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162 Ground Access to Major Airports by Public Transportation
SOURCE: Jacobs Consultancy.
NOTES: FAA/DOT--Federal Aviation Administration/Department of Transportation
NTSB--National Transportation Safety Board
EPA--Environmental Protection Agency
OSHA--Occupational Safety and Health Administration
Figure 7-1. Factors governing airport financial operations.
might be issued, including the need for revenue-generating projects. The bond indenture
defines what may or may not be included in the definition and computation of airport
revenues and expenses. The indenture establishes various funds and accounts for the payment
of interest and principal on the bonds from airport revenues; establishes the priority of pay-
ments for all of the airport operator's obligations; and sets forth covenants between the issu-
ing entity and the bondholders, including a rate covenant requiring the airport operator to
set rates and charges to produce specified levels of revenues. Some airport bond indentures
may also include principles to guide the establishment of rates and charges for the use of air-
port facilities.
Airline Agreement
An airportairline agreement generally stipulates the rights, privileges, and obligations of the
airport operator and the airlines serving the airport and sets forth the manner in which the
rentals, fees, and charges paid by the airlines for use of the airport are calculated and adjusted.
The airline parties in such use-and-lease agreements are called "signatory airlines."
Many airline agreements contain provisions that require a certain number or percentage
of the signatory airlines to approve or disapprove certain decisions of the airport operator,
particularly capital expenditures. These provisions are known as "majority-in-interest" (MII)
provisions and are designed to give the signatory airlines some control over the long-term
financial obligations undertaken by the airport operator for which the airlines are commit-
ted to pay.
Some airports, however, are not governed by such agreements; instead, rates are established
by ordinance or regulation. In those instances, the airport operator typically adopts a policy for
calculating user rentals, fees, and charges and applies those procedures consistently from year to
