Regulatory Alert: FAA Proposes Policy Update on Use of Airport Revenue for Health Screening Measures
November 24, 2020
Late yesterday evening the Federal Aviation Administration (FAA) shared a proposal that would update its existing guidance to permit airports to use their revenue to cover the costs of health screening programs or activities, including COVID-19 testing programs, under certain conditions. This is a shift from FAA's existing policy outlined in a May 29 informational document where the agency indicated that the use of revenue for public health screenings is generally not permitted. FAA's proposed updates appear to be part of a broader effort of the U.S. government, working with industry and international authorities, to provide airports with a framework for health screening programs and to promote a recovery in air travel.
FAA has made available a presentation, which can be viewed here, outlining the proposed update. FAA is seeking input from AAAE and other organizations on the proposed updates on or before December 7. AAAE is requesting that you complete a short survey to provide us with your feedback on this critical issue on or before December 2. This will enable AAAE to properly respond to FAA's proposal ahead of the deadline.
Current Policy on Use of Revenue for Screenings. As airports are aware, federally obligated airports may only use revenue for the capital or operating costs of the airport. Under current policy outlined in a May 29 document, 'Information for Airport Sponsors Considering COVID-19 Restrictions or Accommodations,' FAA clarified that costs associated with the following types of public health activities may be considered legitimate for purposes of airport grant assurances: (1) testing and health screening of airport employees; (2) enhanced cleaning of the terminal and other areas of airport property to minimize transmission of COVID-19; and (3) purchasing incidentals and supplies to carry out these functions. FAA also advised that the use of airport employees for public health screenings is generally not considered a proper use of revenue. A full summary of FAA's May 29 document can be found in our May 29 Regulatory Alert.
Proposal to Permit Revenue Use for Screenings. FAA is proposing to allow airports to use revenue to cover the costs of passenger health screening programs or activities, including COVID-19 testing, subject to the following limitations:
In developing the proposed updates, FAA indicated that in order to support the recovery of airport operations and increase public confidence, airports should be given additional discretion on how to best use airport revenues to support their COVID-19 mitigation and recovery activities. However, the agency emphasized that this discretion would be temporary in nature, voluntary, and designed to jump start recovery efforts.
Ongoing Efforts to Promote Health Screenings. FAA's proposed update appears to be part of a broader governmental and industry-wide effort to promote health screenings as one component of a multi-layered strategy to reduce the spread of COVID-19 during air travel and restore passenger confidence. The U.S. government, international authorities, and industry stakeholders have been collaborating through the International Civil Aviation Organization (ICAO) to develop a harmonized and effective COVID-19 testing framework that countries can adopt to protect passengers and promote a recovery of airport operations.
As part of these efforts, yesterday ICAO released its 'Testing and Cross-border Risk Management Measures Manual,' which provides a recommended framework for implementing a COVID-19 testing program that is designed to reduce the restrictions on air travel and provide an alternative to quarantine requirements that have been imposed in many countries. The U.S. government is expected to update and align its own guidance document, 'Runway to Recovery: The United States Framework for Airlines and Airports to Mitigate the Public Health Risks of Coronavirus,' with the recommendations outlined in ICAO's recently released manual on COVID-19 testing.
In addition, this past weekend the Centers for Disease Control (CDC) issued an updated recommendation for travelers to be tested for COVID-19 before and after travel. Specifically, CDC urged passengers to: (a) get tested for COVID-19 one to three days before a flight, and (b) get tested again three to five days after travel and then stay home for a week.
Late yesterday evening the Federal Aviation Administration (FAA) shared a proposal that would update its existing guidance to permit airports to use their revenue to cover the costs of health screening programs or activities, including COVID-19 testing programs, under certain conditions. This is a shift from FAA's existing policy outlined in a May 29 informational document where the agency indicated that the use of revenue for public health screenings is generally not permitted. FAA's proposed updates appear to be part of a broader effort of the U.S. government, working with industry and international authorities, to provide airports with a framework for health screening programs and to promote a recovery in air travel.
FAA has made available a presentation, which can be viewed here, outlining the proposed update. FAA is seeking input from AAAE and other organizations on the proposed updates on or before December 7. AAAE is requesting that you complete a short survey to provide us with your feedback on this critical issue on or before December 2. This will enable AAAE to properly respond to FAA's proposal ahead of the deadline.
Current Policy on Use of Revenue for Screenings. As airports are aware, federally obligated airports may only use revenue for the capital or operating costs of the airport. Under current policy outlined in a May 29 document, 'Information for Airport Sponsors Considering COVID-19 Restrictions or Accommodations,' FAA clarified that costs associated with the following types of public health activities may be considered legitimate for purposes of airport grant assurances: (1) testing and health screening of airport employees; (2) enhanced cleaning of the terminal and other areas of airport property to minimize transmission of COVID-19; and (3) purchasing incidentals and supplies to carry out these functions. FAA also advised that the use of airport employees for public health screenings is generally not considered a proper use of revenue. A full summary of FAA's May 29 document can be found in our May 29 Regulatory Alert.
Proposal to Permit Revenue Use for Screenings. FAA is proposing to allow airports to use revenue to cover the costs of passenger health screening programs or activities, including COVID-19 testing, subject to the following limitations:
- The program is approved by Federal, State, or local public health departments;
- The activities are conducted by certified health professionals, not airport staff;
- The airport has consulted with the airlines and other tenants;
- The program is regularly evaluated for effectiveness and to ensure it meets Federal and State health guidelines;
- The airport is not a provider of medical services to the public at large;
- The airport considers its financial circumstances, and self-sustainability;
- Expenses must be reasonable and justified and should be consistent with existing airport agreements, leasing policies, and cost allocation and recovery methodologies; and
- Any health screening activities should (a) not negatively affect aviation safety or security; (b) be limited to outgoing passengers; (c) be flexible to account for the evolving nature of the public health emergency; and (d) include provisions to minimize the impact on airport operations and associated costs to all users.
In developing the proposed updates, FAA indicated that in order to support the recovery of airport operations and increase public confidence, airports should be given additional discretion on how to best use airport revenues to support their COVID-19 mitigation and recovery activities. However, the agency emphasized that this discretion would be temporary in nature, voluntary, and designed to jump start recovery efforts.
Ongoing Efforts to Promote Health Screenings. FAA's proposed update appears to be part of a broader governmental and industry-wide effort to promote health screenings as one component of a multi-layered strategy to reduce the spread of COVID-19 during air travel and restore passenger confidence. The U.S. government, international authorities, and industry stakeholders have been collaborating through the International Civil Aviation Organization (ICAO) to develop a harmonized and effective COVID-19 testing framework that countries can adopt to protect passengers and promote a recovery of airport operations.
As part of these efforts, yesterday ICAO released its 'Testing and Cross-border Risk Management Measures Manual,' which provides a recommended framework for implementing a COVID-19 testing program that is designed to reduce the restrictions on air travel and provide an alternative to quarantine requirements that have been imposed in many countries. The U.S. government is expected to update and align its own guidance document, 'Runway to Recovery: The United States Framework for Airlines and Airports to Mitigate the Public Health Risks of Coronavirus,' with the recommendations outlined in ICAO's recently released manual on COVID-19 testing.
In addition, this past weekend the Centers for Disease Control (CDC) issued an updated recommendation for travelers to be tested for COVID-19 before and after travel. Specifically, CDC urged passengers to: (a) get tested for COVID-19 one to three days before a flight, and (b) get tested again three to five days after travel and then stay home for a week.
