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38 Guidebook for Developing and Leasing Airport Property
airport sponsor, and, in certain cases, dictate business practices to airport tenants, even though
the ultimate responsibility for compliance falls to the airport sponsor.
The following paragraphs briefly summarize the core compliance mandates of each of the FAA
Sponsor Assurances that speak to business practices of the airport sponsor, along with some
descriptive examples of the intent of the assurances:
Grant Assurance 22: Economic Nondiscrimination, addresses the equitable treatment of air-
port tenants by the airport sponsor in assessing rates, charges, and lease terms.
· The airport sponsor will make the airport available as an airport for public use on reasonable
terms and without unjust discrimination to all types, kinds, and classes of aeronautical activ-
ities, including commercial aeronautical activities offering services to the public at the airport.
· Any commercial aeronautical business operating at airport must (1) furnish services on a rea-
sonable basis to all airport users and (2) charge reasonable prices for each unit or service and
be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar
types of price reductions to volume purchasers.
· Each FBO at the airport shall be subject to the same rates, fees, rentals, and other charges as
are uniformly applicable to all other FBOs operating at the airport.
· Air carriers (whether as a tenant, nontenant, or subtenant of another air carrier) shall be sub-
ject to nondiscriminatory and substantially comparable rules, regulations, conditions, rates,
fees, rentals, and other charges with respect to facilities.
· The airport sponsor will not prevent any person, firm, or corporation operating aircraft on
the airport from performing any services on its own aircraft with its own employees (includ-
ing, but not limited to maintenance, repair, and fueling).
Grant Assurance 24: Fee and Rental Structure, simply states that the airport sponsor must
set rates, charges, and leasehold rents that, to the extent possible, will ensure the financial self-
sustainability of the airport. This grant assurance instructs the airport sponsor to "maintain a fee
and rental structure for the facilities and services at the airport which will make the airport as self-
sustaining as possible under the circumstances existing at the particular airport, taking into
account such factors as the volume of traffic and economy of collection." The assurance stipulates
that federal funds cannot be included in the cost basis used to establish fees, rates, and charges to
airport users.
Grant Assurance 39: Competitive Access, addresses a reporting function required of the air-
port sponsor (at a medium-hub or large-hub airport only) should the airport, due to lack of
capacity, be unable to accommodate new or expanded service by a commercial carrier. This
assurance states that if a large-hub or medium-hub airport sponsor is unable to accommodate
one or more requests by an air carrier for access to gates or other facilities, the airport sponsor
must report the situation to the FAA. The report must (1) describe the requests; (2) provide an
explanation as to why the requests could not be accommodated; and (3) provide a time frame
within which the airport will be able to accommodate the requests, if at all.
3.2.6 Exclusive Rights
Exclusive Rights are discussed in great detail in Chapter 8 of the FAA Airport Compliance Man-
ual (Order 5190.6B), and defined as "a power, privilege, or other right excluding or debarring
another from enjoying or exercising a like power, privilege or right." The Compliance Manual
further states that such a right "may be conferred either by express agreement, by imposition of
unreasonable standards or requirements, or by another means." Noncompete clauses, if struc-
tured in such a way that expressly forbids the airport sponsor from leasing airport property to a
category of lessee (i.e., potential competition) and right of first refusal clauses that effectively
