[Federal Register: November 5, 2003 (Volume 68, Number 214)]
[Notices]
[Page 62651-62652]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05no03-149]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No. FAA-2003-16227]
Policy and Procedures Concerning the Use of Airport Revenue:
Petition of Sarasota-Manatee Airport Authority To Allow Use of Airport
Revenue for Direct Subsidy of Air Carrier Operations
AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).
ACTION: Request for comments.
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SUMMARY: This notice requests comments on a petition to amend the
current Policy and Procedures Concerning the Use of Airport Revenue
(``Revenue Use Policy''). The petitioner Sarasota-Manatee Airport
Authority is an airport operator subject to the provisions of the
Revenue Use Policy. The petitioner requests that the FAA amend the
Revenue Use Policy to permit certain airport operators to use airport
revenue for the direct subsidy of commercial air carrier operations
under specific and limited circumstances. Currently, the Revenue Use
Policy prohibits all airport operators that are the recipient or
subject of Federal assistance for airport improvements (``airport
sponsors'') from using airport revenue to provide direct subsidies to
air carriers for the provision of commercial service. However, the
petitioner represents that some airport sponsors have been able to
provide either financial subsidies or revenue guarantees to secure air
carrier service. These airport sponsors have been general-purpose
municipalities that can use funds from non-airport sources. On the
other hand, those airport sponsors governed by a special-purpose
airport authority cannot provide direct subsidies to air carriers,
because all of their funds are considered airport revenue subject to
the prohibitions in the Revenue Use Policy. The FAA is publishing for
comment the petitioner's suggestion to consider limited use of airport
revenue for direct subsidy of air carrier operations to be an
``operating cost'' of the airport under the Revenue Use Policy.
[[Page 62652]]
DATES: Comments must be received by January 5, 2003. Comments that are
received after that date will be considered only to the extent
possible.
ADDRESSES: The proposed policy amendment is available for public review
in the Dockets Office, U.S. Department of Transportation, Room Plaza
401, 400 Seventh Street, SW., Washington, DC 20590-0001. The documents
have been filed under FAA Docket Number FAA-2003-16227. The Dockets
Office is open between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. The Dockets Office is on the plaza level of the
Nassif Building at the Department of Transportation at the above
address. Also, you, may review public dockets on the Internet at http://www.dms.dot.gov.
Comments on the proposed policy must be delivered or
mailed, in duplicate, to: the Docket Management System, U.S. Department
of Transportation, Room Plaza 401, 400 Seventh Street, SW., Washington,
DC 20590-0001. You must identify the docket number ``FAA Docket No FAA-
2003-16227'' at the beginning of your comments. Commenters wishing FAA
to acknowledge receipt of their comments must include a preaddressed,
stamped postcard on which the following statement is made: ``Comments
to FAA Docket No. FAA-2003-16277.'' The postcard will be date stamped
and mailed to the commenter. You may also submit comments through the
Internet to http://www.dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: David Cushing, Airports Compliance
Division, Office of Airport Safety and Standards, AAS-400, Federal
Aviation Administration, 800 Independence Ave. SW., Washington, DC
20591, telephone (202) 267-8348.
SUPPLEMENTARY INFORMATION: The Revenue Use Policy (64 FR 7696);
February 16, 1999), was adopted pursuant to the Federal Aviation
Administration Authorization Act of 1994, and incorporates provisions
of the Federal Aviation Administration Reauthorization Act of 1996. The
Revenue Use Policy describes the scope of airport revenue that is
subject to the Federal requirements on airport revenue use and lists
those requirements. The Revenue Use Policy also describes prohibited
and permitted uses of airport revenue and outlines the FAA's
enforcement policies and procedures.
Governing Statutes and Policy
Title 49 U.S.C. 47107(b)(1) requires that grant agreements for
airport development grants include an assurance that ``the revenues
generated by a public airport will be expended for the capital or
operating costs of--(A) the airport; (B) the local airport system; or
(C) other local facilities owned or operated by the airport owner or
operator and directly and substantially related to the air
transportation of passengers or property.'' The same requirement is
included in 49 U.S.C. 47133, which applies directly to any airport that
has received Federal assistance.
Sections V and VI of the Revenue Use Policy, at 64 FR 7718-20,
respectively list uses of airport revenue considered to be permitted or
prohibited under the above statutes. The list of prohibited uses of
airport revenue in section VI B. includes the following:
``12. Direct subsidy of air carrier operations. Direct subsidies are
considered to be payments of airport funds to carriers for air service.
Prohibited direct subsidies do not include waivers of fees or
discounted landing or other fees during a promotional period. Any fee
waiver or discount must be offered to all users of the airport, and
provided to all users that are willing to provide the same type and
level of new services consistent with the promotional offering.
Likewise prohibited direct subsidies do not include support for air
carrier advertising or marketing of new services to the extent
permitted by section V of this Policy Statement.''
The petitioner requests that the FAA amend the above policy
statement to permit the limited use of airport revenue for direct
subsidies to air carriers, as stated below. The FAA invites comment on
the petition and the justification for the requested change in the
Revenue Use Policy.
Petitioner's Requested Policy Amendment To Allow Use of Airport Revenue
for Direct Subsidy of Air Carrier Operations
The petitioner requests an amendment to the Revenue Use Policy that
would ``permit airports that have less than 0.25 percent of the total
U.S. passenger boardings to use airport revenues at their discretion
for subsidies to air carriers willing to provide service to those
airports.'' The petitioner suggests that the following conditions apply
to an airport's use of the subsidy:
1. The community must have a minimum population of 200,000
residents in the airport's local county(s).
2. Airport revenues considered for use are not subject to the air
carrier agreement in place and do not affect the rate-making
methodology of the agreement.
3. Subsidy is limited to new service.
New service defined as follows:
[sbull] Air carrier not presently at the airport.
[sbull] City pair presently served by an air carrier at the
applicant airport.
4. Subsidy cannot exceed 12 consecutive months to any air carrier.
5. Air carrier receiving the subsidy must be willing to provide the
following:
[sbull] Daily scheduled service with a minimum seating capacity of
50 seats.
[sbull] Must commit to a minimum of twelve consecutive months of
service.
6. Air carrier cannot utilize program more than once at the same
airport.
Issued in Washington, DC on October 24, 2003.
David L. Bennett,
Director, Airport Safety and Standards.
[FR Doc. 03-27753 Filed 11-4-03; 8:45 am]
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