CIRCULAR I DEVELOPMENT OF AIRPORT REVENUES FROM NON-AERONAUTICAL SOURCES CONCESSIONS, RENTALS AND FREE-ZONES -red by the Secretariat and published bylauthority of the Secretary General -- I INTERNATIONAL CIVIL AVIATION ORGANIZATION MONTREAL 8 CANADA
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DEVELOPMEIJT OF AIRPORT REVEIIbZS FROM NOIJ-AERONAW2ICAL SOURCES CONCESSIONS, RENTALS AND FPEE-ZONES Terms of reference and objectives of the study 1. The development of airport revenues from non-aeronautical sources , a subject discussed with much interest at the 1956 Airport Charges Conference DOC 77h5, was exxrrlned anev by the 1967 Conference on Charges for Airports and Eoute Air Navigatioti Facilities oc 8675 and le3. to the follorng pronouricement by the ICAC Council in its ensuing Statement to Contracting States DOC 8718-1975 "The Council recognizes the continuing importance to airports of income derived from non-aeronautical sources such as concessions, rental of premises, and "free-zones". The Council recommends that airport authorities should encourage the full development of revenues of this kind, having regard to the need for moderation in charges to the public, the requirements of passengers, and the need for terminal efficiency. All possibilities for developing concession revenue should be studied and ICAO should be kept informed of practices and conclusions in this regard so that the benefit of experience may be made available to all." 2. In approving Recommendation 13 oi the 1967 conference, on which the foregoir.6 statemctnt was based, the Council "directed the Secretariat t3 keep Contracting States a.ld international airp'2t-L organizations advised of such uzeful information as could be obtained concerning the experience of airport authorities in their attempts to develop non-aeronautical sources of revenue." Pursuant to the terms of reference provided by this directive and the preceding Council Statement, a letter was addressed to all ICAO Contracting States inviting the 1/ As use3 in this study, the expression "revenues from non-aeronautical sources", - "non-aeronautical revenues" and such like are meant to embrace any revenues airports receive in consideration for the various commercial arrangements they make in relation to the granting of concessions, the rental of premises and land and the operation of free-zone operations, even though such arrangements may in fact apply to activities which may themselves be considered of an aeronautical character e.g. the concession granted to an oil company to supply aviation fuel and lubricalts, the rental f terminal-building space or premises to airlines and even the provision of non-technical facilities to an aviation concern offering "joy-rides" at an airport. The appellation "non-aeronautical" applied to 311 s7xn revenues i merely intended to distinguish them from what might be termed the airport's revenues from aeronautical operations, these teing here considered es incllding such rev-nues as are derived from lan,iicg, run.ay, lighting, hangar, storage and passenger-service zhares. and other fees -iiiLose inposition is directly ir.curred by the operaticn f aircraft.
i i Foreword submission of relevant information, the suggestion being made that, in their selection of material best suited to the ultimate objective of the enquiry, the guiding consideration might be that it should be of general interest to airport authorities and primarily center on the administrative and financial aspects involved. Copies of the letter were also sent to the Western European Airport Authorities, the International Civil Airport Association, the Airport Operators' Coatxi1 Iaternational and the International Air Transport Association, as organi- zations having particular interest in the matter. Data sources 3. Study of the subject presented herein relied for its principal source of data on the replies received to the aforementioned letter, although use was also made of a variety of other financial and statistical data collected by ICAO and similar information published elsewhere. 4. The material contributed by governments in time to serve as bases for this study, came from the following 30 States Australia, Barbados, Cameroon, Canada, Ceylon, Czechoslovakia, Denmark, Greece, India, Iraq, Ireland, Israel, Japan, Laos, Malta, Mexico, Netherlands, New Zealand, Norway, Portugal, Singapore, South Africa, Sweden, Switzerland, Thailand, Tunisia, United Kingdom, United States, Upper Volta, Uruguay.