Innovative Finance and Alternative Sources of Revenue for Airports (2007) / Chapter Skim
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Pages 23-33
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From page 23... ...
Valet services are typically popular among business travelers and can benefit airport operators if vehicles are stored in underutilized portions of a garage or lot. Furthermore, more valet-parked vehicles can be "squeezed" into an area than self-parked vehicles.
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Others have tested pilot programs that allowed a patron's vehicle to be washed, serviced, or repaired. Some airport operators offer shuttle services FIGURE 20 Distribution of airport operating revenues.
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The amount of the potential additional revenue varies depending on the extent of the off-airport parking business, the parking rates charged by these businesses, and the amount of the privilege fee established by the airport. Similar to past court decisions concerning rental car fees, federal and state courts have repeatedly upheld the right of an airport operator to establish off-airport parking privilege fees and require the payment of such fees.
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From page 26... ...
As with PFC revenues, revenues from CFCs and rental car transportation fees are local money. Unlike PFC revenues, there is no requirement for any federal oversight or approval of the CFC or transportation fees.
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From page 27... ...
Successful design and retail plans are creative and innovative to attract upscale, branded merchandise as well as food and beverage outlets in terms of revenues and service. Apart from achieving the objective of maximizing nonaeronautical revenues, airport operators want airports to be user-friendly, provide the highest possible level of passenger convenience and comfort, and promote the culture of the region where the airport is located by: – Creating a density of shops and restaurants that visually affects the customers -- Clustering or doubleloading amenities will often attract potential customers who could otherwise walk straight to the gate.
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From page 28... ...
Because airport concessions contracts are bid competitively, operators often bid more than what they can afford to get the contract. Therefore, airport operators may want to consider setting a reasonable minimum annual guarantee, using a percentage for the first year and then reevaluating annually based on enplanements.
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. COMMERCIAL DEVELOPMENT AND LAND USE Given the need to finance future capital expenditure and maximize shareholder value, airport operators are under increasing pressure to optimize revenues they generate from commercial sources.
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Aircraft noise has been the primary driver of airport land use compatibility conflicts and proper planning can alleviate noise issues with advance "buy-in" from the surrounding community. This is a valuable tool for the overall strategic business planning for small and large airports alike.
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These restrictions do not prohibit airport land development; however, they do put limitations to some aspects of this development. • Grant assurances for land acquired with federal assistance.
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specifically states that airport revenue shall only be used for the capital or operating costs of the airport, the local airport system, or other local faculties owned or operated by the airport owner or operator, and directly and substantially related to the air transportation of passengers or property. The allowable use of revenue to develop airport land is clear for land that serves a direct aviation purpose (use revenue is allowed for the development of this land and revenue generated from this land must be used for airport purposes)
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From page 33... ...
Shared Services Airports may also have opportunities to provide services that are of mutual benefit to the airport, airlines, and/or other tenants. For example, ground handling of aircraft is provided by airport operators at a number of European airports.
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