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Airports have a variety of fees that they can charge airlines and passengers. These fees are typically calculated based on the services used and the square footage occupied. While some fees, such as landing fees, are relatively standard across airports, others, such as terminal rental rates, can vary significantly. This is because there is no uniform method for measuring terminal space, and each airport operator has some discretion in setting rates and charges. Ultimately, the rates that airports can charge are determined by the organization managing the airport and/or state or local administration, and they can vary widely depending on the airport's unique characteristics and operating costs.
| Characteristics | Values |
|---|---|
| How do airports set rates? | Airports set rates based on how much it costs to operate. Airports track expenses and use a formula to translate those amounts into rates. |
| What fees do airports charge? | Landing fees, ground vehicle fees, terminal usage fees, de-icing fees, fuel fees, handling fees, parking and hangar charges, passenger service charges, security charges, noise-related charges, and emissions-related aircraft charges. |
| How are landing fees calculated? | Landing fees are calculated based on the weight of the aircraft, time of day, type of operation, and other services included. |
| How are terminal rental rates calculated? | Terminal rental rates are calculated by dividing the annual rate base by the square footage of total usable space or total rentable space. |
| Are there different rates for domestic and international flights? | Yes, there are additional landing charges per ton of maximum takeoff weight for domestic flights. |
| Do airports charge for gate usage? | Gate fees are usually included in the landing fee package. However, some airports may charge extra for gate usage, especially for non-signatory airlines or additional gates used. |
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What You'll Learn
- Airport operators charge airlines based on bilateral agreements or FAA rules
- Landing fees are the most common airport charge, based on aircraft weight
- Terminal rental rates are calculated by usable space and vary by airport
- Airlines are charged for parking and hangar space based on aircraft weight and length of stay
- Signatory airlines get discounts, while non-signatory airlines pay gate and terminal fees
Airport operators charge airlines based on bilateral agreements or FAA rules
In the United States, airports are owned and operated by local governments or port authorities and financed by local governments. The main financial sources of U.S. airports are user charges, state/local government programs, Airport Improvement Program (AIP) grants, and passenger facility charges. User charges are used to recover operating expenditures and debt service costs. The AIP was established to support a national integrated airport system. Grants are allocated by the FAA based on passenger volume and project basis.
Passenger facility charges are enplanement fees charged directly to passengers and are usually used for capital projects and maintenance/repair expenditures. Bilateral contracting is integral to the working relationship between airports and airlines. The three common types of airport use agreements are the residual method, the compensatory method, and the hybrid method. Under a residual agreement, the financial risk of the host airport is borne by the signatory airlines, and in return, the signatory airlines pay reduced user fees. Under a compensatory agreement, the airports bear their own financial risks in the absence of a signatory airline. A hybrid agreement combines the features of residual and compensatory agreements.
The FAA has a Policy Regarding Airport Rates and Charges that reflect all deletions and amendments to the policy to date. The policy emphasizes that the issue of rates and charges is best addressed at the local level by agreement between users and airports. The FAA also provides that airport proprietors must retain the ability to respond to local conditions with flexibility and innovation and are encouraged to achieve consensus and agreement with aeronautical users before implementing practices that would represent a major departure from guidance.
There are various fees an airport may charge, like ground vehicle or terminal usage fees, and fees for special services like de-icing in colder climates. Landing fees are the most widespread type of airport fee, usually calculated based on the weight of the aircraft. These fees are more common at larger airports and may also be based on the time of day or type of operation.
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Landing fees are the most common airport charge, based on aircraft weight
Landing fees are the most common charge levied by airports, typically calculated based on the weight of the aircraft. Airports charge these fees for the use of their airfield and infrastructure. The weight of an aircraft is usually assessed based on its 1000-lb maximum gross landed weight. The larger the aircraft, the higher the landing fee. This is because bigger planes take up more space, and there is a higher cost to handle more passengers. In addition, larger aircraft cause more runway wear and tear, and require vortex separations, which reduce the number of aircraft movements during a certain period.
However, some have argued that there is not a strong relationship between aircraft weight and airfield cost. For example, at congested airports, a flat rate landing charge for all aircraft types may be more appropriate, as the cost of occupying the congested runway is movement-related and independent of aircraft size.
Other factors that may affect the landing fee include the time of day or type of operation. Some airports include all services in their landing fee, while others charge extra per service. For example, ground vehicle or terminal usage fees, and fees for special services like de-icing in colder climates. Airports also commonly charge for fuel, and larger airports often charge handling fees for services like baggage handling and passenger services.
The fees charged by airports vary, and it is important to check the costs before your flight to avoid unexpected expenses. Many airports provide a detailed breakdown of their fees online. There are also online resources that can help, with websites like AOPA's Airport Directory, AirNav, and GlobalAir providing comprehensive databases of airport information, including fees and fuel prices.
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Terminal rental rates are calculated by usable space and vary by airport
Terminal rental rates are calculated based on usable space, and they vary across airports. An airport operator must collect revenues from airline tenants and non-airline sources to cover operating expenses, debt service, and other obligations. While the airport operator can charge airlines based on bilateral agreements, most airline rates and charges in the U.S. are on a cost recovery basis. The operator determines a "rate base" for each cost center and divides it by an activity level to arrive at a per-unit rate.
Airline rates and charges in the terminal are typically calculated using square footage as the divisor. For instance, if a terminal has one million square feet of rentable space and an annual rate base of $100 million, the annual rental rate would be $100 per square foot per year. Although almost every airport uses square footage to charge for terminal usage, very few airline agreements specify how to measure terminal space. Airline leased space is typically measured from the center line of a wall, while other space may be measured from the exterior or interior of the wall.
The total airline payments must remain the same before and after space weighting. While the ticket counter typically has the highest weight factor, the baggage makeup area, related tug drive area, and unenclosed space usually have the lowest weight factors. Since the value for each weight factor is arbitrary, most airports that implement rates and charges unilaterally use equalized terminal rental rates regardless of space types. However, due to differences in the definition of rentable space and space weighting, rental rates across airports are not directly comparable.
Additionally, the airport operator can divide the annual rate base by the square footage of total usable space or total rentable space (also known as commercial compensatory). The operator may negotiate with airlines and set a fixed dollar amount as the terminal rental rate or adopt a hybrid approach by applying credits, such as parking revenues, to the residual approach. Nevertheless, the underlying risks remain unchanged. Under a residual approach, the airport operator bears no vacancy risk, whereas, under the compensatory approach, the operator assumes all vacancy risks.
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Airlines are charged for parking and hangar space based on aircraft weight and length of stay
Airport fees are varied and often unique to each airport. Some common fees include landing fees, fuel charges, and handling fees. Landing fees are the most widespread type of airport fee, and they are typically calculated based on the weight of the aircraft. However, other factors may also affect the landing fee, such as the time of day or type of operation. For example, some airports include all services in their landing fee, while others charge extra per service.
While gates are usually not charged separately, some airports may charge for their usage if they are unleased. Additionally, some airports may offer free parking for a certain period immediately following landing, which is determined by considering aircraft scheduling, space availability, and other factors.
Parking and hangar charges are typically determined based on the maximum permissible takeoff weight, aircraft dimensions, and length of stay. These charges are usually applied to parking, hangar, and long-term aircraft storage.
The specific rates and charges imposed by airports may be established through bilateral agreements between the airport and the airlines or unilaterally by the airport based on rules set by aviation authorities. In the US, airline rates and charges are often calculated on a cost recovery basis, with airport operators allocating obligations to determine a "rate base" for each cost center, which is then divided by an activity level to arrive at a per-unit rate. Terminal rental rates, however, are not directly comparable across airports due to differences in rentable space definitions and space weighting.
To avoid unexpected expenses, it is advisable to research airport fees in advance. Online resources such as airport websites, AOPA's Airport Directory, AirNav, and GlobalAir can provide valuable information on airport fees, fuel prices, and other relevant details.
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Signatory airlines get discounts, while non-signatory airlines pay gate and terminal fees
The fees that airlines are charged by airports vary from airport to airport, and are determined by the organisation managing the airport and/or the state or local administration. Landing fees are the most widespread type of airport fee, and are usually calculated based on the weight of the aircraft. However, there are a host of other fees that airlines may be charged, including ground vehicle fees, terminal usage fees, and fees for special services like de-icing.
When it comes to terminal space, airport operators must collect revenues from both airline tenants and non-airline sources to pay for operating expenses, debt service, and other obligations. The airport operator can charge airlines based on bilateral agreements, or establish airline rates and charges unilaterally based on a set of rules set by the Federal Aviation Administration (FAA). In the US, most airline rates and charges are on a cost-recovery basis. The airport operators allocate all obligations to determine a "rate base" for each cost centre, and divide this by an activity level to reach a per-unit rate. Airline rates and charges in the terminal are typically calculated using square footage as the divisor.
Signatory airlines (passenger airlines who have signed a lease agreement or cargo airlines who have committed to a specific number of weekly flights) get a discount on most fees. Signatory airlines will pay around $350 per turn for an extra gate, whereas non-signatory airlines pay closer to $600 per turn. Non-signatory airlines also have to pay terminal usage fees, which signatory airlines do not, as these are already wrapped up in their lease fees.
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Frequently asked questions
The rates charged by airports are determined by how much it costs to operate the airport. Airports have different expenses and obligations, and these are translated into rates using a formula.
Airports charge for terminal space based on square footage. The airport operator determines the total amount to be recovered from the terminal cost center and divides it by the square footage of total usable space or total rentable space.
Yes, rates are different for domestic and international flights. For example, there are additional landing charges per ton of maximum takeoff weight for domestic flights.
Common fees include landing fees, ground vehicle fees, terminal usage fees, and special service fees such as de-icing in colder climates. Airports may also charge for fuel, parking, and hangar space.
You can check the airport's official website, as many airports provide a detailed breakdown of their fees online. There are also online resources such as AOPA's Airport Directory, AirNav, and GlobalAir, which offer comprehensive databases of airport information, including fees, for airports across the United States.
