What is Airport Use Agreement?

Airport Use Agreement means the written agreement between the City and a Person specifying the terms and conditions under which the Person may conduct commercial aviation activities, special events, and/or demonstrations at the Airport. The Airport Administrator shall have authority to issue Airport Use Agreements.

Do airports have contracts with airlines?

Airports and airlines have developed complex contractual arrangements (so-called use and lease agreements) to govern their ongoing business relationships. These agreements are legally binding contracts that specify the terms and conditions of the airlines’ use of and payment for airfield and terminal facilities.

How do airlines get gates at airports?

Gates are usually assigned by the airline’s dispatch center and not the airport. Airlines have access to only a certain number of gates in a particular airport via leasing agreements (though, in some case they may even “own” those gates).

Is the Airports Authority authorized to award sole source contracts?

While we strive for full and open competition wherever possible, per Section 1.4 of the the Airports Authority’s Contracting Manual, the Airports Authority is authorized, with proper approval, notification and justification to award sole source contracts.

Where can I find the Airports Authority contracting manual?

Additional information is available in Section 1.3 of the Airports Authority’s Contracting Manual.

How often do airports change their lease agreements?

Airport leases do not happen every day. If an airport does a new lease every 2 to 3 years, they are pretty busy. If you want to specifically look at a particular property type on an airport — cargo, FBO, corporate hangar, MRO, etc. — the time between new leases may be more like 10 to 20 years.

What are the challenges of negotiating an airport lease?

New challenges in lease negotiations between airports and tenants can be met with planning and consideration for the future. Negotiating a lease is still one of the more difficult challenges facing airport management and tenants today.

Why are airport lease terms not equitable to existing leases?

Basically, the lease terms proposed by the developer are not equitable to those of the existing lease, because the only real similarities are that they are both on the same airport and both are for cargo developments. The same approach comes into play when you are comparing rates between airports.

Do you have to pay market value for airport lease?

However, a few years ago the FAA somewhat changed, or at least clarified, its position with regard to market value. In simple terms, the FAA now states that airports must get market value/market rent for leases of non-aeronautical properties.