Airport Management
C. Daniel Prather, Ph.D., A.A.E., CAM
Airport Management
C. Daniel Prather, Ph.D., A.A.E., CAM
Aviation Supplies & Academics, Inc.
Newcastle, Washington
Airport Management
by C. Daniel Prather, Ph.D., A.A.E., CAM
Aviation Supplies & Academics, Inc.
7005 132nd Place SE
Newcastle, Washington 98059-3153
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page containing additional information and updates relating to this book.
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©2015 Aviation Supplies & Academics, Inc.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopy,
recording, or otherwise, without the prior written permission of the copyright holder.
While every precaution has been taken in the preparation of this book, the publisher and
C. Daniel Prather assume no responsibility for damages resulting from the use of the
information contained herein.
None of the material in this book supersedes any operational documents or procedures
issued by the Federal Aviation Administration, aircraft and avionics manufacturers, flight
schools, or the operators of aircraft.
ASA-A IR PT-MGT-PD
ISBN 978-1-61954-211-2
Photography © C. Daniel Prather unless otherwise noted.
Cover photos: Bottom image courtesy of Louisville Regional Airport Authority.
Top image ©iStock.com/jxfzsy.
The airport photo used as a background for the chapter beginnings is courtesy of
Hillsborough County Aviation Authority.
Library of Congress Cataloging-in-Publication Data:
Prather, C. Daniel
Airport management / by C. Daniel Prather, Ph.D., A.A.E., CAM.
pages cm
Includes index.
“ASA-A IR PT-MGT.”
ISBN 978-1-61954-209-9 (trade paper) – ISBN 1-61954-209-9 (trade paper)
1. Airports–United States—Management–Textbooks. I. Title.
TL725.3.M2P73 2015
387.7’36068–dc23
2014041887
v
Contents
Foreword ............................................................................................................. xi
Acknowledgments ............................................................................................ xiv
About the Author ............................................................................................. xvi
Introduction ........................................................................................................1
CHAPTER 1 Historical Overview .................................................................. 6
Introduction ..................................................................................................9
The Beginning of an Industry ...................................................................10
World War I ................................................................................................ 14
Post World War I ........................................................................................ 15
World War II ............................................................................................... 19
Post World War II ....................................................................................... 20
Pre-Deregulation .........................................................................................21
Deregulation ...............................................................................................24
Post-Deregulation .......................................................................................24
9/11 ..............................................................................................................33
Post 9/11 ......................................................................................................33
Contemporary and Future Period ..............................................................40
Concluding Thoughts ................................................................................41
Chapter Summary ......................................................................................42
Review Questions .......................................................................................45
Scenarios ......................................................................................................46
References and Resources for Further Study .............................................46
CHAPTER 2 Structure of Airports ..............................................................50
Introduction ................................................................................................53
Categories of Airports .................................................................................53
Ownership of Airports ...............................................................................63
Organizational Structure ............................................................................ 75
Major Airport Departments .......................................................................78
Airport Training Programs ........................................................................89
Career Advancement ..................................................................................90
Concluding Thoughts ................................................................................92
Chapter Summary ......................................................................................93
Review Questions .......................................................................................94
Scenarios ......................................................................................................95
References and Resources for Further Study .............................................96
vi AIRPORT MANAGEMENT
CHAPTER 3 Air Traffic, Capacity, and Delay ..........................................98
Introduction .............................................................................................. 101
ATC System Overview .............................................................................101
Signage and Markings ..............................................................................121
Radio Communications ...........................................................................130
Federal Contract Tower Program.............................................................134
NextGen ....................................................................................................135
Airfield Capacity .......................................................................................137
Airfield Delay ............................................................................................143
Demand Management .............................................................................. 145
Concluding Thoughts .............................................................................. 149
Chapter Summary .................................................................................... 149
Review Questions ..................................................................................... 151
Scenarios .................................................................................................... 152
References and Resources for Further Study ........................................... 153
CHAPTER 4 Planning ................................................................................ 154
Introduction .............................................................................................. 157
NPIAS ....................................................................................................... 157
Regional Aviation System Plans ............................................................... 159
State Aviation System Plans ...................................................................... 159
Metropolitan Aviation System Plans ........................................................ 160
Airport Master Plans and Airport Layout Plans ..................................... 161
Strategic Plans ...........................................................................................171
Business Plans ...........................................................................................175
Aviation Activity Forecasts ...................................................................... 176
Concluding Thoughts ..............................................................................182
Chapter Summary .................................................................................... 183
Review Questions ..................................................................................... 185
Scenarios ....................................................................................................186
References and Resources for Further Study ...........................................187
CHAPTER 5 Design and Construction................................................... 188
Introduction .............................................................................................. 191
Construction Standards ............................................................................ 191
Design Standards ..................................................................................... 200
Airspace and Approach Standards ...........................................................221
Selection Process ...................................................................................... 226
International Practice................................................................................229
Concluding Thoughts ..............................................................................229
Chapter Summary ................................................................................... 230
Review Questions .....................................................................................233
Scenarios ................................................................................................... 234
References and Resources for Further Study ...........................................235
Contents vii
CHAPTER 6 Environmental ...................................................................... 236
Environmental Regulations ...................................................................... 239
Environmental Management System .......................................................239
Compliance and Enforcement ................................................................ 240
Impacts ......................................................................................................241
Noise ..........................................................................................................243
Compatible Land Use ............................................................................... 251
Zoning ....................................................................................................... 252
Easements .................................................................................................. 253
Water Quality ...........................................................................................254
Air Quality ................................................................................................ 259
Hazardous Waste ......................................................................................261
Sustainable Environmental Stewardship .................................................265
Concluding Thoughts ............................................................................. 268
Chapter Summary ................................................................................... 268
Review Questions .....................................................................................271
Scenarios ....................................................................................................272
References and Resources for Further Study ...........................................273
CHAPTER 7 Operations .............................................................................274
Introduction ............................................................................................. 277
Title 14 CFR Part 139 ............................................................................. 277
Airport Communications ........................................................................ 306
Wildlife Hazard Management ................................................................ 308
New Generation Aircraft .......................................................................... 312
Concluding Thoughts .............................................................................. 314
Chapter Summary .................................................................................... 314
Review Questions ..................................................................................... 317
Scenarios .................................................................................................... 318
References and Resources for Further Study ........................................... 319
CHAPTER 8 Maintenance ........................................................................ 320
Introduction ..............................................................................................323
Inspections ................................................................................................323
Preventive Maintenance ...........................................................................323
Maintenance Equipment ..........................................................................324
Recordkeeping ..........................................................................................324
Airside Maintenance ................................................................................. 325
Landside Maintenance .............................................................................337
Concluding Thoughts ............................................................................. 340
Chapter Summary ....................................................................................341
Review Questions .................................................................................... 343
Scenarios ................................................................................................... 344
References and Resources for Further Study ...........................................345
viii AIRPORT MANAGEMENT
CHAPTER 9 Safety and Security ............................................................ 346
Safety .........................................................................................................349
Security ......................................................................................................367
Concluding Thoughts ..............................................................................383
Chapter Summary ................................................................................... 384
Review Questions .....................................................................................387
Scenarios ....................................................................................................388
References and Resources for Further Study ...........................................389
CHAPTER 10 Marketing ............................................................................ 390
Purpose of Marketing ...............................................................................393
Marketing Basics ....................................................................................... 394
Developing a Marketing Plan ..................................................................395
Variables ................................................................................................... 408
Implementing the Plan .............................................................................410
Characteristics of an Effective Marketing Plan ....................................... 411
Air Service Development .......................................................................... 412
Concluding Thoughts .............................................................................. 417
Chapter Summary .................................................................................... 417
Review Questions ..................................................................................... 419
Scenarios ................................................................................................... 420
References and Resources for Further Study ...........................................421
CHAPTER 11 Governmental, Legal, and Public Relations ................ 422
Governmental Relations ...........................................................................425
Industry Relations .................................................................................... 444
Public Relations ....................................................................................... 448
Concluding Thoughts .............................................................................. 452
Chapter Summary .................................................................................... 453
Review Questions .....................................................................................457
Scenarios ....................................................................................................458
References and Resources for Further Study ...........................................459
CHAPTER 12 Properties, Contracts, and
Commercial Development ....................................................................... 460
Agreements ................................................................................................463
Interacting with Tenants ..........................................................................478
Commercial Development .......................................................................479
Disadvantaged Business Enterprise ..........................................................483
Information Systems .................................................................................483
Concluding Thoughts ............................................................................. 484
Chapter Summary ....................................................................................485
Review Questions .................................................................................... 487
Scenarios ................................................................................................... 488
References and Resources for Further Study ...........................................489
Contents ix
CHAPTER 13 Financial Management .................................................... 490
Budgeting Overview .................................................................................493
Budget Development ................................................................................493
Revenues .................................................................................................... 498
Expenses ....................................................................................................508
Financial Statements .................................................................................509
Establishing Fees, Rates and Charges ...................................................... 524
Risk Management ..................................................................................... 526
Concluding Thoughts ..............................................................................528
Chapter Summary ....................................................................................529
Review Questions ..................................................................................... 531
Scenarios ....................................................................................................532
References and Resources for Further Study ...........................................533
CHAPTER 14 Funding and Financial Impacts ..................................... 534
Introduction ..............................................................................................537
Sources of Capital Development Funding ..............................................537
Economic Impact of Airports ..................................................................549
Impacts of Airline Bankruptcies on Airports ..........................................549
Performance Management and Benchmarking ....................................... 551
Concluding Thoughts .............................................................................. 553
Chapter Summary .................................................................................... 553
Review Questions ..................................................................................... 555
Scenarios ....................................................................................................556
References and Resources for Further Study ...........................................557
CHAPTER 15 Future Challenges and Opportunities .......................... 558
Introduction ..............................................................................................561
Airline Bankruptcies and Mergers ...........................................................561
New Large Aircraft ...................................................................................562
Capital Development Funding ................................................................. 563
Unfunded Federal Mandates................................................................... 564
Passenger Leakage ..................................................................................... 565
Customer Service ..................................................................................... 566
Sustainability Initiatives ...........................................................................567
Airside Congestion ...................................................................................568
Unmanned Aircraft Systems ....................................................................569
Concluding Thoughts ..............................................................................570
Chapter Summary ....................................................................................571
Review Questions .....................................................................................572
Scenarios ....................................................................................................573
References and Resources for Further Study ...........................................573
APPENDIX A Case Studies ........................................................................574
APPENDIX B Grant Assurances .............................................................. 602
Index ................................................................................................................625
xi
Foreword
I consider it an honor to be asked to write the foreword for Airport Manage-
ment. This textbook’s author, Dr. C. Daniel Prather, A.A.E., CAM, has been
my mentor since I entered this dynamic and fast-paced community of airports.
Dr. Prather has extensive airport experience from his tenure as an Assistant
Director of Operations at Tampa International Airport, and is now a key player
in education program development and in the training of hundreds of airport
professionals nationally and internationally. He is an accredited member of the
American Association of Airport Executives (AAAE), and recently developed
and implemented the first aviation program at California Baptist University in
Riverside, California.
Dr. Prather’s objective in all of his educational development and presen-
tations is to provide airport professionals with practical, industry-focused
information. You will find this as the baseline throughout all chapters of Air-
port Management. This textbook covers the exciting areas that other airport
professionals and I are involved with on a daily basis, including airport plan-
ning, design, and construction; air traffic and capacity delay; environmental
issues; regulatory compliance; airport operations and maintenance; safety and
security; and much more. The chapter scenarios and case studies are designed
to allow readers to apply knowledge gained in the text to solving real-world
airport challenges.
Some of the more specific topics on the minds of airport professionals
include the integration of the National Incident Management System (NIMS),
Incident Command System (ICS) into airport emergency plans, and the train-
ing and exercise of personnel for use during incidents and events; operational
safety on airports during construction, as most airports are always in some
phase of construction; addressing FAA Runway Safety Action Team (RSAT)
action items; implementation of safety management systems (SMS); measurable
metrics; and airport sustainability, just to name a few.
I personally began my aviation career in the United States Marine Corps
as an avionics technician on CH-46E Sea Knight helicopters, and quickly
progressed through the enlisted ranks as well as becoming a qualified Aerial
Observer/Door Gunner, Quality Assurance Inspector, and working on other
helicopter and fixed-wing aircraft platforms. While traveling and serving in the
United States Marine Corps, I was fortunate to have the opportunity to com-
plete my undergraduate degree from Southern Illinois University, Carbondale,
where I got my first taste of aviation industry business management from an
academic perspective.
xii AIRPORT MANAGEMENT
At the end of my second enlistment in the United States Marine Corps, my
family and I decided to take the leap from the military and I began my civilian
aviation career as an Airport Operations—Communications Center Dispatcher
at Tampa International Airport in Tampa, Florida. This position was ideal for
someone new to an airport. I was able to experience the full spectrum of daily
operations at an airport, ranging from response coordination to small incidents
such as broken plumbing pipes in a terminal, to higher-level incidents such as
security breaches, people jumping from parking structures to commit suicide,
and aircraft alerts. Since that first position as a dispatcher, I have again been
very fortunate to hold several positions within airport operations departments
at Tampa International Airport (TPA), Burbank Bob Hope Airport (BUR), and
now at Los Angeles International Airport (LAX). I have held positions ranging
from my initial position as a dispatcher, to Airside and Landside Operations
Manager, to my current position as a Chief of Operations I at LAX.
My current job responsibilities include working some shifts as the Air-
port Duty Manager, and serving as the LAX Department Operations Center
(DOC) Director during large-scale events. In this position, I was on duty for
the Asiana Airlines Flight 214 accident at San Francisco Airport in which we
received multiple flight diversions; utility disruptions affecting multiple termi-
nals and other facilities; and one of the most challenging incidents our airport
has experienced in the past ten years involving an active shooter at Terminal 3
in which three of our nine terminals were evacuated, and Terminal 3 remained
closed for 28 hours.
If this is your first exposure to the airport community, airports are often
referred to as “cities within cities.” Airports have several components, regula-
tions, and political pressures similar to a city. Depending on the size of an
airport, it may have components similar to a city, such as a municipal fire
station or its own fire department; a police, security, and/or public safety
department; emergency medical personnel; administrative and financial ser-
vices; and a maintenance department similar to city public works. Unlike a city,
however, hazards at airports can pose unique challenges since the operation of
aircraft traffic, vehicle traffic, pedestrian traffic, baggage, and cargo through-
put must continue to flow, or be restored promptly, to sustain commerce and
e-commerce.
In addition, airports have multiple federal agencies, private entities, con-
tractors, and airport personnel that all operate within the same few acres of
airport property to provide safe and secure services to the traveling public. In
addition to these departments and divisions that are similar to those of a city,
Foreword xiii
airports will also have an airport operations department. The personnel in
this department conduct inspections of the airside, terminals, and landside to
identify and report any irregular conditions that impact operations, and coor-
dinate the response by emergency services, maintenance personnel, and others
to resolve these issues. Airport operations, along with public safety, agency, and
stakeholder partners, also responds to emergencies such as aircraft accidents,
security breaches, structure fires, hazmat spills, property damage incidents,
utility disruptions, etc., with the primary objective of coordinating the flow of
the airport’s operation around the incident, and then becoming the incident
commander during the recovery phase of an accident or incident.
The best phrases, words, and guidance that I have learned from fellow
employees and leaders in airports include: exciting, high consequence, and polit-
ical; operations revolve around local, state, and federal regulatory compliance;
airports must partner, train, and build solid relationships with stakeholders and
mutual aid responders to ensure efficient response plans and procedures have a
common operational picture; the only thing constant at an airport is change;
your customers include the traveling public, airport tenants, contractors, and
your own airport employees; and the most critical asset at an airport are the
employees that keep it operating, so keep them involved.
In conclusion, you will find this textbook and the aviation professionals you
meet to be valuable resources as you progress through your career. Anyone who
intends to work and succeed in this exciting and challenging field must master
a thorough understanding of the rules, regulations, and standards that affect
airports, and be able to apply critical thinking skills to continue to progress.
Airport Management will prove to be an excellent resource for current and future
airport professionals.
Richard N. Steele, C. M., MCA
Chief of Operations I
Los Angeles International Airport (LAX)
Los Angeles World Airports (LAWA)
xiv AIRPORT MANAGEMENT
Acknowledgments
The development of this book would not have been possible without the sig-
nificant level of support provided by colleagues in the industry. My experiences
have been enriched because of others. I would like to thank Mr. Robert Burr,
Mr. Grant Young, and Mr. Ed Cooley for believing in me. These gentlemen
provided me with ten outstanding years of experience in airport operations at
Tampa International Airport (TPA). Ms. Marilyn Gauthier, a coworker at TPA,
was a friend from day one and continues to be to this day. I would also like to
thank collegiate aviation faculty everywhere who are members of the University
Aviation Association (UAA), as well as Mrs. Carolyn Williamson, former UAA
Executive Director. Collegiate aviation faculty are a small group of devoted pro-
fessionals, and I have learned from and with them extensively over the years.
These professionals have supported me in many ways as I transitioned from the
airport industry to being a faculty member at a collegiate aviation program. I
especially benefitted from the annual UAA Fall Education Conferences and the
Collegiate Aviation Review. I would like to particularly thank Dr. Julie Speakes
for providing me an opportunity to teach online as an adjunct faculty member
in the Delta State University Master of Commercial Aviation degree program
and being a close friend. Dr. Alexander Wells graciously provided me the first
opportunity to author a book, by asking me to revise his General Aviation Mar-
keting and Management textbook. Mr. Dave Boelio and Ms. Nicole Sgueglia both
encouraged me to write this Airport Management text, while Mr. Fred Boyns and
Ms. Jackie Spanitz enthusiastically asked me to write this text for ASA.
I would like to thank Dr. Paul Craig for giving me my first position as a
faculty member at Middle Tennessee State University. California Baptist Uni-
versity (CBU) President Dr. Ronald Ellis, former Provost Dr. Jonathan Parker,
and College of Arts and Sciences Dean Dr. Gayne Anacker believed in me and
trusted that I was the right person to develop the nation’s newest collegiate avia-
tion program at their fine institution. I am humbled by this opportunity and
would like to express my heartfelt gratitude for their tremendous support. This
has been by far the greatest professional challenge and thrill of my life. Mrs.
Kim Roper and Mrs. Maria LeBlanc have been instrumental in my success at
CBU, as have our wonderful team of faculty and flight instructors.
I would also like to thank the staff of the American Association of Airport
Executives, specifically Mr. James Johnson, A.A.E. (now retired), Ms. Starla
Bryant, Mr. Kevin Miller, C.M., ACE (now with the Boca Raton Airport
Authority) and Mr. Scott Boeser, C.M., ACE for trusting me to revise the Air-
port Certified Employee (ACE)—Operations modules and subsequently train
airport professionals across the country in Part 139. I would also like to thank
Acknowledgments xv
Mr. Jay Evans and Mrs. Sarah Wolf of the National Business Aviation Associa-
tion for allowing me the opportunity to serve on the Professional Development
Program (PDP) Review Committee and provide professional training to business
aviation professionals nationwide. I would also like to thank Ms. Anne Nevel
of the Helicopter Association International for allowing me the opportunity to
provide professional training to helicopter aviation professionals nationwide.
My past and current students have provided me significant insight and
allowed me the opportunity to improve my teaching abilities. I am proud of
each and every one of you who have graduated and are now making significant
contributions to the industry. Your success keeps me motivated.
I am indebted to the following individuals who have provided me the
greatest direct support in the development of this text, through their research,
photographs and case studies:
Mr. Jordan Biegler, A.A.E.
Mr. Lee Brown, C.M., ACE
Ms. Patricia Burke
Mr. Brett Fay, C.M.
Ms. Diana Fernandez, ACE
Ms. Robin Gardner, C.M., ACE
Mr. Peter Lubbers, ACE
Mr. Adam Lunn, C.M., ACE
Mr. Kevin Miller, C.M., ACE
Ms. Lacey Schimming
Ms. Amanda Snodgrass
Mr. Richard Steele, C.M.
Ms. Laura Walker
Additionally, I must recognize Mr. David Nicewinter (TPA) and Mr. John
Padgett (Nashville International Airport), both of whom spent a number of
hours with me allowing me to tour their respective airfields to obtain photos.
I would like to express my love and gratitude to my family, who supported
me throughout this project. My wife, Grace, my daughter, Savannah, and my
son, Layton, are the joys of my life and I would not be the man I am today if
not for you guys. Thanks for being such an awesome family.
My dad, Mr. Louis Prather, and my mom, Dr. Barbara Corry, provided me
the opportunity to take flying lessons with Mr. Langley Nelson at Hawkins
Field in Jackson, Mississippi, while I was still in high school. These lessons
fueled my passion for the aviation industry, which led me to Delta State Univer-
sity for a Bachelor of Commercial Aviation degree, Southern Illinois University
for a Master of Public Administration degree, and ultimately to Tampa Interna-
tional Airport, which allowed me the experiences necessary to be able to write
this textbook. Thanks Mom and Dad!
Finally, my Lord and Savior Jesus Christ daily provides me the strength and
wisdom to accomplish and succeed to bring Him glory. My life verse is found
in Philippians 4:13, “I can do all things through Christ who strengthens me.”
This book would not be possible without the breath He alone provides me.
xvi AIRPORT MANAGEMENT
About the Author
Serving as Assistant Director of Operations
at Tampa International Airport (TPA) from
1998 to 2006, and Associate Professor of
Aerospace at Middle Tennessee State Uni-
versity (MTSU) from 2006 to 2012, Dr.
C. Daniel Prather, A.A.E., CAM, has been
serving as professor and founding chair of
the Department of Aviation Science at
California Baptist University (CBU) since
July 2012. In this position, Dr. Prather has
been responsible for developing curriculum
and recruiting students and faculty to the
nation’s newest collegiate aviation program.
Active with the University Aviation
Association (UAA), the American Association of Airport Executives (AAAE),
and the National Business Aviation Association (NBAA), Dr. Prather is an
Accredited Airport Executive through AAAE, a Certified Aviation Manager
through the NBAA, and an instrument-rated private pilot. He is also an active
aviation industry consultant, often busy on projects with the Airport Coopera-
tive Research Program (ACRP) of the Transportation Research Board (TRB).
He holds a Doctor of Philosophy degree from the University of Nebraska at
Lincoln, a Master of Public Administration degree from Southern Illinois Uni-
versity at Carbondale, and a Bachelor of Commercial Aviation degree from
Delta State University.
In addition to this textbook, Dr. Prather is author of General Aviation Mar-
keting and Management: Operating, Marketing and Managing an FBO. He is
also the designated Airport Certified Employee (ACE) – Operations trainer
for AAAE, and a leadership trainer for NBAA and the Helicopter Association
International (HAI).
Not counting his one year as a flight coordinator intern at FedEx Express
while in college, or flight training he undertook while in high school, Dr.
Prather entered the aviation industry in 1996 and has never looked back. Visit
Dr. Prather at www.dprather.com.
1
Introduction
As a collegiate aviation professor with ten years of airport managerial experi-
ence, I have always endeavored to teach courses in airport management from a
practical, real-world perspective. However, the available textbooks on this topic
are lacking in practical application. For me, this was not significant, because I
could easily supplement the text I was using with real-world examples from my
ten years of experience at Tampa International Airport. However, I began to
meet other faculty members across the country who were being asked to teach
courses in airport management, but had no professional airport industry experi-
ence from which to draw when teaching these courses. As a result, students in
these courses learned less practical application than is necessary to be prepared
for positions in the airport industry.
It was this realization that led me to begin writing this practical book
on airport management. Of course, I soon learned that writing a book was a
tremendous undertaking. Writing this book soon became a labor of love that
required a significant investment. While working on the manuscript each day,
I thought of all the current students who would become airport professionals
in the future. This book has been written for your benefit. My goal has been
to provide practical insight into the airport management business, and I trust
this first edition will accomplish that.
The book has been designed to cover all areas of airports, to give a future
airport manager a thorough understanding of the many aspects of the airport
business. Key terms are identified at the beginning of each chapter and set in
bold within the text. Features throughout the chapters shine the spotlight on
specific airlines, airports, and other entities. Each chapter ends with scenarios
designed to allow readers to apply knowledge gained from studying the chapter
to solving real-world airport issues. The book also includes comprehensive case
studies that allow readers to dive even deeper into the topics. Helpful review
questions are provided for each chapter to prompt reflection and focus atten-
tion on the most important concepts. As these questions are meant to stimulate
thought, discussion with your instructor, and classroom conversation, specific
answers are not provided. Additional resources and information related to air-
port management can be found on the Reader Resources webpage for this book
at www.asa2fly.com/reader/airptmgt.
Chapter 1, Historical Overview, presents a historical perspective of both
the airport and airline industry, including important pieces of legislation that
played an integral role in the safe development of both. The funding of airports
2 AIRPORT MANAGEMENT
is also discussed to allow the reader to better understand the role of federal
funding in airport development. This chapter is important to the reader to gain
a full understanding of the airport industry; we must understand from where
we came to better prepare for future challenges.
Chapter 2, Structure of Airports, presents the organizational structure
of airports, including types and the nature of ownership. It covers the major
departments common at larger airports, as well as available airport training and
career opportunities. This chapter is important in understanding the breadth of
airports in this country, including how they are organized and owned.
Chapter 3, Air Traffic, Capacity and Delay, introduces the capacity and
delay issue that airports must confront. In addition, it presents classes and types
of airspace; NAVAIDs; airport lighting, signage, and markings; radio commu-
nications; the federal contract tower program; and NextGen. This chapter is
full of information that introduces readers to the airspace in which airports are
located, as well as the facilities and equipment in place to provide guidance to
pilots and ground vehicle operators on the airfield.
Chapter 4, Planning, presents the need for airport planning, from the
national level to the local airport-specific level. Airports are always planning
for the future, and specific processes are in place to carry out this planning. To
effectively plan, however, forecasting must take place, and this chapter covers
the types and uses of forecasting in airport planning. This chapter is important
for the reader in understanding the nature of and need for airport planning to
prepare for future demand.
Chapter 5, Design and Construction, is a lengthy chapter that explains the
nature of design and construction, from pre-bid to project completion. Airport
construction projects can require many months or even years from start to
finish, and there are specific procedures to be followed in designing a project,
selecting a contractor, and maintaining safety on the airfield during construc-
tion. This is especially true of projects funded by the FAA. This chapter is
important for the reader in understanding the design and construction side
of airport management, which can oftentimes appear too technical for non-
engineers. However, even the smallest airports have need for the occasional
construction project, which makes the information in this chapter important
to understand.
Chapter 6, Environmental, presents the many environmental impacts of
an airport, and the regulations and requirements necessary to ensure environ-
mental compliance. This chapter addresses noise, compatible land use, zoning,
easements, water quality, air quality, and hazardous materials. For airports to
Introduction 3
be good neighbors and operate within regulations, it is imperative that airport
management understand various environmental impacts and implement pro-
cedures to ensure environmental compliance (from both the airport and all
tenants). Sustainable environmental stewardship is the ultimate goal, and this
chapter is important in leading readers to that goal.
Chapter 7, Operations, focuses on the actual operation of the airport with a
specific emphasis on airfield operations. Specifically, 14 CFR Part 139, Airport
Certification, provides the foundation for this chapter. This is the regulation to
which air carrier airports must comply to maintain an airport operating certifi-
cate and is, as a result, an important regulation to understand. Topics addressed
in this chapter include snow and ice control, emergency response, aircraft rescue
and firefighting, wildlife, and NOTAMs. This chapter is important for all
future airport professionals because of the extreme importance placed on Part
139 compliance at air carrier airports. Lack of Part 139 compliance could result
in the airport losing its operating certificate (in extreme cases), which would
prohibit air carrier operations at that airport.
Chapter 8, Maintenance, is to some degree the flip side of Chapter 7. Oper-
ations personnel rely heavily on support of maintenance personnel to maintain
the airfield in peak condition and within Part 139 requirements. Specifically,
this chapter addresses airport pavements and airside and landside maintenance,
including the use of contracted maintenance providers. This chapter is impor-
tant for readers to understand because maintenance is integral to maintaining
a safe and efficient airport.
Chapter 9, Safety and Security, addresses the need to ensure a safe and
secure airport. This chapter addresses the protection of the public, employees
and tenants; fire hazards; driving on the movement area; safety management
systems; emergency preparedness; aircraft accidents and incidents; media rela-
tions; security; etc. This chapter is valuable for the reader in understanding the
role of safety and security in maintaining a top-notch airport.
Chapter 10, Marketing, focuses on the importance of effectively marketing
airports to ensure a competitive position to minimize the leakage of passengers
and ensure positive publicity in the community. Topics include the basics of
marketing; goals and objectives; SWOT analysis; promotional mix; marketing
plans; and air service development. This chapter is important for the reader in
understanding the role of marketing in airport management, which includes
much more than securing additional air service or building a website.
Chapter 11, Governmental, Legal, and Public Relations, presents a valuable
overview of the politically active climate in which airports always operate, and
4 AIRPORT MANAGEMENT
covers national, state, and local governmental relations. This chapter examines
the manner in which FAA regulations and advisory circulars are revised, and
describes Robert’s Rules of Order to enable the reader to understand formal pro-
cedures typically in use during city council meetings, airport board meetings,
and other formal meetings. Regulatory agencies and industry trade associations
are also presented within the chapter. This chapter is important for the reader to
gain an understanding of the political nature of airports and the concepts to be
adhered to in managing an airport facility in this environment. The politically
naïve airport manager (with no knowledge of the concepts presented in this
chapter) will likely encounter more of a challenge on the job than is necessary.
Chapter 12, Properties, Contracts, and Commercial Development, is the
first of the “money” chapters. Without an understanding of airport property,
the nature of contracts, and the common ways in which to develop airport
property to increase revenues (and create jobs), an airport will effectively lose
money annually from lost opportunities in the form of commercial develop-
ment of property. The chapter presents aeronautical lease agreements, airline
operating agreements, land lease agreements, rate-making methodologies, con-
cessionaires, FBOs, minimum standards, rules and regulations, MOUs/LOAs,
self-fueling, etc. This chapter is important for the reader in understanding the
myriad of ways in which airports earn revenue through various tenants, ven-
dors, and others and the legal agreements that must be in place to define these
relationships.
Chapter 13, Financial Management, is the second of the “money” chapters
and presents operating and capital budgets, including budgeting techniques;
financial ratios; fees, rates, and charges; and risk management. This chapter is
important for the reader in understanding how to budget properly and manage
the budget to track revenues and expenditures, as well as assets and liabilities.
Although the chapter presents common financial management terminology,
airports have unique budgeting requirements that airport managers must fully
understand. Otherwise, the knowledge gained in chapter 12, even if applied
properly, will be less successful.
Chapter 14, Funding and Financial Impacts, continues the “money” discus-
sion with a focus on capital development funding, including matching funds,
bonds, PFCs, internally generated funds, state and local sources, and AIP. This
chapter covers grant assurances, which airports must comply with once federal
funds are accepted, as well as methods to determine the economic impact of
Introduction 5
airports, the impact of airline bankruptcies, and benchmarking. This chapter is
important for the reader in understanding the methods available to airports in
funding large capital projects, as well as the role airports play in the economy.
Chapter 15, Future Challenges and Opportunities, wraps up the book by
presenting the expected challenges airports will face in the future, as well as
the opportunities that may be grasped. Specifically, airline bankruptcies and
mergers, new large aircraft (such as the A380), capital development funding,
unfunded federal mandates, passenger leakage, customer service, sustainable
initiatives, airside congestion, and unmanned aircraft systems are presented.
This chapter provides a few last thoughts on future challenges to be faced by
airport managers.
Tampa International Airport, with main terminal complex and satellite terminals connected by
automated people movers shown. (Hillsborough County Aviation Authority)
6 AIRPORT MANAGEMENT
14 CFR Part 139, Certification of Airports
AIP Temporary Extension Act
Air Cargo Deregulation Act of 1976
Air Commerce Act of 1926
Airline Deregulation Act of 1978
Airport and Airway Development Act of 1970
Airport and Airway Improvement Act of 1982
Airport and Airway Revenue Act of 1970
Airport and Airway Safety and Capacity Expansion
Act of 1987
Airport and Airway Safety, Capacity, Noise
Improvement, and Intermodal Transportation
Act of 1992
Airport and Airway Trust Fund
Airport Development Aid Program (ADAP)
Airport Improvement Program (AIP)
Airways Modernization Act
Americans with Disabilities Act of 1990
Aviation and Transportation Security Act (ATSA)
of 2001
Aviation Investment and Reform Act for the 21st
Century (AIR-21)
Aviation Safety and Capacity Expansion Act of
1990
Aviation Safety and Noise Abatement Act of 1979
Aviation Security Improvement Act of 1990
cargo revenue ton miles
Civil Aeronautics Act of 1938
Civil Aeronautics Administration (CAA)
Civil Aeronautics Authority (CAA)
Civil Aeronautics Board (CAB)
Civil Works Administration (CWA)
Clean Air Act
continuing resolution
Contract Air Mail Act of 1925
Contract Air Mail (CAM) routes
Department of Transportation Act of 1966
Development of Landing Areas for National
Defense (DLAND)
Emergency Relief Appropriation Act of 1935
Historical Overview
Chapter 1
Key Terms
CHAPTER 1 Historical Overview 7
Objectives
Upon completion of this chapter, you should:
•Understand the historical events and important pieces of legislation affecting the
development of airlines.
•Understand the historical events and important pieces of legislation affecting the
development of airports.
•Understand the historical funding of airport development.
•Understand the pre- and post-deregulation periods.
•Understand the significance of the events of 9/11 on the aviation industry.
•Be able to discuss contemporary issues and future challenges confronting the airport
industry.
Essential Air Service (EAS)
Federal Aid to Airports Program
Federal Airport Act of 1946
Federal Aviation Act of 1958
Federal Aviation Administration Authorization Act
of 1994
Federal Aviation Agency (FAA)
Federal Aviation Reauthorization Act of 1996
Federal Emergency Relief Administration (FERA)
Federal Water Pollution Control Act
general aviation (GA) airports
Homeland Security Act of 2002
hub and spoke
Implementing Recommendations of the 9/11
Commission Act of 2007
Kelly Act
load factors
low-cost airlines
Military Airport Program (MAP)
National Airport Plan
National Civil Aviation Review Commission
National Commission on Terrorist Attacks Upon
the United States
National Transportation Safety Board (NTSB)
oligopolistic
omnibus spending bill
passenger facility charge (PFC)
Planning Grant Program (PGP)
revenue passenger miles
Security Guidelines for General Aviation Airports
spending bill
State Block Grant Program
Transportation Security Administration (TSA)
Vision 100—Century of Aviation Reauthorization
Act of 2003
Works Progress Administration (WPA)
World War I
World War II
In Chapter 1
Introduction ............................................. 9
The Beginning of an Industry ....................10
World War I ............................................14
Post World War I .....................................15
World War II ...........................................19
Post World War II ................................... 20
Pre-Deregulation .................................... 21
Deregulation .......................................... 24
Post-Deregulation ................................... 24
9 / 11 ..................................................... 33
Post 9/11 .............................................. 33
Contemporary and Future Period .............. 40
Concluding Thoughts ...............................41
Chapter Summary .................................. 42
Review Questions ................................... 45
Scenarios .............................................. 46
References and Resources
for Further Study ................................. 46
FEATURES
The Role of Federal Express
in the Air Cargo Industry ........ 25
Federal Express played an integral
role in establishing the air cargo
industry and the subsequent
deregulation of that industry.
The Rise and Fall of
People’s Express ................... 27
A low-cost airline that attained great
success, but eventually went out of
business due to competition from
other airlines during the deregulated
era.
8
CHAPTER 1 Historical Overview 9
Introduction
Airports are an integral part of the aviation industry. In this industry, billions
of passengers and billions of tons of cargo have been moved from point to point
since it began, which could not have occurred without airports. The industry is
a little more than 100 years old and yet responsible for more than $1 trillion per
year in economic activity and almost 10 million jobs. Consider the U.S. airlines
(Figure 1-1). Although down from a ten-year high of 769.6 million enplaned
passengers in 2007, U.S. airlines enplaned 720.5 million passengers, which
equates to 798 billion revenue passenger miles, in 2010. Additionally, airlines
generated more than 27 billion cargo revenue ton miles and generated more
than 10 million departures during the year (Air Transport Association, 2011).
Each of these departures, passengers, and pounds of cargo were accommo-
dated at an airport. Whether large or small, public or private, airports serve as
an interface between ground and air transportation (Figure 1-2). As an industry,
they directly serve the needs of pilots, passengers, and meeters and greeters,
and provide employment to hundreds of thousands of employees nationwide.
Indirectly, they serve the communities in which they are located by providing
facilities to support emergency medical transport, law enforcement services,
and the movement of goods and services. Even general aviation (GA) airports
provide beneficial economic impacts to the local community. Airports in the
United States have a significant impact on local, state, regional, and national
economies. As part of an industry that provides 10 million jobs, $396 billion
in wages, and an impact of $1.3 trillion to the economy, airports clearly play a
crucial role in the aviation industry (Federal Aviation Administration, n.d.). In
sum, airports serve a unique and substantial need throughout the world, and
have an interesting history in the United States—the birthplace of aviation.
Figure 1-1.
Number of enplaned
passengers, U.S.
airlines, 2000–2010
900
800
700
600
500
400
300
200
2000
100
0
2001 2002
Enplaned passengers
2003 2004
Year
Number of enplaned passengers (millions)
2005 2006 2007 2008 2009 2010
10 AIRPORT MANAGEMENT
The Beginning of an Industry
The history of the aviation industry in the United States began on December
17, 1903. It was on this day that Orville Wright first flew the now-famous
Wright Flyer I in a controlled flight lasting 12 seconds (see Figure 1-3). How-
ever, aviation did not immediately succeed. After these first flights at Kitty
Hawk, North Carolina, the Wright brothers faced quite a challenge in promot-
ing their aircraft to a willing buyer. In fact, five years passed before they were
able to convince the U.S. government to test a much improved version.
Figure 1-2.
Airports are
transportation
lifelines, often serving
airline passengers
and cargo carriers,
flight training and
general aviation
pilots, with beneficial
economic impacts felt
locally, regionally, and
nationally.
(jlye/Bigstock.com)
CHAPTER 1 Historical Overview 11
Although the four flights flown by the Wright brothers on that day marked
the beginning of controlled, powered, and sustained heavier-than-air human
flight, the first scheduled commercial airline flight using heavier-than-air air-
craft did not occur until eleven years later, when on January 1, 1914, Tony
Jannus piloted the Benoist XIV flying boat biplane across Tampa Bay (Florida)
on an historic 23-minute flight (see Figure 1-4). This inaugural flight also
carried the mayor of St. Petersburg, Florida—Mr. Abram C. Pheil. At a fare
of five dollars per passenger, this was the first time in history that tickets were
sold to the general public for point-to-point scheduled air travel. Known as the
St. Petersburg-Tampa Airboat Line, the airline offered service six days per week
with two roundtrip flights daily until ceasing service on March 31, 1914, which
was five weeks after the termination of a three-month contract that had been
signed with the St. Petersburg Board of Trade. This service greatly improved
travel between the two cities, as travel by steamship took 2 hours, rail between
4 and 12 hours, and automobile around 20 hours (Bluffield, 2010).
Although the early days of
aviation did not start and end at
airports as we know them, these
airfields did serve as the first air-
ports. Whether in the form of a
grassy field, sand dune, body of
water, or other flat place, these
first airfields served the unique
needs of the early aviators. As
more aircraft were built and the
aviation industry began growing,
the need for landing areas grew.
Figure 1-3.
The first flight of
Orville Wright
(1871–1948) at
Kill Devil Hills, Kitty
Hawk, North Carolina,
on December 17,
1903 (120 feet in 12
seconds). His brother
Wilbur Wright (1867–
1912) is standing on
the right.
(Wikimedia Commons;
see credit on page 623)
Figure 1-4.
The historic departure
of Jannus and Pheil.
(Wikimedia Commons;
see credit on page 623)
12 AIRPORT MANAGEMENT
Providing dedicated airfields was seen as the best solution to this need. One way
in which to do this was to develop dirt-only fields (see Figure 1-5). This option
improved aircraft performance on takeoff roll, due to an elimination of the
drag produced by grass. As can be imagined, however, these dirt landing sites
were only usable in dry conditions. Muddy landing sites were, in fact, worse
than the old grass landing sites. Often, race tracks, golf courses, or fairgrounds
doubled as landing sites.
A significant boost in the quality of airfields came about with the addition
of concrete landing areas. Portland cement, which had been invented in 1824 by
English inventor Joseph Aspdin, was the preferred material. However, macadam
or cinders were also used. Macadam was a type of road construction pioneered
by Scotsman John Loudon McAdam around 1820. Single-sized aggregate layers
of stone with a coating of binder as a cementing agent were mixed in an open-
structured macadam. Cinder, on the other hand, is a small type of volcanic rock
that has many uses, including material for road construction and decorative
rock for landscaping, especially in the southwest U.S.
Possibly the first use of the term “airport” was by a Brazilian airship inven-
tor, Mr. Alberto Santos-Dumont. According to the April 11, 1902 edition of
The New York Times, Mr. Santos-Dumont explained his expectation that the
city of New York would be “the principal ‘airport’ of the world in less than a
score of years” (The New York Times, 1902). However, the nation’s first munici-
pal airport was built in 1908 in Albany, New York. Located on a former polo
field, the airport was moved to Westerlo Island after one year due to the unsuit-
ability of the former polo field. Deemed an ideal location, Westerloo Island
had long, level stretches of land bordering the Hudson River. During its early
years, the airport welcomed such famous aviators as Glenn Curtis, Charles
Lindbergh, Amelia Earhart, and James Doolittle. The mayor of Albany at the
time, Mr. John Boyd Thacher II, once said, “A city without the foresight to
build an airport for the new traffic may soon be left behind in the race for
Figure 1-5.
Early landing strip.
(©iStock.com/andipantz)
CHAPTER 1 Historical Overview 13
competition.” So, in 1928, a new modern airport was built. The new airport
originally consisted of 249 acres and contained two brick hangars and a brick
administration building. As part of airport construction, three runways were
built—the first was 2,200 feet long, the second 2,350 feet long, and the third
measured 2,500 feet long. Two of the runways were paved with macadam and
one with cinders. By 1930, Albany was known as the “aerial crossroads of the
great Northeast.” Although the airport was closed for a brief period by the Civil
Aeronautics Administration (CAA), it remains in operation to this day, overseen
by the Albany County Airport Authority (Hakes, n.d.).
Although Albany Airport was initially funded by the City of Albany, its
operation and upkeep during the first eight years was financed through a spe-
cial fund established by the Albany Chamber of Commerce. Even in those
early years, airports required financial resources for maintenance and operation.
Airport maintenance during this time involved grading to maintain the level
runway, mowing grass, and keeping the runway free of obstructions. In January
1939, however, the newly formed Civil Aeronautics Authority (CAA) closed
the new airport to commercial flights declaring it unsuitable for use. This
action was taken by the CAA following a long dispute between the city and
federal officials over who should be responsible for paying for needed improve-
ments to the airport. Mayor Thacher believed the city should not have to pay for
improvements that would benefit national defense and commerce. The CAA
disagreed and as a result, eventually closed the field to all air traffic. The city
then initiated a Works Progress Administration (WPA) project to make the
necessary improvements at the airport, resulting in the CAA allowing day-
light operations to begin once again in December 1940. On January 21, 1942,
the CAA, recognizing the improvements to the airport, allowed the airport to
reopen for nighttime use. Except for wartime restriction, the airport has had
uninterrupted flight service since that time (Hakes, n.d.).
The College Park Airport in Maryland was established by Wilbur Wright
in 1909, one year after the Albany Airport. It claims the distinction of being the
“World’s Oldest Continually Operating Airport.” It is indeed an airport with
a long history. In 1909, after the U.S government agreed to purchase a Wright
Flyer, the aircraft was officially accepted by the U.S government. However, the
contract required the Wrights to teach two army officers to fly the plane. A
field in the small town of College Park, Maryland, was selected for this flight
instruction and the College Park airfield was established. Operating strictly as a
general aviation facility, in 1977 the airport was added to the National Register
of Historic Places (College Park Aviation Museum, n.d.).
Even so, very few airports were built during these early years of aviation.
Rather than focus on areas at which to land aircraft, efforts were focused on
improving the design of aircraft. In fact, by 1912, only 20 landing facilities
were thought to exist in the U.S. Although this seems like a small number,
this network of landing facilities was sufficient to meet the needs of aviation at
that time. It is interesting to note that all of these landing facilities, including
Albany and College Park, grew from fields or country clubs. They had not been
designed as airports, per se (Mola, n.d.).
14 AIRPORT MANAGEMENT
World War I
However, the environment soon changed as World War I (WWI) began in
1914, triggered by the assassination on June 28 of Archduke Franz Ferdinand
of Austria, the heir to the throne of Austria-Hungary. Thousands of aircraft
were subsequently produced to serve in WWI, most of which were produced
and utilized in France, Germany, and England (Figure 1-6). Of course, hun-
dreds of pilots were needed to fly these aircraft and numerous landing facilities
were needed to accommodate their operation. Although the U.S. Army had
established three military airfields by the time WWI began, an additional 67
military airfields were established during the war to meet this need. These
airfields provided facilities for fueling, maintenance, and aircraft parking. At
the time, the military envisioned returning these airfields to grassland upon
the war’s conclusion.
By the end of WWI in 1918, the U.S. Army listed no less than 980 official
landing fields. However, many of these fields were unsuitable for regular air-
craft operations. For instance, pilots may have had to avoid flags, sand traps,
and water hazards while landing on a golf course. Additionally, racetracks were
generally sufficient for landing aircraft, but too short to allow for takeoffs.
Some, however, worked quite well—including dry lakebeds in Nevada or long
stretches of country roads. During this time, “aerial garages” were being built
to accommodate aircraft storage and maintenance needs. These forerunners
to contemporary hangars and maintenance shops were oftentimes built out of
whatever materials were on hand, including the packing crates used for new
aircraft delivery (Mola, n.d.).
Figure 1-6.
Aviation in use during
World War I.
(©iStock.com/igs942)
CHAPTER 1 Historical Overview 15
Post World War I
Upon the conclusion of WWI, there were a large number of aircraft and
skilled pilots that desired to utilize their talents. Conveniently, in 1918, the
U.S. Congress appropriated $100,000 for the first regularly scheduled airmail
service. This route, between Washington, DC, and New York, was to be flown
roundtrip once daily by U.S. Army Service pilots (Figure 1-7). Major Reuben
H. Fleet was picked by Army Colonel E.A. Deeds to manage the first regular
airmail flights. Although Assistant Postmaster General Otto Praeger and Fleet
disagreed about landing fields, pilots, and the date airmail service would begin,
the inaugural airmail flight occurred on schedule on May 15, 1918.
Interestingly, the two pilots selected for these inaugural airmail flights were
not chosen for their experience or abilities; rather, they were the sons of politi-
cally important men. Lt. George Boyle was to fly from the Potomac Park Polo
Grounds in Washington, DC, to a relay handover point in Philadelphia. Simul-
taneously, Lt. James Edgerton was to fly from Hazelhurst Field on Long Island,
New York, to the same relay handover point in Philadelphia. Lt. Boyle’s flight
was a failure. He was inexperienced, encountered low visibility due to thick fog,
flew a poorly equipped airplane in the form of an open cockpit Curtiss Jenny,
and followed the wrong railroad tracks to Philadelphia. He quickly became lost,
flying for only 24 miles before landing
in a field and flipping over. Although he
was not injured, the mail he was carry-
ing (3,300 letters weighing 140 pounds)
had to be offloaded and placed on a train
to Philadelphia. Lt. Edgerton’s flight,
however, was a success, leading the news-
papers to declare this inaugural airmail
service a success (Mola, n.d.).
Two months later, pilot Leon Smith
refused to fly his route of New York to
Washington, DC, due to rain, clouds,
and 200 feet visibility. Praeger ordered him to make the trip regardless of the
weather. Smith and his fellow pilot, E. Hamilton “Ham” Lee refused to fly
in those weather conditions. As a result, they were both fired, which then led
to a strike by all pilots in the airmail system. After three days of talks, it was
agreed that field managers would make a flight check in bad weather. If the
field managers were not pilots, they would sit in the mail bin in front of the
pilot to visually verify the weather. Flights would then continue only if the field
manager gave the go-ahead (U.S. Centennial of Flight Commission, n.d.[c]).
Over the following three months, pilots flying these airmail routes were
heartily challenged. With only a simple magnetic compass and maps with no
elevations or landmarks, these pilots were pressured to maintain a six day per
week schedule regardless of weather. In less than three months, the army had
Figure 1-7.
Early days of airmail
in the United States.
(Wikimedia Commons;
see credit on page 623)
16 AIRPORT MANAGEMENT
made 270 flights and carried 40,500 pounds of mail. Although several pilots
had been injured, none had been killed. However, the Post Office felt that the
army had not sufficiently met the schedule and had been uncooperative. As a
result, the army contract was cancelled and the Post Office began carrying the
mail on August 12, 1918 (Mola, n.d.).
As the airmail system grew, so did the country’s airports. Indeed, many
communities began constructing airports to allow them a connection to the rest
of the world. Early airfields built by the Post Office typically had a 2,000-foot
by 2,000-foot square to allow for takeoffs and landings in any direction. Land-
ing surfaces were generally of gravel or cinders, as they allowed for adequate
drainage. Airfields generally ranged in size from 70 to 100 acres and consisted
of a hangar, storage of gasoline and oil, a wind indicator, a telephone connec-
tion, and a location marker. By the end of 1920, there were 145 airports owned
and operated by municipalities. Clearly, a national network of airports was
being established (Mola, n.d.).
The first permanent, hard-surfaced runway in the United States, at 1,600
feet long, is thought to have been constructed at Newark, New Jersey, in 1928.
Some airports were being developed by airlines. For instance, Pan American
Airways, flying a Miami–Key West–Havana route twice daily, constructed the
first U.S. land-based international airport: Pan American Field.
Yet as airmail began crossing the country successfully in the mid-1920s, the
owners of various railroads expressed their frustration with the government’s
sponsorship of the airmail system. They felt that railroad profits were being
negatively impacted due to the carriage of mail by air. Congressman Clyde
Kelly of Pennsylvania, chairman of the House Post Office Committee, was a
friend of the railroad industry and on February 2, 1925, sponsored H.R. 7064:
the Contract Air Mail Bill, which, upon enactment, became the Contract Air
Mail Act of 1925, also known as the Kelly Act. The act elevated airmail to
another level by allowing the postmaster general to contract for domestic air-
mail service with commercial air carriers. It also set airmail rates and the level
of cash subsidies to be paid to companies that carried the mail. The Act was
successful in expanding airmail service without undue burden on the taxpay-
ers. Routes created as part of the Act were known as Contract Air Mail routes
or CAM routes (see Figure 1-8). Initial routes were flown between cities such
as New York and Boston, Detroit and Cleveland, and Atlanta and Jackson-
ville. Eventually, a transcontinental route was established. In essence, this Act
effectively established the commercial aviation industry. Indeed, several airlines
that existed well into the twentieth century (such as Trans World Airlines,
Northwest Airlines, and United Airlines) were formed during this time (U.S.
Centennial of Flight Commission, n.d.[a]).
To financially support the airmail service, 80 percent of the airmail stamp
revenues received by the Post Office were to be paid to the airmail carriers.
The number of stamps needed depended on the weight of the mail and the
number of zones the mail had to cross.
1
Due to the structure of the system, air-
1
The country had been divided into three air zones on July 1, 1924.
CHAPTER 1 Historical Overview 17
mail operators realized that carrying smaller, but heavier, pieces of mail would
result in greater revenues. Additionally, since they received the same amount
of money regardless of the miles flown within a zone, they preferred shorter
trips. Postmaster General Harry New, in an effort to encourage passenger ser-
vice, encouraged operators to buy larger aircraft and engage the passenger.
2
Beginning in October 1925, New awarded eight airmail routes to seven airmail
carriers.
In these early years of the aviation industry, the industry remained without
regulations and as a result, there were many accidents. To enhance safety and
increase public confidence in the industry, on May 20, 1926, the Air Com-
merce Act of 1926 became law. This new law, considered the “cornerstone of
the Federal Government’s regulation of civil aviation,” was designed to promote
the development, and ensure the stability, of commercial aviation (Preston,
n.d.). To achieve this, the Act created an Aeronautics Branch assigned to the
United States Department of Commerce, and vested that entity with the fun-
damental regulatory powers needed to ensure civil air safety. The Secretary of
Commerce was responsible for fostering air commerce, issuing and enforcing
air traffic rules, licensing pilots, certificating aircraft, establishing airways,
operating and maintaining aids to air navigation, and investigating aviation
accidents and incidents. Initially, the Department of Commerce focused on
safety rulemaking and the certification of pilots and aircraft. In time, they
began further developing the nation’s system of lighted airways, as well as
improving and introducing radio beacons. The first head of the Aeronau-
tics Branch was William P. MacCracken, Jr., who, interestingly, received the
nation’s first pilot license on April 6, 1927 (U.S. Centennial of Flight Com-
mission, n.d.[a]; Preston, n.d.).
2
To generate revenues from passenger service rather than the Post Office.
Figure 1-8.
CAM routes.
Portland
Medford
Pasco
Boise
Denver
North Platte
Omaha
Colorado Springs
Pueblo
Minneapolis
St. Paul
New York
Hartford
Boston
St. Louis
Springfield
Peoria
Dallas
Seattle
San Francisco
Fresno
Bakersfield
Concord Field
Sacramento
Reno
Elko
Los Angeles
Las Vegas
Salt Lake City
Rock Springs
Rawlings
Cheyenne
Des Moines
Iowa City
Kansas City
Wichita
Oklahoma City
Fort Worth
St. Joseph
Moline
Chicago
Milwaukee
La Crosse
Detroit
Bryan
Pittsburgh
Bellefonte
New Brunswick
Cleveland
transcontinental route
feeder lines
18 AIRPORT MANAGEMENT
In 1934, an administrative order of the Secretary of Commerce effectively
renamed the Aeronautics Branch as the Bureau of Air Commerce. Two divi-
sions, air navigation and air regulation, made up the Bureau of Air Commerce.
In one of its first acts, the Bureau encouraged a group of airlines to establish the
first air traffic control centers (Newark, New Jersey; Cleveland, Ohio; and Chi-
cago, Illinois) to provide enroute air traffic control. In 1936, the Bureau took
over these centers. These early air traffic controllers used nothing more than
maps, blackboards, and mental calculations to control aircraft (see Figure 1-9).
Although progress was being made in the regulation of air traffic, pilots,
aircraft and airways, this was not the case for airports. In fact, the Air Com-
merce Act specifically prohibited the use of federal funding for building or
maintaining airports. However, the
political landscape changed with the
stock market crash in October 1929. In
response to this period known as the
Great Depression, the federal govern-
ment began a massive spending effort
in civil works projects to stimulate the
economy and employ the unemployed.
As part of this, an exception to the pro-
hibition on federal funding of airport
projects was made. This allowed the
Civil Works Administration (CWA),
and later the Federal Emergency Relief
Administration (FERA), to spend approximately $11.5 million by spring 1934
for 943 airport projects in small cities, resulting in 585 new airports (U.S. Cen-
tennial of Flight Commission, n.d.[b]).
The following year, the WPA was established and funded by Congress
with passage of the Emergency Relief Appropriation Act of 1935 on April 8,
1935. The WPA was the largest of the “New Deal” programs put in place by
President Franklin D. Roosevelt to put millions back to work and help Ameri-
cans weather the Great Depression. The WPA employed millions to carry out
public works projects, including the construction of public buildings, roads,
and airports. Total WPA expenditures from 1936 to 1939 totaled nearly $7
billion, although only about half of the expense for materials and equipment
for an airport project were provided by the federal government. The other half
was contributed by the airport sponsor. During its eight-year history, the WPA
built 651,087 miles of highways, roads, and streets; and constructed, repaired,
or improved 124,031 bridges, 125,110 public buildings, 8,192 parks, and 853
airport landing areas (Indiana University, n.d.).
While the Department of Commerce made great strides in improving avia-
tion safety, several high profile accidents created doubt as to the department’s
oversight responsibilities. In 1931, popular University of Notre Dame football
coach Knute Rockne was killed in an aircraft accident. Four years later, U.S.
Senator Bronson Cutting of New Mexico died in an aircraft accident. Thus,
Figure 1-9.
Early air traffic control
in the U.S.
(FAA)
CHAPTER 1 Historical Overview 19
the public cry for greater federal oversight of aviation safety made this a top
priority for Congress.
As a result, the Civil Aeronautics Act of 1938 was signed into law. With
this act, the civil aviation role of the Department of Commerce was transferred
to a new independent agency—the Civil Aeronautics Authority (CAA). Now
all functions and regulation of air transportation were under one authority.
In addition, the Act created the Administrator of Aviation and the Air Safety
Board. The CAA was mainly focused on the economic regulation of air carri-
ers. In essence, the federal government now had the authority to regulate airline
fares and airline routes. This form of regulation was important for the young
airline industry and would continue for some 40 years, prior to the deregula-
tion of the airline industry. The Administrator of Aviation was responsible for
implementing the safety policies promulgated by the CAA, as well as addressing
the construction, operation, and maintenance of the airway system. The role of
the Air Safety Board was to investigate aviation accidents (Preston, n.d.).
By 1940, it was necessary to reorganize these agencies. Thus, the Reorga-
nization Act was signed by President Franklin Roosevelt. The Act divided the
CAA into two agencies. First, the Civil Aeronautics Board (CAB), which
evolved from the CAA, was responsible for safety rulemaking, accident investi-
gation, and economic regulation of the airlines. Second, the Civil Aeronautics
Administration (CAA) became responsible for air traffic control, airman and
aircraft certification, safety enforcement, and airway development. Although
both organizations were part of the Department of Commerce, the CAB func-
tioned independently of the Secretary.
World War II
Under Section 303 of the Civil Aeronautics Act, federal funding of airport
construction was authorized as “reasonably necessary for use in air commerce
or in the interest of national defense” (U.S. Centennial of Flight Commission,
n.d.[b]). This “interest of national defense” was recognized by the administrator
in September 1939, with the invasion of Poland by Nazi Germany. As a result,
Congress authorized the appropriation of $40 million for the Development of
Landing Areas for National Defense (DLAND). Under this program during
World War II, the Secretaries of War and Commerce and the Secretary of the
Navy authorized expenditures for airports. These airports were constructed if
governmental units provided the land and agreed to operate and maintain the
facility. Additionally, in 1940, due to an expansion of the Army Air Corps,
many more airports were needed than had been appropriated under DLAND.
In the end, a total of 986 airports were built nationwide under DLAND. (U.S.
Centennial of Flight Commission, n.d.[b]; Murdock, 1997).
In total, during the 1939–1945 period of WWII, the federal government,
through the CAA, expended more than $353 million for the construction and
