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46 Guidebook for Developing and Managing Airport Contracts
5.2 Definitions
Because ground transportation regulations must apply to various providers with different types
of operations, a definitions section must be as detailed and complete as possible. Sponsors should
define as many relevant terms as possible, even those which may be considered slang or colloquial.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for definitions in the PIT Ground Transportation Rules & Regulations.
5.3 Critical Issues in Ground Transportation
Issues critical for airport managers to consider when developing ground transportation con-
tracts are as follows:
· Define purpose and areas served
· Compliance with local licensing
· Vehicle safety requirements and inspection
· Vehicle condition and appearance
· Driver requirements and appearance
· Permitting
· Compensation
· Enforcement
· Customer services
· Insurance
5.3.1 Define Purposes and Areas Served
All modes of ground transportation may need to have a defined service area on-airport that
restricts their movements to areas approved by airport management. These restrictions help an
airport control vehicle traffic flow, as well as count trips made by these vehicles if their rate struc-
ture includes a per trip fee.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the PIT Ground Transportation Rules & Regulations designating the curb area
for loading and unloading passengers.
5.3.2 Compliance with Local Licensing
Operators of all transportation modes must comply with local ordinances with regard to driver's
licenses, vehicle registrations, providing public transportation or transportation for hire, and
permits. In some cases, licensing may be complicated in that multiple jurisdictions are served.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for an excerpt from the PIT Ground Transportation Rules & Regulations addressing intrastate and
interstate regulations.
5.3.3 Vehicle Safety Requirements and Inspection
State or local regulations may control; otherwise the contract may set forth maintenance
schedules or may provide for periodic inspections.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for an excerpt from the SMF Ground Transportation Rules & Regulations regarding vehicle
inspections.
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Ground Transportation Agreements 47
5.3.4 Vehicle Condition and Appearance
Airport managers understand that for many deplaning passengers, the ground transportation
system is one of the first opportunities for a visitor to form an impression of the airport and its
community. To help ensure a positive impression, airports are now adopting more restrictive
language regarding vehicle condition and appearance.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the SMF Ground Transportation Rules & Regulations regarding vehicle appear-
ance and vehicle standards.
Another way to ensure good vehicle condition is to prohibit vehicles beyond a certain age from
operating at the airport. Although it is difficult to place restrictions on the age of very large fleets,
such as taxis, it is possible with small fleets such as those providing on-demand van service. Some
airports have strict restrictions that vehicles be no more than a certain age.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the JAX On-Demand Service Agreement requiring that the vehicles be no less
than 3 years old.
5.3.5 Driver Requirements and Appearance
Requirements for ground transportation drivers accessing the airport are also becoming more
stringent. Some airports specify requirements for licensing and compliance with laws as well as
customer service standards such as the following:
· Require drivers to comply with local laws and regulations as well as airport rules and regulations
· Require drivers to obey lawful orders and directions of airport law enforcement personnel and
other airport officials
· Possess a valid state driver's license
· Be registered with the airport operation
· Understand the airport rules and regulations
· Be knowledgeable of local geography
· Be able to communicate with passengers
· Be courteous to the public at all times
· Solicitation of passengers
· Sale of other products
· No unattended vehicles
· No deception of the public
· Provide receipts
· Display schedule and rate information
· Credit card acceptance
· No solicitation of gratuities
5.3.6 Permitting
For permit applications, the focus should be on obtaining as much information as reason-
ably possible about the companies that would be operating on the airport. In addition to a busi-
ness name, corporate officers, owners, and managers must be provided. Attached to a permit
application should be all required insurance forms, driver and vehicle information forms, AVI
forms, and government certification forms (as required).
If the application is accompanied by a Route Sheet describing the proposed hours of service
route scheduled for each day of the week, the sponsor can work with an operator to arrive at a
schedule that can be accommodated at the airport.
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48 Guidebook for Developing and Managing Airport Contracts
Also, requiring credit card information for billing purposes ensures a more consistent cash
flow and allows regular billing of the operator for all AVI trips recorded.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the CMH Permit Package and Ground Transportation Regulations.
5.3.7 Compensation
Airports may receive compensation in the form of concession fees, permit fees, space rents,
and/or percentages of revenues. Whenever possible, airports should incorporate technology in
the form of an AVI or similar system, because it has been shown that the presence of these reveals
significantly more trips to the ground transportation center occurring at the airport than are
reported without one. The compensation system requires precise language in order to eliminate
confusion for the operator as to how fees are calculated.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the BWI Pre-Arranged Shuttle Agreement regarding reporting of gross revenues
and the payment of percentage concession fees.
5.3.8 Enforcement
Defining violations and enforcing mitigation and penalties can be very difficult without
detailed language.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the PIT Ground Transportation Rules and Regulations defining acts constitut-
ing violations, procedures for issuance of notices of violation, hearings procedures, and penalties.
5.3.9 Customer Service
Regardless of the type of service provided, there are various ways to use language in the regu-
lations or a contract to ensure superior customer service.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for excerpts from the JAX On-Demand Van Services Agreement defining service expectations.
5.3.10 Insurance
Ground transportation operations present numerous possibilities for accidents or other
events that require the involvement of insurance policies. It is critical that airports require every
operator to maintain sufficient coverage.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 5, Ground Transportation Agreements,
for an excerpt from the SMF Ground Transportation Rules & Regulations regarding insurance
requirements.
