The FAA’s grant assurances play a key role in determining how airports can implement landing fees. These assurances are commitments that airports make in exchange for federal funding under the Airport Improvement Program (AIP). They aim to ensure that airports operate fairly, efficiently, and in the public interest. Here’s how they influence landing fees and the requirements for implementing them:
FAA Grant Assurances and Landing Fees:
1. Nondiscrimination:
• Airports receiving federal funds must comply with Grant Assurance 22, which requires that fees, including landing fees, be applied without unjust discrimination. This means that all similarly situated users must be charged equitably.
2. Reasonableness:
• Grant Assurance 24 mandates that any fees imposed by the airport, including landing fees, must be reasonable. The fees should reflect the costs of maintaining and operating the airport rather than serving as a profit-making mechanism.
3. Revenue Use:
• Under Grant Assurance 25, revenue generated from landing fees must be used for the operation, maintenance, or development of the airport. Funds cannot be diverted for non-airport purposes.
Requirements for Implementing Landing Fees:
To implement landing fees while complying with FAA grant assurances, airports must:
1. Cost Justification:
• The airport must develop a cost-based methodology to justify the landing fees. This typically involves calculating the costs associated with airfield operations (e.g., maintenance, infrastructure) and proportionately allocating those costs to users.
2. Consultation with Users:
• Airports are expected to consult with airlines and other users before implementing or modifying landing fees. Engaging stakeholders helps ensure transparency and reduces potential disputes.
3. Non-Discriminatory Structure:
• Landing fees must be structured to apply uniformly to all operators based on reasonable criteria, such as aircraft weight or usage type.
4. Documentation and Reporting:
• The airport must maintain detailed records of how landing fees are calculated and used. The FAA may review these records to ensure compliance with grant assurances.
5. Compliance with Federal Regulations:
• Landing fees must comply with FAA regulations (e.g., the Airport Compliance Manual) and applicable federal laws, such as the Anti-Head Tax Act.
6. Notification and Dispute Resolution:
• If disputes arise over landing fees, the FAA provides a resolution process under Part 13 or Part 16 of its regulations. Airports must be prepared to demonstrate compliance during any such proceedings.
Part 13 and Part 16 refer to sections of the Federal Aviation Administration (FAA) regulations that outline processes for investigating and resolving disputes related to airport compliance issues, including matters involving grant assurances, fees, and operational practices. Here’s a breakdown of each:
Part 13 – Investigative Procedures
• Purpose: Part 13 provides an informal process for investigating potential violations of FAA regulations, including non-compliance with grant assurances. It is designed to address complaints without resorting to formal adjudication.
• Key Features:
1. Informal Investigation:
• The FAA investigates complaints through correspondence, interviews, and document reviews.
• The goal is to resolve the issue amicably without formal enforcement action.
2. Filing a Complaint:
• Complaints can be submitted by airport users, tenants, or other stakeholders who believe the airport is violating its grant assurances.
3. Outcome:
• The FAA may issue a letter of finding or close the case if the issue is resolved. If non-compliance is confirmed and unresolved, the matter may escalate to Part 16.
Part 16 – Rules of Practice for Federally-Assisted Airport Enforcement Proceedings
• Purpose: Part 16 provides a formal process for adjudicating disputes related to compliance with FAA grant assurances and other obligations tied to federal funding. This process is more structured than Part 13 and is akin to a legal proceeding.
• Key Features:
1. Formal Complaint Process:
• Complaints must be filed in writing, specifying the alleged violation, relevant facts, and legal basis.
2. FAA Adjudication:
• The FAA assigns the case to a hearing officer who evaluates the evidence, holds hearings if necessary, and issues an initial determination.
3. Timelines:
• Strict deadlines apply for filing complaints, responses, and appeals, ensuring a timely resolution.
4. Appeals:
• Parties can appeal the FAA’s initial decision to the FAA Associate Administrator for Airports.
5. Penalties:
• If a violation is confirmed, the FAA may impose corrective actions, including suspension of federal funding or other enforcement measures.
Comparison of Part 13 and Part 16:
Feature Part 13 (Informal) Part 16 (Formal)
Nature Informal, flexible investigation Formal, legalistic adjudication process
Goal Resolve disputes amicably Determine violations and enforce compliance
Filing Requirements Less detailed Detailed complaint with evidence and legal basis
Timelines Open-ended Strict deadlines
Outcome Resolution or escalation to Part 16 Binding decision with potential penalties
When Are They Used?
• Part 13 is typically the first step for addressing disputes or concerns, particularly when parties seek an informal resolution.
• Part 16 is used when informal attempts fail, or the issue involves significant or repeated non-compliance with FAA requirements.