Jazmin Li
Airports are complex structures that serve as vital hubs for air travel and commerce. They encompass a range of facilities, from runways and control towers to passenger terminals and retail spaces. While the federal government plays a significant role in regulating and funding airports, particularly through the Federal Aviation Administration (FAA), the ownership and management of airports vary. In the United States, most airports are owned by state or local governments, with a mandate to be self-sustaining and generate revenue through various means. This raises the question: Are airports considered federal buildings?
| Characteristics | Values |
|---|---|
| Ownership | Nearly all U.S. airports are owned by state or local governments. |
| Funding | Airports are required by the federal government to be self-sustaining and receive little to no direct taxpayer support. |
| Infrastructure Funding Mechanisms | Federal grants through the FAA's Airport Improvement Program (AIP), the Passenger Facility Charge (PFC) local user fee, and other mechanisms. |
| Categories | Commercial Service Airports, Cargo Service Airports, Reliever Airports, and General Aviation Airports. |
| Commercial Service Airports | Publicly-owned airports with at least 2,500 passenger boardings each calendar year and receive scheduled passenger service. |
| Primary Airports | Commercial Service Airports with more than 10,000 passenger boardings annually. |
| Cargo Service Airports | Airports served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds. |
| Reliever Airports | Designated by the FAA to reduce congestion at Commercial Service Airports and improve general aviation access. |
| General Aviation Airports | Public-use airports with less than 2,500 annual passenger boardings or no scheduled service. |
| Functions | Landing area, runways, control towers, hangars, terminals, airport aprons, taxiway bridges, air traffic control centers, passenger facilities, and emergency services. |
| Revenue Sources | Aeronautical revenue (airline rents, landing fees, passenger service fees, parking fees, hangar fees), non-aeronautical revenue (lease revenue, retail, concession sales, rental car operations, advertising), and non-operating revenue. |
| Sustainability Initiatives | Installation of solar photovoltaic arrays, exploration of alternative energy sources, and preparation for electric aircraft. |
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What You'll Learn
Airport ownership
In the contiguous US, airports are mostly owned by local port authorities, which are small, locally-funded government agencies operating with a cost-revenue model. The smaller airports are usually owned by local governments, while in Alaska, all airports are state-owned. Airports are often considered business magnets, with airport directors playing a key role in local economic planning. They are largely self-sustaining, funded by fees from passengers, airlines, parking, and sales, and receive little taxpayer support.
However, some airports are constructed and owned by governments but operated by private companies, and there is one privately-owned airport in the US. The land may be bought from private owners, and the infrastructure built with a mix of private capital and subsidies. While airports are vital economic drivers, they face a funding crisis, with federal grants and taxes providing insufficient resources for long-term investment.
The management of airports varies, with some operated by independent airport authorities or commissions, and others by local or state governments. For example, the Dallas-Fort Worth Regional Airport Board, with 12 members representing the owning cities, operates the DFW International Airport. Ultimately, the ownership and management of airports in the US depend on local and regional dynamics, with a mix of public and private involvement.
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Airport funding
Airport infrastructure projects in the United States are funded through three primary mechanisms: federal grants through the Federal Aviation Administration's (FAA) Airport Improvement Program (AIP), the Passenger Facility Charge (PFC) local user fee, and tenant rents and fees. Airports are typically owned by state or local governments and are required to be as self-sustaining as possible, receiving little to no direct taxpayer support.
Federal AIP grants are a significant source of funding for airports, providing support for various improvement and modernization projects. These grants are available for different categories of airports, including primary airports, commercial service airports, reliever airports, and general aviation airports. Primary airports are defined as commercial service airports with more than 10,000 passenger boardings annually, while commercial service airports have a minimum of 2,500 passenger boardings each year. Reliever airports aim to reduce congestion at commercial service airports, and general aviation airports have less than 2,500 annual passenger boardings or no scheduled service.
The PFC, created by Congress in 1992, is a local user fee mandated to fund FAA-approved airport improvement projects. It is designed to encourage infrastructure investment, creating competition among airlines and enabling airports to reduce operating costs. However, the federal cap on the PFC user fee has not been updated in the last 20 years, limiting airports' financial resources and delaying critical improvement projects. Modernizing the PFC cap is crucial to enhancing airport facilities and providing passengers with improved services and lower airfares.
State government funding is another essential source of airport funding. Departments of transportation and aviation are common entities for aviation funds. Airports may also be eligible for economic development funds, depending on the nature of their projects. State governments typically fund aviation trusts through fees and taxes levied on aircraft owners and airport users, including fuel flowage fees. State grants can be used to support projects that may not be eligible for AIP funding or to supplement AIP grants. These grants come with specific requirements and assurances to ensure that the funding is allocated for its intended purpose.
Local grant funding is particularly crucial for smaller local airports that may not qualify for federal or state grants. These grants are often the sole source of funding for capital airport projects. Local funding is generally provided through tax revenue and usage fees collected by the airport operator, with allocations determined by the ownership and operation structure of the airport.
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Airport categorisation
Another key factor in airport categorisation is the volume of passenger traffic. The Federal Aviation Administration (FAA) categorises airports as either Commercial Service Airports or General Aviation Airports. Commercial Service Airports are further divided into Primary and Nonprimary Airports. Primary Airports are defined as those with more than 10,000 passenger boardings each year, while Nonprimary Airports have at least 2,500 passenger boardings annually. Commercial Service Airports can also be categorised by their hub status, with hub categories determined as a percentage of total passenger boardings within the United States.
Additionally, airports can be categorised based on their physical characteristics and facilities. Airports typically consist of a landing area, including a runway or helipad, and utility buildings such as control towers, hangars, and terminals. Smaller airfields often have a single runway shorter than 1,000 meters, while larger airports for airline flights have paved runways of 2,000 meters or longer. Larger airports may also feature airport aprons, taxiway bridges, extensive passenger facilities, and fixed-base operators serving general aviation.
Lastly, airports can be categorised based on their sustainability initiatives. A growing trend among airports is the adoption of renewable energy sources, such as solar photovoltaic arrays, to offset their electricity consumption. The world's first airport fully powered by solar energy is located in Kochi, India. Airports are also preparing for the introduction of electric aircraft by exploring alternative energy production methods and addressing the challenges associated with the high energy demands of electric planes.
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Airport operations
On the other hand, airside operations refer to the activities in the secure area of an airport, where authorized personnel, aircraft, and vehicles involved in flight operations have access. These include parking, loading, unloading, refueling, and preparing aircraft for takeoff and landing. Airside operations require seamless coordination between various stakeholders, including airlines, ground handling companies, air traffic control, and airport authorities, to ensure the safe and efficient movement of aircraft.
Modern IT systems and software play a crucial role in managing airport operations and enhancing the overall travel experience. For example, TAV Technologies offers solutions like the Common Use Passenger Processing System (CUPPS), Baggage Reconciliation System (BRS), and Travel Document Authorization System (TDAS) to streamline passenger touchpoints and increase security, accuracy, and reliability in managing passenger and baggage flows.
Additionally, airports are categorized based on their service and hub status. Commercial Service Airports are publicly owned and have at least 2,500 passenger boardings each year, while Primary Airports, a subset of Commercial Service Airports, have more than 10,000 passenger boardings annually. Cargo Service Airports specialize in transporting cargo with a total annual landed weight of over 100 million pounds, and Reliever Airports aim to reduce congestion at Commercial Service Airports.
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Airport infrastructure
Runways, for example, are required to be located on flat ground, which often means airports are situated in valleys, coastal areas, or even on reclaimed land or purpose-built offshore islands. This exposure to water bodies makes them susceptible to the impacts of climate change, such as sea-level rise, inundation, and flooding. Extreme weather events, including strong winds, storms, and heavy precipitation, can cause significant disruptions to airport operations, affecting not only the airport in question but also the broader aviation network.
Additionally, changes in temperature and precipitation can impact airport pavements and infrastructure, similar to their effects on roadways. More frequent low temperatures will likely lead to increased salt and chemical usage for de-icing, exacerbating the impacts on pavement conditions.
To address these challenges, organisations like the International Air Transport Association (IATA) collaborate with airports and government authorities on major airport development projects. They aim to ensure that these projects result in adequate infrastructure that considers safety and user needs. Furthermore, initiatives like NEXTT, a joint initiative between IATA and ACI, envision airports of the future that leverage new technologies to enhance the efficiency of air travel.
In summary, airport infrastructure encompasses the physical framework that enables aviation operations. However, it faces significant challenges due to its vulnerability to climate change and extreme weather events. Through collaboration between industry organisations, airports, and governments, efforts are being made to enhance and future-proof airport infrastructure, ensuring safe and efficient operations in the years to come.
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Frequently asked questions
No, airports are not federal buildings. While airports are required by the federal government to be as self-sustaining as possible, they are owned by state or local governments.
Airports fund their operations through aeronautical revenue, non-aeronautical revenue, and non-operating revenue. Aeronautical revenue is generated through airline rents, landing fees, passenger service, parking, and hangar fees. Non-aeronautical revenue includes lease revenue from compatible land-use development, non-aeronautical building leases, retail and concession sales, rental car operations, parking, and in-airport advertising. Non-operating revenue, on the other hand, is not directly linked to aircraft operations or airport facilities.
The Federal Aviation Administration (FAA) categorizes airports based on their activity and the number of passenger boardings. Commercial Service Airports, also known as Primary Airports, have more than 10,000 passenger boardings each year. They can be further classified into hub categories based on the percentage of total passenger boardings within the United States. Nonprimary Commercial Service Airports have between 2,500 and 10,000 passenger boardings annually. Reliever Airports are designated to reduce congestion at Commercial Service Airports and improve general aviation access. General Aviation Airports are public-use airports with less than 2,500 annual passenger boardings or no scheduled service. Lastly, Cargo Service Airports primarily serve aircraft transporting cargo, with a total annual landed weight of more than 100 million pounds.
