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Regulatory Compliance Costs and the Impact on Small Airports

Regulatory Compliance Costs and the Impact on Small Airports. Findings of ACRP Report 90 and Application to [INSERT NAME OF AIRPORT]. Issues. Small airports face increasing regulation Compliance adds costs to [INSERT AIRPORT NAME] Compliance adds substantial industry costs

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Regulatory Compliance Costs and the Impact on Small Airports

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  1. Regulatory Compliance Costs and the Impact on Small Airports Findings of ACRP Report 90 and Application to [INSERT NAME OF AIRPORT]

  2. Issues • Small airports face increasing regulation • Compliance adds costs to [INSERT AIRPORT NAME] • Compliance adds substantial industry costs • Small airports have limited means to raise revenue • Federal funding is shrinking • Compliance reduces funds available for revenue-generating services and facilities • “One-size-fits-all” standards result in extra costs on small commercial airports • Options to reduce compliance costs

  3. Small commercial airports face increasing regulatory requirements • 291 requirements adopted from 2000 to 2010 • Equivalent of one new requirement every two weeks • Requirements continue to grow COMPLIANCE ACTIONS ADOPTED IN 2000-10

  4. Compliance Adds Costs to [INSERT AIRPORT NAME]

  5. Most Costly Requirements for [INSERT AIRPORT NAME]

  6. Most Costly Requirements for [INSERT AIRPORT NAME]

  7. Compliance Results in Substantial Aggregate Industry Costs

  8. Most Costly Requirements for the Small Airport Industry

  9. Most Costly Requirements for the Small Airport Industry

  10. Federal Funding is Shrinking • AIP and PFC funds are available only for capital projects • Most recurring costs are administrative or operational and do not qualify for these funds • AIP funding remained level at $3.5 billion from FY 2008 to FY 2011 and declined starting in FY 2012 • The federal AIP share decreased from 95% to 90% for small airports in recent legislation • The PFC cap has not increased since 2001

  11. Compliance Costs Take Resources Away from Revenue-Generating Development and Operations • Grant funds, PFCs and other airport revenue used to pay for compliance requirements cannot be spent on projects • Example – [TO BE COMPLETED BY AIRPORT]

  12. Compliance Costs Take Resources Away from Revenue-Generating Development and Operations • Limited budgets force small airports to use existing staff to comply with requirements—taking time away from running the airport and providing service to the public. • Example – [TO BE COMPLETED BY AIRPORT]

  13. “One-Size-Fits-All” Compliance Standards Result in Disproportionate Costs to Small Airports • More cases of the FAA adopting uniform requirements for all size categories of airports • Standards usually based on characteristics of large airports • Standards may be excessive to needs of small commercial airports and their users • A $500,000 requirement costs San Antonio Airport 7.5¢ per passenger. It costs [INSERT AIRPORT NAME] $[INSERT AMOUNT] per passenger • Agency estimates of compliance costs (when made) are often below actual impacts

  14. Options to Reduce Future Cost Impacts • Increased participation by small airports in notice and comment rulemaking to provide better cost information • Increased participation by small airports when agencies publish draft policy and guidance documents for comment • Other potential options: • Are outside the control of airports • Would require action by government agencies and regulators(and thus were outside the scope of the research)

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