Jetlaw's 2023 Insights and 2024 Strategies in Navigating FAA Policy Updates
Aviation law and policy is a very specialized legal practice presenting challenges in a normal year, and 2023 was anything but normal. As we enter 2024, we can reflect on the advice that we provided to airport attorneys and airport managers on various policy changes announced by the FAA last year.
On December 7, 2023, the FAA published the updates to Air Carrier Incentive Program (ACIP). The very next day, the Policy Regarding Processing Land Use Changes on Federally Acquired or Federally Conveyed Airport Land was finalized. Other technical and practical updates occurred throughout the year, including the May update of the Required Federal Contract Provisions.
The new ACIP policy specifies that airlines incentivized to introduce new services to an airport are "temporarily not in a comparable position to airlines with established route services at the same airport." A savvy airport understands that it can, therefore, bargain for different rates and terms. The FAA defined “temporarily not in a comparable position” strictly, limiting the duration of those different terms. However, the FAA left open the term “increased capacity”; this ambiguity permits an airport to have the incentivized airline explain an increase in its proposal.
An airport director and their legal counsel should review the FAA’s ACIP policy findings. The FAA’s observation that incentive programs were tailored to specific airlines is accurate. Typically, airports conduct extensive research to identify destinations appealing to their catchment area. Though targeted incentives could work best, the FAA wants the airport to give notice to other airlines potentially resulting in a competitive program. The other policy findings are “points of emphasis” that can guide the airport to a compliant incentive program.
The land use policy is not limited to its title’s title-sake “federally acquired or conveyed property.” Instead, the policy applies to any land use that impacts the “safe and efficient operation” of the airport. The policy also contains language that may lead to variability among the regions. Early collaboration with your ADO and airport counsel for projects needing land use change is crucial.
Assistance with the three updates in the Required Federal Contract Provisions resulted in the most requests for clarification from in-house airport attorneys and airport staff. As a result of FAA’s requirement that “mandatory” provisions must be adopted verbatim, Jetlaw, LLC developed a turnkey contract review process that provides peace of mind and constant updates for any changes. This process permits the airport staff to complete a project form that is fed to a contract template that automatically selects the correct, up-to-date clauses.
Jetlaw, LLC, is the nation’s leading aviation law firm. Headquartered in Washington, D.C. with offices in Kansas City and Chicago, the firm and its attorneys have won multiple awards for excellence and contributions to the industry. Jetlaw’s team has firsthand experience with airport operations and management and airport law. Trust our FAA airport compliance attorneys to handle a comprehensive range of airport sponsor and tenant matters.
