Guide Foundations of Aviation Law

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Airports are permitted to assess property taxes, net income taxes, franchise taxes, and taxes for the sale of goods or services. They may also assess rental charges, landing fees, and other service charges for the use of airport facilities. However, the DOT is empowered to regulate these fees to ensure they are reasonable and non-discriminatory. The Amendments allow an airport to charge aircraft higher landing fees at peak times, a practice known as congestion pricing. This increase in traffic has led to more frequent and longer delays.


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One of the causes of flight delays is excess demand for runways during peak hours. In an ordinary market, supply and price adjust to eliminate excess demand, but airports are no ordinary market. Airports cannot readily increase the supply of landing slots because building more runways takes years. The Air Transport Association of America, on behalf of several US airlines, petitioned for review of the Amendments, arguing that they allowed airports to charge unreasonable and discriminatory fees.

The purpose of the Trust Fund is to provide a steady source of income for the FAA that grows in step with the aviation system. As traffic increases, so does revenue. Grants are not loans and, with limited exceptions, they do not have to be repaid. Grants provide funding for improvement projects, such as expansions, redesigns, modernization projects, noise abatement systems, navigational systems, environmental abatement projects, and other types of construction.

It provides grants for the planning and development of public-use airports. For medium to large hub airports, the program covers up to 75 percent of eligible costs. The national plan is developed by the FAA as part of its mission to maintain both the safety and capacity of the national air transportation system. The national plan identifies those airports that the FAA considers necessary to provide a safe, efficient, and integrated system of public-use airports adequate to anticipate and meet the needs of civil aeronautics, the national defense requirements of the Secretary of Defense, and of the United States Postal Service.

The FAA must provide Congress with an updated national plan every two years.

The plan must include a list of airports that the FAA considers significant to the overall national air transportation system, and cost estimates for eligible airport development projects. Generally speaking, improvements and repairs to an airfield are eligible, improvements and repairs to terminals and onsite facilities may be eligible under certain circumstances, and improvements and repairs offsite are usually ineligible. It serves four categories of general aviation aircraft A, B, C, and D. Centennial Express Centennial Airport was built in to serve the growing aviation needs of the Denver metropolitan region.

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The Airport Authority immediately obtained an injunction prohibiting Centennial Express from conducting operations. Centennial Express appealed, arguing that the Airport Authority could not ban passenger carrier operations because of the conditions it agreed to when it accepted FAA grants. It authorizes block grants under the AIP to states, which then allocate the funds to airports as the states see fit. Currently, 10 states are authorized to participate in the pilot program.


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States that receive block grants must abide by the terms of their grant assurances and must agree only to use grant funds on airports that are included in the National Plan of Integrated Airport Systems. The states are responsible for ensuring that airports that receive grant funds comply with the grant assurances agreed to between the state and the FAA.

Foundations of Aviation Law by Michael W. Pearson | | Booktopia

The Passenger Facility Charge Program is an exception to this rule. The Passenger Facility Charge Program is an effective means for funding various types of projects at publicly owned airports. It is one of the primary tools used by airports to fund modernization projects. The Act has three goals: 1 to create new jobs and save existing ones; 2 to spur economic activity; and 3 to foster transparency and accountability in government spending.

Foundations of Aviation law

To achieve these goals, the Act provided for an economic stimulus package for contracts, grants, and loans. The Grants-in-Aid for Airports program is administered in conjunction with the AIP and provides funding for the: 1 construction or rehabilitation of new airports, 2 building and rehabilitating runways, runway safety areas, taxiways, aprons, and terminal buildings, 3 construction of Aircraft Rescue and Fire Fighting buildings and purchase of ARFF equipment; and 4 construction of perimeter fencing to enhance security.

Under what circumstances may an airport assess a per-passenger excise fee? What did the DOT intend to do when it authorized congestion pricing at airports?