Airport Use Agreement

Thus, under a hybrid agreement, airports generally bear their own financial risks in the operation of the terminal, while signatory airlines bear the financial risks associated with the operation of the aerodrome. The objective of this paper is to determine whether these three types of trade agreements have an impact on the operational efficiency of airports. We find that the use of annual data from 2009 to 2016 for 59 U.S. elevated airports is that airports with residual agreements tend to be less operationally efficient. This means that, although signatory airlines pay advantageous airport charges and charges as part of a residual agreement, increased airport inefficiency can undermine all potential benefits of the agreement. An increase in inefficiency can undermine all the potential benefits of the remaining agreements. Airports that accept the rest of the agreement are less efficient than others. Residual, compensatory and hybrid agreements are three common types of U.S. airport operating agreements….

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