Permissible Uses of Airport Property and Revenue (2020)

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Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. 56 ACRP LRD 40 Interview Participants No. 9 represents an airport proprietor that owns two airports located in a major metropolitan area, one a medium-hub and the other a general aviation airport. APPENDIX C Anonymized Airport Proprietors for Hypotheticals Airport Proprietor A owns a non-hub primary airport located outside a small city. Airport Proprietor B owns two airports located in a major metro politan area. The first airport is a medium-hub com- mercial service airport that is highly land-constrained due to surrounding land uses. The other airport is a smaller general service airport located in a less economically active area and unconstrained by surrounding land uses. Airport Proprietor C owns several airports and other trans- portation infrastructure and facilities in and around a large metro politan area, including a busy primary commercial service airport. This airport proprietor engaged a private devel oper to develop a light rail line and associated commer- cial development of airport property to connect the airport with the light rail system serving the metropolitan area. Airport Proprietor D owns a medium-hub commercial service airport located near a major metropolitan area in a competi- tive regional market that has undertaken and continues to undertake development projects to meet increasing air travel demand and limited existing capacity. Airport Proprietor E owns a large, formerly general aviation air- port that recently added a privately built, financed and oper- ated commercial service terminal. Airport Proprietor F owns a large-hub commercial airport and several general aviation airports in a major metropolitan area. This airport proprietor has engaged in significant non- aeronautical development projects, including P3 projects, and has implemented an ASIP. b. Are there topics about which you wish there was more guidance? c. Do you rely on experts or colleagues for advice? (What kinds—Agency staff? Other airport professionals? Consultants?) 6. How much do you rely on informal guidance from the FAA Airports District Office (or other FAA staff) in deciding the limits on airport revenue or property use? 7. Can you provide and discuss any examples of creative or innovative uses of airport revenue or property that you have implemented that you believe are good examples of how you have navigated the rules on revenue and property use? 8. Are you aware of recent changes and clarifications to fed- eral restrictions on use of airport revenue (e.g., PFC eligi- bility) or airport property (e.g., FAA authorization for non- aeronautical development)? a. Have you had an opportunity to take advantage of any of these changes? b. Are additional changes needed? APPENDIX B Anonymized Interview Participants Interview Participant No. 1 represents an airport proprietor that owns a medium-hub airport. Interview Participant No. 2 represents an airport proprietor that owns a medium-hub commercial service airport located near a major metropolitan area in a competitive regional market. Interview Participant No. 3 represents an airport proprietor that owns a joint civil-military general aviation airport located outside a small city, as well as several other facilities and municipal services. Interview Participant No. 4 represents an airport proprietor that owns a non-hub primary airport located outside a small city. Interview Participant No. 5 represents an airport proprietor that owns one commercial service airport and two other airports near a regional metropolitan hub. Interview Participant No. 6 represents an airport proprietor that owns a large-hub commercial airport and several general aviation airports in a major metropolitan area. This airport proprietor has engaged in significant nonaeronautical devel- opment, including P3 projects. Interview Participant No. 7 represents an airport proprietor that owns a large-hub commercial airport with significant commercial development and additional commercial space available. Interview Participant No. 8 represents an airport proprietor that owns a medium-hub airport along with several general avia- tion airports in a destination area.

Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. ACRP LRD 40 55 LIST OF ACRONYMS AAIA—Airport and Airway Improvement of 1970 ACIP—Air Carrier Incentive Program. See also ASIP. ACRP—Airport Cooperative Research Program ADAP—Airport Development Aid Program AIP—Airport Improvement Program AIPP—Airport Investment Partnership Program ALP—Airport Layout Plan APPP—Airport Privatization Pilot Program ASIP—Air Service Incentive Program. See also ACIP. C.F.R.—Code of Federal Regulations DBFOM—Design-Build-Finance-Operate-Maintain DOT or U.S. DOT—U.S. Department of Transportation FAA—Federal Aviation Administration FAAP—Federal Aid to Airport Program FBO—Fixed-Base Operator GA—General Aviation GAO—Government Accountability Office LRD—Legal Research Digest NEPA—National Environmental Policy Act NPIAS—National Plan of Integrated Airport Systems OIG—U.S. Department of Transportation Office of Inspector General P3—Public-Private Partnership PFC—Passenger Facility Charge TCRP—Transportation Cooperative Research Program ULCC—Ultra-low-cost carrier U.S.C.—United States Code APPENDIX A Template Interview Questionnaire 1. Please briefly introduce yourself and your involvement with use of airport revenue and property. 2. What are the primary sources of airport revenue for your airport(s)? In what manner have you acquired property for the airport(s)? 3. Have federal statutory and regulatory restrictions regard- ing the use of airport revenue presented any challenges? If so, why; if not, why not? 4. What have you found to be the biggest impediment to the development of airport property and the permissible use of airport revenue? 5. How do you assess whether a particular use of airport rev- enue or property is permissible? a. Are there any guidance materials, resources or tools that you find particularly helpful in assessing whether the use of airport revenue or property is permitted or prohibited? Thomas P. Thatcher, Transp. Research Bd., Airport Coop. Research Program, ACRP Report 44: A Guidebook for the Preservation of Public-Use Airports (2016). Timothy R. Karaskiewicz, Transp. Research Bd., Airport Coop. Research Program, Legal Research Digest 35: Legal Considerations in the Funding and Develop- ment of Intermodal Facilities at Airports (2018). William J. Estes, Transp. research Bd., Airport Coop. research Program, Permitted Airport Involvement in Economic Development Efforts (forthcoming). Other Research and Articles Andy Carlisle, Airport Business Resilience: Plan for Uncertainty and Prepare for Change, 9 Airport Mgmt. 118 (Winter 2014–15). Dan Reimer, The Law of Airline Subsidies and Incentives in the USA: Recent Developments and Future Outlook, 4 J. Airport Mgmt. 291 (2010). David Bannard, Will Ground Access Woes and Federal Rev- enue Restrictions Choke U.S. Airports?, 29 Air & Space Law., no. 2, 2016, https://www.foley.com/en/insights/ publications/2016/07/will-ground-access-woes-and- federal-revenue-restri. Edgar Jimenez et al., The Airport Business in a Competitive Envi- ronment, 111 Procedia-Soc. & Behav. Sci. 947 (2014). Jens Newig & Oliver Fritsch, Paper Presentation at the American Political Science Association 2009 Annual Meeting in Toronto: The Case Survey Method and Appli- cations in Political Science (Sept. 3–6, 2009), https://www. researchgate.net/publication/228162937_The_Case_ Survey_Method_and_Applications_in_Political_Science. Kelly Yamanouchi, Hartsfield-Jackson to Strike Agreement with Airport Chaplaincy, Atlanta J.-Const. (Jan. 31, 2019), https:// www.ajc.com/business/hartsfield-jackson-strike-agreement- with-airport-chaplaincy/ YOQGmzNER6Q4tvnvZ6ujRJ/. Megan S. Ryerson, Incentivize It and They Will Come? How Some of the Busiest U.S. Airports Are Building Air Service With Incentive Programs, 82 J. Am. Plan. Ass’n 303 (2016). Peter J. Kirsch, Stephen H. Kaplan & Adam M. Giuliano, Kaplan Kirsch & Rockwell LLP, P3 Airport Projects: An Introduction for Airport Lawyers (2017), https:// www.kaplankirsch.com/portalresource/P3_Airport_ Projects_An_Introduction_for_Airport_Lawyers.pdf. Robert K. Yin, Applications of Case Study Research (3d ed. 2011). Steve Vockrodt & Bill Turque, FAA Rejects Use of Revenues from New KCI Terminal for Community Programs, Kan. City Star, https://www.kansascity.com/news/local/ article217247750.html (last updated Aug. 24, 2018). Vitaly S. Guzhva, Massoud Bazargan & David A. Byers, Deter- minants of Financial Health of US General Aviation Airports, 2 J. Airport Mgmt. 158 (2008). Webbin Wei & Geoffrey D. Gosling, Strategies for Collaborative Funding of Intermodal Airport Ground Access Projects, 32 J. Air Transp. Mgmt. 78 (2013).