Guidebook for Developing and Managing Airport Contracts (2010) / Chapter Skim
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1Airline agreements have undergone significant changes in many areas in recent years. These changes are in part due to changes in Federal regulations regarding use of space and calculation of rentals and fees for use of the airport, changes in the way airlines do business, economic impacts (e.g., airline bankruptcies and hub closures)
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See CRP-CD-81 (enclosed herein) , Appendix to Chapter 1, Airline Agreements, for excerpts from the PDX Airline Agreement for provisions regarding the extension of the agreement by mutual agreement.
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Airport ownership of the bridges enables the airport to more easily reassign space or implement accommodation and other shared-use arrangements on gates. See CRP-CD-81 (enclosed herein)
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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.
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1.7 Vacancy Risk Vacancy risk is becoming of increasing importance to airports as airlines adjust space needs due to mergers and economic vagaries. Airport agreements address the risk of space vacancy in several ways.
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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 outlining the allocation of responsibilities for maintenance of facilities and a sample RFP from AUS.
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These agreements have a requirement for payment security from the airline regardless of the airline's payment history or good standing status. See CRP-CD-81 (enclosed herein)
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When a limit was indicated, it was generally replacement value. See CRP-CD-81 (enclosed herein)
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There is particular cost and risk to the airport in cases where the airline contests the claim. See CRP-CD-81 (enclosed herein)
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A significant number condition this right on either notice or approval by the airport sponsor and require the handled airline to have an agreement with the airport. Many airports require the handling airline to pay a fee, which ranges from 5% to 15% of gross revenues; however, some agreements exclude the handling of affiliates from the fee.
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. Port cost center is defined as the cost center to which revenues and expenses associated with ground transportation, air cargo, and other aviation and non-aviation cost centers are allocated.
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See CRP-CD-81 (enclosed herein) , Appendix to Chapter 1, Airline Agreements, for excerpts from the SEA, PDX, and PIT Airline Agreements for provisions regarding payment of amounts due and year-end and midyear adjustments to rates.
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See CRP-CD-81 (enclosed herein) , Appendix to Chapter 1, Airline Agreements, for excerpts from the BWI, PDX, SEA, and STL Airline Agreements for provisions regarding the consultation with airlines and approval process for capital projects and for a summary of the ACI Survey of Airline Approval for Capital Projects.
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Some airports continue to put language in the agreements that the filing of a petition in bankruptcy is considered an event of default but the Code could prevent the airport from exercising its rights in default. 14 Guidebook for Developing and Managing Airport Contracts
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