USA. Airport and concessionaire representatives have hailed the passing of a government rescue bill last week that grants US$8 billion to the sector including US$800 million in minimum guarantee and rent relief to airport tenants. This builds on the award of US$200 million for airport concessionaires (part of US$2 billion for airports) in the Coronavirus Response and Relief Act in December, taking concessionaire relief in recent months to US$1 billion.
The funds will be administered through the Federal Aviation Administration (FAA). Monies from the December bill are being distributed to airports based on 2019 enplanements, with awards to concessionaires based on their revenue contribution airport by airport.
Delivery of the bill was supported by a coalition of partners including Airports Council International (ACI) North America, the American Association of Airport Executives (AAAE), the International Association of Airport Duty Free Stores (IAADFS), the Airport Restaurant and Retail Association (ARRA), the Airport Minority Advisory Council (AMAC), the National Parking Association (NPA), and the American Car Rental Association (ACRA).
ARRA Executive Director Rob Wigington greeted the new relief bill. He said: “This is an exciting moment. This bill provides four times the amount of assistance that the previous December bill did, with US$8 billion for airports and US$800 million to be dedicated to minimum annual guarantee and rent relief for concessionaires at the airports.
“The relief is split this time. One pool of US$640 million is aimed at smaller airport in-terminal concessions, the other US$160m is for larger airport concessions. But it should be noted that the US$640 million can include larger concessionaires that are in JVs with smaller concessionaires and ACBDEs.
“Airports and concessionaires will work together closely so the distribution goes smoothly. ARRA will keep in contact with the FAA to help guide and ensure relief gets where it needs to and that as an eco-system we can move forward. This comes as a big boost.”
Like ARRA, IAADFS paid tribute to the coalition that secured the relief, although it fell short of the US$3.5 billion initially sought by concessionaire organisations.
IAADFS President Michael Payne said: “We’re delighted that the award was made. It will make a difference to many operators to have this support. It has been a strong joint effort from the coalition to make this happen.”
Airports Council International-North America (ACI-NA) President and CEO Kevin M. Burke said: “We applaud the work President Biden and Congress have done to provide airports with an additional US$8 billion in critical funding to continue safe and efficient operations.
“Over the last year, the COVID-19 pandemic has forced shutdowns across North America and around the world. While airports quickly mobilised to protect travellers and workers, the significant drop in passenger traffic has decimated airport finances. The pandemic is projected to cost US airports more than US$40 billion by March 2022 — a number that will grow if the pandemic drags on. Despite these challenges, American airports remain committed to ensuring the health and safety of the travelling public and airport workers by deploying enhanced sanitation procedures and adopting new technologies to limit the spread of COVID-19.”
