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6 Guidebook for Developing and Managing Airport Contracts
1.9 Defined Obligations
Airline agreements tend to have general provisions requiring the airport to operate and maintain
the airport in a first class (or other descriptive term) and businesslike manner. There is normally a
correlative obligation by the airline to operate its air transportation business prudently so as not to
interfere with any other user's operations or those of the airport. In addition to these blanket state-
ments, many agreements specifically delineate the airport's and airline's respective obligations.
There is a trend away from affirmative fiscal obligations by the airport to obtain the maximum
amount of federal and state grants and to maximize concession revenue and other income.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 1, Airline Agreements, for excerpts
from the PIT Airline Agreement for provisions regarding the obligations and responsibilities of the
airport authority with respect to airport operations including operation and maintenance of facil-
ities, security, maximization of concession revenues, obtaining uniform compliance by all tenants,
and charges to non-signatory airlines. Also see CRP-CD-81 for excerpts from the MWAA Airline
Agreement for provisions regarding the responsibilities of the airlines with respect to maintenance
of facilities and supervision of personnel.
1.10 Maintenance, Repair, and Janitorial
A general trend in agreements is a division of responsibilities between airports and airlines, based
on the leased status of the space and the character of the space or area. Virtually all agreements
require the airport to maintain the structure, roof, exterior, and utility systems up to the tenant's
dedicated lines. The airport generally is responsible for all maintenance, repair, and cleaning of
public and common-use areas. There tends to be great diversity among airports regarding the
maintenance, repair, and janitorial services in airline-leased areas. The greater number of agree-
ments places this responsibility on the airlines in preferential- and exclusive-use space. However
some airports assume all maintenance, repair, and janitorial services for all airline areas in the ter-
minal and ramp and charge it to the airlines in the rates and charges. Each airport addresses this
area based on its overall philosophy, historical division of responsibility, preference for control of
the services, availability of staff, and financial considerations.
Most agreements have a narrative in the body of the agreement that describes the services in
more general terms and a support supplement in an exhibit that presents details in a matrix of
maintenance, repair, janitorial, and utility responsibilities in specified areas.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 1, Airline Agreements, for excerpts
from the AUS, MWAA, PDX, SEA, and BWI Airline Agreements for provisions and matrices out-
lining the allocation of responsibilities for maintenance of facilities and a sample RFP from AUS.
1.11 Reporting of Activity
Airline agreements generally have specific provisions outlining the methods of reporting vari-
ous airline activities. The requirements vary depending on the type of activity:
· Projections. Most agreements require the airlines to provide a projection of landed weight for
the next fiscal year in order to calculate estimated landing fees and sometimes common use
charges. The time period is generally 90 to 120 days prior to the expiration of the current fiscal
year.
· Actual activity. Most agreements require airlines to report their variable activity, including
landed weight and passenger activity within a specified period of time after the end of the pre-
