Circular 101. Development of Airport Revenues from Non-Aeronautical Sources (Concessions, Rentals and Free-Zones)

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Circular 101

Development of Airport Revenues from Non-Aeronautical Sources (Concessions, Rentals and Free-Zones)

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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

Published in separate English, French and Spanish editions by the International Civil Aviation Organization. All correspondence, except orders and subscriptions, should be addressed to the Secretary General of ICAO, International Aviation Building, 1080 University Street, Montreal 101, Quebec, Canada. Orders for this publication should be sent to one of the following addresses, together with the appropriate remittance by bank draft or post office money order in U.S. dollars or the currency of the country in which the order is placed or in a freely convertible currency Australia Robertson and Mullens, 107 Peru Representante de la OACI, Oficina Elizabeth Street, Melbourne 3000. Sudamtrica, Apartado 4127, Lima. Canada Information Canada, Ottawa, On- Senegal Representant de I'OACI, Bureau tario. Afrique, Boite postale 2356, Dakar. France ReprCsentanJ de I'OACI, Bureau Europe, 3bis, villa Emile-Bergerat, Neuilly- sur-Seine Seine. India Oxford Book and Stationery Co., Scindia House, New Delhi or 17 Par.k Street, Calcutta. Japan Japan Civil Aviation Promotion Foundation, No. 38 Shiba Kotohira-Cho, Minato-Ku, Tokyo. Sweden C. E. Fritzes Kungl. Hovbokhan- del, Fredsgatan 2, Box 16356, Stockholm 16. Thailand ICAO Representative, Far East and Pacific Office, P.O. Box 614, Bangkok. United Arab Republic ICAO Represen- tative, Middle East and Eastern African Office, 16 Hassan Sabri, Zamalek, Cairo. United Kingdom Her Majesty's Stationery Office, P.O. Box 569, London, S.E. 1. International Civil Aviation Organization Attention Distribution Officer, International Aviation Building, 1080 University Street, Montreal 101, Quebec, Canada. Do you receive the ICAO BULLETIN The ICAO Bulletin contains a concise account of the activities of the Organization as well as articles of interest to the aero- nautical world. The Bulletin will also keep you up to date on the latest ICAO pub/ications, their contents, amendments, supplements, corri- genda, and prices. Available in three separate editions English, French and Spanish. Annual subscription U.S. 5.00.

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.

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