Grant Assurance 24, Fee and Rental Structure: What must the airport do?

• A. Keep rates unchanged for the life of the concession
• B. Set rates and charges so the airport is self-sustaining
• C. Charge only for non-aeronautical services
• D. Exclude debt service from operating costs

Answer: (B)

Grant Assurance 24 focuses on making sure the airport’s fee and rental structure is built to be financially self-sustaining. This means setting rates and charges at levels that allow the airport to cover its costs, including ongoing operating expenses and debt service, from user fees rather than relying on grants or external subsidies. The rates should reflect the cost of providing both aeronautical and related non-aeronautical services and be fair and consistent across users, with adjustments over time as costs or conditions change to maintain solvency and long-term viability.

Why this answer fits best: it directly ties the fee and rental structure to the airport’s ability to fund operations and debt service from user charges, ensuring ongoing self-sufficiency rather than dependence on outside funding.

Why the other ideas don’t fit: fixing rates for the life of a concession ignores changing costs and market conditions; charging only for non-aeronautical services would neglect a major revenue source that supports self-sufficiency; and excluding debt service from operating costs would understate the true cost of providing facilities and hinder sustainable funding.