Which is listed as an exception to applying Fair Market Value (FMV) to non-aeronautical rates?

• A. Not-for-Profits
• B. For-Profit Corporations
• C. Public Utilities
• D. Private Equity Firms

Answer: (A)

When setting non-aeronautical charges, using Fair Market Value ensures the price reflects what a typical buyer would pay in the market, keeping rates fair and preventing cross-subsidization from aeronautical operations. Not-for-profit organizations are listed as an exception to applying FMV. Because their primary goal is public service rather than profit, airports may offer rates based on cost recovery, policy considerations, or negotiated terms that support their mission, rather than strict market pricing. This helps groups such as charitable, educational, or community organizations access space or services at favorable terms while still maintaining appropriate oversight. In contrast, for-profit corporations, public utilities, and private equity firms operate as market-focused entities and are generally charged FMV to reflect true market value and ensure commercial neutrality.