Airport Privatization Pilot Program

[Federal Register Volume 64, Number 67 (Thursday, April 8, 1999)]
[Notices]
[Pages 17208-17210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8752]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration
[Docket No. 29088]


Airport Privatization Pilot Program

AGENCY: Federal Aviation Administration (FAA), DOT.


[[Page 17209]]


ACTION: Notice of Receipt of Final Application of Stewart International 
Airport, Newburgh, New York; Request for Comments.

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SUMMARY: The Federal Aviation Administration (FAA) is seeking 
information and comments from interested parties on the final 
application by the State of New York for participation of Stewart 
International Airport (SWF) in the airport privatization pilot program. 
The final application is accepted for review.
    49 U.S.C. Section 47134 establishes an airport privatization pilot 
program and authorizes the Department of Transportation to grant 
exemptions from certain Federal statutory and regulatory requirements 
for up to five airport privatization projects. The application 
procedures require the FAA to publish a notice of receipt of the final 
application in the Federal Register and accept public comment on the 
final application for a period of 60 days.

DATES: Comments must be received by June 7, 1999. Comments that are 
received after that date will be considered only to the extent 
possible.

ADDRESSES: The SWF final application is available for public review in 
the Federal Aviation Administration, Office of Chief Counsel, 
Attention: Rules Docket (AGC-200), Docket No. 29088, 800 Independence 
Avenue, SW., Washington, DC 20591. The New York State Department of 
Transportation (NYSDOT), the airport sponsor, has also made a copy of 
the application available at the following locations:

Town Clerk's Office, Town of New Windsor, Town Hall, 555 Union Avenue, 
New Windsor, NY 12553.
Town Clerk's Office, Town of Newburgh, Town Hall, 20-26 Union Avenue, 
Newburgh, NY 12550.
Newburgh Free Library, 124 Grand Street, City of Newburgh, Newburgh, NY 
12550.
Orange County Planning Department, 124 Main Street, Goshen, NY 10924.
Airport Director's Office, Airport Administration Building, 1035 First 
Street, Stewart International Airport, New Windsor, NY 12553.

    Comments on the SWF final application must be delivered or mailed, 
in quadruplicate, to: the Federal Aviation Administration, Office of 
Chief Counsel, Attention: Rules Docket (AGC-200), Docket No. 29088, 800 
Independence Avenue, SW., Washington, DC 20591. All comments must be 
marked ``Docket No. 29088''. Commenters wishing the FAA to acknowledge 
receipt of their comments must include a preaddressed, stamped postcard 
on which the following statement is made: ``Comments to Docket No. 
29088.'' The postcard will be date stamped and mailed to the commenter. 
Comments on this Notice may be delivered or examined in room 915G on 
weekdays, except Federal holidays, between 8:30 a.m. and 5:00 p.m.

FOR FURTHER INFORMATION CONTACT: Kevin C. Willis, Compliance Specialist 
(AAS-400), (202-267-8741) Airport Compliance Division, Office of 
Airport Safety and Standards, Federal Aviation Administration, 800 
Independence Ave. SW., Washington, DC 20591.

SUPPLEMENTARY INFORMATION: Section 149 of the Federal Aviation 
Administration Authorization Act of 1996, Pub. L. 104-264 (October 9, 
1996) (1996 Reauthorization Act), added a new Sec. 47134 to Title 49 of 
the U.S. Code. Section 47134 authorizes the Secretary of 
Transportation, and through delegation, the FAA Administrator, to 
exempt a sponsor of a public use airport that has received Federal 
assistance from certain Federal requirements in connection with the 
privatization of the airport by sale or lease to a private party. 
Specifically, the Administrator may exempt the sponsor from all or part 
of the requirements to use airport revenues for airport-related 
purposes (upon approval of 65 percent of the air carriers serving the 
airport and having 65 percent of the landed weight), to pay back a 
portion of Federal grants upon the sale of an airport, and to return 
airport property deeded by the Federal Government upon transfer of the 
airport. The Administrator is also authorized to exempt the private 
purchaser or lessee from the requirement to use all airport revenues 
for airport-related purposes, to the extent necessary to permit the 
purchaser or lessee to earn compensation from the operations of the 
airport (No air carrier approval is necessary for the latter 
exemption.)
    On September 16, 1997, the FAA issued a notice of procedures to be 
used in applications for exemption under Airport Privatization Pilot 
Program (62 FR 48693). The notice of procedures and its public comments 
are available for review in FAA Rules Docket No. 28895. A request for 
participation in the Pilot program may be initiated by the filing of 
either a preliminary or final application for exemption with the FAA.
    On December 16, 1997, the FAA issued a notice accepting for review, 
the Stewart International Airport preliminary application (62 FR 
65845). This action permitted NYSDOT to select a private operator, 
negotiate an agreement and submit a final application to the FAA for 
exemption. The filing date of the NYSDOT preliminary application is 
October 23, 1997, the date the FAA received the preliminary 
application. On January 10, 1999, New York State Department of 
Transportation filed a final application.
    The proceeds from the sale of lease of airport property are 
considered airport revenue and must be used in accordance with the 
requirements of 49 U.S.C. 47107(b) and 47133. In its final application, 
the State of New York has elected not to request an exemption under 49 
U.S.C. 47134(b)(1) from 49 U.S.C. 47107(b) and 47133, on the basis that 
the State will use the proceeds from the lease of Stewart International 
Airport for purposes that are permitted under 47107(b) and 47133. In 
the application, the State of New York indicates that the initial lease 
payment will total $35 million. The State proposes to use $24.4 million 
of that amount to repay the State for funds contributed for the capital 
and operating costs of Stewart International Airport and Republic 
Airport during the past six years, in accordance with 49 U.S.C. 
47107(I)(5). With regard to the use of the $10.5 million balance of the 
initial payment, the State of New York has included information in the 
application describing how this amount will be used for airport 
purposes in accordance with the statutory requirements and grant 
assurances concerning use of airport revenue. The FAA will conduct an 
appropriate review of the proposed uses of airport revenue separate and 
apart from its review of the State's application under the pilot 
program. The approval or disapproval of the pending Sec. 47134 
application is not conditioned upon the FAA's approval or disapproval 
of the State's request for reimbursement under Sec. 47107(I)(5), 
because the funds must be used for a purpose consistent with 
Sec. 47107(b) in any event.
    On February 16, 1999, in an effort to clarify certain parts of the 
application, FAA staff requested responses to five questions from the 
State of New York and 12 questions from the private operator. Ten of 
the questions posed to the private operator required it to utilize 
confidential business or financial information in order to respond. In 
accordance with the airport privatization pilot program application 
procedures, 62 FR 48693, 48706 (September 16, 1997), the private 
operator has requested confidential treatment of this information. As a 
result, the responses to these 10 questions will not be available for 
public comment. Copies of the 17

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questions and the seven responses available for public view and comment 
are included in Attachment 15 of the sponsor's application for public 
review.
    The FAA has determined that the application is substantially 
complete. As part of its review of the SWF final application, the FAA 
will consider all comments and information submitted by interested 
parties during the 60-day comment period for this notice.

    Issued in Washington, DC, on April 2, 1999.
David L. Bennett,
Director, Airport Safety and Standards.
[FR Doc. 99-8752 Filed 4-7-99; 8:45 am]
BILLING CODE 4910-13-M