Being Prepared for IROPS: A Business-Planning and Decision-Making Approach (2014) / Chapter Skim
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Pages 38-43
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From page 38... ...
38 How to fund IROPS mitigation initiatives is a key consideration in executing an investment plan for mitigating IROPS events. The funding details will depend on many factors, such as airport size, local, state, and federal regulations, budgeting styles of the airport governing body, other budget priorities of the airport, the airport's Capital Improvement Plan, the Airport Master Plan, bond covenants, and Airline Use Agreement (AUA)
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From page 39... ...
Strategic Planning, Financing, and Airport Use Agreements 39 to accumulate funds in excess of their annual requirements for expenditures can vary widely. Some airports can accumulate significant reserve funds, while others are restricted in their ability to do so as a result of their markets and agreements.
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From page 40... ...
40 Being Prepared for IROPS: A Business-Planning and Decision-Making Approach environmental concerns. Cross-utilization of equipment owned/operated by the airport and funded with AIP/PFC funds is not prohibited if it is used for a legitimate airport purpose.
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From page 41... ...
Strategic Planning, Financing, and Airport Use Agreements 41 • Define the level of control over the expenses at the airport, if any (typically capital expenses are those over which the airlines may have some control through a majority-in-interest or similar type provision)
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From page 42... ...
42 Being Prepared for IROPS: A Business-Planning and Decision-Making Approach 5.4.1 Exclusive Use Exclusive use agreements place control of the leased facility on the entity that is granted the exclusive use of the facility. Although this is a strong position for the leaseholder, there may be opportunities for the airport operator to negotiate use of gate space during periods of non-use.
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From page 43... ...
Strategic Planning, Financing, and Airport Use Agreements 43 effects that IROPS-related expenses will have on rates and charges. The ease of calculating the effect of any related capital or O&M expenses on rates and charges is proportional to the complexity of the rate-making process used by the airport.
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