81 FR 36144 - Notice of Policy on Evaluating Disputed Changes of Sponsorship at Federally Obligated Airports

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 81, Issue 108 (June 6, 2016)

This document clarifies the FAA's legal authority and policy for addressing disputed changes of sponsorship at federally obligated, publicly owned airports. This document also explains the requirements for state or local government entities to coordinate with the FAA when contemplating actions that may impact an airport's ownership, sponsorship, governance, or operations.

[Federal Register Volume 81, Number 108 (Monday, June 6, 2016)]
[Rules and Regulations]
[Pages 36144-36145]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13177]



[[Page 36144]]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Chapter I


Notice of Policy on Evaluating Disputed Changes of Sponsorship at 
Federally Obligated Airports

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Notice of policy.

-----------------------------------------------------------------------

SUMMARY: This document clarifies the FAA's legal authority and policy 
for addressing disputed changes of sponsorship at federally obligated, 
publicly owned airports. This document also explains the requirements 
for state or local government entities to coordinate with the FAA when 
contemplating actions that may impact an airport's ownership, 
sponsorship, governance, or operations.

DATES: June 6, 2016.

FOR FURTHER INFORMATION CONTACT: Kevin C. Willis, Manager, Airport 
Compliance Division, ACO-100, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591, telephone (202) 267-
3085; facsimile: (202) 267-4629.

SUPPLEMENTARY INFORMATION:

I. Introduction

    This document clarifies the FAA's legal authority and policy for 
monitoring and approving requests to change the sponsorship of, and/or 
operational responsibility for, an airport from one public agency to 
another public agency when there is a dispute surrounding the proposed 
change.\1\ This document also describes the requirements for 
coordination between the FAA and state or local governments 
contemplating actions that may impact an airport's ownership, 
sponsorship, governance, or operations, to ensure that such actions are 
consistent with Federal requirements. Where the current sponsor/
operator and the proposed new sponsor/operator agree to a change of 
sponsorship and/or operational control, Section IV of this document 
does not apply.
---------------------------------------------------------------------------

    \1\ The policy does not apply to a change of sponsorship or 
ownership of a privately-owned airport, transfers under the Airport 
Privatization Pilot Program, or changes when the Federal Government 
exercises its right of reverter.
---------------------------------------------------------------------------

II. FAA Legal Authority and Responsibility

    While state or local legislative action, or a judicial action, as 
the case may be, may seek to change an airport's ownership, 
sponsorship, governance, or operations, only the FAA has the authority 
to determine sponsor eligibility, approve and formally change airport 
sponsorship, and approve and issue a new Airport Operating Certificate 
pursuant to 14 CFR part 139. The FAA has a statutory obligation to 
ensure that an airport sponsor/operator is capable of assuming all 
grant assurances, safety compliance, and other Federal obligations, and 
has the expertise to operate the airport. Specifically, an airport 
sponsor/operator must meet the requirements set out in title 49 U.S.C. 
44706, as implemented by 14 CFR part 139, for obtaining an Airport 
Operating Certificate, (if applicable) or in 49 U.S.C. 47102, as 
implemented by FAA Order 5100.38D (which includes provisions governing 
sponsor eligibility for Airport Improvement Program (AIP) funding) and/
or 14 CFR part 158 (which governs the Passenger Facility Charge (PFC) 
program pursuant to 49 U.S.C. 40117).
    The FAA's obligation extends to reviewing sponsor/operator 
eligibility when state and local governments propose a change in the 
airport governance structure to ensure that there is no ambiguity 
regarding responsibility for Federal obligations and that any proposed 
changes will not impact compliance with Federal law. (In the event of a 
local or state dispute regarding sponsorship/operation of the airport, 
the FAA will apply the policy set out in Section IV below.) If any 
proposed changes give rise to such concerns by the FAA, the agency will 
work with state and/or local government(s) to resolve the concerns or, 
if the concerns cannot be addressed, deny the request.
    Airport sponsors and operators are required to maintain compliance 
with Federal requirements at all times, and this document does not 
preclude the FAA from taking enforcement action if a sponsor or 
operator fails to fulfill its obligations, even if the FAA has approved 
the transfer.

III. Coordination of Potential Actions To Change Sponsorship/Operations

    Any state or local legislative body or public agency considering 
whether to take an action, such as drafting legislation, that would 
impact airport ownership, sponsorship, governance, or operations should 
(1) consult with and obtain the consent of the current sponsor/operator 
(absent extraordinary circumstances, such as substantial evidence of 
mismanagement on the part of the current sponsor/operator); \2\ and (2) 
request technical assistance from the FAA about the interrelationship 
between Federal and state or local requirements, and seek the FAA's 
review and comment as early in the deliberative process as is 
practicable. A failure to consult may cause FAA to deny a proposed 
change to airport sponsorship and/or operating authority. In all cases, 
final decisions regarding the proposed change will be made by FAA's 
Office of Airport Compliance and Management Analysis.
---------------------------------------------------------------------------

    \2\ Consent from the current sponsor/operator before a change of 
sponsorship or operational authority is a critical factor for the 
FAA in determining whether safety, efficiency, and compliance with 
grant assurances as required by Federal law will be fully satisfied 
prior to, during, and after any transition period between sponsors/
operators. Even when consent is obtained, the FAA independently will 
determine whether the proposed sponsor/operator is able to satisfy 
Federal requirements for airport sponsorship or operation.
---------------------------------------------------------------------------

    In seeking technical assistance, representatives of the existing 
and/or proposed sponsors and operators must contact the appropriate 
Regional Office or Airport District Office (ADO) as early in the 
process as practicable. The Regional Office or ADO will inquire as to 
whether the proposed change is disputed, and the FAA will not act upon 
the proposed change until the dispute is resolved in accordance with 
Section IV below. In the absence of a dispute or upon final resolution 
of a dispute, the Regional Office or ADO will work with prospective 
airport sponsors and operators to ensure understanding of and 
compliance with the legal obligations associated with being an airport 
sponsor or operator (including those under part 139 as well as the AIP 
grant assurances and the PFC program requirements).
    As soon as Regional Offices and ADOs become aware of a proposed 
change in ownership, sponsorship, governance, or operations, they must 
alert the FAA Office of Airport Compliance and Management Analysis, 
which will advise the Office of Airport Safety and Standards and Office 
of Airport Planning and Programming. The Office of Airport Compliance 
and Management Analysis is responsible for approving all changes to an 
airport's ownership, sponsorship, governance, or operations. The Office 
of Airport Safety and Standards is responsible for administering 14 CFR 
part 139. The Regional Airport Safety and Standards Offices are 
responsible for approving changes to the part 139 Airport Certification 
Program Handbook. The Office of Airport Planning and Programming also 
plays a role in determining sponsor eligibility, and

[[Page 36145]]

administers the AIP and PFC programs, as well as several associated 
programs and requirements.

IV. FAA Policy on Disputed Changes to Airport Sponsorship or Operations

    The determination of whether to seek a new applicant for airport 
sponsorship is a state or local decision. The FAA expects that all 
disputes about whether to change airport sponsorship and/or operating 
authority will be resolved through a legally-binding agreement between 
the parties involved in the dispute or a final, non-reviewable legal 
decision. While parties should seek technical assistance from the FAA 
as early as practicable, parties are encouraged to wait until a dispute 
has been resolved before submitting an application to the FAA seeking 
the agency's approval of a change in sponsorship of, and/or operational 
responsibility for, an airport. In matters in which a proposed change 
is contested by a current sponsor or operator, the FAA will not act on 
a part 139 application or a change of airport sponsorship and/or 
operating authority until the dispute is definitively resolved to the 
satisfaction of the FAA. Resolution may be demonstrated by issuance of 
a final, non-reviewable judicial decision requiring such a change, by 
the issuance of a consent letter between the existing airport sponsor 
and/or operator and the proposed new sponsor and/or operator, or by 
other legally definitive means deemed acceptable to the FAA.
    The FAA will accept an application for a change in airport 
sponsorship/operation only upon a legally definitive resolution of a 
dispute. At that time, the FAA will evaluate whether an application is 
complete and whether the proposed airport sponsor/operator is capable 
of assuming all grant assurances, safety compliance, and other Federal 
obligations, and has the expertise to operate the airport as required 
by law.

V. Reimbursement of Airport Investments

    In circumstances in which a change in sponsorship or operation of 
an airport is approved and effectuated, the new airport sponsor and/or 
operator should reimburse the prior sponsor for investments that have 
been made by the prior sponsor of the airport but have not been fully 
recouped at the time of the change in airport sponsorship. Any such 
reimbursements must be consistent with the FAA's Policy and Procedures 
Concerning the Use of Airport Revenue, 64 FR 7696 (Feb. 16, 1999).

    Issued in Washington, DC, on May 25, 2016.
Eduardo A. Angeles,
Associate Administrator for Airports.
[FR Doc. 2016-13177 Filed 6-1-16; 11:15 am]
 BILLING CODE 4910-13-P