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Airlines

Airports Urge Streamlining of Economic Regulations

Strategic Insights

— 1 min read

Airports Council International-North America (ACI-NA) and the American Association of Airport Executives (AAAE) have testified before the House Transportation and Infrastructure Subcommittee on Aviation regarding the strengthening and streamlining of airport economic regulations. The testimony focused on several key issues, including providing airports with flexibility in using AIP and PFC funds, eliminating unnecessary competition plans, and changing federal guidance on revenue use and rates and charges.

Key Takeaways:

  • Airports believe that eliminating unnecessary competition plans would provide management flexibility, allow for more innovation and responsiveness during industry change, and lower costs to airport tenants and passengers.
  • The Department of Transportation's Under Secretary for Policy, Jeffrey Shane, agreed to implement grant assurances in Vision 100 this summer and to simultaneously solicit additional comments on all current assurances.
  • Airports spent significant resources and time on competition plan filings, with MWAA spending three months writing its plan and DOT taking seven months to review it.
  • Airports believe that competition plan requirements delay capacity projects, are costly to complete, and do nothing to make aviation more competitive.
  • MWAA would save $35 million by refinancing improperly classified airport bonds.
  • Simplifying regulations would allow airports to deliver capacity improvements faster and for less money.
  • ACI-NA and AAAE urge the committee to continue its support for project streamlining by turning its attention to airport regulations that accomplish little, foster delays, and thwart the goals of a sound and viable aviation industry.

Statistics:

  • 98% of domestic and virtually all international airline passenger and cargo traffic in North America is handled by ACI-NA member airports.
  • Over 300 aviation-related businesses are members of ACI-NA.
  • 7 months was the time taken by DOT to review MWAA's competition plan.
  • 3 months was the time taken by MWAA to write its competition plan.
  • $35 million is the amount of money that MWAA would save by refinancing improperly classified airport bonds.

Sources:

  • "ACI-NA and AAAE Urge Streamlining of Airport Economic Regulations," PRNewswire, April 1
  • "Airport Executive," AAAE's Web site, http://www.airportnet.org/
  • "Airports Council International - North America," ACI-NA's Web site, http://www.aci-na.org/

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