The Federal government has played very key roles in the funding of Airports. It has done this in two different ways. First, through the Airport Improvement Program (AIP) as well as discretionary grants which are funded by international departures, freight, aircraft fuel, as well as waybills. Secondly, the funding is done through the exemption of the airports from payment of federal tax upon interest income for individuals holding airport bonds.
Similarly, funds are usually generated by the Passenger Facility Charge program (PFC). This is usually under the administration of FAA. The local funds generated by this program ensure that there are improvements in the airports (Federal Aviation Administration, 2010).
Despite the fact that the capital investment of most of the airports are presently funded by cash reserves by the airports, commercial loans, debt capital which are raised through municipal bonds, as well as grants from Federal and state governments, sale of bonds which are exempted from tax as well as Federal grants which are provided through AIP program are the major financers of the main capital projects within the airports (Federal Aviation Administration, 2010).
Airport Improvement Program (AIP)
Airport Improvement Program (AIP) ensures that grants are provided to the public airports. In a number of instances, the grant covers private entities. The funding is majorly to ensure that there are significant developments of the airports that are used by the public.
Since the year 1980, a number of airports have attained significant developments. The capital developments were made possible through funding boosts made by the Federal government. This is through grants. The grants are usually given through the Airport Im...
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...by propeller aircrafts that are powered by piston (Avgas). They also levy a tax of 21.8 cent for every gallon used on the jet fuel. The tax directly goes to the Airway Trust Fund, and the Airport with a tenth of a cent being submitted to programs aimed at environmental protection as well as cleanup programs (Wells, 1992).
Works Cited
Federal Aviation Administration. (2011). Airport Improvement Program (AIP) ;Funding for
Airport Planning and Development. http://www.faa.gov/airports/aip/. Assessed
September 1, 2011
Federal Aviation Administration. (2010). what is AIP?
http://www.faa.gov/airports/aip/overview/. Assessed September 1, 2011
Horonjeff, R. and McKelvey, F. (1983). Planning & Design of Airports. New York: McGraw-
Hill Book Company.
Wells, A.T. (1992). Airport Planning & Management. Blue Ridge Summit, Pa.: Tab Books.
The difference between the airport when it was first built is not drastic, but many things have upgraded. Fly.mcw.com said when the
The issue that is being discussed in whether or not the government should help Air Canada out financially. As can be seen in the articles presented in the scrapbook, it is known that the government controls many of the operations at Air Canada.
...ing scarce. Oil, from which jet fuel is derived, is becoming so valuable because of its so many usages, yet the supply is getting lower everyday and not being replenished. This situation must drive us to the wise use of the oil that is still available and develop technology that can derive the maximum amount of energy from the minimal amount oil used. General Electric has been able to not only reduce the amount of fuel consumption but increase the amount of thrust at the same time. It is encouraging to see the new technology that GE is developing to reduce fuel consumption and contamination produced by their jet engines.
Airborne should strengthen and continually improve its services domestically, since it gives larger revenues, then strengthen its alliances internationally, so as to serve the demands of the international market. To add on its profitability, Airborne should lease out a portion of the airport facilities to other airlines, so that it could have other source of income to compensate the maintenance costs of the airport.
Airport planning, once carried out utilizing a single future forecast, failed to account for the complexity and uncertainty of the aviation industry. Today, it is widely assumed airport success can only be met through the utilization of a flexible, integrated planning approach that sees forecasts as incorrect.
Keen, M. and J. Strand (2007). "Indirect Taxes on International Aviation*." Fiscal Studies 28(1): 1-41.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Introduction Aviation has a huge environmental impact on the environment and society, the aircraft engines release a noise that affects human life and the particulates and gases that are released from the aircraft engines contribute to climate change and increases the global warming. Despite the emission reductions from cars and more fuel-efficient and less polluting turbofan and turboprop engines, the rapid growth of air transportation in the recent years contributes to an increase in total pollution attributable to aviation. In the European Union, greenhouse gas emissions from aviation increased by 87% between 1990 and 2006. Like any other form of public mass transportation that relies on resources that are extracted from the planet, for e.g. Oil, and the airline cannot be considered sustainable in the long-term. Because of the limited resources in which the Aviation relies, it is more realistic to think about how to improve the sustainability of the air transportation rather than achieving a sustainable development.
Capital investment projects are extremely complex endeavors, understood traditionally as financial resources invested in an organization for the general purpose of cashing in the profits generated by the respective investment. Two particular features which need to be mentioned relative to capital investments is that these can occur within the entity making the investment, or within a different entity, and also that the capitals are generically destined to cover the purchase of fixes assets (equipments, land and so on), rather than use them to cover everyday expenses (Ward).
Airports can be considered as important national resources of most countries in the world. The main responsibility of an airport is in transportation of people and goods and in internal and global business. They are where the nation’s aviation system connects with other modes of transportation and where state responsibility for managing and regulating air traffic operations intersects with the role of governments that own and operate most airports. However, most major airports are owned and operated by the private sectors. This is due to several reasons such as to improve efficiency and economic performance, be more competitive as well as to maximize the community’s return from the airport assets in which public enterprise found out to be less efficient in term of its production and management.
Funding could also come in the form of increasing money supply in the country. Increasing money supply could be through printing money, seignorage or quantitative easing.
As Sassen (40) defined, networks and circus are elementary of global cities, having a well–connected airport is thus critical for linkage of a city with the world as it allows intensive flows of information, people and products. Hong Kong has developed itself into an international aviation hub the holds leading position in both passenger and cargo terms. According to the Airports Council International (), HKIA ranked as number 10 and 1 as the world’s busiest airport by passenger and cargo traffic respectively. We should, of course, be proud of having such an outstanding airport as foundation of our economic success. However, other Asian cities have caught up in challenging Hong Kong’s leadership for their increasing passengers and cargo flows and expansion plan to increase capacity. To what extent the third runway, as suggested by the Airport Authority Hong Kong (AAHK), can help Hong Kong withstand such a fierce competition?
Many projects may only be accomplished with funds coming from a combination of sources, among them federal, state, or local programs and grants from private
Airports are vast facilities covering many acres of land where passenger beginning the flight portions of their travels. The first flight by the Wright brothers in Kitty Hawk, NC in 1903 only required a runway. As the technology of flight advanced to offer passenger service, there was soon a need for a building to manage passenger needs. Airports of today provide many key services needed for the traveler whether they are beginning, transferring, or ending their journeys. The demand for air transportation rises each year, according to the Department of Transportation (United States Department of Transportation, 2013) 815.3 passengers traveled by airplanes in 2012. With the demand expected to rise, airports must be able to keep pace with services. There are many different services provided however, this report will discuss terminal design, baggage handling, and ground access.
Government spending is all the consumption, investment, and transfer payments that our government has funded over a certain period of time. (Merriam-Webster) The United States government spends more money total than any other nation. They spend it in areas such as the military, environmental preservation, natural disaster relief, education and transportation. The US government spends all this money into trying to make a difference. (@Natpriorities)