Charlotte Douglas International Airport

Ratemaking Overview

Settlement & True-Up

Monthly settlement with annual true-up adjustment; airlines billed monthly for landing fees, terminal rent, and use charges with reconciliation at fiscal year end

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Landing fee of $5.50 per 1,000 lbs allocated to aircraft for use of airfield facilities and common use areas

Terminal Rental Rate

Terminal building space rented per net rentable square foot; includes both preferential use and common use terminal facilities

Common Use & Gate Allocation

Additional Bonds Test

Additional Bonds may be issued if either: (1) Net Revenues for most recent audited Fiscal Year (excluding Airport Discretionary Fund transfers) were sufficient to meet Rate Covenant not less than 1.50 times the Long-Term Debt Service Requirement for all outstanding Bonds and Bonds to be issued; or (2)(A) Rate Covenant satisfied for most recent audited Fiscal Year, and (B) Airport Consultant certifies Rate Covenant (excluding Airport Discretionary Fund transfers) will be satisfied for first two full Fiscal Years after Additional Facilities completion (or first two Fiscal Years after issuance if not financing Additional Facilities).

Rate Covenant

The City covenants to fix, charge and collect rates sufficient to produce Revenues in each Fiscal Year at least equal to the sum of deposits required to be made to (1) Operating Fund, (2) Revenue Bond Fund, and (3) all other deposits required by the Bond Order, plus an amount equal to the Coverage Factor (defined as 25% of the sum of amounts required to be deposited from Net Revenues into Revenue Bond Interest Account, Principal Account and Sinking Fund Account for such Fiscal Year).

Flow of Funds

On the 25th of each month, Revenues in Revenue Fund are transferred in the following priority: (1) Operating Fund - 1/12 of Current Expenses per Annual Budget; (2) Interest Account - 1/6 of next maturing interest (after PFC); (3) Principal Account - 1/12 of next maturing principal (after PFC); (4) Sinking Fund Account - 1/12 of next Sinking Fund Requirement (after PFC); (5) Reserve Account - 1/24 of deficiency if valuation change, or 1/12 if withdrawal; (6) Subordinate Indebtedness payments; (7) Operating Fund reserve - 1/12 of deficiency if Operating Fund < 25% of Current Expenses. Excess over Coverage Factor transferred to Airport Discretionary Fund on 25th day of each Fiscal Year.