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09/30/2009 5190.6B <br />Page 12-1 <br />Chapter 12. Review of Aeronautical Lease Agreements <br /> <br />12.1. Introduction. This chapter discusses procedures for reviewing lease agreements between <br />the sponsor and aeronautical users. As part of the compliance program, the FAA airports district <br />office (ADO) or regional airports division may review such agreements, advising sponsors of <br />their federal obligations, and ensuring that the terms of the lease do not violate a sponsor’s <br />federal obligations. <br /> <br />12.2. Background. The operation of a federally obligated airport involves complex <br />relationships between the sponsor and its aeronautical tenants. In most instances, the sponsor <br />will turn to private enterprise to provide the aeronautical services that make the airport attractive <br />and self-sustaining. <br /> <br />a. Rights Granted by Contract. Airport lease agreements usually reflect a grant of three basic <br />rights or privileges: <br /> <br />(1). The right for the licensee or tenant to use the airfield and public airport facilities in common <br />with others so authorized. <br /> <br />(2). The right to occupy as a tenant and to use certain designated premises exclusively. <br /> <br />(3). The commercial privilege to offer goods and services to airport users. <br /> <br />b. Consideration for Rights Granted. The basic federal obligation of the sponsor is to make <br />public landing and aircraft parking areas available to the public. However, the sponsor may <br />impose a fee to recover the costs of providing these facilities. (Refer to chapter 18 of this Order, <br />Airport Rates and Charges, for a further discussion on rates and charges.) Frequently, the <br />sponsor recovers its airfield costs indirectly from rents or fuel flowage fees that it charges its <br />commercial tenants. The sponsor’s substantial capital investment and operating expense <br />necessitates assessing airport fees to recover these costs. <br /> <br />c. Operator/Manager Agreements. Sometimes a sponsor may, for various reasons, rely on <br />commercial tenants to carry out certain sponsor federal obligations. For instance, a sponsor may <br />(i) contract with a commercial tenant to perform all or part of its airfield maintenance, or (ii) <br />delegate to the tenant responsibility for collecting landing fees, publishing notices to airmen, or <br />(iii) contract for airport management. When this occurs, the FAA highly recommends that the <br />sponsor and tenant enter into separate agreements: one agreement for the right to operate an <br />aeronautical business on the airport, and a separate management agreement if the tenant provides <br />management services on behalf of the sponsor.