Legal Aspects of Airport Programs. Topic 1-02. Theory and Law of Airport Revenue Diversion

Airports receiving Federal Assistance must restrict their use of airport revenue for strictly prescribed airport purposes (see generally the Airport and Airway Improvement Act, 49 USC §§41707(b), 47133). When airport revenue of a federally assisted airport is used for other than airport capital costs and operations, with few exceptions, it is generally considered an unlawful airport revenue diversion. Limited information on this subject can be found in DOT Inspector General Reports and Congressional Hearings held prior to Congressional enactment of stricter provisions governing airport revenue diversion. See the Federal Aviation Administrations Authorization Act of 1994 (Public Law 103-105 (August 23, 1994)), and the Airport Revenue Protection Act of 1996, Title VIII of the Federal Aviation Administration Reauthorization Act of 1996 (Public Law 104-264 110 Stat.). The Federal Aviation Administration (FAA) issued a policy statement on this issue, which went into effect February 16, 1999 (Fed. Reg. 7695 (Feb. 16, 1999). According to the policy, any airport that receives Federal Assistant must sign assurances, as part of the Grant Agreement, that the revenue generated by the operator will be used only for purposes related to the airport. The assurance also prohibits the diversion of airport revenue to non airport use. Many provisions in the policy codified policies and practices already in existence at the Federal Aviation Administration (FAA). The policy statement tends to offer general guidance, with only limited discussion of the application of the airport revenue-use restriction to specific situations.


  • English


  • Status: Completed
  • Funding: $35000.00
  • Contract Numbers:

    Project 11-01, Topic

  • Sponsor Organizations:

    Federal Transit Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590

    Airport Cooperative Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC    20001
  • Project Managers:

    McDaniel, James

  • Performing Organizations:

    McGill University

    815 Sherbrooke Street West
    , Quebec    H3a 2K6
  • Principal Investigators:

    Dempsey, Paul

  • Start Date: 20070118
  • Expected Completion Date: 0
  • Actual Completion Date: 20071118
  • Source Data: RiP Project 18098

Subject/Index Terms

Filing Info

  • Accession Number: 01462596
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 11-01, Topic
  • Files: TRB, RiP, USDOT
  • Created Date: Jan 3 2013 2:06PM