AIRPORT SYSTEM CAPITAL REQUIREMENTS - FUNDING SOURCES AND FINANCING MECHANISMS

In response to the workshop presentations on airport funding needs made by representatives of various aviation organizations, a panel of experts on airport funding and financing offered their views on how airport capital requirements might be met. Richard R. Mudge, Apogee Research, Inc., gives a brief outline of the history and background of what is happening in finance across all airport infrastructure, followed by his view of the lessons that can be drawn for airport finance. Michael Lexton, Lehman Brothers, sees the key issue as being the allocation of who pays. There is plenty of money available for airport projects and a lot of people who want to invest in airports. He sees the need for a strong working partnership of airlines, airports, and the Federal Government. William Reed, Booze, Allen and Hamilton, has four key messages to get out on the table: (1) There are different answers for different types of airports; (2) Increasing the Passenger Facility Charge to a $5 level just does not do it; (3) Airports have access to very good financing - bonds are an excellent mechanism in the tax-exempt marketplace; and (4) The user pays - the focus should be on how to get the user to pay and who the user is. David L. Lewis, Hickling Lewis Brod, Inc., uses his experiences with (1) the Los Angeles International Airport and the airlines over the proposed sharp increase in landing fees and (2) the Canadian government in creating a commercialized aviation system, to provide insight into how airport and aviation system financing works in general.

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  https://onlinepubs.trb.org/Onlinepubs/trcircular/485/485-010.pdf
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• Authors:
  • Mudge, R R
  • Lexton, M
  • Reed, W
  • Lewis, D L
• Conference:
  • Airport System Capital Requirements (Workshop)
  • Location: Washington, D.C.
  • Date: 1997-4-15 to 1997-4-15
• Publication Date: 1998-5

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; Tables;
• Pagination: p. 28-38
• Monograph Title: AIRPORT SYSTEM CAPITAL REQUIREMENTS
• Serial:
  • Transportation Research Circular
  • Issue Number: 485
  • Publisher: Transportation Research Board
  • ISSN: 0097-8515

Subject/Index Terms

• TRT Terms: Airport operations; Finance; Financial capital; Perspective views; Workshops
• Subject Areas: Aviation; Finance; Highways;

Filing Info

• Accession Number: 00749962
• Record Type: Publication
• Files: TRIS, TRB
• Created Date: Jun 12 1998 12:00AM