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Presented by: Rex Alexander, President of Five-Alpha LLC(260) 494-0891 • [email protected]

Regulations & Codes

1. Code of Federal Regulations (CFR)• Title-14 Aeronautics and Spacehttps://www.ecfr.gov/cgi-bin/text-idx?SID=cb885fd78eb21896c8e957201126a5bb&mc=true&tpl=/ecfrbrowse/Title14/14tab_02.tpl

2. United States Code (USC)• Title-49 Transportationhttps://www.law.cornell.edu/uscode/text/49

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https://www.ecfr.gov/cgi-bin/text-idx?SID=cb885fd78eb21896c8e957201126a5bb&mc=true&tpl=/ecfrbrowse/Title14/14tab_02.tpl

https://www.law.cornell.edu/uscode/text/49

CFR Definitions

• 14 CFR § Part-77 “Safe, Efficient Use, and Preservation of the Navigable Airspace”

• Public-Use airport is an airport available for use by the general public without a requirement for prior approval of the airport owner or operator.

• Title 14 CFR § 157 “Notice of Construction, Alteration, Activation, And Deactivation of Airports”

• Private-Use means available for use by the owner only or by the owner and other persons authorized by the owner.

• Public-Use means available for use by the general public without a requirement for prior approval of the owner or operator.


USC Definitions

• Section 49102• Air Carrier Airport• Airport• Commercial Service Airport• General Aviation Airport• Larger Hub Airport• Medium Hub Airport• Non-Hub Airport• Public Airport• Public-Use Airport• Small-Hub Airport


USC 49102 Definitions

• Commercial Service Airport means a public airport in a State that the Secretary determines has at least 2,500 passenger boardings each year and is receiving scheduled passenger aircraft service.

• General Aviation Airport means a public-use airport that is located in a State and that, as determined by the Secretary—

(A) does not have scheduled service; or(B) has scheduled service with less than 2,500 passenger boardings each year.

• Public Airport means an airport used or intended to be used for public purposes—

(A) that is under the control of a public agency; and(B) of which the area used or intended to be used for the landing, taking off, or surface maneuvering of aircraft is publicly owned.

• Public-Use Airport means—(A)a public airport; or(B)a privately-owned airport used or intended to be used for public purposes that is—

(i)a reliever airport; or(ii)determined by the Secretary to have at least 2,500 passenger boardings each year and to receive scheduled passenger aircraft service.


U.S. Code (USC) Title 49 - Transportation

•Subtitle VII – Aviation Programs • Part B. Airport Development and Noise

• Chapter 471 Airport Development• Subchapter I. Airport Improvement

• 47102. Definitions• 47114. Apportionments• 47115. Discretionary Fund• 47117. Use of Apportioned Amounts


Code of Federal Regulations Title 14

•Aeronautics and Space

• Part 16 – Rules of Practice for Federally-Assisted Airport Enforcement Proceedings.


U.S. Aviation Infrastructure StatisticsJune 2020 (FAA Airport Master Record)

TYPE NUMBER PERCENTAGEAirports 13,077 66.49%Heliports 5,918 30.09%

Seaplane Bases 513 2.61%Ultralight Parks 112 0.57%

Gliderports 36 0.18Balloonports 13 0.07%

Vertiports 0 0.00%

Total: 19,699


U.S. Overall Ownership & Use

OWNERSHIP NUMBER PERCENTAGEPublic 4,854 24.68%Private 14,507 73.76%


USE NUMBER PERCENTAGEPublic 5,080 25.83%Private 14,589 74.17%

*Additional ownership cases includes 308 sites for the Coast Guard, Airforce, Navy, and Army

U.S. Ownership & Use Breakdown

OWNERSHIP Airport Heliport Seaplane Base

Ultralight Park Gliderport Balloonport

Public 4,067 651 133 1 2 0Private 8,796 5,173 380 111 34 13


USE Airport Heliport Seaplane Base


Public 4,800 58 213 3 5 1Private 8,277 5,860 300 109 31 12

U.S. Mixed Cases

OWNERSHIP Airport Heliport Seaplane Base


Private-OwnedPublic-Use 823 25 87 2 5 1

Public-OwnedPrivate-Use 111 618 7 0 2 0


Comparison

•Federal Airspace Protection

• Public-Use: YES

• Private-Use: NO

• Note: A Private-Use facility with an instrument procedure will be afforded notification, but not protection.


Comparison

•Inclusion in the FAA Airport Directory

• Public-Use: Yes

• Private-Use: No


Comparison

•Tall Structure Protection (State Level)

• Public-Use: YES

• Private-Use: NO to Maybe


Comparison

•Open For Operations

• Public-Use: must remain open.*

• Private-Use: can close whenever they want to.

*Even during most Special Events the airport will remain open, FAA of course can say no.


Comparison

•Utilization

• Public-Use: Must be open to everyone.

• Private-Use: May be restricted and proprietary.


Comparison

•Federal Oversight

• Public-Use: Significant

• Public-Use + AIP $: Unconditional• Fun Fact: Number of PU Heliports that have used AIP funds for development = 1

• Private-Use: None7/1/2021 ©2021 5α Some Rights Reserved 17

Comparison

•State Oversight

• Public-Use: Standardized by FAA

• Private-Use: 50 Different Variations


Comparison

•Instrument Procedures

• Public-Use (Published) • Fun Fact: Number of PU Heliports with Published Instrument procedures = 2

• Private-Use (Special / Non-Publish / Proprietary)*• Fun Fact: Number of PrU Heliports with Instrument procedures = Several Hundred

*To use special procedures, they must be included in the Part-135 Opspec with flight standards permission to fly. Specialized and document annual training is required.


Comparison

•Inclusion in the National Plan of Integrated Airport Systems (NPIAS)

• Public-Use: Possible• Fun Fact: Number of PU Heliports in NPIAS = 9

• Private-Use: Not Possible


Comparison

•Federal Grant Money (AIP)

• Public-Use: Authorized• Fun Fact: Number of PU Heliports that have received AIP Funds = 3

• Private-Use: Not Authorized

*Private-Owned/Public-Use: May receive discretionary funds through the state.


Purchase of Development Rights (PDR)

Accept an FAA or State Grant. • Although typically not eligible for FAA grants, privately owned

airports can now apply for special funds under the FAA pilot program, Purchase of Development Rights (PDR). Under the program, the FAA pays the private airport owner a lump sum of cash in exchange for a contractual obligation to maintain the airport property as an airport, and that no parcels of airport property will be sold off, thereby preventing housing, retail development, or any obstruction that would hinder airport operations.


Source: AOPA, “Airport Closures at Privately Owned/Public-Use Airports”

Airport and Airway Trust Fund (AATF)

• Congress started taxing aviation soon after it was established. It passed an excise tax on aviation fuels in 1932 and an excise tax on airline tickets in 1941. The revenue from these levies initially went into the government’s general fund. That changed in 1970 when Congress created the Airport and Airway Trust Fund (AATF), which channeled aviation taxes and fees into funding for air traffic control and state and local airports.

• The AATF currently raises about $15 billion annually from a 7.5 percent tax on domestic airline tickets, taxes on aviation fuels, international departure and arrival taxes, and a number of other charges.


Source: Robert W. Poole Jr. & Chris Edwards, “Privatizing U.S. Airports”, Nov 21, 2016

Passenger Facility Charge (PFC)

• Another source of funding for airport investment is the Passenger Facility Charge (PFC), which was authorized by Congress in 1990. PFCs are imposed by state and local airport agencies, but Congress sets a maximum charge, which since 2000 has been $4.50 per passenger per flight segment.

• Questions: • Will AAM be subject to this tax? • If yes, will it have access to the moneys collected?


Source: Robert W. Poole Jr. & Chris Edwards, “Privatizing U.S. Airports”, Nov 21, 2016

AIP Grant Money

• The Airport Improvement Program was established by the Airport and Airways Improvement Act of 1982

• In FY2018, more than 1,700 new AIP grants were awarded to airports, totaling more than $3.4 billion.

• AIP funding comes with conditions. Airports must comply with 39 “grant assurances” that are incorporated into the grants.

• Most grant assurances have a term of typically 20 year, meaning the airport must remain open during those 20 years or pay back the grant money. Acceptance of new grant money resets the 20-year clock.

• Only 79 of the 3,235 public-use airports that are eligible for federal airport development assistance are privately owned, public-use airports.


U.S. Privatization Efforts

• In 1996, Congress established the Airport Privatization Pilot Program (APPP; Section 149 of the Federal Aviation Reauthorization Act of 1996, P.L. 104-264) to increase access to sources of private capital for airport development and to make airports more efficient, competitive, and financially viable.

• The FAA Modernization and Reform Act of 2012 (P.L. 112-95) increased the number of airports than can participate from five to 10. The FAA Reauthorization Act of 2018 (P.L. 115-254) renamed the program the Airport Investment Partnership Program (AIPP; 49 U.S.C. §47134) and removed the restriction on the number and type of public airports that may participate in the program. However, participation in the program has remained very limited, in good part because major stakeholders have different, if not contradictory, objectives and interests.

• The AIPP has had very limited success in increasing the number of privately run airports. Since its inception, 12 airports have applied to enter the AIPP, but only two have completed the entire privatization process.


Source: CRS Report R43545, Airport Privatization: Issues and Options for Congress, March 11, 2021

Privatization U.S. Compared to other Regions


Source: ICAO / Economic Development to Air Transport / Public-Private Partnership (PPP)

QuestionsThank You


Presented by: Rex Alexander, President of Five-Alpha LLC(260) 494-0891 • [email protected]

Presented by: Rex Alexander, President of Five-Alpha LLC ...

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