Research Projects

Standards for Concession Leases

The research would develop a comprehensive guidance on concession agreement standards and terms. The new guidebook would update existing guidance and provides guidance on economic, operational and administrative issues not previously addressed.

Background (Describe the current situation or problem in the industry, and how your idea would address it.)

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.

Objective (What is the desired product or result that will help the airport industry?)

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.

Approach (Describe in general terms the steps you think are needed to achieve the objective.)

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.

Cost Estimate and Backup (Provide a cost estimate and support for how you arrived at the estimate.)

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.

Related Research - List related ACRP and other industry research; describe gaps (see link to Research Roadmaps above), and describe how your idea would address these gaps. This is a critical element of a synthesis topic submission.

ACRP 33

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Idea No. 507