Airport capital funding sources

2020-03-30 11:14

GAO noted that: (1) in 1996, the 3, 304 airports that make up the national airport system obtained about 7 billion for capital development; (2) more than 90 percent of this funding came from three sources: airport and special facility bonds (4. 1 billion), funding made available from the Airport and Airway Trust Fund (1. 4 billion), and passengerAirport Improvement Program (AIP) Airports. The Airport Improvement Program (AIP) provides grants to public agencies and, in some cases, to private owners and entities for the planning and development of publicuse airports that are included in the National Plan of Integrated Airport Systems (NPIAS). airport capital funding sources

Identifying Potential Funding Sources for Airport Capital Improvements ORIKAYE Goco BROWNWEST The continuing financial problems of rural regional airports have motivated a search for ways of financing capital improve ments, which are necessary for the efficient operation of the U. S. airport system. Direct airport revenues do not provide

State grants are sometimes the sole source of capital funding for airports that are not part of the FAA s NPIAS. Similar to AIP grants, state funding typically comes with assurances about what airport sponsors must do as a condition of the receipt of funds. These assurances are intended to protect the states infrastructure investment and maintain safe and efficient airport access for users. CAPITAL IMPROVEMENT FUNDING SOURCES There are generally four sources of funds used to finance airport capital development projects: airport cash flow, revenuegeneral obligation bonds, federalstatelocal grants, and passenger facility charges (PFCs), which are reserved forairport capital funding sources Airport capital improvement projects may be funded through a combination of sources including federal, state, local, and third party sources. Regardless of the source, the best approach for gaining funding support is to develop a solid presentation of the need for the project including a clear explanation of its purpose, its benefits and its beneficiaries.