Many publicly owned airports are eligible for federal funding for improvements under terms of the Federal Aviation Administration Airport Improvement Program (AIP). Projects such as runway repair or extension, terminal building additions, or navigation aid and lighting upgrades are examples of improvements which may be funded in large part with federal dollars. In fact, most eligible projects are 90 percent financed with federal money.
This money, however, comes with a few strings attached in that airports which accept federal funding agree to certain obligations. Each federal airport grant includes the following five basic conditions:
- The airport must be maintained and kept open for at least twenty years.
- The airport must be open to all types and classes of aeronautical activity. There are, however, provisions for exceptions for safety reasons.
- The airport management must charge “fair, reasonable and not unjustly discriminatory rates.”
- The airport management may not grant exclusive rights.
- Revenues generated by the airport must be used for airport purposes.