[Federal Register Volume 66, Number 43 (Monday, March 5, 2001)]
[Notices]
[Pages 13366-13367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5268]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. 28895]


Airport Privatization Pilot Program

AGENCY: Federal Aviation Administration (FAA), (DOT.

ACTION: Notice of Receipt of Final Application of Niagara Falls 
International Airport, Niagara Falls, New York; Request for Comments.

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SUMMARY: The Federal Aviation Administration (FAA) is seeking 
information and comments from interested parties on the final 
application by the Niagara Frontier Transportation Authority (NFTA) for 
participation of Niagara Falls International Airport (IAG) in the 
airport privatization pilot program. The final application is accepted 
for review.
    Title 49 U.S.C. Section 47134 establishes an airport privatization 
pilot program and authorizes the Department of Transportation to grant 
exemptions from certain Federal statutory and regulatory requirements 
for up to five airport privatization projects. The application 
procedures require the FAA to publish a notice of receipt of the final 
application in the Federal Register and accept public comment on the 
final application for a period of 60 days.

DATES: Comments must be received by May 4, 2001. Comments that are 
received after the date will be considered only to the extend possible.

ADDRESSES: The IAG final application is available for public review in 
the Federal Aviation Administration, Office of Chief Counsel, 
Attention: Rules Docket (AGC-200), Docket No. 28895, 800 Independence 
Avenue, SW., Washington, DC 20591. NFTA, the airport sponsor, has also 
made a copy of the application available at the following locations:

Buffalo & Erie County Public Library, 1 Lafayette Square, Buffalo, New 
York 14202, (716) 858-8900
Niagara Frontier Transportation Authority, 181 Ellicott Street, 
Buffalo, New York, 14203 Attn: Ruth Keating, (716) 855-7398
Earl W. Brydges Public Library, 1425 Main Street, Niagara Falls, New 
York 14305, (716) 286-4881
Niagara Falls International Airport, Niagara Falls Boulevard, Niagara 
Falls, New York 14304, (716) 297-4494

    Comments on the IAG final application must be delivered or mailed, 
in quadruplicate, to: the Federal Aviation Administration, Office of 
Chief Counsel, Attention: Rules Docket (AGC-200), Docket No. #28895, 
800 Independence Avenue, SW., Washingotn, DC 20591. All comments must 
be marked ``Docket No. 28895''. Commenters wishing the FAA to 
acknowledge receipt of their comments must include a preaddressed, 
stamped postcard on which the following statement is made: ``Comments 
to Docket No. 28895.'' The postcard will be date stamped and mailed to 
the commenter. Comments on this Notice may be delivered or examined in 
room 915G on weekdays, except Federal holidays, between 8:30 a.m. and 
5:00 p.m.

FOR FURTHER INFORMATION CONTACT: Kevin C. Willis, Compliance Specialist 
(AAS-400), (202-267-8741) Airport Compliance Division, Office of 
Airport Safety and Standards, Federal Aviation Administration, 800 
Independence Ave. SW., Washington, DC 29591.

SUPPLEMENTARY INFORMATION: Section 149 of the Federal Aviation 
Administration Authorization Act of 1996, Pub. L. No. 104-264 (October 
9, 1996) (1996 Reauthorization Act), added a new 47134 to Title 49 of 
the U.S. Code. Section 47134 authorizes the

[[Page 13367]]

Secretary of Transportation, and through delegation, the FAA 
Administrator, to exempt a sponsor of a public use airport that has 
received Federal assistance from certain Federal requirements in 
connection with the privatization of the airport by sale or lease to a 
private party. Specifically, the Administrator may exempt the sponsor 
from all or part of the requirements to use airport revenues for 
airport-related purposes (upon approval of 65 percent of the air 
carriers serving the airport and having 65 percent of the landed 
weight), to pay back a portion of Federal grants Government upon 
transfer of the airport. Since, Niagara Falls International Airport is 
a general aviation airport without air carrier service; the 65 percent 
approval of air carriers is not required. The Administrator is also 
authorized to exempt the private purchaser or lessee from the 
requirement to use all airport revenues for airport-related purposes, 
to the extent necessary to permit the purchaser or lessee to earn 
compensation from the operations of the airport.
    On September 16, 1997, the FAA issued a notice of procedures to be 
used in applications for exemption under Airport Privatization Pilot 
Program (62 FR 48693). The notice of procedures and public comments 
received are available for review in FAA Rules Docket No. 28895.
    On June 5, 2000, NFTA filed a final application and selected Cintra 
Niagara Falls Airport Corporation, USA, as the airport's private 
operator. Cintra Niagara proposes to lease the airport under a 99-year 
lease agreement. It plans to market the airport to develop new services 
such as low cost domestic passenger flights to business and leisure 
centers, international charter and cargo services. Cintra Niagara will 
commit $10.1 million in the initial 13 years for the purposes of 
operating, managing and developing the airport. $1.125 million will be 
used for operating, marketing and capital improvements costs. The 
remaining $8.975 million will be used for marketing expenses and to 
fund the initial five year capital planning period.
    Cintra Niagara will receive an operating subsidy of $2.475 million 
from the NFTA for the first three years ($900,000, year 1; $900,000, 
year 2; $675,000, year 3). The operating subsidy will end after year 3. 
Cintra Niagara will pay a rental to the NFTA equivalent to $2.00 per 
passenger for each eligible passenger in excess of 450,000 total annual 
passengers at the Airport. Cintra Niagara forecasts that rental 
payments will begin in calendar year 2007.
    On August 11, 2000, in an effort to clarify certain parts of the 
application, FAA staff requested responses to 21 questions from the 
NFTA and Cintra Niagara, the private operator. Copies of the 21 
questions, the answers submitted by the NFTA, and the draft lease are 
available for public view and comment included as an attachment to the 
sponsor's application for public review.
    The FAA has determined that the application is substantially 
complete. As part of its review of the IAG final application, the FAA 
will consider all comments and information submitted by interested 
parties during the 60-day comment period for this notice.

    Issued in Washington, DC on February 21, 2001.
David L. Bennett,
Director, Airport Safety and Standards.
[FR Doc. 01-5268 Filed 3-2-01; 8:45 am]
BILLING CODE 4910-13-M