISON, TX - Just months after Air Safety Flight Academy closed down at North Texas Regional Airport, a new flight school might be moving into the now empty hangar. And officials at the airport feel this could be a better deal.

Air Safety Flight Academy still owes Sherman, Denison and Pottsboro nearly $60,000 after they shut down and defaulted on their contract in January. And while Sherman Economic Development Corporation seeks repayment through legal action, a new flight school is leasing out ASFA's old hangar.

"Now the fact that we have had one here that did not succeed, that's bad,” said Bill Retz, Rear Admiral USN at North Texas Regional Airport.

When Air Safety Flight Academy failed it was a blow to not only the students and instructors, but the airport and local economies as well.

"Occasionally you have one that's a loser and we've had one and we're going to learn from that and move on,” said Denison Development Alliance President Tony Kaai when talking about ASFA.

The owners of ASFA left town, leaving SEDCO and the DDA out about $30,000 each. It's unknown if they'll ever get that money back, even though SEDCO has filed a law suit on behalf of the two organizations.

"We're in a very, very difficult economy, so no matter who you do business with there's always the risk that they're not going to make it,” said Kaai.

But ASFA cleared out of the airport and now officials say it's time to shut the door on them and open up Hangar 111 to new business.

Thursday morning the Grayson County Regional Mobility Authority approved a lease agreement with U-S Aviation Group, a flight school in Denton, Texas, and North Texas Regional Airport.

"They’re very well established there, and they're growing,” said Retz. “They have relationships with several air craft manufacturers; they actually sell aircraft in addition to the flight school. And they have some good relations with several commercial carriers; they provide pilots to commercial carriers through training programs and that sort of thing.”

And now US Aviation Group, a successful flight training school just down the road, wants to expand.

"Their initial business plan for coming to Denison, to North Texas Regional Airport, is to expand their international arm here so they hope to be bringing their international students here in September and building gradually,” said Retz.

But with the previous flight school still in hot water with SEDCO and the DDA, you have to ask why bring another school in so quickly?

"It's still a priority for us at the airport to have a flight training school there because they provide services and support for other businesses that are there,”

That relationship comes between the L3 Air Controllers Academy and a flight school, which operate hand in hand.

"In order to help support that academy you need a lot of flight operations and nothing brings a lot of flight operations as a flight school,” explained Retz.

And unlike ASFA, which required an incentive check up front to move here, US Aviation does not and they appear to be more sound.

"So if we do an incentive it will be structured differently because of the needs, or the lack of needs so to speak, but we haven't done that, we're still talking with them about it,” said Kaai.

US Aviation Group's lease does start next month in June, but training won't begin until next fall. In the meantime they are subleasing part of that hangar to another business which will eventually move into the remaining unoccupied hangar at the airport. And they’re also doing some remodeling and getting their approval and paper work finalized with the FAA.