Airport Business - June-July 2020 - 15

AIRPORT GURU

General aviation
companies operate at nearly
3,500 U.S. airports and thousands
of areas not served by the airlines.
AEROPLEX/AEROLEASE GROUP

Federal Aviation Administration
aeronautical businesses must work
(FAA) - whose primary concern
collaboratively and creatively to rise
is that federally obligated airports
above the old normal and create
remain safe and open - the decision
uniform rapid relief programs. They
to abate rent (including minimum
must also be careful to avoid changes
annual guarantees and encompassing
in non-aeronautical rents and fees
fees) is a local responsibility. Thus, that would shift the burden of
recovering lost revenue to commercial
airport sponsors have the authority
to either waive or defer commercial
aeronautical users.
aeronautical rents without violating
To that end, NATA has created
federal grant assurances.
a white paper that airport sponsors
This supports the strong case made
and their tenants can use as a guide
by aviation industry associations such
for conversations on f inancial
as NATA that airport sponsors must
accommodations that are aligned
take critical and swift action to address
with current federal regulations. Titled
leasehold issues faced by general "Recommended Practices for Airport
Sponsors and Commercial Aviation
aviation businesses in the wake of
Businesses in Addressing Leasehold
COVID-19, including some form of
rent relief for tenants. It is also vitally
Issues in Response to COVID-19,"
important for airport sponsors who
this document suggests that uniform
own or operate multiple airports to
and equitable financial assistance for
understand their authority to use funds
similarly situated tenants is critical,
allocated by the CARES Act at any
in particular for aeronautical service
airport under their control.
providers and master leaseholders
Overall, the majority of airport
whose subtenants may be petitioning
them for relief.
sponsors are public agencies tasked
with sustaining airport operations and
In addition, the FAA document
revenue streams to preserve jobs and
titled "Information for Airport Sponsors
services that benefit the community. Considering COVID-19 Restrictions
Both airport sponsors and commercial
or Accommodations" specifically states

that sponsors considering such relief are
encouraged to consider 1) the business
situation of the tenant, 2) the changed
circumstances created by the public
health emergency, 3) the desirability
of having solvent tenants that can
resume normal operations when the
emergency ends, 4) the availability
of other governmental or insurance
relief that such entities have or may
receive, 5) an appropriate term for
such relief and 6) possible subsequent
conditions that, if triggered, would end
the abatement. Such a condition could
be the receipt of other governmental
forms of relief, insurance recovery or
an end to the emergency.
Finally, airport sponsors might
find more creative, out-of-the-box
solutions by taking a deeper look at
the commercial real estate industry.
For example, an airport sponsor
may offer a commercial aeronautical
business a longer-term lease to ensure
its revenue stream and offset negative
economic impacts over an additional
few years. This option avoids the zero
cash flow caused by a tenant going out
of business, protects the current land
valuation and eliminates reduced land
rents caused by a drastic depreciation
of the business economy.
Today, NATA continues to work on
legislation that would provide support
to airports and aviation workers, as
well as preserve our nation's critical
infrastructure during a time of crisis. It
is seeking
$9 billion to support the payroll of
general aviation sponsors and certain
aviation tenant businesses. Recipients
would be prohibited from receiving
assistance under the CARES Act
and would be required to maintain
employment and payroll levels through
the end of the calendar year.
The general aviation airports that
support our national aviation system are
self-sustaining entities that rely on user
fees and rental income from their tenants
to remain healthy. Airport sponsors
must make every effort to provide
commercial aeronautical businesses
the payroll and lease obligation relief
necessary to move forward with our
nation's economic recovery efforts and
protect critical infrastructure. 

JUNE|JULY 2020 \ AVIATIONPROS.COM / 15


http://www.AVIATIONPROS.COM

Airport Business - June-July 2020

Table of Contents for the Digital Edition of Airport Business - June-July 2020

Inside the Fence
Industry Update
Keep Your Troubles Outside the Fence
Airport Guru
Less Water, Less Contaminants, Less Problems
Put Out Fires
Projects of the Year
Product Focus
Fueling Directory
Airport Business - June-July 2020 - 1
Airport Business - June-July 2020 - 2
Airport Business - June-July 2020 - 3
Airport Business - June-July 2020 - 4
Airport Business - June-July 2020 - 5
Airport Business - June-July 2020 - Inside the Fence
Airport Business - June-July 2020 - 7
Airport Business - June-July 2020 - Industry Update
Airport Business - June-July 2020 - 9
Airport Business - June-July 2020 - 10
Airport Business - June-July 2020 - 11
Airport Business - June-July 2020 - Keep Your Troubles Outside the Fence
Airport Business - June-July 2020 - 13
Airport Business - June-July 2020 - Airport Guru
Airport Business - June-July 2020 - 15
Airport Business - June-July 2020 - Less Water, Less Contaminants, Less Problems
Airport Business - June-July 2020 - 17
Airport Business - June-July 2020 - Put Out Fires
Airport Business - June-July 2020 - 19
Airport Business - June-July 2020 - 20
Airport Business - June-July 2020 - 21
Airport Business - June-July 2020 - 22
Airport Business - June-July 2020 - 23
Airport Business - June-July 2020 - Projects of the Year
Airport Business - June-July 2020 - 25
Airport Business - June-July 2020 - 26
Airport Business - June-July 2020 - 27
Airport Business - June-July 2020 - 28
Airport Business - June-July 2020 - 29
Airport Business - June-July 2020 - 30
Airport Business - June-July 2020 - 31
Airport Business - June-July 2020 - 32
Airport Business - June-July 2020 - 33
Airport Business - June-July 2020 - Product Focus
Airport Business - June-July 2020 - 35
Airport Business - June-July 2020 - Fueling Directory
Airport Business - June-July 2020 - 37
Airport Business - June-July 2020 - 38
Airport Business - June-July 2020 - 39
Airport Business - June-July 2020 - 40
Airport Business - June-July 2020 - 41
Airport Business - June-July 2020 - 42
Airport Business - June-July 2020 - 43
Airport Business - June-July 2020 - 44
Airport Business - June-July 2020 - 45
Airport Business - June-July 2020 - 46
Airport Business - June-July 2020 - 47
Airport Business - June-July 2020 - 48
Airport Business - June-July 2020 - 49
Airport Business - June-July 2020 - 50
Airport Business - June-July 2020 - 51
Airport Business - June-July 2020 - 52
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