Summary of Airport-Air Carrier Agreements
FEDERAL AVIATION ADMINISTRATION WASHINGTON DC OFFICE OF AVIATION POLICY AND PLANS
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This paper reviews and discusses twenty-seven long-term airport-air-carrier agreements. The discussion includes common features, fee-setting mechanisms, and concludes with a policy analysis. These lease and use agreements, because of their long terms, may represent a barrier to entry for air carriers attempting to enter new markets. Even in a deregulated environment, the need to acquire terminal access for a new entrant may be frustrated by the agreements between the airport and the incumbent carriers. This report, by analysing these agreements, points to the specific aspects of the agreements which may present problems to new entrants. It concludes that these problems, though possible, are not likely to occur. Furthermore, should problems arise, the Congress can take steps to alleviate the problem.
- Terminal Flight Facilities
- Economics and Cost Analysis