Airports and their airline tenants build airport finances on use and lease agreements – particularly, for commercial service airports, signatory airport-airline agreements. We bring our unparalleled airport expertise to bear in guiding clients through the negotiation and drafting of airline use and lease agreements, often in support of the airport’s capital program and in addition to and parallel with other use, lease, development, and concessions agreements. Just as importantly, we frequently advise clients in preparing a strategy for decision making on the type, duration, and terms of use and lease agreements – strategies that can have long-term implications for airport operations, maintenance, and development. Our first role is to listen and then to assist each of our airport clients develop an approach and strategy that reflects that airport’s unique circumstances and needs.
The airline-airport relationship – typically determined by the use and lease agreement in use at the airport – has changed dramatically over the past 30 years. Airports can no longer rely on antiquated, standard-form agreements. Instead, a comprehensive approach is needed to incorporate complex and interrelated matters that span the range of issues from the airport’s capital improvement plans to an analysis of how a particular airport fits into different airlines’ route systems. We work with our airport clients to consider the differing business models employed by various U.S. and foreign air carriers and develop means to address these in structuring critical terms and conditions, such as joint use formulae. Concerns over local air service; funding major airport development projects; costs per emplaned passenger; origination and destination traffic; control of airport-generated, non-aeronautical revenue; and a myriad of other factors all come into play.
Our expertise with all aspects of airport operation enables us to provide our clients with strategic counsel on negotiation of new use and lease agreements, as well as related matters, including negotiation of gate use policies, rates and charges resolutions and fuel farm leases with individual airlines or with consortia. We partner with our clients and draw upon the knowledge, experience and expectations of the airport’s staff to devise and implement negotiation strategies and find models that work for each airport’s unique circumstances and objectives.
We also advise both commercial service and general aviation airports on other key leasing arrangements for concessions, including in-terminal concessions, rental cars, ACDBE issues and other concessions arrangements, general aviation users, and, increasingly, non-aeronautical development. See Airport Concessions for more information.