Grant Assurance Compliance

Revenue Use: From the onset of the COVID-19 pandemic, Kaplan Kirsch advised numerous airport sponsors regarding their ability to use federally obligated airport revenues for public health and other pandemic-related purposes while complying with their grant obligations. We worked with FAA policymakers and airport-industry groups to develop workable solutions to the novel compliance challenges posed by the pandemic.

Proprietary Rights: We advised a medium-hub airport sponsor on how to structure an agreement with a Fixed Base Operator to maintain the sponsor’s fuel farm without jeopardizing the sponsor’s proprietary exclusive right to operate the fuel farm in compliance with its grant obligations.

Revenue Use: The firm analyzed a city’s proposed municipal budget to ensure that the proposal would not improperly assess the city’s airport for costs of municipal services not properly attributable to the airport under the city’s grant obligations. We counseled city officials on those grant obligations and recommended approaches to ensuring ongoing grant compliance to avoid FAA concerns.

Exclusive Rights: Our team helped a commercial airport in Colorado address exclusive rights issues in a manner that complied with FAA policy and reduced the airport’s exposure to a potential FAA enforcement proceeding.

Low-Cost Carrier Incentives:  We advised a Florida airport on the design of an airline incentive program for a new entrant, ultra-low-cost carrier consistent with FAA policies on airline incentives.

Master Plan Compliance Planning: We assisted several small commercial airports in the Northwest Mountain region in preparing compliance plans in accordance with new FAA policy governing the preparation of master plans. As some of the first airports in the nation to undertake such planning, our clients had to address unforeseen issues in ensuring full disclosure while minimizing liability for identified compliance problems.

Revenue Diversion: The firm assisted a Part 139 airport when it discovered that its use of airport revenue did not comply with FAA policies. We negotiated a voluntary corrective action plan that minimized the airport’s liability and also avoided the cost and burden of a formal FAA investigation or Part 16 proceeding.

Airport Closure: When the City of Cincinnati decided to close Blue Ash Airport and sell the land to the neighboring City of Blue Ash, we worked with the FAA to structure the transaction to avoid revenue diversion issues and allow the City of Cincinnati to use the sale proceeds for urgent city projects.

Skydiving: We have assisted two general aviation airports in California to develop procedures, rules and regulations to allow the introduction of skydiving operations in the face of threats of compliance actions by skydiving operators. We have also handled several Part 16 proceedings involving skydiving.