Just to clarify a bit for those who are interested...
Airports typically issue two types of bond debt. The first type is an general obligation of the airport. These are normally issued to finance general airport facilities such as runways, ramps, terminals, baggage systems, etc. The source of repayment for this type of debt is the general revenues of the airport (landing fees, PFCs, etc.) These are obligations of the airport itself.
The second type is Special Facility Revenue bonds. These are normally issued to finance airline specific facilities such as hangars, ops centers, etc. The source of repayment for this debt is lease revenues for the related facilities. The term and structure of the lease typically mirrors the debt service schedule for the debt. The airport's only obligation on these types of deals is to collect the necessary rents and, in the event the facility is vacated, to make their best efforts to release the facility.
Hope this helps a bit.
Airports typically issue two types of bond debt. The first type is an general obligation of the airport. These are normally issued to finance general airport facilities such as runways, ramps, terminals, baggage systems, etc. The source of repayment for this type of debt is the general revenues of the airport (landing fees, PFCs, etc.) These are obligations of the airport itself.
The second type is Special Facility Revenue bonds. These are normally issued to finance airline specific facilities such as hangars, ops centers, etc. The source of repayment for this debt is lease revenues for the related facilities. The term and structure of the lease typically mirrors the debt service schedule for the debt. The airport's only obligation on these types of deals is to collect the necessary rents and, in the event the facility is vacated, to make their best efforts to release the facility.
Hope this helps a bit.
