[Federal Register Volume 65, Number 80 (Tuesday, April 25, 2000)]
[Notices]
[Pages 24251-24252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10219]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. 29088]


Airport Privatization Pilot Program

AGENCY: Federal Aviation Administration (FAA) DOT.

ACTION: Available of record of decision for the participation of 
Stewart International Airport, Newburg, New York, in the airport 
privatization pilot program.

-----------------------------------------------------------------------

SUMMARY: The Federal Aviation Administration (FAA) has approved the 
final application by the State of New York for Stewart International 
Airport (SWF) as one of the five airports eligible to participate in 
the airport privatization pilot program. An exemption is issued from 
certain provisions of 49 U.S.C. section 47134(b).
    49 U.S.C. section 47134 establishes an airport privatization pilot 
program and authorizes the Department of Transportation to grant 
exemptions from certain Federal statutory and regulatory requirements 
for up to five airport privatization projects. The application 
procedures require the FAA to approve the final application and issue 
an exemption under 49 U.S.C. section 47134 after the execution of all 
documents necessary to fulfill the requirements of section 47134 and 
other laws and regulation within the FAA's jurisdiction.

DATES: The FAA Record of Decision was signed on March 31, 2000. The New 
York State Department of Transportation transferred Stewart 
International Airport to SWF Airport Acquisition, Inc. under a 99 year 
lease agreement on April 1, 2000.

ADDRESSES: The Record of Decision is available for public review in the 
Federal Aviation Administration, Office of Chief Counsel, Attention: 
Rules Docket (AGC-200), Docket No. 29088, 800 Independence Avenue SW., 
Washington, DC 20691.

FOR FURTHER INFORMATION CONTACT: Kevin C. Willis, Compliance Specialist 
(AAS-400), (202-267-8741) Airport Compliance Division, Office of 
Airport Safety and Standards, Federal Aviation Administration, 800 
Independence Ave. SW., Washington, DC 20591.

SUPPLEMENTARY INFORMATION:

Introduction and Background

    Section 149 of the Federal Aviation Administration Authorization 
Act of 1996, Pub. L. No. 104-264 (October 9, 1996) (1996 
Reauthorization Act) added a new section Sec. 47134 to Title 49 of the 
U.S. Code. Section 47134 authorizes the Secretary of Transportation, 
and through delegation, the FAA Administrator, to exempt a sponsor of a 
public use airport that has received Federal assistance from certain 
Federal requirements in connection with the privatization of the 
airport by sale or lease to a private paty. Specifically, the 
Administrator may exempt the sponsor from all or part of the 
requirements to use airport revenues for airport-related purposes (upon 
approval of 65 percent of the air carriers serving the airport and 
having 65 percent of the landed weight), to pay back a portion of 
Federal grants upon the sale of an airport, and to return airport 
property deeded by the Federal Government upon transfer of the airport. 
The Administrator is also authorized to exempt the private purchaser or 
lessee from the requirement to use all airport revenues for airport-
related purposes, to the extent necessary to permit the purchaser or 
lessee to earn compensation from the operations of the airport. (No air 
carrier approval is necessary for the latter exemption.)
    On September 16, 1997, the FAA issued a notice of procedures to be 
used in applications for exemption under the Airport Privatization 
Pilot Program (62 FR 48693). The notice of procedures and its public 
comments are available for review in FAA Rules Docket No. 28895.
    On December 16, 1997, the FAA issued a notice accepting for review 
the Stewart International Airport preliminary application (62 FR 65845, 
Docket Number 29088). This action permitted NYSDOT to select a private 
operator, negotiate an agreement, and submit a final application to the 
FAA for exemption. The filing date of the NYSDOT preliminary 
application was October 23, 1997, the date the FAA received the 
preliminary application. On January 10, 1999, NYSDOT filed its final 
application for the privatization of SWF. The final application 
provides for a 99-year lease agreement between NYSDOT and Stewart 
Airport Acquisition, Inc. (SWFAA) a wholly owned subsidiary of National 
Express Group. In return for the right to lease the airport, National 
Express Group (NEG) and its subsidiary will pay NYSDOT a $35 million 
payment and beginning in the tenth year of the agreement provide annual 
payments totaling five percent of gross airport income. As a part of 
its proposal SWFAA proposes a $48.6 million capital improvement program 
over the initial five-year period with a proposed rate of return 
ranging between 3% and 35% on the private operator's contribution. 
SWFAA will provide marketing support and all management, administrative 
and operational personnel to operate the airport.
    On February 16, 1999, in an effort to clarify certain parts of the 
application, FAA staff requested responses to 5 questions from the 
NYSDOT and to 12 questions from NEG. Ten of the questions posed to the 
private operator required it to utilize confidential business or 
financial information in order to respond. In accordance with the 
airport privatization pilot program application procedures, (62 FR 
48693, 48706, September 16, 1997), NEG requested confidential treatment 
of this information. As a result, the responses to these 10 questions 
were not available for public comment. Copies of the 17 questions and 
the 7 responses available for public view and comment are included in 
Attachment 15 of the sponsor's final application for review.
    After reviewing this information, the FAA determined that the 
application was substantially complete.
    On April 8, 1999, the Federal Aviation Administration published in 
the Federal Register a Notice of Receipt of Final Application of 
Stewart International Airport, Newburgh, New York; Request for Comments 
under the Airport Privatization Pilot Program (64 FR 17208). The notice 
made known the availability of the final application for Stewart 
International Airport for public comment and review. Comments were 
originally requested for submittal by June 7,1 999. The comment period 
was later extended to June 28, 1999, following a public meeting held on 
June 12, 1999, at the request of several members of Congress to allow 
the FAA to receive testimony from the local community and elected 
officials. The FAA also solicited and received comments at the public 
meeting held on June 12, 1999. Verbatim transcripts of the meeting have 
been included in the docket of this proceeding.
    The Agency received 96 comments in response to the notice. The FAA 
response to the comments received is incorporated in the Record of 
Decision.
    On March 30, the FAA signed a Record of Decision approving the 
participation of the airport in the Pilot Program, and issued an 
Airport

[[Page 24252]]

Operating Certificate under 14 CFR part 139 to SWF Airport Acquisition, 
Inc.

    Issued in Washington, DC on April 17, 2000.
David L. Bennett,
Director, Office of Airport Safety and Standards.
[FR Doc. 00-10219 Filed 4-24-00; 8:45 am]
BILLING CODE 4910-13-M