Lois Larson
Airports are sites of heavy machinery, strict regulations, and safety measures. They are major employers and hubs for tourism and transit, with significant environmental impacts. While the term 'airport' may imply a certain stature, the legal definition varies by jurisdiction. Airports generate revenue through aeronautical, non-aeronautical, and non-operating streams, and their operations resemble small cities, with governing bodies, waste management, and security personnel. Airports also play a role in disease transmission due to their position in the global transportation network. In the US, airports are certified by the FAA, and many lease their facilities to external firms for functions like retail and parking management.
| Characteristics | Values |
|---|---|
| Airport ownership | Owned by the government or leased to outside firms |
| Airport certification | Certified or licensed by the relevant civil aviation authority |
| US commercial airport runways certification | FAA under the Code of Federal Regulations Title 14 Part 139 |
| Airport funding | Airport & Airway Trust Fund (AATF), passenger tickets, fuel, and cargo taxes |
| Airport revenues | Aeronautical, non-aeronautical, and non-operating revenue |
| Aeronautical revenue sources | Airline rents, landing fees, passenger service fees, parking fees, and hangar fees |
| Airport functions | Tourism, transit, waste removal, police and fire safety, retail management, and parking |
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What You'll Learn
US airports and their lease to outside firms
US airports, particularly the larger ones, are generally owned by the government in some form, either Federal, State or Local. However, many US airports still lease part or all of their facilities to outside firms, who operate functions such as retail management and parking. Leasing airport real estate is financially lucrative, and airports are often keen to maximise the use of their land.
Leases can be challenging to administer, and airports must also remain good neighbours to the surrounding community. Airports in the US have to operate as closed fiscal systems, meaning that all revenue generated must be used for the airport itself. This can cause controversy when airports spend money on speculative infrastructure projects that may not provide a return on investment for many years.
A further complication is the power dynamic between airports and airlines. Airlines often have lease-and-use agreements that give them control over terminals or concourses and the ability to veto capital spending plans. This can stifle competition, as airlines can oppose airport expansion if it would mean more competition.
Despite this, there are some airports that have taken steps towards privatisation, such as Albany International, which has contracted with private firms to manage overall airport operations. Some airports have also entered long-term agreements with private firms to design, build, and manage new terminals, such as Terminal 5 at Chicago's O'Hare International Airport.
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Airport certification and regulatory requirements
Airport certification is a crucial aspect of ensuring safe and efficient operations at aerodromes worldwide. While the specific regulatory requirements may vary across different jurisdictions, the underlying goal is to uphold safety and maintain the functionality of airports as aviation hubs. Here is an overview of the airport certification and regulatory landscape:
Airport Certification Process
The process of airport certification involves a comprehensive assessment of an aerodrome's adherence to established safety standards and operational criteria. The certification process typically begins with the operator submitting an application to the relevant regulatory authority, accompanied by detailed technical documentation. This documentation outlines the airport's facilities, safety measures, and operational procedures, demonstrating compliance with the established criteria.
A critical component of the certification process is the Airport Operations Manual (AOM), which serves as a comprehensive guide to all operational aspects of the airport. The AOM covers various areas, including safety management, emergency response, maintenance procedures, and personnel training. It provides a structured framework for the management of airport operations and ensures that the airport operator and staff are competent in their respective roles.
Regulatory Requirements and Safety Standards
Regulatory requirements for airports primarily focus on ensuring safety, maintaining regularity of operations, and mitigating potential hazards. These requirements often encompass various aspects of airport operations, including:
- Runway safety: This includes regular inspections and maintenance to ensure runways are in optimal condition, free from obstructions, and properly marked to guide aircraft during takeoff and landing.
- Aircraft rescue and firefighting: Airports are required to have adequate rescue and firefighting equipment and trained personnel to respond to potential emergencies.
- Aviation fueling safety: Standards are in place to regulate the safe storage and handling of aviation fuel, including the prevention of fuel system icing and the use of additives to enhance fuel performance.
- Wildlife hazard management: Airports must implement measures to reduce the risk of wildlife strikes, such as maintaining perimeter fencing and implementing wildlife control programs.
- Signs, lights, and markings: Proper signage, lighting, and markings are essential for guiding aircraft and vehicles safely around the airport, especially during low-visibility conditions.
- Snow and ice control: In regions with cold climates, airports must have procedures in place to manage snow and ice accumulation, ensuring runways and taxiways remain clear and safe for aircraft operations.
Compliance and Enforcement
Compliance with airport certification requirements is typically enforced through regular inspections, audits, and assessments conducted by the relevant regulatory authority. These inspections may be announced or unannounced to ensure the airport maintains consistent adherence to safety standards. In cases of non-compliance or identified safety concerns, the regulatory authority may issue warnings, impose fines, or even temporarily suspend or revoke the airport's operating certificate until corrective actions are implemented.
Continuous Improvement and Updates
Airport certification is not a static process. Regulatory authorities continuously review and update certification requirements to incorporate the latest advancements in aviation safety and technology. For example, the recent update to Part 139 in the United States included enhanced requirements for safety management systems (SMS), mandating airports to proactively identify and manage potential hazards and risks.
Additionally, airports themselves must remain vigilant in maintaining and improving their safety standards. This includes conducting regular self-assessments, implementing corrective actions, and staying abreast of industry best practices to ensure they provide a safe and efficient operating environment for all stakeholders.
In conclusion, airport certification and regulatory requirements play a pivotal role in maintaining the safety and efficiency of aviation operations worldwide. By adhering to these standards, airports can effectively manage risks, protect passengers and personnel, and ensure the smooth functioning of the global air transportation network.
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Airport revenues and their sources
Airports are capital-intensive enterprises, and the amount of money needed to meet safety and operational requirements is often much higher than smaller airports' ability to generate revenue. However, they are also major employers and hubs for tourism, and they play a pivotal role in regional economic development.
Airports generate revenue from aeronautical and non-aeronautical sources. Aeronautical revenue is generated through airline rents and landing, passenger service, parking, and hangar fees. Landing fees are typically tied to the weight of the landed aircraft, so airports with heavier aircraft will see additional revenue from this source. Aircraft parking is also a major revenue source, as planes are often parked before or after takeoff. Airports with sufficient traffic can also generate revenue by selling advertising space in terminals, garages, and other locations.
Non-aeronautical revenue is generated through retail, dining, and other services. Airports can improve their profitability by optimizing these services, which contribute to an improved passenger experience, increasing customer satisfaction and loyalty. Airports can also lease property to private developers, provided these developers build airport-compatible facilities.
In the US, airports are financed by the Airport & Airway Trust Fund (AATF), which was created by the Airport and Airway Development Act in 1970. The funding of the AATF's three major accounts is dependent on the taxes generated by the airports, including passenger tickets, fuel, and cargo tax.
The COVID-19 pandemic has exposed the inherent weaknesses of airports' traditional funding sources, which rely heavily on direct revenues from users (passengers and airlines). Airports have experienced significant month-to-month changes in aircraft movements and passenger volumes, and the uncertainty surrounding new variants could further affect traditional passenger-driven revenue sources. To adapt to these challenges, airports can consider diversifying their revenue streams by modernizing the retail experience, exploring new sources of private capital, and partnering with governments and other airports.
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Airport contagion influence and safety
The COVID-19 pandemic and other public health crises have heightened awareness that new viruses or bacteria could spread quickly across the globe, aided by air travel. Airports, as hubs for tourism and transit, are particularly vulnerable to contagion influence.
A recent study by MIT researchers determined the influence of the 40 largest U.S. airports in transmitting contagious diseases originating in their home cities. The study found that an airport's contagion influence is not solely dependent on the number of passengers but also on its strategic position within the global transportation network. For example, Honolulu Airport, with its location in the Pacific Ocean and connections to distant hubs, can contribute more significantly to the spread of viruses and bacteria than Atlanta's Hartsfield-Jackson International Airport, which serves more passengers and has the greatest number of flights.
The new MIT model incorporates variations in travel patterns, geographic locations, the disparity in interactions among airports, and waiting times to create a tool that could predict where and how fast a disease might spread. This approach could help determine appropriate measures for containing infections in specific areas and aid public health officials in making decisions about the distribution of vaccinations or treatments in the early stages of contagion.
Additionally, airports are vulnerable to the environmental impacts of aviation, including air and noise pollution, and the effects of extreme weather and climate change. They are also major employers, with various personnel ensuring the smooth operation of the airport and the safety of passengers and property.
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Airport ownership and management
In the United States, for example, airports are often owned and operated by government entities, such as the Federal Aviation Administration (FAA), which ensures a "safe, efficient, and environmentally responsible national airport system." The FAA provides funding for various programs and accounts that improve and maintain US airports. Additionally, US airports may lease part or all of their facilities to outside firms, which then operate specific functions such as retail management and parking.
Airport revenues can be divided into aeronautical, non-aeronautical, and non-operating revenue streams. Aeronautical revenue, which includes airline rents, landing fees, passenger service fees, parking fees, and hangar fees, accounted for 50% of total airport revenue in 2021. Non-aeronautical revenue, including sources such as retail and advertising, made up 34%, while non-operating revenue, which may include investments or one-off sales of assets, accounted for the remaining 16%.
The management and operation of an airport are complex and multifaceted. While some airports are owned and operated by a single entity, others may involve multiple stakeholders and service providers. Airports employ a significant number of people across various roles, including strategic direction, day-to-day management, waste management, security, and emergency services.
In summary, airport ownership and management vary from airport to airport and are subject to local regulations and jurisdictions. Airports are significant employers and hubs for tourism and transit, with a wide range of functions and services that contribute to their complex operations and management.
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Frequently asked questions
An airport authority is responsible for the operation and oversight of an airport or group of airports. In the US, these authorities are often governed by a group of airport commissioners who are appointed by a government official. In Canada, airport authorities are private, not-for-profit companies that manage a city's commercial airports.
Yes, airports generate revenue through aeronautical, non-aeronautical, and non-operating streams. Aeronautical revenue, which includes airline rents and landing fees, made up 50% of total airport revenue in 2021. Non-aeronautical revenue, including parking fees, made up 34%, and non-operating revenue made up the remaining 16%.
A modern airport operates like a city, with a governing body providing strategic direction and overseeing day-to-day management. Waste removal crews, police, and fire squads are also essential to protecting life and property at an airport. Airports are also major employers, providing jobs in retail management, parking, and more.
