17 AAC 42.040. Agreements for air carrier operations at airports

(a) The commissioner may authorize the department to negotiate with one or more air carriers regarding and to enter into agreements for air carrier operations at airports under AS 02.15.090 . The terms of an agreement negotiated under this subsection may, but need not, incorporate fees established under 17 AAC 42.125 or the terms set out in 17 AAC 42.295, 17 AAC 42.410, and 17 AAC 42.420.

(b) The commissioner may establish one or more forms of agreement, including applicable terms and conditions, for air carrier operations at airports for air carriers that do not enter into an agreement negotiated under (a) of this section. The terms and conditions of a form of agreement established under this subsection will take into account any differences in air carrier obligations and commitments from those required under any other form of agreement established under this subsection or under (a) of this section.

(c) An application to enter an agreement established under (a) or (b) of this section must be submitted to the airport manager in writing and must include

(1) the applicable application fee established under 17 AAC 42.125;

(2) identification of the type of agreement for which the applicant is applying;

(3) a description of the applicant's proposed activity or business;

(4) identification of or a description of the type and amount of any terminal space requested;

(5) the term requested;

(6) a list of each model of aircraft the applicant intends to operate on the airport, including the configuration, number of seats, and CMGTW of each model; and

(7) evidence of insurance required under the requested form of agreement.

(d) An application under (c) of this section that does not include a request to lease land or terminal space shall be considered under this section only. A request to lease terminal space under an agreement established under (a) or (b) of this section shall be considered under 17 AAC 42.215. For a lease of land, the applicant must file a separate application for a land lease under 17 AAC 42.210.

(e) The airport manager shall approve an application under this section unless the manager determines that

(1) the application must be denied under 17 AAC 42.010(g) ;

(2) the applicant cannot establish evidence of insurance coverage in the types and amounts required under the requested form of agreement;

(3) the proposed use will interfere with the safety, maintenance, or operation of the airport;

(4) the proposed use is not allowed under applicable law, FAA grant assurances adopted by reference under 17 AAC 42.010(d) , the state's obligations under revenue bonds issued under AS 37.15.410 - 37.15.550, an exclusive right granted by the department to another person, or a covenant running with the airport land;

(5) the proposed use would result in a violation of applicable law; or

(6) the proposed use is inconsistent with sound airport planning.

(f) A decision by the airport manager to deny an application under this section must be in writing and state the reasons for the denial.

(g) An air carrier may not assign or transfer an agreement entered into under this section without the prior written consent of the airport manager under 17 AAC 42.275.

(h) An air carrier that is party to an agreement entered into under this section shall pay to the department the applicable fees established under 17 AAC 42.125, except as expressly provided otherwise in the agreement.

(i) If an air carrier that is party to an agreement entered into under this section is not in compliance with that agreement, the airport manager shall enforce or cancel the agreement according to its terms.

(j) The airport manager shall issue any cancellation of an agreement entered into under this section in writing, stating the reasons for the cancellation.

(k) An applicant for or a party to an agreement established under (a) or (b) of this section may protest an airport manager's decision to deny an application or cancel an agreement in accordance with 17 AAC 42.910.

History: Eff. 1/14/2001, Register 157

Authority: AS 02.15.020

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