Which bond type is secured by the income generated from the airport operations?

Revenue bonds are specifically secured by the income generated from the operations of the facility, in this case, an airport. This means that the revenue collected from airport-related activities, such as landing fees, terminal rents, and concessions, is used to pay back the bondholders. This type of bond is advantageous for projects that are expected to generate significant income since the repayment is directly tied to the revenue performance of the airport.

In contrast, general obligation bonds are backed by the full faith and credit of the issuing government entity and are funded through tax revenues, not specific operational income. Industrial Development Bonds are typically used to finance projects for private entities and may not be specifically tied to airport operations. Hybrid bonds combine features of both revenue bonds and general obligation bonds but are not primarily secured by the operational income of a facility like airports. Thus, revenue bonds are the most appropriate choice when it comes to securing funding through operations-derived income.