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Airport Management

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AIRSIDE & AIRFIELD -airport is a complex intermodal transportation facility: air, roads, rail, water (planes, cars, busses, boats, trucks, subways…) -airport provides air transportation services to people and cargo, and other services to aircraft like maintenance, fuel, catering, cleaning etc -remember the intense regulations?

Airport related FAR’s: 71,73,75,77,91,93,95,97,99,101,103,105,150,155,157,161 -airspace designation, air traffic & operating rules, environmental rules, funding rules, and so forth -airports have two major operational components *airside includes the airfield and airspace *landside includes the terminal, ground access, parking (discussed in subsequent unit) -sound management requires thinking about the airfield as four dimensional: length, width, depth, and time airfield includes the runways, taxiways, holding aprons & parking areas & penalty box, gate apron/ramp, maintenance and run up apron, vehicle access roads, cargo ramp, separation/clear areas, facilities & equipment areas like navaids or lights or radar, ARFF station, deicing/snow removal, fueling, incinerator/garbage disposal, regional jet terminal & apron, bus stations some are Aircraft Movement Areas, some are Non-Movement Areas -rule-of-thumb: ATC controls aircraft movement areas, airport/airlines control non-movement areas -don’t be mislead, a lot of movement happens in “nonmovement” areas; accidents happen, undirected and uncontrolled movement can result in vehicle and aircraft collisions…quite costly in many ways let’s take a closer look at some of the airside operating components; remember, some of the practices and design elements are by way of the physics of flight, others are by way of FAA regulation (usually reflecting the physics part) 1.

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RUNWAYS: -pretty important to an airport, more so to an airplane -FAA regs on virtually everything about a runway from design to use e.

g. -length, idth, orientation, configuration of multiples, slope, thickness, markings, lights, signage and so on ad nauseum -primary runway oriented to the prevailing wind any parallels too -crosswind runway oriented to the most common non-prevailing wind -runway designation numbers relative to NORTH *9/27 means 90’ E and 270’ W *18/36 means 180’ S and 360’ N -where there are multiple runways like parallels, a letter is added to designate the sequence for an approaching aircraft on the appropriate heading *9L/27R 18R/36L

Runway Length -minimums established for acceleration & deceleration based on: *gross aircraft weight *airfield elevation *climatic conditions including seasonal fluctuations (precipitation, temperature, humidity) *affects of air density on performance -modern jets need 6K to 10K or more Runway Width -related to wingspan of aircraft (150-200’) Runway Pavement -asphalt for lighter duty -concrete for commercial service -longevity of pavement depends on use, climate *asphalt = 10yrs+/*concrete = 20yrs+/-

PROPER MAINTENANCE IS PARAMOUNT TO LONGEVITY! Runway Markings -three categories 1) Basic-visual for GA airports 2) Non-precision Instrument for GA & small commercial 3) Precision Instrument for large commercial -displayed markings typically include: *centerline *numerical designation *aiming points along the centerline *thresholds where the number of stripes indicates the width; local condition coordinates for displacement *touchdown zones *sidestripes

Runway Safety Areas (RSA’s) -shoulders and other buffer areas to minimize damage in the event of an overshoot or undershoot Runway Protection Zones (RPZ’s) -1/2 mile off the ends to provide a clear zone for people and buildings, affording some protection; usually restricted development and use Runway Surfaces -five are defined by the FAA, all except #1 are imaginary 1. primary surface 2. horizontal surface 3. conical surface 4. approach surface 5. transitional surface 2.

TAXIWAYS -move aircraft to and from the runways, terminal, cargo areas, maintenance areas etc -four types to be found on most airports: *parallel to runways *entrance & exit are perpendicular to runways *bypass used for stacking & sequencing BENEFITS OF A GOOD TAXIWAY SYSTEM DESIGN +avoid landing & taking off interference +provide an efficient route to/from terminal etc +move arrivals off runway quickly (more ops) +provide high speed exit off runway (more ops) +avoid crossing of active runways (efficient ops) taxiway markings are generally used to mark the centerline, define the edges, and indicate runway holds 3. AIRFIELD MARKINGS -used to identify holding areas, transit areas, and runways for ground movement COMMON TYPES *delineating vehicle roadways *distinguishing Movement Area boundary *designating Holding Areas for: run up, take off, queing, parking aprons, service areas like fuel or deicing, penalty box area 4. AOA SIGNAGE (air operations area) -FAA has established seven categories of signage for the AOA: ) MANDATORY-critical to flight operations b) INSTRUCTIONAL-holding stops, no entry areas c) LOCATIONAL-runway, taxiway, boundaries d) DIRECTIONAL-at intersection of taxiways e) DESTINATION-point way to AOA areas such as terminal, maintenance, cargo, military, FBO’s) f) INFORMATIONAL-noise abatement, crossing traffic, radio frequency g) RUNWAY DISTANCE REMAINING-in thousands of feet 5. AOA LIGHTING On the runways & taxiways: -approach >very complicated>see page 137 -glideslope >red or white -end line/threshold > green -edges & centerline > white or amber -taxiway > blue

At other areas in need of lighting: -obstructions > red &/or white, flashing or steady, day & night -beacons > green/white/yellow, flash or alternate 6. ON FIELD NAVAIDS -NDB >old technology radio homing beacon -VOR > high frequency, omni directional radio beacon most common type in use -ILS > guidance & approach to runway *localizer =centerline *glideslope transmitter *markers at 7 miles, 1 mile,100 yards 7. AIR TRAFFIC CONTROL TOWER -from the ground to 2500 ft in a 5 mile radius and on the movement area 8.

RADAR & AIRPORT SURVEILLANCE RADAR -360’ sweep out to 60 miles -surface detection and movement area activity of aircraft and vehicles transiting the airport; safety 9. WEATHER REPORTING (broadcast to aircraft) -automated weather observations in real time measurements up to 2000’ -automated surface conditon observations -wind indicators like socks, tees, and those large geometric three dimensional devices 10. BASIC AIRFIELD SECURITY FEATURES -perimeter fencing -access control points -ID challenge, swipe, code operated locks -vehicle patrols -surveillance systems like video & motion detectors AIR TRAFFIC MANAGEMENT the FAA owns and operates all of the ATC systems -days of yore: lighted beacons, ground spotters, base and airborne radio, radio directional beacons, caulk boards and telephone lines -RADAR came along, then LORAN, than transponders, GPS, and now NextGen & positive control -30 years ago or so the feds launched the National Airspace System, a comprehensive plan & funding to upgrade systems and improve safety & capacity -components included: *new radar systems *improved communications systems *better weather forecasting & dissemination *Doppler radar in terminal areas (DFW accident) -FAA ATO (air traffic organization) manages the airspace they do this using four operating divisions: 1. AIR TRAFFIC CONTROL SYSTEM COMMAND CENTER -manages all air traffic in the US -they are the ones who send out NOTAMS 2. AIR ROUTE TRAFFIC CONTROL CENTERS -21 in US; Oberlin for example 3. TERMINAL RADAR APPROACH CONTROL 4. AIR TRAFFIC CONTROL TOWERS -use VFR as conditions permit -use IFR always -use ATC Positive Control where available (eventually all ATCT’s at primary airports) -the FAA also delineates classes of airspace and air routes

CLASSES OF AIRSPACE Class A-above 18k ft, positive control Class B-around busiest airports Class C-around moderately busy airports Class D-around least busy airports Class E-all the airspace from the ground up to 18k ft not A-D around airports with no ATCT Class G-uncontrolled DESIGNATED AIR ROUTES -Victor Routes = 1200 ft to 18k ft, 8 miles wide -Jet Routes = 18k ft up to 45k ft -T-Routes = gps based routes (fairly new category)

SPECIAL USE AIRSPACE -Prohibited Areas =security related limits -Restricted Areas = periodic and recurring hazards, usually at specified times -Temporary Flight Restrictions = national security situations, e. g. Air Force One or visiting head of state -Military Operations = transiting allowed with caution -Alert Areas = high volume flight activity space, be extra alert to converging traffic -Warning Areas = over water military ops areas -Controlled Firings = testing of missiles, rocket launches, artillery range, bombing range etc; transit allowed

Flight Service Stations -broadcast weather, process flight plans, send out advisories TERMINAL AREA TRAFFIC CONTROL -manages & controls arriving & departing aircraft (think capacity management) -do this using both navaids and operational practices *Terminal Instrument Procedures (TERPS) *Standard Instrument Departures (SIDS) *Instrument Approach Procedures (IAP) -these are established for each runway and also for nearby airports e. g. : MIA & FLL & WPB; JFK & LGA & EWR then there is NEXT GEN, you are in the middle of it all NEXT GEN uses advance technologies to improve safety and efficiency and thus capacity -it has been long in the works and long in getting full funding -useful to increase capacity as forecast traffic growth continues -useful to improve operational efficiency and thus hopefully reduce carbon footprint and contribute to industry sustainability -made up of very complex and highly integrated systems for airports, FAA, airlines, Boeing, Airbus, Embraer et al -Next Gen is an ambitious and absolutely critical program involving: enroute navigation *airport approach & departure *airport ground maneuvers *flight planning *weather *overall communications among all users -generally uses GPS to enhance navigation Some of the elements of Next Gen are: *Automated Dependent Surveillance (gps based) *Wide Area Augmentation (gps based) *Traffic Alert & Collision Avoidance (transponder based) *enhanced visual & electronic approach navaids that are GPS based like RNAV, RNP, CDA *Airport Surface Detection equipment (gps & radar based) AIRPORTS-THE BIG PICTURE we will look at airports with a journalists eye: who, what, when, where, why -role in aviation: obvious flight function and very importantly as an economic generator for the community; and engine of trade and commerce and tourism; access to the world really -airport management requires 4 dimensional thinking: the three spatial/physical dimensions and time (think of the flight ops banks at hubs) -Primary mission: provide pax & cargo access to air transportation -an airport is a highly complex system of facilities, users, systems, and regulations common measures of performance are things like: number of pax, tons of cargo, number of operations, enplanements, O&D traffic vs. Connecting pax, freight vs. mail -like the rest of the aviation sector, airports are heavily regulated -USDOT & the FAA & ICAO *Office of Airports, Safety & Standards & Planning *ADO’s (regional airport district offices) *local level fire and building codes -CFR’s in the form of the FAR’s, Parts 139, 150 etc. (covered in unit 4), and the advisory circulars from the FAA FAA AIRPORT CATEGORIES: -Primary Commercial Service…large, medium, small, or non hubs -General Aviation -Reliever -Primary = >10K pax a year -Commercial = served by scheduled carriers -General Aviation = of total US pax annually (8 million +/-) Medium = ? of 1% of total US pax annually (2m +/-) Small = 1/20 of 1% of total US pax annually (400K +/-) Non-Hub = < 1/20 of 1% of total US pax a year -main airport management trade groups are ACI & AAAE -EVOLUTION OF AIRPORTS * greenfields later marked out a bit; pilots, builders army & navy especially into WW1 *post office and some cities *airlines *WW2-lots built everywhere leading to *airport act of 1946 which gave 500+/- military airfields to civilian agencies and $500m to convert them *by late 1950’s we had the FAA & jets *then the DOT came along in the 60’s *1970’s saw trust funds created along with revenue sources to support the FAA: ticket tax, international ticket tax, fuel tax, cargo tax, some fees and the like *late 70’s also gave us the National Airport System Plan and the advent of the National Airspace System

DEREGULATION in 1978 forever altered the structure of civilian commercial aviation. -essential air service communities -hub & spoke system -AIP created in 1982; PFC’s & MAP in the 90’s -more recently: AIR-21, Vision 2100, TSA, FAA Reauthorization -today’s issues: economic climate, environmental impacts & rules, security, sustainability/viability -major capacity and demand questions; NEXTGEN may answer

AIRPORTS IN THE COMMUNITY -regional, national, global economic engine -jobs, trade, tourism, market access, real estate values, producer and consumer of value, direct & indirect contributions -basic purpose of ALL sectors of commercial aviation is to offer transportation by air to people and cargo -business incubator -economic multiplier virtually all airports are public entities that are operated like a private business in partnership with the airlines, at least that’s the goal not a static operational environment as airlines change, schedules change, economic conditions change -PARTNERSHIP! Formalized thru use agreements of various types which we explore later in the semester; airfield, maintenance, terminal, etc -highly competitive airline market means the airport must remain neutral and open to all airlines -trade secrets, planning secrets -airports operate in the same volatile economic climate as the airlines and so their fortunes are linked -airport management must remain flexible, sensitive to financial and competitive pressures in addition to all the aeronautical activity, the contemporary commercial airport must also be proficient at offering commercial and retail services to consumers -it is good for the customers and very good for the airport and the airlines because of the income generated lowering airlines’ fees -examples: retail stores, food & beverage, hotels, personal services, FBO’s, maintenance, training, fuel, catering, cargo handling, rental cars, taxi and limos, parking etc -the airport can be a landlord or manager of contractors in many larger hub airports, this can be a HUGE revenue source…. as much as 50% of the airport’s total annual income -does this benefit the airlines and passengers? Airports Government Regulation & Industry Best Practices -aviation among the most heavily regulated, including airports -who does all this regulating? DOT, FAA, DHS, ICAO -plus a couple of trade groups advise on best practices: ACI & AAAE -Title 14 Aeronautics & Space www. gpo. gov/fdsys -FAR’s and Advisory Circulars as good a place as any to begin is Part 139 Certification of Airports -FAA defines classes of airports based on types of operations Class I = large & small aircraft, scheduled service II = small scheduled and large unscheduled III = small scheduled IV = large unscheduled -LARGE means aircraft with 31+ seats -SMALL means aircraft with 9-30 seats -SCHEDULED means common carrier operations that are scheduled in advance and for which they sell tickets -UNSCHEDULED means common carrier operations for hire at a time & place negotiated with the customer -airport required to publish an AIRPORT CERTIFICATION MANUAL and receive FAA approval after inspection; this is an ongoing and periodic event -ACM spells out operating procedures & how they comply with 139 -FAA issues AIRPORT COMPLIANCE CERTIFICATE -all Class I’s have to meet 29 elements to earn an ACC (see text pgs. 197-199) like what……. -the 29 elements fall into three broad categories: 1. Administrative & Record Keeping -bureaucratic like a table of organization -operational like personnel training 2. Operations & Maintenance -airfield movements -lights & markings -wildlife plans -obstruction marking 3.

Safety & Emergency Operations -emergency manual & plans -aircraft rescue & fire plans -public protection plans NOTE: these are narrative and written with illustrations -then there is the annual inspection, some a self-evaluation and self-reporting, but mostly done by the FAA onsite and with tabletop exercises -there are eight stages to the FAA inspection EIGHT STAGES OF AN FAA AIRPORT ANNUAL INSPECTION 1. pre-inspection document review 2. briefing with airport management team 3. files and paperwork and records examined 4. physical inspection of aircraft movement area 5. physical inspection of firefighting & rescue (often a live tabletop drill as well) 6. hysical inspection of the fuel depot, delivery systems, spill containment, and firewall barrier 7. night operations inspection for lighting and signage including IFR operations 8. debriefing airport management team on findings; potential non-compliance items discussed as well as possible enforcement actions and any recommendations by the FAA -possible enforcement actions: *letter of correction or a warning *civil penalty *suspension or revocation of certificate (extremely rare) EXAMPLE REQUIREMENTS IN PART 139 I. Pavement *runways, taxiways, ramp, apron, -initial specifications and quality -periodic inspections -maintenance & repairs -pretty detailed, e. g. >3” edges differential >3” hole depth 5” total diameter gt;no cracks, no loose dirt, FOD, rubber deposits >no ponding water -runway materials: dirt, planks, gravel, and >asphalt-flexible, weaker, high maintenance, prone to holes >concrete-rigid, stronger, lower maintenance, prone to cracking *lightening strikes issue -LIFE CYCLE COSTING (see slide) -general rule of thumb: runway good condition & useful for the first ? of its life span; begins serious deterioration the last ? -periodic & routine maintenance is 3 to 4 times less expensive than reconstruction (preventive vs. reactive) -responsible airfield management requires: -daily & detailed physical inspections (fun job! ) -2 or 3 times a year dynamic testing to verify energy disbursement and load on runway *CRITICAL CONCEPT: Runway Friction -acceleration & deceleration stress a runway surface -work to reduce or eliminate hydroplaning by frequent cleaning, grooving, and clear drainage II.

Fire & Rescue Operations (aircraft rescue & fire fighting) -specialized units with ARFF training required -aircraft fires develop & spread very rapidly-fuel -FAA has established firefighting vehicle requirements corresponding to the length of the aircraft -scale runs A to E, with A being 1 truck and E being 3 (A = 90’ and E = 200’) -trucks carry in combination water, drying agents, foam -minimum response time is 3 minutes from the fire station to the furthest runway -in real life: 2 minutes is standard using a Rapid Intervention Vehicle fully loaded with foam, water, and rescue equipment -extensive & intense & realistic training program including live fire exercises III. SNOW & ICE -admittedly not really in my body of experience nor expertise where appropriate, required to have a snow & ice plan and provide training and the occasional table top -it is more art than science, timing the removal and treatment to minimize impact on flight ops is goal -various removal criteria based on the type of snow and the aircraft operating limits -typically removal starts at ? ” or 1” cover -once begun, removal has to be continuous and uninterrupted until the snow stops Two Primary Means of Snow Removal: A. Mechanical -physically remove by plowing, brushing, scraping -preferred because it is more effective B. Chemical -melt by applying chemical agents -less certain results, can be overwhelmed -can damage surfaces ICE -a greater and more difficult problem than snow -harder to remove and control -applying sand to improve friction -using heat to melt and drain -using glycol to melt and prevent

AIRCRAFT DEICING -use a heated mixture of water & glycol (two types) -Type 1 has an effective time of 3-15 minutes Type 2 has an effective time of up to 45 minutes -fairly expensive process: cost of glycol, blending, application equipment, labor, environmental protection -runoff must be contained in a collector IV. WILDLIFE HAZARDS -a common & very serious problem -98% of incidence involve birds -control programs require an ecological impact study and a mitigation plan based on that study -widely used control techniques include: *remove food sources *remove habitat *physical annoyance (loud noises, fencing) *pesticides or dispersants *firearms or other weapons -not so widely used controls: *birds of prey *trained dogs *mongoose V.

SELF INSPECTION -airports use self inspection to assess compliance with safety, security, and other regulations -usual areas for self-evaluation include: *potential weather hazards *airfield obstructions & obstacles *potential safety hazards *potential infrastructure hazards *potential construction activity hazards *maintenance needs -idea is to assess how each of these might affect: *the ramp & apron *taxiways *runways *the fuel depot & related systems *buildings & hangers -elements of a safety self inspection include: *airport’s facilities *surveillance opportunities *adjacent land & buildings *special conditions (waterways, towers) or special events (airshows, demonstrations, tours) -create a culture of safety among all employees develop & implement a SMS (safety management system) composed of: *safety policy *safety promotion program *risk management program *quality assurance -LAST THING: textbook pages 483-505 lists the CFR’s for aviation and airports including the FAR’s and the Circulars BUSINESS SIDE OF THE AIRPORT BULLETIN: airports cost a lot to build and operate -generating enough money requires the use of a variety of strategies & techniques…each of which has its own pros & cons and rules -TWO BROAD EXPENSE CATEGORIES 1) CAPITAL IMPROVEMENTS -mostly funded by debt & grants 2) OPERATIONS & MAINTENANCE -mostly funded by current income -geography, organizational structure, financial structure all dictate the nature and type of expenses incurred in some cases (usually smaller airports) the local government sponsor absorbs the cost of things like legal services, accounting & financial transactions, planning, communications and more -sometimes even police & fire services -that said: it is not the case so much these days except at GA facilities -more often than not, the airport pays all its own expenses directly or by contributing to the central government thru a formula or by contracting for services with other departments -greater complexity of airport operations & development places greater demands on the financing systems: *financial statements serve like a corporate annual report -balance sheet -profit & loss -debt ratios *budgets *rates & charges methodology *debt structure *grant allocations & utilization -O & M expenses fall into a few categories: ) the airfield 2) the terminal 3) other buildings & grounds including roadways 4) administration & supplies 5) debt service, PILOT payments, depreciation AIRPORT INSURANCE -like any business, the airport is exposed to liability in multiple ways & to various degrees -physical harm to persons or property will occur -airports have lots of moving parts like vehicles & aircraft and airports usually have a large footprint -airports are also exposed by defects in workmanship or materials, improper maintenance, or failure to warn of danger -most often an airport stands accused of failing to act with reasonable care for the safety of others in: *aircraft operations-loading/unloading pax; fueling; movement on airfield *premises operations-pax activities and movements thru the terminal & concourses & public areas *sale of merchandise & food & beverage -generally the tenants and the airport share liability airport should ALWAYS obtain its own liability insurance; require that all lessees obtain their own liability insurance in specified amount & naming the airport as an additional insured *buy general liability, bodily injury, all risk, and property damage -courts generally (and state laws often very specifically) hold airports to be proprietary & they are consequently denied the usual protections of sovereign immunity doctrine OPERATING REVENUES -good sources of income generation include: -AOA -concessions & retail -leaseholds of airlines & others -parking & rental cars 1) AOA -derived from aircraft operations -landing fees -ramp parking fees -fuel flowage fees -penalty fees ) Concessions & Retail -food & beverage -merchandise -personal services -business services -hotels/conference centers/health clubs -display advertising 3) Landside & Ground Transportation -parking -car rental -shuttle & vans 4) Airline Leaseholds -space rental -equipment rental -cargo facilities & ramps -office & work space -ticket counters -baggage systems & space -maintenance shops & hangars 5) Other Operations & Non-Operating -pass thru charges for utilities -contract work (repairs, modifications) -interest earned on investments & banking -sale of assets -grants BUDGETS -critical element of a financial plan, especially so for a governmental agency like an airport -budgets: allocate resources-funds & staff; establish a capital improvement program; provide a revenue base to pay for it all

COMMON TYPES OF BUDGETS -lump sum appropriation -activity type appropriation -line item -incremental -zero based -modified approach REVENUE PRODUCTION -generally flows from contractual relationship between the airport and the airlines AIRPORT USE AGREEMENTS -establish rates & charges -grant access to facilities -approve a capital development program BASIS FOR USE AGREEMENTS 1) Residual Cost Approach -one or more airlines agree to pay all costs not covered by rates and charges to other airlines and by all other revenues -puts signatory airlines at risk; non-signatory responsible for only their rates & charges based on use -income surplus is credited against future rates & charges landing fee is the usual balancing revenue item -common structure where one or a few airlines have the great majority of traffic at an airport -airport guaranteed to breakeven, always -airport never has a meaningful surplus, however -airline bankruptcies can put airport at risk 2) Compensatory Cost Approach -all carriers pay rates & charges calculated to equal the cost of the facilities they use PLUS a small retention for airport improvements -rates & charges include debt service payments and pay-as-you-go capital projects -rates are proportional to space, facilities, traffic utilized -in theory, airport at full financial risk -in practice, airport can and does generate income above its costs through commercial activities Where these Methodologies Differ -potential for net income favors the compensatory method airlines involvement in the capital improvement program with the residual methodology can present challenges -the term (length) of the agreement can be an obstacle as well as it may serve to constrain development NET INCOME -used to offset capital improvements or fund pay-as-you-go projects -the residual methodology precludes accumulation of any meaningful net income -the compensatory system does not constrain an airports ability to raise income from non-aeronautical sources as any surplus is not required to reduce rates & charges MAJORITY-IN-INTEREST AIRLINES (MII’s) -a trade off between the airport and the airlines who sign a residual agreement in exchange for airlines guaranteeing adequate cash flows, they are entitled to a say over the airport’s capital development program & operating budget as well as the rates & charges; in many agreements the airlines are given a veto over capital projects, or at least the ability to delay them -these conditions are embodied in an MII clause of the use agreement and/or in the trust agreement on the airport’s debt -usually MII status is offered to scheduled carriers who are collectively 51% or more of the traffic as determined by landed weight, not enplanements -for accepting the financial risk, airlines receive protections -these vary greatly from airport to airport in the specifics because each situation and set of circumstances is different -typically the protections are built around the capital program as opposed to the operating budget, though MII airlines do have some operating budget review ability – standard capital program clauses include: 1) specific project approval 2) power to defer a project for a specified time 3) establishment of project value thresholds above which airline approval is required 4) limitations on the amount retained in the airport’s discretionary fund for capital projects 5) limitations on the amount retained in the airport’s operating reserve fund against downturns -a great downside is that control of a public capital program devolves to airlines (which is the intent) but not necessarily the best public policy -other less favorable aspects include: *one or a few carriers can decide the fate of all the others *capital projects can be held hostage for other demands *possibility that the MII’s will approve of only those projects that directly benefit them *non-signatories who also pay rates & charges supporting the capital program might be left out TERM OF USE AGREEMENTS residuals tend to be much longer than compensatory -often tied to the term of the bonded debt -compensatory last from a few years to as little as month-tomonth; or even preferential use -rates & charges are set by the airport; great deal of flexibility in doing so for leases and non-aeronautical revenues especially AIRPORT PRICING (rates & charges) -very diversified business operation; unique combination of public & private enterprises -fees, rents, rates, charges are numerous & complex -prices should be market driven while maintaining business viability: funding operating costs & capital development costs in recognition of the airlines ability to pay -standard model reflects: 1) aeronautical facilities & services are priced on a cost recovery basis 2) non-aeronautical ones on market conditions -complicated pricing strategy to implement; want to encourage growth but also support airport operations & development

FIVE PRINCIPAL PRICING AREAS 1-AOA 2-Terminal Concessions 3-Ground Transportation 4-Airline Facilities 5-Other Leaseholds (too large an umbrella) 1-THE AIRFIELD -weight based landing fees; this one is the balancing number in residual systems; varies widely from airport to airport depending on flight ops numbers & type of aircraft, amount raised with other revenue sources, MII input on budget -ramp/apron aircraft parking fees -fuel flowage charges (main source for GA) -loading bridge fees (usually in gate charges) -GA landing fees are negligible -peak demand surcharges are being explored to relieve congestion by shifting demand *appeals to carriers as it lowers their costs *

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Airport Management. (2016, Sep 18). Retrieved from https://graduateway.com/airport-management/

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