Airport Revenue

Airports generally have two types of contracts with their tenants. The first type is the residual contract where the carriers guarantee that the airport will remain solvent. Under this contract, the carriers absorb the majority of the risk. The airport maintains the right to increase rents and landing fees to cover operating expenses and debt coverage. The second type of contract is the compensatory contract where the airport is at risk. DIA has a residual contract with its carriers.

Airports generate revenue from several sources. The most common breakdown includes landing fees and rent from the following entities: airline carriers, passenger facilities rental car agencies, concessionary stores, food and beverage services, retail shops, and parking garages. Retail shops and other concessionary stores also pay a percent of sales.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook


Post a comment