FAA AC 150/5190-7 — Minimum Standards for Commercial Aeronautical Activities
This Advisory Circular provides guidance to airport sponsors on developing minimum standards for commercial aeronautical activities at federally obligated airports. Key points:
- Purpose: Minimum standards establish baseline requirements that an entity must meet to conduct commercial aeronautical activities on a federally obligated airport.
- Applicability: All airports that have received federal grant funds or are included in a Passenger Facility Charge (PFC) program.
- Non-Discrimination: Standards must be applied objectively, reasonably, and uniformly to all similarly situated applicants.
- Reasonableness: Standards must be relevant, attainable, and not exclusionary. They should reflect the actual needs of the airport and community.
- Review Cycle: Standards should be reviewed periodically and updated as airport conditions change.
Grant Assurance 22 — Economic Nondiscrimination
The airport sponsor agrees that it will make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities.
Key Takeaway: You cannot set minimum standards so high that they effectively exclude all potential operators. Standards must be achievable and related to legitimate airport operational needs.
Grant Assurance 23 — Exclusive Rights
The airport sponsor will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees.
Key Takeaway: You generally cannot grant an exclusive right to conduct an aeronautical activity. However, minimum standards can help ensure quality and safety when multiple operators compete.
Common Legal Pitfalls to Avoid
- Unreasonably High Standards: Setting requirements so high they effectively create an exclusive right for the incumbent operator.
- Inconsistent Application: Applying different standards to similarly situated operators (grandfathering without a transition plan).
- Vague Language: Using subjective criteria that allow for arbitrary decision-making.
- No Variance Process: Failing to include a process for operators to request variances or waivers.
- Bundling Requirements: Forcing operators to provide services they do not wish to offer (e.g., requiring fuel sales for all maintenance shops).
- Ignoring Self-Service: Failing to address an aircraft owner's right to self-service (fueling, maintenance) under Grant Assurance 22.
- Stale Standards: Not reviewing and updating standards to reflect current airport and industry conditions.
Recommended Document Structure
- I. Introduction & Purpose
- II. Definitions
- III. General Requirements (applicable to all operators)
- IV. Full-Service Fixed Base Operator (FBO)
- V. Specialized Aviation Service Operators (SASOs) — by category
- VI. Commercial Operations
- VII. Self-Service Activities
- VIII. Insurance Requirements
- IX. Application & Approval Process
- X. Compliance, Enforcement & Variance Procedures
- XI. Amendment & Review Schedule