National Academies Press: OpenBook

Airport Revenue Diversification (2010)

Chapter: Chapter Two - Airport Business and Revenues

« Previous: Chapter One - Introduction
Page 5
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 5
Page 6
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 6
Page 7
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 7
Page 8
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 8
Page 9
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 9
Page 10
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 10
Page 11
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 11
Page 12
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 12
Page 13
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 13
Page 14
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 14
Page 15
Suggested Citation:"Chapter Two - Airport Business and Revenues." National Academies of Sciences, Engineering, and Medicine. 2010. Airport Revenue Diversification. Washington, DC: The National Academies Press. doi: 10.17226/14386.
×
Page 15

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

5TRANSFORMATION OF THE AIRPORT BUSINESS Airports Before 1978 Since airline deregulation in 1978, the nature of airports has changed dramatically. Airports in the 1970s were regarded as transport infrastructure where the emphasis was on providing airlines and general aviation with the necessary facilities and services to carry out their operations. During this time, the relationship between airports, airlines, and the federal govern- ment was intertwined with a clear joint mission to provide the service and infrastructure that, in sum, became the national transportation system. In a regulated environment, aeronautical revenue was fairly predictable and not subject to market forces. General aviation before 1978 experienced a period of rapid expansion tempered by recessions in 1960 and 1970. Business and recreational flying was fueled by a pool of veteran pilots, first from World War II, then the Korean War, and, to a lesser extent, the Vietnam War. At the time, the G.I. benefits package included tuition and flight training to obtain private pilot certification. U.S. manufacturers responded to the demand, and shipments of general aviation aircraft surged until peaking in 1978 (see Figure 2). Airports After Airline Deregulation After deregulation, the airlines moved quickly to increase service in many markets. A prolonged expansion of air ser- vice took place in the 1980s and 1990s as network carriers established extensive hub and spoke systems and low-cost carriers (LCCs) built point-to-point service, mostly in the largest markets. In the new competitive environment, airports transitioned from a business model that assumed a predictable level of aviation activity to a model where airports designated as hubs experienced rapid growth, and other airports experi- enced highly changeable levels of air service and air carriers. Airports quickly realized both the potential for passenger revenues and the necessity to actively engage in the recruitment and retention of airlines. The post-regulatory environment required that airports shift attention from federal regulatory proceedings to direct relationships with the airlines. As Figure 3 shows, passenger enplanements grew rapidly from 1991 to 2000. With an increasing pool of originating and connecting passengers, airports recognized the revenue potential of passengers in the terminal. Several hub airports responded with an extensive build-out of retail space and development of passenger services. Pittsburgh International’s Midfield Terminal was one of the first airports to capitalize on this trend with the opening of its Air Mall in 1992. Retail concessions in terminals expanded rapidly in the 1990s. Since 2002 many airports have focused on upscale concession programs and premium parking services to help maximize revenue generation. During the post-deregulation period when commercial aviation surged, general aviation activity suffered a steep decline. A number of factors contributed to this decline: • Expansion of commercial air service attracted potential customers away from general aviation (Tarry 1995). • General aviation demographics were changing as World War II pilots approached retirement age during the 1980s. The number of private pilots peaked at 357,500 in 1980, fell to 288,078 in 1993, and in 2007 stood at 211,096 [General Aviation Manufacturers Association (1982, 1992, 2002, 2008); FAA Aerospace Forecasts, FY 2009–2025 (2009)]. • The oil embargoes in 1973 and 1979 drove up the price of fuel. Although these prices appear low in comparison with today’s prices, higher fuel prices added to the cost of general aviation flying (see Figure 4). • The cost to purchase general aviation aircraft was also rising. During the 1970s and 1980s general aviation manufacturers experienced a large number of liability lawsuits and increased liability insurance premiums. As a consequence, Cessna withdrew from the single engine aircraft market, Beech reduced production levels, and the Piper Aircraft Corporation filed for Chapter 11 bank- ruptcy. It was not until 1994 that the U.S. Congress passed the General Aviation Revitalization Act limiting aircraft manufacturer liability exposure. This combination of events caused the single engine aircraft sector to languish. General aviation aircraft manufacturers focused on larger, more costly, and sophisticated business aircraft. For those general aviation airports that served cor- porate aviation activity levels remained stable or prospered, whereas many of the smallest general aviation airports have faced declining demand for recreational flying. In summary, for the period following deregulation, most commercial service airports experienced expansion of aero- CHAPTER TWO AIRPORT BUSINESS AND REVENUES

6Un its S hi pp ed b y U. S. M an uf ac tu re rs FIGURE 2 General aviation aircraft shipped by U.S. manufacturers. Source: General Aviation Manufacturers Association. 400,000,000 450,000,000 500,000,000 550,000,000 600,000,000 650,000,000 700,000,000 750,000,000 800,000,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 To ta l E np la ne m en ts FIGURE 3 Total enplanements at U.S. airports, 1990–2008. Source: FAA, Terminal Area Forecasts. FIGURE 4 Cost of crude oil: 2008 dollars. Source: WTRG Economics at www.wtrg.com.

7nautical revenue and passenger-dependent revenue. Many general aviation airports, facing declines in operations, based aircraft and fuel sales, redoubled recruitment efforts, and looked for new business to supplement operating revenues. New Economy for Commercial Service Airports Fast forward to today and while the basic roles for the airlines, airports, and the FAA remain intact, for a variety of reasons, the business of capitalizing and operating a commercial service airport has become far more complex: • Airline bankruptcies, restructurings, and downsizing have resulted in greater vacancy risk in terminals. • LCCs typically have higher utilization of aircraft and require fewer gates and terminal space to process passengers. • Because airlines are grappling with unpredictable fuel costs and diminished passenger demand, all possible cost reductions are in play, including airport costs. This is affecting airline–airport use agreements, rates and charges, and capital projects at airports. • The trend is toward shorter-term airport–airline use agreements. Airport operators are assuming more of the financial risk of running the airport. Today, use agree- ments typically incorporate a combination of residual and compensatory cost recovery. With a residual cost approach, airlines collectively agree to pay the costs of running the airport that are not allocated to other users or covered by all other sources of revenue. With a compen- satory approach airports set rates and charges to recover the costs of facilities and services that airlines use. • Airlines are also shifting from exclusive use gates, where there is a fixed lease rate for a set period of time, to pre- ferential or common use gates, where airlines pay on a per-turn basis. Common use or preferential use gates can lower airline station costs; however, from the airport’s perspective, they can also result in reduced revenue when the number of flights decline. • Historically, airports have synchronized leases with an asset’s lifetime (20 to 30 years). Bonds were rated based on expected revenue streams. With lease terms shortening and perceived increased airline risk, airports are chal- lenged to maintain the ability to raise capital and to keep borrowing costs low (Stettler 2009). In response to changes in the air carrier industry, airports are applying a variety of strategies to reduce expenditures, post- pone capital projects, increase staff and facility productivity, and diversify revenues with more non-airline businesses. The airport business model is in transition. Figure 5 sum- marizes how airports started as support facilities and infra- structure for airlines (1970s). In the 1980s and 1990s, airports expanded operations into a wide variety of passenger-dependent concessions including retail stores, restaurants, and customer services. The current model for commercial service airports transforms the airport into a portfolio of businesses that provide diversified and replacement revenue streams. FEDERAL ROLE IN SHAPING THE BUSINESS OF AIRPORTS Federal grants, policy, and regulations have defined the domes- tic system of airports and shaped the activities and develop- ment that takes place on airport property. This section briefly summarizes the influence of the federal government on airports, beginning with funding sources for capital projects, revenue diversification, grant assurances and obligations, and federal compliance reporting on airport revenues and expenses. Definitions of Aeronautical and Non-aeronautical Activity The federal system of airports defines core aeronautical activities at an airport as those activities that take place on the airfield or in the terminal where airlines operate. Other passenger-dependent activities such as food and beverage, retail concessions, parking, and rental cars are considered non-aeronautical. Non-aeronautical activity is a broad category encompassing the passenger-dependent activities, as well as rent on land and non-terminal facilities and fees collected for activities and services on airport property (FAA Airport Com- pliance Manual 2009). When an airport receives Airport Improvement Program (AIP) funds and enplanes more than 2,500 in a calendar year, the FAA requires commercial service airports to file annual financial reports (Form 5100-127). This report has become the de facto method of, in financial terms, describing air- port revenue centers. Figure 6 groups various airport revenue activities according to broad accounting categories established by the FAA: aeronautical and non-aeronautical. For purposes of this synthesis, non-aeronautical has been subdivided into passenger-dependent activities and ancillary development to more clearly identify and separate out economic activity that contributes to airport operating revenue, but is not necessarily dependent on commercial air service or passengers. Funding Sources for Capital Projects Federal grants through the AIP have played a central role in building commercial service and general aviation airports and in defining what activities take place on airports. For the smallest hub airports, AIP grants can fund almost 60% of capital projects; for large and medium hubs, AIP funding is proportionally much smaller, and passenger facility charges much greater. A full discussion of funding sources is avail- able in ACRP Synthesis 1: Innovative Finance and Alternative Sources of Revenue for Airports (Nichol 2007).

81970 Transport Support 1990 Retail Retail & Customer Service Retail Solar Solar Business Park 2010 Offices Hotel Geothermal Clinic Gas Restaurant Golf Movies Diversified Business Center FIGURE 5 Transformation of the airport business. Adapted by KRAMER aerotek inc., from Robert Hazel, Oliver Wyman, Inc. (2009). FIGURE 6 Airport revenue centers. Source: KRAMER aerotek inc. (2009). ACI–NA estimates that between 2009 and 2013 air- ports in the United States will incur $94.3 billion in capital development costs, based on a sample of 100 commercial service airports. Figure 7 shows anticipated funding sources for capital projects at airports of all sizes. Almost one-half of all funding sources for capital development are subject to fed- eral policy. This would include passenger facility charges, cus- tomer facility charges, TSA grants for security, and AIP fund- ing. Typically for smaller airports the percentage is higher. For larger airports, revenue bonds account for another 30% and state and local funds the remaining 20%. Funding Sources for Operations Although federal funds and passenger facility charges con- tribute heavily to capital projects, as Figure 8 shows opera- tions and maintenance at the largest airports are funded by airport users. For smaller commercial and general aviation airports this is not usually possible and, consequently, fed- eral, state, and local funds contribute to both construction and maintenance of airport facilities. Project eligibility is subject to total cost, fund availability, project priorities, and local match requirements. Grant Assurances Accepting federal grants requires an airport sponsor to com- ply with certain obligations and assurances. These obliga- tions and assurances become binding contracts between the airport sponsor and the U.S. government. The obligations define uses of airport revenue, environmental compliance, and public use and access. Chief among these obligations are the following as described in the 2009 FAA Airport Compliance Manual: • Prohibition on exclusive rights • Utilization of airport revenues and land for aeronautical purposes • Implementation of a fee and rental structure that makes the airport as financially self-sustaining as possible under the particular circumstances at that airport • Proper maintenance and operation of airport facilities • Protection of approaches • Compatible land use • Adherence to the approved Airport Layout Plan (ALP) • Sale, lease, or disposal of federally acquired property for non-aeronautical purposes that return fair market value and are subject to FAA approval

9FIGURE 7 Funding sources for anticipated capital airport projects, 2009–2013. ACI–NA Survey of Airport Capital Development Costs (Feb. 2009). Restrictions on Land Development Many airports acquire land with federal grants for future development, wetland protection, or noise mitigation. Grant assurances provide the following guidance concerning the sale or disposition of land acquired with federal funds (in part or in entirety). • Land acquired with federal funds can be disposed of at fair market value with FAA approval. • Proceeds from a sale of land need to be returned to the Airport and Airway Trust Fund or reinvested in another approved AIP project in proportion to the share of federal dollars used to fund the original project. • It is important that land acquired with federal funds for runway protection zones or noise buffer land remain reserved for aeronautical use. Revenue from alternative • Preservation of rights and powers • Availability of fair and reasonable terms without unjust discrimination • Retention of clear title on airport property • Maintenance of acceptable accounting and recordkeeping systems • Compliance with civil rights and disadvantaged business enterprise requirements. Grant assurances are intended to reserve airports as air transportation facilities and to preserve the federal investment at individual airports and collectively in the national system of airports. Airport sponsors must agree to grant assurances if they accept federal grants or surplus property. None of the assurances prohibit either land development or use of airport revenue for non-aeronautical purposes, but they do guide and establish certain limitations. FIGURE 8 User pay concept for airport operations. Source: Adapted by KRAMER aerotek inc., from SH&E (2009).

10 (and compatible) uses of the land must contribute back to the financial self-sufficiency of the airport. • If land in a noise buffer zone is sold, it needs to contain deed restrictions specifying that future development be compatible with noise levels associated with airport operations. • When there is a change contemplated in the status of land acquired with federal assistance, it is important that air- ports discuss plans with their Program Manager at the FAA Airports District Office. • Changes in the status of land acquired with federal grants need to be reflected in the ALP and Master Plan. Restrictions on Revenue In 1999, the FAA promulgated policy concerning rate struc- tures and the use of airport revenue to make an airport self- sustaining. Allowable uses of airport revenue to develop airport land that serves a direct aviation purpose are clear. Restric- tions on the use of airport revenue to develop land not used for aviation purposes are less clear and in practice appear to be handled on a case-by-case basis (Nichol 2007). Implications of Limitations for Non-Aeronautical Development As the aviation industry matures in the United States, and if the domestic industry continues to consolidate and shrink, limitations on land development and restrictions on the use of airport revenue may yet become a significant issue for airport self-sufficiency. For example, individual airports experiencing facility vacancies are increasingly challenged to remain self-sufficient and fully utilized for aeronautical activity. Lambert–St. Louis International Airport has large sections of three concourses that are no longer used for commercial air service. Cincinnati/Northern Kentucky International Airport is also experiencing a loss of connecting traffic (and facility utilization) as Delta transitions this facility into a regional hub. The Allegheny County Airport Authority (Pittsburgh Inter- national Airport) has closed Concourse E and outlying gates on Concourse A and Concourse B. The Authority is consoli- dating commercial service activities and aggressively pursuing other economic development. Although airport de-hubbing has caused extreme issues of facility utilization, other smaller- scale instances of facility redevelopment for non-aeronautical purposes are occurring at many airports. Financial Reporting Except on an individual airport-by-airport basis, it is difficult to obtain a consolidated view about how airports are diversifying their businesses to include non-aeronautical activity that is not passenger-dependent. The FAA requires commercial service airports to file annual financial reports when an airport receives AIP funds (and signs grant assurances). FAA Form 5100-127 has become the de facto method of, in financial terms, describ- ing airport revenue centers. Roughly half of airport operating revenues come directly from aeronautical activity. This would include landing fees, terminal rentals, apron charges, fixed- based operator (FBO) revenue, cargo and hangar rentals, fuel flowage fees, fuel taxes retained by the airport, and reimburse- ments for security. However, dependence on airline activity for revenues is actually much greater than an accounting of aeronautical revenues. There are many “passenger-dependent” revenues that are counted as non-aeronautical revenue, includ- ing auto parking, food and beverages, retail, and rental car fees. Sources of Commercial Airport Revenue Figure 9 shows total aeronautical and non-aeronautical revenue reported by commercial airports in 2008. Operating revenues are summed by airport size (large, medium, small, and non-hub FIGURE 9 Commercial service airport operating revenues, 2008. Source: FAA, AAS-400: CATS: Report 127.

11 and medium U.S. hub airports. Aeronautical and passenger- dependent non-aeronautical revenues represented 88% of total airport operating revenue in 2008. Figure 11 shows airport operating revenues by source for small and non-hub airports. Small and non-hub airports derive less of their revenue from airline and passenger-dependent activities. Rent from airport properties and non-aeronautical fees and services represent 14% of total revenue. The aggregate view does not adequately represent the great strides some individual airports have made to diversify revenue. For example, Indianapolis International Airport, privately managed from 1995 to 2007 by BAA Airports Limited, is more diversified than most medium hub airports. In 2008, rent for land and non-terminal facilities and other FIGURE 10 Airport operating revenue by source for large and medium U.S. hub airports, 2008. Source: FAA, AAS-400: CATS: Report 127. FIGURE 11 Airport operating revenue by source for small and non-hub airports, 2008. Source: FAA, AAS-400: CATS: Report 127. airports). There are 30 large hub airports, 38 medium hubs, 68 small hubs, and 385 non-hub airports. Large hub air- ports generate 68% of aeronautical and non-aeronautical revenue; medium hubs, 19%; small hubs, 8%; and non- hubs, 4%. General aviation airports receiving federal grants are not required to file Form 5100-127 and thus there is far less information about operating revenues at general avia- tion airports. Although reports filed by commercial airports provide extensive and detailed information about airline and passenger- dependent revenue, much less detail is available about oper- ating revenue earned from “non-airline” sources. This would include rents received for use of airport property such as manu- facturing, warehousing, hotels, offices, retail, or other ancil- lary land uses. Figure 10 shows aggregate revenues for large

12 FIGURE 12 Airport operating revenue by source for Mobile Regional Airport, 2008. Source: FAA, AAS-400: CATS: Report 127. FIGURE 13 Total airport operating revenues by hub size, 1998 and 2008. Source: FAA, AAS-400: CATS: Report 127. non-airline revenue represented 20% of total operating rev- enue. The airport historically and today maintains an active development program. Indianapolis is home to the second largest Federal Express operation in the world. The airport redeveloped a 1.6 million square-foot maintenance facility that United Airlines abandoned in 2003. Because no single tenant wanted the entire facility, the airport subdivided the complex and leased out space to a variety of tenants. Mobile Regional Airport (whose tagline is “more than just an airport”) offers another example of an airport with a diverse revenue portfolio. For this non-hub airport, rent on land and non-terminal facilities, plus other non-aeronautical revenue that is independent of passengers, represents 29% of total operating revenue (see Figure 12). Trends In the last ten years, total airport operating revenues have been growing. Figure 13 compares 1998 with 2008 operating revenues in nominal dollars (no adjustment for inflation) for large, medium, small, and non-hub commercial service air- ports. Total operating revenues grew 79% in that ten-year

13 FIGURE 14 Operating revenue contributions, Commercial Service Airports, 2008. Source: FAA, AAS-400: CATS: Report 127. terminal facilities. Passenger-dependent non-aeronautical revenues represented 39% of total operating revenues in 2008; other non-aeronautical, 8%. However, since 1998 several trends are apparent: • Passenger-dependent non-aeronautical revenues grew the most at medium hubs (90%) and at small hubs (81%). Large hub airports and non-hubs grew by 67% and 66%, respectively (see Figure 15). • Large and non-hub airports experienced greater non- aeronautical revenue growth that was not passenger- dependent. Between 1998 and 2008 operating revenues derived from rent of land and non-terminal facilities grew by 58% at large hubs, 54% at non-hubs, 24% at medium hubs, and 43% at small hubs (see Figure 16). period, from $8.9 billion to $15.9 billion. Relative shares of operating revenues have remained fairly constant, with large hub airports reporting 68% of operating revenue; medium hubs, 19%; small hubs, 8%; and non-hubs, 4%. At this highly aggregated level, the share of operating revenue that is non- aeronautical actually declined slightly from 50% in 1998 to 47% in 2008. A closer evaluation of non-aeronautical operating revenues suggests that almost all non-aeronautical revenues at airports are passenger-dependent and include terminal concessions, parking, and rental cars. Figure 14 illustrates the relative con- tributions of aeronautical revenue, passenger-dependent non- aeronautical operating revenues, and other non-aeronautical operating revenues that include rent on land and other non- FIGURE 15 Passenger-dependent non-aeronautical revenue, 1998 and 2008. Source: FAA, AAS-400: CATS: Report 127.

14 NECESSITY AND OPPORTUNITY FOR REVENUE DIVERSIFICATION The global recession, volatile fuel prices, and tight credit mar- kets challenged airlines in 2008 and 2009 in distinct ways: • The recession has slashed demand for air travel and air cargo, especially in business and premium sectors; • The credit crisis has made cash reserves more important to airline survival. Higher borrowing costs have lead airlines to focus on operational strategies to conserve cash (Meehan 2009); • Volatility in fuel costs means that airlines are not likely to add back capacity without strong evidence of a sustained recovery; and • LCCs are now a dominant player in U.S. cities offering 29% of nonstop seats in U.S. markets, mostly in the largest markets (Official Airline Guide Aug. 2009). The LCCs have achieved a market position that can set or heavily influence price. These factors and the reality that nearly 80% of all domestic air travel takes place to and from the 15 largest U.S. metro- politan cities (Hollander 2008) suggests that airports face a higher risk as well. Airlines will be less willing and able than in the past to contribute to capital projects, operations, and maintenance costs at airports. Recent changes in aircraft size, frequency of service, and abandonment of routes all serve as reminders that the essence of airline operations involves moveable assets. Where a long-term plan for an airline is 3 to 5 years, for an airport it is 10 to 20 years. Airports are required to look beyond current problems and address substantial capital needs and commitments. The cost of capital within the industry accounts for 30% of airport revenues (Schimm 2009). Forward-looking airports are thus focused on what is possible in terms of creat- ing new revenue streams and maximizing existing sources of revenue. To begin thinking about revenue diversification requires examination of non-airline revenue streams in an organized fashion. Figure 17 sets forth a structure of non-aeronautical business units. On the left side in the first two columns are in- terminal concessions and passenger services. The focus in this synthesis is on aviation services, non-airline tenants, and ancil- lary land use (columns 3–5). Part 2 of this report addresses how airports incorporate revenue diversification in their plan- ning processes and implement the strategies through partner- ships, private contracts, and incentive packages, and Part 3 presents a wide range of revenue diversification ideas that have been tried at commercial service and general aviation airports. FIGURE 16 Rent on land and non-terminal facilities, 1998 and 2008. Source: FAA, AAS-400: CATS: Report 127.

15 FIGURE 17 Non-aeronautical business units. Source: Adapted by KRAMER aerotek inc., from SH&E (2009).

Next: Chapter Three - Planning Issues »
Airport Revenue Diversification Get This Book
×
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

TRB’s Airport Cooperative Research Program (ACRP) Synthesis 19: Airport Revenue Diversification explores the different sources of revenue for airports, separating core aeronautical revenue from ancillary revenues. The report also examines ways that airports have diversified activities and highlights the challenges that arise when non-aeronautical activity is proposed on land that is subject to Federal Aviation Administration grants obligations and assurances.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook, NAP.edu's online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!