Under what circumstance can an airport grant exclusive rights to an aero tenant?

The correct choice highlights that an airport can grant exclusive rights to an aero tenant specifically when it is too costly or impractical for multiple Fixed Base Operators (FBOs) to provide the same services at the facility. This situation often arises in scenarios where the infrastructure required to support multiple operators would lead to excessive duplication of facilities or services, ultimately wasting resources and increasing operational costs for both the airport and prospective operators.

For instance, if an airport has limited space and the establishment of several FBOs to provide the same services—such as fueling, hangaring, or maintenance—would create competition that leads to inefficient operational logistics and higher costs, granting exclusive rights may be seen as a more reasonable solution. This exclusivity can help ensure the service is delivered effectively, while also maintaining overall service quality and safety standards at the airport.

In contexts where service provision must adhere to financial and practical constraints, this rationale aligns with policies that prioritize streamlined operations over competitive fragmentation. The focus is on optimizing available resources and ensuring that both the airport and its tenants can operate in a sustainable manner, ultimately benefiting all parties involved, including the public.