How do aeronautical and non-aeronautical rates differ, and what are the exceptions?

• A. Aeronautical: FMV; Non-aeronautical: cost-based; Exceptions: Community Purposes and Not-for-Profits
• B. Aeronautical Areas: at least a level to cover the cost; Non-aeronautical Areas: FMV; Exceptions: Community Purposes, Not-for-Profits, Transit, Private transit, Military
• C. Aeronautical: cost-plus; Non-aeronautical: FMV; Exceptions: None
• D. Aeronautical: FMV; Non-aeronautical: cost-based; Exceptions: Military

Answer: (B)

The main idea is how airports price different uses of their property. Aeronautical charges apply to things tied directly to aircraft operations (like gates, hangars, and runways) and are set to recover the costs of providing those facilities and services. In other words, they’re cost-based, at a minimum, to cover the airport’s operating costs. Non-aeronautical charges apply to uses not directly connected to aircraft movements (such as retail, parking, and land leases for concessions) and are typically based on fair market value to reflect the actual market rent for that space.

Exceptions are important because certain users or activities aren’t treated under the usual pricing rules. Community purposes and not-for-profits often receive special considerations, and transit or private transit operations and military uses may be exempt or subject to different terms. This combination—cost-based aeronautical charges, FMV non-aeronautical charges, with these specific exceptions—matches how airports commonly structure pricing.