Standards for Concession Leases

ACRP 33, Guidebook for Developing and Managing Airport Contracts, addresses Concession Agreements in Chapter 2. The Guidebook addressed limited elements of the concession agreement, but did not address the myriad of administrative and operational issues now present at airports. The guidebook also does not offer adequate guidance on lease language to respond to catastrophic events.

The rapid spread of the Coronavirus pandemic has devastated international and domestic aviation industries. The impact of the Coronavirus on the US airport non-airline businesses and concession industry in particular has been devastating, and exposed fragile points within traditional airport leasing meodel. Coronavirus related passenger behavior changes have long-term implications on the concession leasing model and indicate a need to study the subtle or dramatic changes that may be needed to standard lease terms and conditions.

The research would result in a new guidebook on concession agreement standards with current lease models, operational standards, pricing models, receiving and delivery models, etc. The guidance would address responding to disruptive events, short and long-term in nature, and assist airports to develop concession agreements of the future.

The research would be completes by a panel of airports and concession partners, working with a research partner.

Airports and concession partners would identify key agreement terms that should be included in a well rounded agreement.

Research would include feedback from small, medium and large airports and small, medium and largeconcession partners.

This project would included extensive research with airports and concession partners to identify best of class lease terms and/or to recommend options for key lease term. Feedback from a legal resource, like ACI-NA Legal Affairs, may be warranted. The cost would likely reach the upper limits at $45,000.

ACRP 33