What is the main concern regarding discounted landing fees and subsidies?

The main concern regarding discounted landing fees and subsidies is that they must comply with grant assurances. Grant assurances are conditions set by the Federal Aviation Administration (FAA) that airports must adhere to in order to receive federal funding. These assurances include requirements related to ensuring fair competition, promoting the use of the airport, and preventing discrimination against any airline.

When an airport provides discounted landing fees or offers subsidies, it can impact the dynamics of the competition among airlines, potentially favoring certain carriers over others. This favoritism can create issues with compliance to grant assurances, which are designed to ensure that all airlines have fair access to airport facilities and maintain a level playing field. Violations of these assurances can lead to penalties, loss of federal funding, or other repercussions for the airport.

Understanding this aspect is crucial for airport management and stakeholders, as compliance with grant assurances is integral to maintaining operational integrity and securing future funding and support from governmental entities.