Aviation business and economics does not normally follow the set profile for large corporations or small businesses. Multiple government and private aviation entities must negotiate agreement terms to mutually benefit the company's and passengers. Terminal facility business expenditures for improvements or new construction requires a large amount of monetary investment from both parties. The large monetary investment is difficult for one entity to provide all the funding responsibly. Government and privatization airport financial decisions and majority control, along with funding cost approaches will be covered and discussed in detail. The current large monetary investment by Delta Airlines at Los Angeles International Airport will be reviewed discussing major benefits. Aviation financial concepts will be highlighted from the chief …show more content…
There are six primary areas where the operating revenue can come from to help sustain the airport. The first is airfield area, consist of airports assisting landing fees, parking fees, and fuel fees to aircraft and airlines (Young & Wells, 2011). Terminal concessions, include all the stores and food concessionaires located inside the terminal facility (Young & Wells, 2011). Landside and ground transportation, consist of parking garages or parking lots, rental car facilities and other properties not directly connected to the terminal (Young & Wells, 2011). Airline leased areas, include storage areas, maintenance facilities, and offices or other properties used by the airlines or supporting companies (Young & Wells, 2011). Other general operating revenue, includes public utilities, contract work, miscellaneous service fees (Young & Wells, 2011). And the last category is non-operating revenues, consisting of earned interest on investments, taxes, subsidies and grants, and leasing property (Young & Wells, 2011). These revenue areas all combine to balance the financial sheet of the