Florida Department of Transportation Aviation Office Project Number: BDK84 948-2 2013 Public Use Airports’ Rates and Charges Analysis Final Report Disclaimer The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the information presented herein. This document is disseminated under the sponsorship of the U.S. Department of Transportation University Transportation Centers Program and the Florida Department of Transportation in the interest of information exchange. The U.S. Government and the Florida DOT assume no liability for the contents or use thereof. ii Metric Conversion SYMBOL WHEN YOU KNOW MULTIPLY BY TO FIND SYMBOL LENGTH in inches 25.4 millimeters mm ft feet 0.305 meters m yd yards 0.914 meters m mi miles 1.61 kilometers km VOLUME fl oz fluid ounces 29.57 milliliters mL gal gallons 3.785 liters L ft3 cubic feet 0.028 cubic meters m3 yd3 cubic yards 0.765 cubic meters m3 NOTE: volumes greater than 1000 L shall be shown in m3 MASS oz ounces 28.35 grams g lb pounds 0.454 kilograms kg megagrams T short tons (2000 lb) 0.907 Mg (or "t") (or "metric ton") TEMPERATURE (exact degrees) 5 (F-32)/9 oF Fahrenheit Celsius oC or (F-32)/1.8 iii Technical Report Documentation 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. 4. Title and Subtitle 5. Report Date Public Use Airports’ Rates and Charges Analysis November 2013 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Alexander Kolpakov CUTR 71474-00 / BDK84 948-2 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Center for Urban Transportation Research University of South Florida 4202 East Fowler Avenue, CUT100 Tampa, FL 33620-5375 11. Contract or Grant No. BDK84 948-2 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Florida Department of Transportation Final Report 06/21/12-11/30/13 Aviation Office 605 Suwannee Street, MS 46 Tallahassee, FL 32399-0450 Research and Innovative Technology Administration U.S. Department of Transportation Mail Code RDT-30 1200 New Jersey Ave. SE, Room E33 Washington, D.C. 20590-0001 14. Sponsoring Agency Code 15. Supplementary Notes FDOT Project Manager: Erik R. Treudt 16. Abstract It is essential for airports to charge fees that are not only fair for users and tenants, but are also sufficient to cover the costs of operating the airport. Due to the unique nature of airport property, airports often have difficulty finding comparable property from which to benchmark and establish market rates. The purpose of this project is to collect and analyze data on various user fees and charges at Florida public use airports, in order to assist them in establishing competitive rates and ensuring their economic success. 17. Key Words 18. Distribution Statement Airport rates, concession, landing fee, ground lease, No restrictions hangar, tie-down, fuel flowage fee, minimum standards, through-the-fence agreement 19. Security Classification 20. Security Classification 21. No. of Pages 22. Price (of this report) (of this page) 104 Unclassified Unclassified iv Table of Contents Disclaimer...................................................................................................................................................... ii Metric Conversion ........................................................................................................................................ iii Technical Report Documentation ................................................................................................................ iv List of Figures ............................................................................................................................................... vi List of Tables .............................................................................................................................................. viii List of Acronyms ............................................................................................................................................ x Chapter 1 Introduction .............................................................................................................................. 1 Chapter 2 Research Approach ................................................................................................................... 3 Chapter 3 Airports’ Rates and Charges Analysis ........................................................................................ 5 Airport Ownership .................................................................................................................................... 5 Geographic Location ................................................................................................................................. 5 General Airport Characteristics ................................................................................................................. 7 Air Service Providers/Carriers ................................................................................................................. 10 Airport/Airline Agreement Structure ...................................................................................................... 12 Airline Rates and Fees ............................................................................................................................. 13 Airport Terminal Concessions and Advertising ....................................................................................... 16 Car Rental Charges .................................................................................................................................. 17 Customer Facility Charges ....................................................................................................................... 17 Airport Parking Concessions ................................................................................................................... 18 Ground Transportation Fees ................................................................................................................... 18 Landing Fees ............................................................................................................................................ 19 Tie-Downs ............................................................................................................................................... 20 Fuel Providers.......................................................................................................................................... 23 Types of Fuel Available ............................................................................................................................ 23 Fuel Flowage Fees ................................................................................................................................... 25 Hangar Rentals ........................................................................................................................................ 27 Box Hangars ............................................................................................................................................ 27 Corporate Hangars .................................................................................................................................. 32 T–hangars ................................................................................................................................................ 38 Waiting List .............................................................................................................................................. 43 Ground Leases ......................................................................................................................................... 44 Airport-Owned Buildings ......................................................................................................................... 54 Rates Charged by FBO ............................................................................................................................. 60 Airport Parking Charges .......................................................................................................................... 62 Fees for “Through-the-Fence” Operations ............................................................................................. 62 Special Use and Events ............................................................................................................................ 63 Airport Insurance .................................................................................................................................... 63 Minimum Standards ................................................................................................................................ 65 Chapter 4 Conclusions and Suggestions .................................................................................................. 69 Appendix A Airport Survey Questionnaire .................................................................................................. 70 v List of Figures Figure 3-1. Florida airports’ ownership......................................................................................................... 5 Figure 3-2. Map of Florida’s geographic regions. ......................................................................................... 6 Figure 3-3. Responding airports by geographic region. ................................................................................ 6 Figure 3-4. Airports’ ownership, commercial vs. GA airports. ...................................................................... 7 Figure 3-5. Average number of runways by region and service type. .......................................................... 8 Figure 3-6. Average runway length by region and service type. .................................................................. 8 Figure 3-7. Average number of based aircraft by region and service type. ................................................. 9 Figure 3-8. Average number of operations by region and service type. ...................................................... 9 Figure 3-9. Air service providers, GA and commercial airports. ................................................................. 10 Figure 3-10. Commercial airports with two or more types of air service providers. .................................. 11 Figure 3-11. Air carrier types at Florida airports. ........................................................................................ 11 Figure 3-12. Number of air carrier types at Florida airports. ...................................................................... 12 Figure 3-13. Comparison of average rates between different types of carriers. ....................................... 15 Figure 3-14. Rates per night for airport-owned tie-downs, commercial vs. GA. ........................................ 20 Figure 3-15. Daily rates for airport-owned tie-downs, GA airports by region. ........................................... 21 Figure 3-16. Rates per night for FBO-owned tie-downs, commercial vs. GA. ............................................ 22 Figure 3-17. Daily rates for FBO-owned tie-downs, GA airports by region. ............................................... 22 Figure 3-18. Types of fuel provided by airports, commercial vs. GA. ......................................................... 24 Figure 3-19. Types of fuel provided by FBO, commercial vs. GA. ............................................................... 24 Figure 3-20. Types of fuel provided by other airport vendors, commercial vs. GA. ................................... 25 Figure 3-21. Fuel flowage fees at Florida airports, commercial and GA. .................................................... 25 Figure 3-22. Flowage fees at Florida GA airports by geographic region. .................................................... 26 Figure 3-23. Flowage fees at Florida commercial airports by geographic region. ...................................... 26 Figure 3-24. Percentage of airports that lease hangars, commercial vs. GA. ............................................. 27 Figure 3-25. Age of box hangars, all airports. ............................................................................................. 28 Figure 3-26. Age of box hangars, commercial vs. GA airports. ................................................................... 28 Figure 3-27. Condition of box hangars, all airports. ................................................................................... 29 Figure 3-28. Condition of box hangars, commercial vs. GA airports. ......................................................... 29 Figure 3-29. Basis for box hangar rental, all airports. ................................................................................. 30 Figure 3-30. Basis for box hangar rental, commercial vs. GA airports. ....................................................... 30 Figure 3-31. Size of box hangars, all surveyed airports. ............................................................................. 30 Figure 3-32. Size of box hangars, commercial vs. GA airports. ................................................................... 31 Figure 3-33. Monthly rent for box hangars by size. .................................................................................... 31 Figure 3-34. Age of corporate hangars, all airports. ................................................................................... 33 Figure 3-35. Age of corporate hangars, commercial vs. GA airports. ......................................................... 33 Figure 3-36. Condition of corporate hangars, all airports. ......................................................................... 34 Figure 3-37. Condition of corporate hangars, commercial vs. GA airports. ............................................... 34 Figure 3-38. Basis for corporate hangar rental, all airports. ....................................................................... 35 vi Figure 3-39. Basis for corporate hangar rental, commercial vs. GA airports.............................................. 35 Figure 3-40. Size of corporate hangars, all surveyed airports. ................................................................... 36 Figure 3-41. Size of corporate hangars, commercial vs. GA airports. ......................................................... 36 Figure 3-42. Monthly rent for corporate hangars by size. .......................................................................... 37 Figure 3-43. Age of T-hangars, all airports. ................................................................................................. 39 Figure 3-44. Age of T-hangars, commercial vs. GA airports........................................................................ 39 Figure 3-45. Condition of T-hangars, all airports. ....................................................................................... 40 Figure 3-46. Condition of T-hangars, commercial vs. GA airports. ............................................................. 40 Figure 3-47. Basis for T-hangar rental, all airports. .................................................................................... 41 Figure 3-48. Basis for T-hangar rental, commercial vs. GA airports. .......................................................... 41 Figure 3-49. Size of T-hangars, all surveyed airports. ................................................................................. 41 Figure 3-50. Size of T-hangars, commercial vs. GA airports. ...................................................................... 42 Figure 3-51. Monthly rent for T-hangars by size. ........................................................................................ 42 Figure 3-52. Average ground lease rates for private hangars, commercial vs. GA. .................................... 45 Figure 3-53. Ground lease rates for hangars at GA airports by region. ...................................................... 46 Figure 3-54. Average aeronautical ground lease rates, commercial vs. GA. .............................................. 47 Figure 3-55. Aeronautical ground lease rates at GA airports by region. .................................................... 47 Figure 3-56. Ground lease rates for commercial non-aeronautical use, commercial vs. GA. .................... 48 Figure 3-57. Ground lease rates for commercial non-aeronautical use at GA airports by region. ............ 49 Figure 3-58. Ground lease rates for industrial non-aeronautical use, commercial vs. GA. ........................ 50 Figure 3-59. Ground lease rates for industrial non-aeronautical use at GA airports by region. ................ 50 Figure 3-60. Ground lease rates for warehouses at the airport, commercial vs. GA. ................................ 52 Figure 3-61. Comparison of major types of ground leases at Florida airports. .......................................... 53 Figure 3-62. Ground lease rates for open storage and warehouses at Florida airports. ............................ 54 Figure 3-63. Rates charged to FBOs for leasing airport-owned buildings, commercial vs. GA. ................. 55 Figure 3-64. Building lease rates by region charged to FBOs by GA airports. ............................................ 55 Figure 3-65. Building lease rates charged to aircraft maintenance tenants, commercial vs. GA. .............. 56 Figure 3-66. Building lease rates by region charged to aircraft maintenance tenants by GA airports. ..... 57 Figure 3-67. Building lease rates charged to air cargo tenants commercial vs. GA. ................................... 58 Figure 3-68. Building lease rates charged to government/military tenants, commercial vs. GA. .............. 59 Figure 3-69. Comparison of building lease rates between the main types of airport tenants. .................. 60 Figure 3-70. Hangar rates charged by FBO, per square foot per month, commercial vs. GA. ................... 61 Figure 3-71. Hangar rates charged by FBO, flat fee per month, commercial vs. GA. ................................. 61 Figure 3-72. Hangar rates charged by FBO by region, GA airports. ............................................................ 61 vii List of Tables Table 3-1. Florida Airport Characteristics, Commercial vs. GA Airports ....................................................... 7 Table 3-2. Airline-Airport Agreement Structure ......................................................................................... 12 Table 3-3. Rates for Signatory Carriers ....................................................................................................... 13 Table 3-4. Rates for Affiliates of Signatory Carriers .................................................................................... 14 Table 3-5. Rates for Nonsignatory Carriers ................................................................................................. 15 Table 3-6. Terminal Concessions and Advertising ...................................................................................... 16 Table 3-7. Rates for In-Terminal Car Rental Operations ............................................................................. 17 Table 3-8. Rental Car Customer Facility Charges, Commercial vs. GA Airports .......................................... 17 Table 3-9. Parking Concessions at Florida’s Commercial Airports .............................................................. 18 Table 3-10. Ground Transportation Fees at Florida Airports, Commercial vs. GA ..................................... 18 Table 3-11. Landing Fees at Florida Airports, Commercial vs. GA .............................................................. 19 Table 3-12. Landing Fee Collection Methods, Commercial vs. GA Airports ............................................... 19 Table 3-13. Average Fees for Airport-Owned Tie-Downs, Florida Public Use Airports .............................. 20 Table 3-14. Average Rates for FBO-Owned Tie-Downs, Florida Public Use Airports .................................. 21 Table 3-15. Fuel Providers at Florida Public Use Airports (Percent of Airports) ......................................... 23 Table 3-16. Types of Fuel Available, Florida Commercial and GA (Percent of Airports) ............................ 23 Table 3-17. Box Hangar Rates at Florida GA Airports by Region ................................................................ 32 Table 3-18. Details about Box Hangars at Florida Public Use Airports ....................................................... 32 Table 3-19. Corporate Hangar Rates at Florida GA Airports by Region ...................................................... 37 Table 3-20. Details about Corporate Hangars at Florida Public Use Airports ............................................. 38 Table 3-21. T-hangar Rates at Florida GA Airports by Region .................................................................... 43 Table 3-22. Details about T-hangars at Florida Public Use Airports ........................................................... 43 Table 3-23. Percentage of Airports with a Waiting List for Rentals ............................................................ 44 Table 3-24. Private Hangar Ground Lease Rates, All Airports .................................................................... 45 Table 3-25. Aeronautical Ground Lease Rates, All Airports ........................................................................ 46 Table 3-26. Ground Lease Rates for Commercial Non-aeronautical Use, All Airports ............................... 48 Table 3-27. Ground Lease Rates for Industrial Non-aeronautical Use, All Airports ................................... 49 Table 3-28. Ground Lease Rates for Agricultural Land at the Airport, All Airports .................................... 51 Table 3-29. Ground Lease Rates for Open Storage at the Airport, All Airports .......................................... 51 Table 3-30. Ground Lease Rates for Warehouses at the Airport, All Airports ............................................ 52 Table 3-31. Summary of Rates for Different Types of Ground Leases, All Surveyed Airports .................... 53 Table 3-32. Lease Rates Charged to FBOs for Airport-Owned Buildings, All Airports ................................ 54 Table 3-33. Lease Rates Charged to Aircraft Maintenance Tenants, All Airports ....................................... 56 Table 3-34. Lease Rates Charged to Air Cargo Tenants, All Airports .......................................................... 57 Table 3-35. Lease Rates Charged to Government/Military Tenants, All Airports ...................................... 58 Table 3-36. Summary of Lease Rates for Different Types of Tenants, All Surveyed Airports ..................... 59 Table 3-37. Monthly Hangar Lease Rates Charged by FBO ......................................................................... 60 Table 3-38. Average Airport Parking Charges, Commercial vs. GA Airports ............................................... 62 viii Table 3-39. Airport Fees for “Through-the-Fence” Operations at Florida Airports .................................... 63 Table 3-40. Fees for Special Events or Special Use of Airport Property ..................................................... 63 Table 3-41. Airport Insurance – Commercial Airports’ Average ................................................................. 64 Table 3-42. Airport Insurance – GA Airports’ Average................................................................................ 64 Table 3-43. Airport Insurance – All Airports ............................................................................................... 64 Table 3-44. Average Minimum Standards for FBOs at Commercial Airports ............................................. 65 Table 3-45. Average Minimum Standards for FBOs at GA Airports ............................................................ 66 Table 3-46. Average Minimum Standards for Non-FBO Tenants at Commercial Airports ......................... 67 Table 3-47. Average Minimum Standards for Non-FBO Tenants at GA Airports ........................................ 68 ix List of Acronyms Avgas Aviation Gasoline CFASPP Continuing Florida Aviation System Planning Process FBO Fixed Base Operator GA General Aviation MAG Minimum Annual Guarantee PSFPY Per Square Foot Per Year x