HOW THEY'RE FINANCING THE BIG CITY AIRPORTS

Airport revenue bonds which now finance new construction and improvements to existing fields, are issued by the airport with the promise that income to the airport will be used to pay it off. This article describes how these bonds are used to finance airport construction, the financing arrangements at representative airports, airport income and expenses, and government aid to airports. The revenue bonds which are usually issued for 25- or 30-year terms, have interest rates ranging from 5 to 9 percent. A bond issued can be sold competitively with the airport accepting bids and selling the issue to the bond house. The Dallas/Fort Worth Airport project, calculated to cost $380 million for the first stage, is being financed largely through revenue bonds. The costing technique at Houston Intercontinental Airport involves setting airline landing fees and space rentals at a rate that will repay the capital costs and cover maintenance and operating expenses. Financing arrangements at Tampa and Amarillo, Texas are also discussed. The Federal Aviation Administration's aid for airports, the Federal Aid Airport Program, and Airport Development Aid Program are discussed.

• Supplemental Notes:
  • From Airport Economic Planning by G.P. Howard.
• Corporate Authors:

  Massachusetts Institute of Technology Press

  55 Haywood Street
  Cambridge, MA  United States  02142-1493
• Publication Date: 1974

Media Info

• Features: Tables;
• Pagination: p. 247
• Serial:
  • Publication of: American Society of Civil Engineers
  • Publisher: American Society of Civil Engineers

Subject/Index Terms

• TRT Terms: Airport operations; Bonds; Construction; Expenditures; Federal aid; Finance; Financing; Improvements; Income; Revenues
• Identifier Terms: Dallas-Fort Worth International Airport; George Bush Intercontinental Airport; Tampa International Airport
• Subject Areas: Aviation; Construction; Finance; Terminals and Facilities;

Filing Info

• Accession Number: 00155737
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Sep 20 1977 12:00AM