Bob,
I am decidedly not a subject matter expert on this, however my read is that: * All airport revenues must stay on the airport and be used for airport purposes, except where the FAA grants specific AIPP exemptions spelled out in 49 U.S.C. §47134 * This applies to private operators too * As you know, the public sponsor of an AIPP lease can use the proceeds for non-airport purposes with FAA approval (and the required airline approvals). * If the sponsor gets the proceeds exemption, the FAA must also exempt the private lessee “to the extent necessary to permit [it] to earn compensation from the operations of the airport” https://www.govinfo.gov/content/pkg/USCODE-2023-title49/pdf/USCODE-2023-title49-subtitleVII-partB-chap471-subchapI-sec47134.pdf * I recall that what the FAA did at SJU in 2009 was grant the lessee explicit §47134(b)(3) compensation exemption, with the amount subject to review under the grant‑assurance/revenue‑use framework I look forward to any additional nuance or correction from Mifnetters. Thanks, Gary From: bob.poole--- via Mifnet <[email protected]> Sent: Tuesday, August 19, 2025 11:02 AM To: [email protected] Cc: [email protected] Subject: [Mifnet 🛰 73696] AIP question In a recent conversation about airport finance, I explained to a tech company official about how the current FAA Airport Investment Partnership Program (AIPP) allows US airports to be long-term leased to an airport company with the lease payments (typically paid up-front, in a large lump sum) being able to be used by the airport owner (city, county, or state) for any governmental purpose. This person then asked about the long-standing FAA grant assurance that requires any airport that received Airport Improvement Program (AIP) Grants to keep all airport revenues on the airport and used only for airport purposed. The unanswered question is: Does a long-term leased airport (San Juan is the only current one) still have to follow that AIP grant assurance when it comes to all revenues generated directly by the airport to be used only on the airport itself? I presume the answer is Yes, but I have never seen this question answered since enactment of AIPP in 2018. --Bob Poole
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