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4 Guidebook for Developing and Managing Airport Contracts
this goal as there are airports. However many common themes and goals can be identified in this
critical area.
As indicated above, most airline agreements entered into in the last 10 years have classified
gate areas (including holdrooms, loading bridges, and aircraft parking apron) as preferential-
or common-use space. Example airports include AUS, BWI, PDX, PHL, SEA, SLC and STL.
Moreover, with the exception of PDX, all of the above listed airports also classify ticket counter
as preferential-use space. PDX has a combination of exclusive-, preferential-, and common-use
ticket counters with the obvious first choice for accommodation purposes being vacant or common-
use space. However, PDX has detailed provisions for the accommodation of requesting carriers
in exclusive- or preferential-use space if none is made available by the existing signatory carriers
upon request, including the right to take back underutilized premises.
Virtually all recent airline agreements contain language requiring accommodation of request-
ing airlines. These accommodation provisions are generally detailed and comprehensive and are
customized for each airport's particular circumstances.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 1, Airline Agreements, for excerpts
from the PDX, AUS, BWI, MWAA, and STL Airline Agreements for provisions regarding accom-
modation of other airlines.
1.5 Affiliate Definition and Treatment
Most airline lease agreements contain definitions of airline affiliates and provisions address-
ing the treatment of affiliates regarding benefits and restrictions. Affiliate definitions generally
include requirements that the affiliate be operating under a code share arrangement (or IATA flight
designator code) or is the parent or subsidiary of a signatory airline and is not selling seats in its
own name.
Most agreements require that the affiliate execute a nonsignatory operating agreement. The
PDX agreement requires that the signatory carrier pay all rents due from the affiliate and file all
activity reports on behalf of the affiliate. The PDX agreement also states that the affiliate's activity
will count toward the signatory carrier's activity, revenue sharing, and MII weight. Conversely, the
BWI agreement specifies that the affiliates activities and revenues are not counted for purposes of
an MII. Some agreements, such as the one for STL, require the signatory to pay the affiliate's rents
and other fees if the affiliate defaults in payment.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 1, Airline Agreements, for excerpts
from the PDX, BWI, STL, and AUS Airline Agreements for provisions regarding definition and
treatment of affiliates.
Generally, the benefits accruing to an affiliate include waiver of an equal share of the 20%
cost of common-use baggage areas and a waiver of a ground handling fee for handling by the
signatory carrier.
1.6 Treatment of Alliances
Many airport agreements do not contain any language regarding alliances. When alliances are
addressed either directly or indirectly by exclusionary language, it is generally to differentiate or
exclude an alliance from the definition of affiliate. This applies to what are commonly referred to
as "code share alliances" such as those created by the formation of the worldwide alliances (e.g.,
