While on the campaign trail, Donald J. Trump was an advocate for airports and the need for modernized airport infrastructure. He was also an advocate for reducing regulatory burdens imposed by the federal government. In one of his first actions in office, President Trump even went so far as to sign an executive order that requires federal agencies to revoke two regulations for every new significant rule issued.
As a highly regulated industry, this action has posed an important question for airports: While we are fully committed to meeting high standards that provide for the safety and security of the travelling public, what opportunities exist to improve our infrastructure and reduce regulatory burdens that prevent airports from making more nimble, business-like decisions?
In February, I had the privilege of participating, along with a group of ACI-NA airport directors and airline executives, in a meeting with President Trump at the White House to discuss the challenges facing the aviation industry. The President engaged in discussions on infrastructure and air traffic control reform, but a major takeaway from the meeting was his interest in regulatory reform for the industry. The President invited us to submit our recommendations on areas where federal agencies can and should ease the burden of federal regulations so airports can operate in a more business-like manner, generate greater economic activity, create jobs, and benefit the travelling public.
Since joining ACI-NA three years ago, one of my top priorities has been to impress upon the Department of Transportation the need for regulatory relief from onerous burdens that have no impact on safety or airport operations, so we welcomed the opportunity to take a deeper dive on the President’s commitment to regulatory reform with new Secretary of Transportation Elaine Chao in March. Our productive meeting with Secretary Chao provided us another opportunity to discuss achieving meaningful regulatory relief for the airport industry.
As a member driven organization, we obtained ideas from our members on their regulatory concerns. We developed a list of regulatory relief measures based on their feedback that will enable airports to operate in a more business-like manner. In order to speak as one industry voice, we consulted our industry partners at the American Association of Airport Executives (AAAE) to compare and consolidate our lists. Both organizations then provided a single list to President Trump and his administration on several key areas, including land use, air service development, and airport design standards
Land Use
In our meeting with President Trump, we discussed the burdensome regulations that prevent airports from developing airport land for non-aeronautical purposes to generate additional revenue streams. We recommend removing the FAA’s role in approving or restricting non-aeronautical development of airport land obtained without federal assistance. This would give airports full control to make business decisions to drive non-aeronautical revenue.
Air Service Development
Air service is a top concern for airports as they work diligently to secure a variety of carriers to improve competition, lower fares, expand service, and provide a fuller range of air service options for their communities. However, regulatory restrictions and less airline competition have led to an even more challenging environment for airport business development. We urged the Trump Administration to allow airports much needed flexibility in fostering new air service so that we can take an entrepreneurial approach when it comes to attracting service that benefits the traveling public and the local communities with lower airfares.
Design Standards For International Arrival Facilities
International air service is the fastest growing sector for many airports. Our recommendations urge the Trump administration to be flexible in its application of the current Airport Technical Design Standards (ATDS) on airports that receive or are interested in receiving international air service. U.S. Customs and Border Protection (CBP) should consult with airports to develop a new design standard that is scalable to airport size and reduces costs. The cost of the current design standards, if left unchanged, could force airports to forego the international air services they are trying to attract, limiting competition, passenger choice and jobs.
These recommendations represent just a sampling of the regulatory burdens airports face each day. I encourage airports to share your own experiences with your Congressional representatives and demonstrate how providing airports with more flexibility will result in even more successful enterprises that drive economic growth in your communities and the nation as a whole.
Kevin M. Burke is President and CEO of Airports Council International – North America.
