Who pays for airports to be built?

State governments may provide funding for aviation as part of their transportation program. State government funding varies greatly across the county depending on how state grants are funded, and what organization distributes the funds. Common entities for aviation funds are departments of transportation and aviation.



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Aeronautical vs commercial revenue The term 'aeronautical revenue' concerns money that airports make directly from airlines and their passengers by charging for the use of the airport space itself. Florida Tech explains that this often makes up more than half of a given airport's revenue, and consists of: Landing fees.

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Airport taxes are charged to fund the construction, maintenance, and administration of airports and airway systems. For this reason, the Internal Revenue Service (IRS) describes these taxes as user fees because the funds generated do not flow back to the general treasury.

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The UK has some of the highest aviation taxes in the world Aviation was the only form of transport that did not pay tax on fuel. APD was designed to change this but as international aviation agreements generally prevented a tax on jet fuel, APD was the method chosen by the government to bring in a new tax.

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Close to 39 percent of these airports (79 airports) have full private ownership, while 61 percent (126 airports) are 'public-private partnerships' involving a combination of private and public shareholders. The report also concludes that private shareholders have a stronger footing at larger airports.

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Airports are locally owned and operated. All but one U.S. commercial airport are owned and operated by public entities, including local, regional or state authorities with the power to issue bonds to finance some of their capital needs.

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AIP grants are just one source of funding that airports use to fund capital investment. Other funding sources include passenger facility charges (PFCs), state and local grants, bond proceeds, airport-generated funds (landing and terminal fees, parking, and concession revenues), and tenant and third-party financing.

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Based on data from the ACI Airport Economics Survey, 97% of airports that have fewer than one million passengers operated at a loss in 2019. The propensity to reach profitability increases with airport size thereafter.

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In the United States, there is only one privately owned and operated airport with scheduled commercial service: Branson, MO, which only has seasonal service to three other destinations.

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Building a runway is even more complex than building a major highway/motorway, which has similar demands in terms of the need for an extremely well engineered surface, high levels of quality control in the materials used, and superior drainage.

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Aena (a state-owned company) is the world's number one airport operator by passenger volume. It also owns two of the 10 main airports in the European Union by passengers: Madrid (5th according to Airports Council International -ACI-)) and Barcelona (9th).

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BAA Limited - British Airports Authority BAA Ltd. is the Spanish-owned operator of five British airports (including Heathrow Airport) and Naples Airport in Italy, making the company one of the largest transport companies in the world.

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The United States was the country with the highest number of airports in the world. In 2022, there were over 13,513 airports in the North American country.

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