[Federal Register Volume 68, Number 214 (Wednesday, November 5, 2003)]
[Notices]
[Pages 62651-62652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-27753]


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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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