Louis Armstrong New Orleans International Airport

Ratemaking Overview

Settlement & True-Up

Annual settlement framework

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Not available

Terminal Rental Rate

Not available

Common Use & Gate Allocation

Additional Bonds Test

Additional Bonds may be issued if either (a) Historical Test: sum of (I) Net Revenues and (II) 1/12 of Rollover Coverage for any 12 consecutive months out of 18 months preceding issuance equals at least 125% of aggregate Debt Service Fund Requirement on all Outstanding Bonds and proposed Additional Bonds for such 12-month period; OR (b) Prospective Test: Both (I) same historical test as (a) equals at least 125% of aggregate Debt Service Fund Requirement on Outstanding Bonds, AND (II) Net Revenues estimated by Aviation Consultant for 3 consecutive calendar years commencing with year following issuance (or end of construction period) equals at least 125% of Debt Service Fund Requirement for each of such 3 years on all Outstanding Bonds and proposed Additional Bonds. Series 2024C Bonds issued under Prospective Test.

Rate Covenant

The Aviation Board covenants to impose and collect rates, fees, rentals, or other charges sufficient to produce: (1) Revenues in each Fiscal Year at least sufficient to pay (i) arbitrage rebate, (ii) all Operation and Maintenance Expenses, (iii) annual debt service on all Bonds, (iv) deposits to Debt Service Reserve Fund, (v) deposits to Improvement Account if required by Commercial Airline Leases, (vi) deposits to O&M Reserve Fund, (vii) Credit/Liquidity/Reserve Asset provider obligations, (viii) Subordinated Bonds principal and interest; and (2) Net Revenues (together with Rollover Coverage Account balance from prior Fiscal Year if required/permitted by Commercial Airline Leases) at least equal to 125% of Bond Debt Service Requirement for such Fiscal Year. Net PFC Revenues deposited into Transferred PFC Account are included in Net Revenues for Rate Covenant purposes.

Flow of Funds

All Revenues deposited daily into Airport Operating Fund. Monthly deposits (second Business Day before first Wednesday of each month) in priority order: (a) Arbitrage Rebate Fund; (b) Operation and Maintenance Expenses; (c) Debt Service Fund (monthly 1/12 requirement); (d) Debt Service Reserve Fund (replenish to requirement); (e) Improvement Account (if required by Commercial Airline Leases); (f) O&M Reserve Fund (1/12th monthly until full, then 1/36th after withdrawals); (g) Credit/Liquidity/Reserve Asset provider obligations; then General Purposes Account (until General Purposes Account Requirement met); (h) Rollover Coverage Account (if required by Commercial Airline Leases), else to General Purposes Account.