Does a Federally Funded Airport Sponsor’s Prohibition Against Conveying Exclusive Rights Apply to Nonaeronautical Activity?

Attorney Paul Grocki‘s article “Does a Federally Funded Airport Sponsor’s Prohibition Against Conveying Exclusive Rights Apply to Nonaeronautical Activity?” was published in the May/June 2023 issue of Airport Business Magazine.

“Airport tenants may generally be aware that a federally funded airport sponsor has various federal obligations tied to the airport sponsor’s federal funding. One of the most commonly known federal obligations is the airport sponsor’s prohibition against providing exclusive rights to airport tenants. It may be the lesser known to airport tenants, however, that the prohibition against exclusive rights is limited to aeronautical activity. An airport sponsor is within its rights to grant exclusive rights to airport tenants that involve nonaeronautical activity. This article examines this exception to an airport sponsor’s exclusive rights prohibition.”

Read the full article here.