Owais Crawford
An airport authority is an entity responsible for the operation and oversight of an airport or group of airports. Airport authorities are often government-affiliated agencies, such as the Federal Aviation Administration (FAA) in the United States, which regulates civil aviation, commercial space transportation, and air traffic control. The FAA is also responsible for setting standards for airports and protecting US assets during commercial space vehicle launches or re-entries. In Canada, airport authorities are typically private, not-for-profit companies that manage commercial airports. These entities ensure the smooth and safe functioning of airports and often have oversight over other travel hubs like rail facilities.
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What You'll Learn
The Federal Aviation Administration (FAA)
The FAA's powers include air traffic control, certification of personnel and aircraft, setting standards for airports, and protecting U.S. assets during the launch or re-entry of commercial space vehicles. It has the sole responsibility for a joint civil-military system of air navigation and air traffic control. The FAA also regulates air safety and has authority over neighbouring international waters, delegated by the International Civil Aviation Organization.
The FAA's creation was prompted by the approaching era of jet travel and a series of mid-air collisions, most notably the 1956 Grand Canyon mid-air collision. This led to the passage of the Federal Aviation Act of 1958, which transferred the CAA's functions to the new independent body. The FAA's first administrator, Elwood R. Quesada, was a former Air Force general and adviser to President Eisenhower.
The FAA is made up of 4 headquarters offices, 9 regional divisions, and 21 airport district offices across the country. It provides leadership in planning and developing a safe and efficient national airport system. The FAA has responsibility for all programs related to airport safety, inspections, and standards for airport design, construction, and operation. It awards $3.5 billion in airport grants and approves passenger facility charge collections totalling $2 billion annually. The FAA also establishes policies related to airport rates and charges, compliance with grant assurances, and airport privatisation.
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Airport authorities and their roles
An airport authority is a body that oversees the operation and management of an airport or a group of airports. In some countries, when an entity's authority extends beyond just airports to include harbour and rail facilities, it may be referred to as a port authority. The Airports Council International is the world trade association of airport authorities.
Airport Authorities in the United States
In the United States, airport authorities are often governed by a group of airport commissioners who are appointed by a government official. The Federal Aviation Administration (FAA) is a government organisation that provides leadership in planning and developing a safe and efficient national airport system. The FAA has responsibility for all programs related to airport safety, inspections, and standards for airport design, construction, and operation. It awards billions of dollars in airport grants and approves passenger facility charge collections. The FAA also establishes policies related to airport rates and charges, compliance with grant assurances, and airport privatisation.
Airport Authorities in Canada
In Canada, airport authorities usually refer to private, not-for-profit, and non-governmental companies that manage a city's commercial airports. Airports that use public funds are owned by taxpayers, who elect representatives such as city councillors and county commissioners to act in their interest. These elected officials appoint boards and/or managers to run the departments. The airport manager may report to the elected officials or the director of a department, such as the director of public works.
Common Airport Operations and Roles
Airport operations encompass all processes involved in ensuring a smooth experience for passengers and staff. These operations include strategic management by airport managers and oversight by airport personnel, such as TSA agents, gateway operators, and other key staff. Information management is a critical function, especially in larger airports, as the volume of information and the need for precision significantly impact commercial aviation efficiency and turnaround times. Common roles in airport operations often require a four-year degree, with specialisations in Aviation Management, Business, or Public Administration.
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Government-owned vs. private airport authorities
An airport authority is an entity responsible for the operation and oversight of an airport or group of airports. Airport authorities can be either government-owned or private. In the United States, airport authorities are often governed by a group of airport commissioners appointed by a government official, whereas in Canada, airport authorities typically refer to private, not-for-profit companies that manage a city's commercial airports.
Historically, many airports were built with government support, and in many cases before the 1950s, they were built with military use in mind. Since the 1950s, there has been a shift from direct government ownership of airports towards greater private sector involvement. This shift has sparked a debate about privatisation, but it's important to note that there are also many hybrid models in place.
When an airport is owned by a government department or ministry/agency, the government retains control of a strategic asset. However, investments in these airports often respond more to political cycles than technical or financial rationales. To address this, some governments create a specific agency to oversee planning and operations while maintaining overall control. Dubai International Airport operates under this model.
Another model is corporatisation, where an independent entity is created to plan and operate an airport. Changi Airport in Singapore is a successful example of this model. Management contracts are another option, where the public sector retains ownership of the airport but appoints contractors to perform specific functions or operate the entire airport. Public-Private Partnerships (PPPs) or Concessions transfer more risk to the private sector, as they are responsible for planning, financing, executing, and operating the airport under long-term contracts.
The Majority Equity Sale/Divestiture model transfers control from the government to the private sector, as seen in Australia's Airport Privatisation Program. This model can be attractive to mature markets when governments seek to monetise their investments. While it's challenging to determine which sector operates airports more effectively, the main objectives for involving the private sector should be considered, such as financial, macroeconomic, or management goals.
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The Airports Council International
Airports Council International (ACI) is a non-profit organisation that represents the interests of airport authorities and informs members of industry practices and airport standards. ACI was established in 1991 and its headquarters, ACI World, are based in Montreal, Quebec, Canada. ACI has 814 members operating 2,110 airports in 169 countries and territories worldwide.
ACI is a federated organisation, comprising ACI World, ACI Africa, ACI Asia-Pacific & Middle East, ACI EUROPE, ACI Latin America, and ACI North America. ACI's members include owners or operators (other than airlines) of one or more civil airports with commercial air services. ACI represents the interests of airports with governments and international organisations such as the International Civil Aviation Organization (ICAO). ACI develops standards, policies, and recommended practices for airports and provides information and training.
ACI considers safety its main priority and has launched programs such as the Airports Excellence Program (APEX) to help airports enhance their level of safety. The program is based on airport safety reviews, which analyse gaps in airport operation and infrastructure in comparison to ICAO standards and safety best practices. ACI also organises and dispatches an on-site team from ICAO and other airports to identify and remedy safety vulnerabilities through peer reviews, information sharing, training, and assistance with implementations of management structures.
In addition to safety, ACI has initiatives covering economics, operational security, carbon accreditation, and passenger transportation. ACI also gives out the Airport Service Quality Awards (ASQ), based on passenger satisfaction ratings in the ASQ Survey, which is a global survey based on interviews with passengers on the day of travel. ACI is committed to sustainability and has set a target for its members to achieve Net Zero carbon emissions for operations under their control by 2050.
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The Civil Aeronautics Authority
Airport authorities are entities responsible for the operation and oversight of an airport or group of airports. In the United States, airport authorities are often governed by a group of airport commissioners, who are appointed by a government official. In Canada, airport authorities are typically private, not-for-profit companies that manage a city's commercial airports.
In 1940, the CAA was redesignated the Civil Aeronautics Administration and became part of the Commerce Department. That same year, the Civil Aeronautics Act of 1938 created the Civil Aeronautics Board (CAB) as a result of a split of the CAA. The CAB regulated aviation services, including scheduled passenger airline services, and conducted air accident investigations until the establishment of the National Transportation Safety Board in 1967.
The CAA and CAB had a significant impact on the development of aviation in the United States. The CAA, for example, established new facilities and airports, while the CAB regulated airlines and approved or disapproved mergers between airlines and other carriers or aviation companies.
In 1958, the Federal Aviation Act superseded the CAA and established the Federal Aviation Agency (FAA), which took on the responsibilities of the CAA and CAB. The FAA continues to play a crucial role in ensuring the safety and efficiency of the national airport system in the United States, with responsibilities including airport safety, inspections, and establishing standards for airport design, construction, and operation.
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Frequently asked questions
An airport authority is an entity that is responsible for the operation and oversight of an airport or group of airports.
The Airports Council International is the world trade association of airport authorities.
The Federal Aviation Administration is a U.S. federal government agency that regulates civil aviation, commercial space transportation, and air traffic control and navigation systems for civil and military aircraft.
The FAA's responsibilities include setting standards for airports, certifying personnel and aircraft, and regulating civil aviation in the United States and surrounding international waters.
The FAA comprises 4 headquarters offices, 9 regional divisions, and 21 airport district offices across the country.
