A LOOK AT LONG-TERM AIRPORT FINANCING

This article briefly describes the procedures involved when considering long-term airport financing. With most airports, the financial manager faces the option of financing his project through the sale of general obligation bonds, straight revenue bonds or lease rental bonds. Once having decided to finance the proposed project through borrowed capital, the next question may be whether to borrow by short-term notes or by issuing, long-term bonds. The airport seeking to enter the long-term bond market must utilize the services of an attorney, an airport consultant, auditors, and financial consultants in order for a successful bond sale at the lowest interest rates consistent with the market. As a result of federal legislation, each bidder and investor is committed to a more thorough review of each revenue bond issue prior to the sale. In addition to distribution of the official statement to potential investors prior to the sale, it should also be submitted to the major municipal rating agencies for a credit review. An important responsibility for the financial manager following the bond sale, is the aggressive and prudent investment of cash available in the various funds and accounts.

  • Corporate Authors:

    American Association of Airport Executives

    2029 K Street, NW
    Washington, DC  United States  20006
  • Authors:
    • Fleischmann, F X
  • Publication Date: 1978-4

Media Info

  • Pagination: p. 22-24
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00173832
  • Record Type: Publication
  • Source Agency: Airport Management Journal
  • Files: TRIS
  • Created Date: Jul 29 1978 12:00AM