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OCR for page 53
53 GLOSSARY Aeronautical use: Aviation activity that takes place on the Large, medium, small, and nonhub airports: The FAA airfield or at the terminal gates. defines large hubs as having 1% or more of total national annual passenger boardings. A medium hub has 0.25% to Aeronautical revenue: Operating revenue that an airport 1% of boardings. A small hub has at least 0.05%, but less collects from-- than 0.25%. A nonhub airport has more than 10,000 board- ings but less than 0.05%. There are 30 large hub airports, 38 Terminal rents Based on the amount of space an air- medium hubs, 68 small hubs, and 385 nonhub airports. line uses inside the terminal; Majority-in-interest clause: Provisions in an airport's gen- Landing fees A per plane charge, usually based on eral use agreement with an airline that typically give the weight of the aircraft; those airlines performing a majority of the operations at Other charges Specific fees for extra airport services the airport veto power over airport expansion when those (i.e., use of a jet bridge). airlines would be responsible for paying the cost of that expansion. An airline does not have to have a signed contract to use an airport. However, an airline with a contract, called a sig- Nonaeronautical revenue: Nonaeronautical, or landside natory airline, enjoys special benefits, such as lower rates, revenue, is generated from the following types of than those airlines that do not sign a contract. activities: Compensatory agreements: The airport operator assumes Concessions Rents paid by gift shops, restaurants, or the major financial risk of running the airport and sets newsstands. Most concession contracts also require a rates and charges to recover the costs of the facilities and concession to pay a percentage of its profits to the airport. services that airlines use. Parking Fees for all airport-owned parking lots. Connecting passengers: Passengers who disembark one Advertising Ads placed on airport walls, billboards, aircraft and connect to another aircraft at the same and buses are a source of airport income. airport. Land rent Excess airport land may be rented for golf courses, office buildings, hotels, or farming. Enplanements: Passengers boarding an aircraft. Permits Fees paid by off-airport companies to access Hub and spoke systems: One model airlines use to organize the airport and pick up passengers (e.g., taxis or shuttle their network of service. Airlines operate hubs in a few buses). cities where most of their flights originate, and service Primary airports: As defined by the FAA, a commercial goes out to spoke cities. Hub and spoke systems give pas- service airport with more than 10,000 passengers board- sengers from smaller cities much greater access to a vari- ing each year. ety of destinations as passengers connect at the hub on flights to their destination. In the United States, United Residual cost agreements: A type of contract with an air- Airlines, American Airlines, Frontier Airlines, Alaska port owner where airlines collectively agree to pay any Airlines, Delta Airlines, Continental Airlines, and US costs of running the airport that are not allocated to other Airways operate hub and spoke systems. Other carriers users or covered by nonairline revenue. operate point-to-point service, although carriers such as Signatory airlines: Any airline that has a valid and effective Southwest Airlines and AirTran operate in focus cities airport use and lease agreement with an airport sponsor. where it is possible to make connections.