Airport Business - 30

AIRPORT GURU
AUTHOR Curt Castagna

Clearing the Air About Exclusive
Rights at Airports
ACCORDING TO Federal Grant Assurance 23, the owner or
operator of any airport that has been developed or improved
with federal grant assistance is required to operate the airport
for the use and benefit of the public. This includes making it
available for all types, kinds and classes of aeronautical activity,
as well as ensuring that any person or entity is not granted the
exclusive right to conduct aeronautical activities at the airport.
The Federal Aviation Administration
(FAA) defines an exclusive right as a
power, privilege or right excluding
or debarring another from exercising
a like power, privilege or right. An
exclusive right can be conferred either
by express agreement, by the imposition
of unreasonable standards or requirements,
or by any other means. This applies to
a wide range of aeronautical activities
including charter f lights, pilot training,
aircraft rental and sightseeing, aerial
photography, aircraft sales and services,
and sale of aviation petroleum products.

The intent of the prohibition on
exclusive rights, per FAA Advisory
Circular AC 150/5190-5, is to promote
fair competition at federally-obligated,
public use airports for the benefit of
aeronautical users. The existence of an
exclusive right at an airport is considered
to limit the usefulness of the airport and
deprive the public of the benefits that flow
from competition.
However, an exception to this general
rule is that an airport sponsor may elect to

ABOUT THE AUTHOR
CURT CASTAGNA

Curt Castagna, president and CEO of
Aeroplex/Aerolease Group, is a member
of the Los Angeles County Airport
Commission, president of the Van Nuys
and Long Beach Airport Associations,
and a board member of the National Air
Transportation Association. A certified
private and instrument-rated pilot,
he has instructed courses in aviation
administration at Cal State Los Angeles
for over two decades.

30 \ AIRPORTBUSINESS / OCTOBER 2020

provide any or all aeronautical services to
the public. While most airport sponsors
recognize that aeronautical services are
best provided by profit-driven private
enterprises, there are situations where
the public or private owner of an airport
opts to perform the aeronautical activity
itself in order to become financially
self-sustaining.
This raises a central question. Can an
airport sponsor grant itself the exclusive
right to operate a single fixed-based
operator (FBO) in a manner that benefits
the public, guarantees a level playing field
and is economically viable?
Grant Assurance 23 provides clear
guidance for airports having a privatelyoperated, single aeronautical service
provider. The providing of services by



Airport Business

Table of Contents for the Digital Edition of Airport Business

Inside the Fence: A Cold November Rain
Industry Update
Airport 5G Moves form Concept to Reality
Making Strides on Diversity and Inclusion in Aviation
How the Industry is Working to Combat COVID-19
Paving the Airfield
Airport Guru: Clearing the Air About Exclusive Rights at Airports
Legal Matters: Leasing Pitfalls in and Around Airports
The Right Stuff
Layer Surveillance Radar Technology into Physical Security Solutions for Real-Time Detection of Threats at Airport Sites
Product Profile: Go Quiet, Go Smooth, Go Big with Schweiss Hydraulic Doors
Airport Business - 1
Airport Business - 2
Airport Business - 3
Airport Business - 4
Airport Business - 5
Airport Business - Inside the Fence: A Cold November Rain
Airport Business - 7
Airport Business - Industry Update
Airport Business - 9
Airport Business - 10
Airport Business - 11
Airport Business - 12
Airport Business - 13
Airport Business - Airport 5G Moves form Concept to Reality
Airport Business - 15
Airport Business - 16
Airport Business - 17
Airport Business - Making Strides on Diversity and Inclusion in Aviation
Airport Business - 19
Airport Business - How the Industry is Working to Combat COVID-19
Airport Business - 21
Airport Business - 22
Airport Business - 23
Airport Business - Paving the Airfield
Airport Business - 25
Airport Business - 26
Airport Business - 27
Airport Business - 28
Airport Business - 29
Airport Business - Airport Guru: Clearing the Air About Exclusive Rights at Airports
Airport Business - 31
Airport Business - Legal Matters: Leasing Pitfalls in and Around Airports
Airport Business - 33
Airport Business - The Right Stuff
Airport Business - 35
Airport Business - Layer Surveillance Radar Technology into Physical Security Solutions for Real-Time Detection of Threats at Airport Sites
Airport Business - 37
Airport Business - Product Profile: Go Quiet, Go Smooth, Go Big with Schweiss Hydraulic Doors
Airport Business - 39
Airport Business - 40
Airport Business - 41
Airport Business - 42
Airport Business - 43
Airport Business - 44
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