Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

Section 7.04.B: Year-end settlement provision constitutes a binding ECP. 'For any Fiscal Year in which total Airport System Revenues otherwise received by DOT&PF...fail to satisfy the total Airport System Revenue requirement...DOT&PF will invoice each Signatory Airline, pro rata, for a portion of the shortfall...AIRLINE will pay to DOT&PF, within thirty (30) days of invoicing by DOT&PF, that same percentage of the shortfall in Revenues for that Fiscal Year as the percentage that AIRLINE's total Certificated Maximum Gross Takeoff Weights...bears to the total Certificated Maximum Gross Takeoff Weights of all of Signatory Airline Landings.' This is a binding year-end obligation to make up revenue shortfalls — Settlement-Based ECP. Section 9.11 also permits extraordinary mid-year adjustments to landing fee if DOT&PF projects revenues insufficient to cover requirements.

Landing Fee Methodology

Landing fee calculated to cover total Airport System Revenue requirement minus all other revenues. Airlines collectively guarantee full cost recovery.

Terminal Rental Rate

Terminal Rental Rate per sq ft = (Terminal Cost Center expenses - non-airline revenues) / rented premises square footage. Terminal expenses include direct/indirect M&O, debt service, coverage, fund deposits, plus 50% of FIS shortfall. Non-airline revenue credits include vehicle parking, concessions, passenger-related terminal revenues.

Common Use & Gate Allocation

Additional Bonds Test

Future Parity Bonds may be issued for any purpose permitted by law including refunding. For non-refunding purposes requires: (i) authorizing legislation; (ii) finding by Commissioner that proceeds will be expended on necessary projects authorized by the Act; (iii) State is in compliance with all covenants of General Bond Resolution; (iv) certification from consultant or State that Net Revenues during each of three Fiscal Years are projected to be at least 1.25 times Aggregate Annual Debt Service for all Parity Bonds then Outstanding including Future Parity Bonds, following earlier of (a) completion of projects or (b) date capitalized interest is expended. Certification not required if Future Parity Bonds are for completion purposes not exceeding 15% of principal amount of Parity Bonds theretofore issued for such facilities. For refunding bonds, certificate required if issuance increases Maximum Annual Debt Service (except for refunding within one year of maturity or where sufficient Net Revenues or other moneys are not available).

Rate Covenant

Net Revenues (all Revenues less maintenance and operating costs) in each Fiscal Year at least equal to 1.25 times the sum of Aggregate Annual Debt Service during such year plus any deposits required to be made during such year to the Reserve Account and the Repair and Replacement Reserve Account. Unless declined by written election, Revenues shall not include any federal subsidy legally available to pay principal or interest on Parity Bonds.

Flow of Funds

Maintenance and operating expenses paid from Revenues prior to payment of debt service to the extent permitted under the Act. Revenues pledged first for benefit of Parity Bond owners. From Revenue Fund, application priority: (1) Operating Expenses - pay first; (2) Debt Service - principal and interest; (3) Debt Service Reserve - maintain required level; (4) Coverage/Surplus - build rolling coverage; (5) Renewal & Replacement - capital maintenance fund; (6) Discretionary - airport's use per grant assurances.