FAA hosts meeting on private funding for airport projects

The Federal Aviation Administration held a daylong meeting in Washington on Tuesday on ways private investment could play a larger role in airport development. Airport executives, airlines, operators, investment firms and industry groups took part.

The FAA said the gathering was meant to examine how private capital can add to conventional funding sources, clarify where regulatory and policy lines sit, and address infrastructure needs, with a focus on small and medium-hub airports.

The agenda included talks with airport sponsors, carriers and investors from BlackRock, Carlyle, Apollo and Goldman Sachs, among others. FAA officials were also set to go over existing airport grant programs and the rules governing the use of private money in development.

Federal funding remains a key source of capital for airports. In August the agency awarded close to $615 million under the Airport Improvement Program for runway, taxiway, terminal and other work, spread across more than 100 airports, including many general aviation facilities. Money generated by airports themselves is another significant source.

Tuesday's meeting centred on where private capital might fill gaps alongside those sources, and on whether regulatory or policy changes would be needed to draw in more investment.

The FAA also runs an investment program that lets public airport sponsors sell or lease airports to private operators under certain conditions. Congress lifted caps on the number and types of airports that can take part in 2018.