1. Non-Aeronautical Use of Hangars Update
Dave Cushing
Manager, Los Angeles Airports District Office
Brendan O’Reilly, C.A.E.
Airport Manager, Fullerton Municipal Airport

2. BACKGROUND
Airport Sponsor’s grant assurance obligations require that its aeronautical facilities be used or be available for aeronautical activities.
Grant Assurance 19 – Operation and Maintenance – Sponsor prohibited from permitting any activity that would interfere with use of airport property for airport purposes
Grant Assurance 22 – Economic Nondiscrimination – Sponsor required to make the airport available on reasonable terms and without unjust discrimination for aeronautical activities

3. BACKGROUND Continued
1999 Government Accountability Office (GAO) report to Secretary of Transportation –
General Aviation Airports: Unauthorized Land Use Highlights Need for Improved Oversight and Enforcement
FAA begins conducting land use inspections at 18 airports each year

4. DISCUSSION
Frequent finding of FAA compliance inspections has been the prevalence of non-aeronautical items stored in aircraft hangars
Many airports built to accommodate aviation demand from the 1990’s.
Economic recessions left many airport sponsors with excess hangar capacity
Grant Assurance 24 – Fee and Rental Structure – Sponsor to maintain a fee and rental structure for facilities and services at the airport which will make the airport as self sustaining as possible under circumstances at that particular airport

5. FAA Responds with Statement of Policy
Aeronautical users requesting use of hangars for aircraft storage shall not be denied access because the airport sponsor is permitting tenants to use the hangars to store vehicles or household items, or to operate non-aviation businesses.
Airport sponsors should receive fair market rental for approved use of airport property for non-aviation purposes
Incidental storage of non-aviation items allowed
If sponsor has excess hangar capacity, FAA may approve interim non-aeronautical storage agreement
Active aircraft assembly considered an aeronautical use.
Using hangar space as a residence not permitted
Sponsors expected to take measures to ensure aeronautical facilities are reserved for aeronautical use
Sponsor may adopt more stringent rules for hangars than what is required by FAA based on safety
Sponsors federal obligations do not protect non-aeronautical users

8. High Vacancies
36 Large Boxes (42’ x 36’) and 7 smaller boxes (42’ x 33’), construction completed in 2008.
Box Hangar Vacancy Rate of % since new.
Revenue loss of $49,000 - $100,000 annually on large boxes and $36,000 on smaller boxes.
Marketing efforts produced no results

10. 2013 Comparisons
Surrounding airport comparisons show that Fullerton is overpriced at $0.55/sq. ft.
Chino Airport - $ 0.30*
Riverside - $ 0.31
Oxnard - $ 0.33
Camarillo - $ 0.36*
Whiteman - $ 0.45*
El Monte - $ 0.51
* average

11. Actions
Request made to LAX-ADO to allow non-aeronautical storage for five year term
Letter of Request
Map showing intended area of non-aeronautical storage
Non-aeronautical lease agreement draft
FAA granted authority to execute non-aeronautical leases on Oct 1, 2014.
No new non-aeronautical tenants were accepted, existing were required to execute a new lease agreement.
New hangar rates of $ 0.45 sq. ft. for aeronautical use and $ 0.65 sq. ft. for non-aeronautical use.

13. Further Information
Documents: Federal Register – Policy on the Non-Aeronautical Use of Airport Hangars, Dated FAA Order B – Airport Compliance Manual, paragraph 22.6 Websites: Contacts: Kevin C. Willis, Manager, Airport Compliance Division Washington, DC (202) Dave Cushing, Manager – LAX - ADO (310) James Lomen, Manager - SFO - ADO (650)