Aviation Products and services: Details on Airports Working out Their Ideal as the Sole Service provider of Gasoline

What GAO Uncovered

Based on GAO’s survey, 588 of the nearly 2,000 airports responding to the study documented doing exercises their proprietary exceptional proper (the correct to be the sole provider service provider) for aviation fuel solutions. When airports are typically prohibited from granting an special right to any celebration to offer aviation companies, the Federal Aviation Administration (FAA) has identified that an airport can be the distinctive provider of this sort of companies, therefore precluding other events from supplying people companies at the airport. Most (567) of these airports are common aviation airports—airports that have no scheduled commercial provider or have scheduled company but much less than 2,500 passenger boardings for each yr. The 588 airports are located in 45 of the 48 contiguous states and in all of the FAA areas covering these states.

Area of Airports that Reported Employing the Proprietary Exceptional Correct on GAO Study, by Federal Aviation Administration Area

Note: An airport sponsor may well elect to offer any or all of the aeronautical products and services at its airports and be the distinctive company of those companies. This is recognized as the proprietary unique correct.

GAO’s survey and interviews with selected airports found most airports that report working out their proprietary special ideal do so dependent mostly on attracting users to the airport, delivering a significant amount of trusted purchaser support, and building airport revenue. Over 90 % of the 588 airports responded that attracting end users to the airport and creating income were being really crucial or rather critical to their final decision to supply fuel provider. Further, officers from 17 of the 26 airports GAO interviewed stated that the resulting earnings was a principal variable in their decision to present gas assistance. For illustration, a person airport manager claimed the profits permits the airport to devote in funds projects, this kind of as making hangars, to help entice end users to the airport. The earnings can also help an airport grow to be as monetarily self-sustaining as possible, which is a necessity to get federal airport grants. Airports also cited supplying consistent buyer services as a key component in training their proprietary exclusive right. For illustration, a person airport supervisor GAO spoke to said problems about the previous private fuel provider’s client services and price ranges prompted the airport to turn out to be the sole services company.

Why GAO Did This Review

FAA, by federal airport grants, will help fund airports’ cash enhancement and is liable for overseeing airports’ compliance with federal prerequisites integrated in airport grant agreements. Under these agreements, airports are usually not allowed to grant special legal rights to any individual or entity to deliver aeronautical services—such as fuel—on airport grounds. FAA has determined, however, that airports them selves can choose to be the exceptional company of this kind of products and services by doing exercises their proprietary exclusive proper.

The FAA Reauthorization Act of 2018 incorporated a provision for GAO to take a look at airports that have exercised their proprietary special proper. This report addresses what is identified about the number and characteristics of airports that are at the moment working out their proprietary exceptional correct to present gasoline and the things airports take into consideration when deciding no matter whether to workout this suitable to deliver fuel.

GAO reviewed pertinent federal statutes, FAA policies and direction, airport documents and internet websites, and performed a world-wide-web study of all 3,010 general public use airports in the contiguous United States. GAO interviewed officials at a non-generalizable sample of 26 airports that self-recognized as doing exercises their proprietary special ideal and at 10 airports that are not performing exercises their proprietary exclusive correct, selected centered on a blend of attributes, like the quantity of gasoline revenue. GAO also interviewed FAA compliance workers at headquarters and regional offices.

For much more details, speak to Heather Krause at (202) 512-2834 or [email protected]