Airport Ownership and Organization Flashcards
(119 cards)
After World War II, the Federal Airport Act of 1946 transferred ownership of many surplus military airports to local municipalities through the use of
AP-4 agreements.
AP-4 agreements.
the precursor to the current Grant Assurances,
were promises made by municipalities that the airport would continue to be
operated and maintained.
What type of airport ownership is most common:
City ownership of airports represents approximately 33 percent of all U.S.
airports; 15 percent are County operated, 7 percent are State operated. Port
Authority ownership represents 9 percent of the total airports, Airport Authority’s
represent 30 percent, and the remaining 6 percent are operated with other
agreements such as inter-city contracts (Dallas/Ft. Worth) or by a special tax
district.3
The transfer of airports from federal control to the states and municipalities
resulted in
the predominant form of airport ownership by municipality (city or
county) or authority. Within the municipality and airport authority structures,
numerous organizational variations exist.
Operating an airport is considered to be a \_\_\_\_\_\_\_\_\_\_\_\_\_ function of government, as compared with the operation of a government agency for redistributive (social or welfare) or protective (police or fire) purposes.
proprietary
function
The term
proprietary means to act as
a private enterprise.
In operating an airport, a
governing body may not necessarily be immune from
all state or local tort laws,
unless it is specifically granted such immunity
An airport is generally immune
when acting in its governmental capacity, but is not immune when
acting in its
businesslike or enterprise operations.
A disadvantage of operating an airport by a municipality is that the policy-makers
are often very unfamiliar with
the operation of an airport
An option for a
municipality in cases where policy-makers
are unfamiliar with the operation of an airport. is to create an
Advisory Board to review requests
from airport staff and prepare action recommendations for the Mayor or Council.
When the Airport Development and Aid Program
(ADAP) was formulated in 1970, federal grants-in-aid and planning grants were
restricted to
publicly owned airports. In addition to the desire to qualify for
federal funding, many municipalities have chosen to continue to operate the
airport publicly as a matter of community pride and economic development
Some
states and municipalities recognized the need for a focused effort and expertise in
operating the airport and chose to establish
airport authorities or commissions.
Both structures are political subdivisions of the state.
Airport Authorities are
independent, public agencies created by state legislation. Once created, they add another layer of government.
variety of organizational
forms exist and the specific powers and responsibilities of any given authority are
established in its
enabling legislation.
Some airport authorities have the power
only to make daily operating policies, while others have
tax levy capability or the
power of eminent domain.
Eminent domain is the power to
acquire property for
the public good and is one of the rights a state can convey to local governments or
authorities
Generally, it is up to the Airport Executive to ensure their board
members, whether they are municipalities, authorities or advisory members are
educated on airport operational issues and management challenges.
The reasons municipalities create airport authorities include
Airport market or service areas have outgrown the political jurisdiction
whose responsibility the airport entails. In some cases, there is
considerable, actual, or potential tax liability to a rather limited area. In
these cases, the creation of an authority to spread the potential or actual
tax support for the airport might be recommended. By spreading the tax
base of support for the airport, more equitable treatment of the individual
taxpayer can result and, in most cases, the taxpayers supporting the airport
more closely match the actual users of the facility. This argument is less
valid when the airport is completely self-sustained by its own revenues.
Authority control of an airport allows for the governing board to
concentrate and specialize on airport business matters rather than on
general social or community issues not related to airports.
Efficient operation and economies-of-scale can be obtained when several
political jurisdictions, each with separate airport responsibilities, choose to
combine these responsibilities under one governing board. This has been
done quite successfully in many areas of the country (such as The Port
Authority of New York and New Jersey [PANYNJ]). Normally, the
staff required by an airport authority can be quite small compared with the
personnel requirements of a city or county government. This factor
generally results in better coordination within the airport management
team.
Authorities can provide the on-scene decision makers that result in less
political impact on the business of running the airport.
Authorities can provide multiple jurisdictions that may benefit from or be
impacted by the airport with representation in the airport’s operation and
development.
Authorities can come into existence in a variety of ways. Some authorities are
established to operate a single airport while others are established to
operate a
system of airports, such as the Metropolitan Washington Airports Authority
(MWAA), which operates both Washington/Dulles International Airport and
Ronald Reagan Washington National Airport
A port authority is a special type of legally chartered institution that generally has
the same status as a public corporation, but
that in addition to the airport, operate
other types of public facilities such as harbors, toll roads, rail, or other public
transportation systems, such as the PANYNJ
The advantage of an airport being municipally owned is
that the airport administration has
access to the resources of other city or county
departments. These resources may exceed what the airport’s administration could
justify if it operated on a stand-alone basis. Having such access reduces the
requirement of the airport department to provide duplicate services, such as
personnel, finance, or police.
The municipal government also has the power to tax
and issue
government bonds to aid in the operation of an airport
A disadvantage of a municipally owned airport is that in times of financial
constraints, the airport is often viewed as
a liability or suffers corresponding
budget reductions or personnel restrictions (such as mandatory furlough days) as
other departments in the local government. Airports are also competing for the
same attention and leadership consideration as other departments or divisions
within the municipal government.
To overcome the lack of leadership focus, municipalities often create
airport
commissions. Commissions can have the same responsibilities and stature as
airport authorities. Airport commissions are generally established to allow for focused attentionand expertise to be applied in operating the airport by appointing individuals to
represent the city or county. This can be either a benefit or a drawback because
members of commissions are normally political appointees who are subject to
positive and negative aspects of political maneuvering.