Airport revenue is one of the most heavily regulated areas of airport law: federal rules govern not just how much airports can charge, but how they can spend what they collect. Kaplan Kirsch structures airport rates and charges methodologies, including rates established by resolution, and negotiates financial arrangements with neighboring governments, airlines, fixed-base operators (FBOs), and other tenants. (Use and lease agreement negotiations are covered on our Airline Use & Lease Agreements page.) We also work directly with agencies and legislators to help shape federal policy on passenger facility charges (PFCs), permitted uses of airport revenue, and airport rates and charges.
We litigate airport finance and revenue disputes in state and federal cases and before administrative agencies: rates and charges, revenue diversion, PFCs, and local taxation issues. When negotiation with airlines and FBOs over leases, use, and rate disputes doesn’t resolve a matter, we work with airports to prevent or resolve Federal Aviation Administration (FAA) Part 16 proceedings, settle informal revenue diversion investigations, and secure PFC approvals for airport projects.
As non-aeronautical revenue becomes a larger share of airport budgets, generating it means navigating federal land use, revenue use, and revenue diversion rules. Kaplan Kirsch helps airports develop programs—including land leases and public-private partnerships—that bring private finance to airport development while staying within those requirements.
Airline Rates and Charges
We represent clients in the evaluation of financial issues, negotiations with carriers and FBOs, structuring of financial arrangements with neighboring governments, and ongoing federal rulemaking and legislative activity. Our team helps formulate federal policies and agency rules governing permissible rates and charges methodologies. We advise individual airports on rate methodologies, whether negotiated with airlines or imposed on airlines. Our attorneys also participate in contested Part 16 administrative proceedings concerning airport rates and charges. Kaplan Kirsch has defended differential rates across airport facilities against airline litigation, represented airports in administrative and state and federal court proceedings over airline rates and charges, and, just as often, resolved rate disputes directly with FAA regulators before litigation became necessary.
Airport Revenue Use Issues
We advise clients and coordinate with the FAA on the use of airport revenue, including settling disputes between airport sponsors and neighboring jurisdictions. The restrictions on the use of airport-generated revenues are not intuitive, and many airports need to work with state and local officials to understand and comply with federal revenue use requirements. Our attorneys have advised on major intergovernmental settlement agreements in Denver, Minneapolis, Los Angeles, Cleveland, and elsewhere; negotiated payment-in-lieu-of-tax agreements between airports and neighboring municipalities; and advised airports on permissible and impermissible uses of airport revenue, including during FAA revenue use audits.
Federal Grants, Loans, and Passenger Facility Charges (PFCs)
We assist airports in obtaining federal grants, including Letters of Intent (LOIs), and restructure LOIs when a program needs to change. After the surge of federal funding tied to the COVID-19 pandemic and the Bipartisan Infrastructure Law, we helped airports put that funding to its best use while meeting new and existing federal requirements.
We also advise on PFC program development and project eligibility, airport consultation meetings, and responses to airline comments. We also help complete the PFC application process, including meetings with the FAA where appropriate. Our matters have included major international terminal projects, the issuance of PFC-backed bonds, and advocacy for the redeployment of PFC revenue on behalf of an airport sponsor. Kaplan Kirsch also advises airports and private developers on Transportation Infrastructure Finance and Innovation Act (TIFIA) loans for airport projects and the requirements for qualifying for one.