AIRPORT MINIMUM STANDARDS

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1 AIRPORT MINIMUM STANDARDS South Carolina Aviation Association Annual Conference Presented by: Bill Dunn, President

2 What s the real name for these documents and guidance? Minimum Standards for COMMERCIAL AERONAUTICAL ACTIVITIES Key Words Commercial Aeronautical

3 A sponsor s establishment of minimum standards and self-service rules & regulations contributes to nondiscriminatory treatment of airport tenants and users. It also helps the sponsor avoid granting an exclusive right. FAA Order b (chapter 10-1)

4 Airport is obligated to make available the opportunity to engage in commercial aeronautical activities to any person, firm, or corporation that meets reasonable minimum standards established by the airport sponsor. FAA s policy is recommended (but does not require) that airports develop minimum standards Purpose is to ensure safe, efficient & adequate level of services to the public.

5 MUST be reasonable and not unjustly discriminatory. Aeronautical service providers must agree to comply with minimum standards Compliance with Airport s minimum standards should be made part of an aeronautical service provider s agreement (lease, permits, etc.)

6 Should be relevant to proposed aeronautical activity with goal of protecting level & quality of services offered to the public. Should be applied objectively & uniformly to all similarly situated on-airport aeronautical service providers. Failure to do so may result in violation against exclusive rights agreements or a finding of unjust economic discrimination or unreasonable terms and conditions for airport use.

7 In developing minimum standards, the most critical consideration is the nature of aeronautical activity and the Airport s operating environment. Tailor to specific aeronautical activities and your specific airport. Unreasonable to apply minimum standards for FBO at a large hub airport to the FBO at a GA airport.

8 FAA does not support a fill-in-theblank approach or using boiler plate standards from another airport. Minimum standards must be unique to your airport operating environment. To avoid conflict with Federal obligations: (a) The standards must apply to all providers of aeronautical services from full service to single service providers.

9 Avoid conflict with Federal obligations: (continued) (b) Impose conditions that ensure safe & efficient operation of the Airport in accordance with FAA rules, regulations & guidance (c) Be reasonable, not unjustly discriminatory, attainable, uniformly applied & reasonably protect the investment by providers of aeronautical services to meet minimum standards from competition not making similar investments.

10 Avoid conflict with Federal obligations: (continued) (d) Are relevant to activity to which they will be applied. (e) Provide the opportunity for newcomers who meet the standards. There is no requirement to include non-aeronautical activities such as restaurants, car rental facilities or parking facilities. These activities are not covered by FAA grant assurances of Federal conveyances.

11 Factors for consideration: Type of airport. Types of aeronautical activities that will be conducted. Space reasonably necessary for each type of aeronautical activity. What docs required as evidence of financial stability & good credit.

12 Factors for consideration (continued) Requirements to demonstrate compliance with sanitation, environmental & safety codes. Requirements for minimum insurance coverage & indemnity. Relevance to specific aeronautical activity.

13 Develop reasonable, relevant and applicable standards for each type and class of service Specialized Aviation Service Operations (SASO) Known as single-service provider all provisions of minimum standards may not apply Flying club, air ambulance, avionics shop, prop shop, etc Independent Operators Sponsor should have licensing/permit process that provides regulation and compensation to airport

14 Self-Fueling and Self-Service Activities Minimum standards do not apply. Service by owner with own employees & own equipment. Fueling cannot be contracted out. Fuel purchased by aircraft owner. Not the same as selfservice fueling.

15 Fuel Sales Where will tanks be located? Who controls access? Above/underground tanks? Will fuel trucks be used? Adequate fuel on hand to meet demand and fleet mix? Liability insurance & indemnify sponsor for fuel spills & environmental contamination.

16 Provider Personnel Requirements Dictated by airport size & public demand. Minimum standards should ensure that aeronautical providers have sufficient personnel to ensure operational safety & demand. Hours of operation/day. Level of training and qualification.

17 Airport & Passenger Services Where a service provider services air carrier and/or cargo carriers List of equipment required both above/below wing (tugs, GPU) Passenger convenience needs (loading bridge, wait rooms, food & beverage, etc)

18 Flight Training Activities May be provided by airport or service provider. Types of training provided? Classroom space/size. Full time or part time basis? Type & number of aircraft. Provisions for storage or aircraft.

19 Aircraft Engine/Accessory Repair (FAR Part 145) Qualifications of employees? Repair ratings held by applicant. Types of services offered to the public Aircraft maintenance, painting, upholstery. Sufficient space on airport to provide facilities. Suitable shop space exist to provide place for necessary equipment, parts & raw materials.

20 Skydiving IS an aeronautical activity! Any restriction, limitation or ban must be based on grant assurances that allow Sponsor to prohibit or limit aeronautical activity for safe operation of Airport. (subject to FAA approval).

21 Skydiving Will activity create a safety hazard to normal operations of airport? IF so, has FAA FSDO issued finding? Can a drop zone be established within airport boundaries? Training requirements for on-airport drop zone. Reasonable times of operations.

22 Skydiving Reasonable fee that jumpers/organizations pay for use of airport property? Is an FAA airspace study required? What is a reasonable amount of liability insurance naming airport as an additional insured?

23 Flying Clubs FAA considers a non-commercial aeronautical activity. FAA recommends addressing in minimum standards to: Provide clear guidance. Establish specific requirements. Avoid misunderstandings. Changes being made to definitions.

24 Commercial Through-the-Fence Operators. Independent operators offering an aeronautical activity on land ADJACENT to but not part of airport. NO OBLIGATION to make airport facilities available. Federal Grant Assurances do not apply to TTF operators.

25 FAA generally not supportive. Unfair competition to based businesses. Exemptions may be made on caseby-case basis. Operational restrictions should be created to ensure safety. Access agreement should be in place.

26 Through-the-Fence Access Agreements Written agreement. Defines right of access granted. Specifies payment provisions. Has expiration date & default terms. Insurance and indemnity provisions. States agreement subordinate to Sponsor Assurances May be terminated for violation.

27 Through-the-Fence Access Agreement Should be for a fixed period of time. Sponsor under no obligation to renew. Sponsor under no obligation to accept assignment or sale. FAA recommends sponsor expressly prohibit sale of access.

28 In summary, Minimum Standards: Ensure non-discriminatory treatment among commercial aeronautical providers. Enhance availability & quality of aeronautical service providers. Protect the public from unqualified and potentially unsafe operations. Mitigates sponsor s risk & liability.

29 It is the responsibility of the airport district offices (ADO) and regional airports divisions to advise sponsors on the appropriateness of proposed standards and to ensure that the standards not protect or convey an exclusive right. FAA Order b (chapter 10-1)

30 For additional information, see: A/C Exclusive rights A/C Minimum Standards FAA Order b Airport Compliance Manual ACRP Legal Research Digest 11 Survey of Minimum Standards: Commercial Aeronautical Activities at Airports

31 QUESTIONS? Bill Dunn Aviation Strategies, LLC

32

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