Since 1970, the Metropolitan Nashville Airport Authority has been charged with generating and managing its own revenue and providing for its long-term financial viability. The Airport Authority is a self-financing entity and uses no local tax dollars.
To generate needed revenue, the Authority collects fees, rents and other charges from users such as airlines, car rental companies and concessionaires. Air travelers also contribute through passenger facility charges and other federal reimbursement programs.
To ensure its financial viability, the Authority developed special long-term lease agreements with the airport’s major airlines, known as signatory agreements. These agreements stipulate that if the airport experiences a revenue shortfall, the airlines will allow the Authority to increase their rates and charges to balance the budget. Signatory carriers also agree to underwrite bonds issued by the Authority to raise money for major improvement and expansion projects. In exchange, the signatory airlines can provide input on major capital improvement program decisions.
The Authority’s financial management system has provided Nashville and Middle Tennessee with one of the country’s most progressive and fiscally sound airports.