The Airport Improvement Program (AIP) is one of the major sources of airport capital development funding. The other sources include tax-exempt bonds, private investments, passenger facility charges, state and local grants, and airport operating revenue. Each airport will use a different combination of these sources depending on the airport’s financial situation and the type of project being considered. For this assignment you will focus specifically on the development, regulations, and benefits of the Airport Improvement Program.
For this assignment you will be asked to research the Airport Improvement Program (AIP). After you have spent a considerable amount of time researching the AIP, write a short (450-650 word) essay addressing the questions below.
Select a minimum of 4 questions out of the 5 to include in your essay. 1) Where are the funds obligated for the AIP drawn from?
2) In detail describe what AIP funds are used for?
3) For an airport to be eligible for AIP funding, what requirements must be met?
4) Are AIP funds used towards projects that contribute to capital improvement or operation and maintenance expenses? Or both? What’s the difference between these two types of airport expenses?
5) What are the most significant benefits provided by the AIP for airport planning and development?