How many privately owned commercial airports are there in US? I expect there would be a few privately owned small more remote commercial airports, but the larger commercial airports? I would consider an airport authority chartered by the local or state government which was granted the land for the airport to be a publicly owned and operated facility.
Goodbye Federal Subsidy For Amtrak?
- Thread starter Devil's Advocate
- Start date
Help Support Amtrak Unlimited Discussion Forum:
- Status
johnny.menhennet
Conductor
Branson, MO
You need to understand however that the best estimates are that Amtrak's operating subsidies are only in the range of $300 Million to $500 Million, or at most about 1/3 of last year's annual appropriation. Probably another third goes to debt service from the years where Amtrak was forced to borrow heavily. The remainder goes to capital costs, which predominately means the NEC.
Amtrak's actual operating subsidies aren't really all that high. It's the debt and the NEC that really hurt Amtrak. And frankly the NEC really should be separated, at least on a funding level from the rest of Amtrak, as that was never really supposed to be Amtrak's responsibility. Congress dumped the corridor on Amtrak, the very neglected and nearly 70 year old corridor at that time, yet never really provided the proper funding to bring it back into a state of good repair.
Ocala, Florida. The one in the very private/exclusive community (featured on some 60 minutes like show) where John Travolta & family lives. One of the requirements of living there being to build some kind of airport hangar or similar facility, even though you may not actually use it for an aircraft...
Ocala Mike
Lead Service Attendant
Not a commercial airport. There are a number of privately owned general aviation airports and air strips in the US. You can fly your own jet or chartered biz jet to Greystone Airport, but not Southwest or Delta.
According to the Wikipedia entry on Branson Airport, it is the only privately owned and operated commercial service airport in the US. But the wiki entry also says: “As part of the negotiations to create the airport, obtain financing and reduce liability, Branson Airport, LLC had to "gift" the land they owned to Taney County, Missouri in order to lease and operate the airport privately.”
Ispolkom
Engineer
Later in the same article:
Sounds like a standard crony-capitalism case of privatizing the gain, but socializing the risk.
NW cannonball
Conductor
This discussion prompted me to look at the financial reports for the Metropolitan Airports Commission where I live. (MSP) MAC Financials .
It seems from this that the state and local government subsidy for this airport (not mentioned in the financial reports) is the tax and rent free ownership of a few square miles of prime land, plus the ability to issue tax-exempt debt. The airport commission also has taxing power but haven't used it since 1969 according to their report. They report that their cost to airlines per enplanement is consistently below national averages - $6.04 vs $7.34 in 2009 - total enplaned passengers in 2011 was about 12 million.
If this Airport Commission had to pay real estate taxes they would be seriously broke in a month or so.
Thus, privatizing - without the tax-free land rights attached -- would be politically impossible
In Minnesota, freight railroads have to pay real estate taxes (since the late 50's early 60's)
The login to the site for the MAC financials forbids to quote any of their reports in part, only in full - so I won't
But in summary the major sources of revenue for this particular airports commission are Parking, Landing Fees, Terminal Rent, other Rent, Car Rental fees and Food and Beverage, in that order. Enough to let them maintain and improve the property.
Owning more than a thousand acres tax-free is off-the-books. (as it was for all railroads here in Minnesota up until late 50's early 60's - if I remember my 6th grade Civics class correctly - no real estate tax for railroads back then) Never mind the huge land grants 150 years ago that enabled the western US railroads to be built.
Just wondering - does the Airports Commission also own the mineral rights? The western US railroads did - witness the spinoffs back in the early days of deregulation. Burlington Northern spun off its timber interests (Plum Creek) and oil and gas interests (forget the name).
Southern Pacific famously spun off SPRINT - .
Any how when - if - air travel becomes too expensive to support - as it already is at so many small-town federally subsidized airports - will we see land sales? Mineral rights sales?
Trying to envision the evolution of various transport modes based on the history - a hundred years ago if a small town had no rail - it turned into a ghost town. Now, if a small city loses its airport subsidy, no big problem - there's still the (subsidized) roads.
Sorry if this is too rambling - trying to figure what might happen with various fuel-price and local government budget constraints.
It seems from this that the state and local government subsidy for this airport (not mentioned in the financial reports) is the tax and rent free ownership of a few square miles of prime land, plus the ability to issue tax-exempt debt. The airport commission also has taxing power but haven't used it since 1969 according to their report. They report that their cost to airlines per enplanement is consistently below national averages - $6.04 vs $7.34 in 2009 - total enplaned passengers in 2011 was about 12 million.
If this Airport Commission had to pay real estate taxes they would be seriously broke in a month or so.
Thus, privatizing - without the tax-free land rights attached -- would be politically impossible
In Minnesota, freight railroads have to pay real estate taxes (since the late 50's early 60's)
The login to the site for the MAC financials forbids to quote any of their reports in part, only in full - so I won't
But in summary the major sources of revenue for this particular airports commission are Parking, Landing Fees, Terminal Rent, other Rent, Car Rental fees and Food and Beverage, in that order. Enough to let them maintain and improve the property.
Owning more than a thousand acres tax-free is off-the-books. (as it was for all railroads here in Minnesota up until late 50's early 60's - if I remember my 6th grade Civics class correctly - no real estate tax for railroads back then) Never mind the huge land grants 150 years ago that enabled the western US railroads to be built.
Just wondering - does the Airports Commission also own the mineral rights? The western US railroads did - witness the spinoffs back in the early days of deregulation. Burlington Northern spun off its timber interests (Plum Creek) and oil and gas interests (forget the name).
Southern Pacific famously spun off SPRINT - .
Any how when - if - air travel becomes too expensive to support - as it already is at so many small-town federally subsidized airports - will we see land sales? Mineral rights sales?
Trying to envision the evolution of various transport modes based on the history - a hundred years ago if a small town had no rail - it turned into a ghost town. Now, if a small city loses its airport subsidy, no big problem - there's still the (subsidized) roads.
Sorry if this is too rambling - trying to figure what might happen with various fuel-price and local government budget constraints.
Last edited by a moderator:
- Status
