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a U.S. Department of Transportation Federal Aviation Administration Advisory Circular Subject: EXCLUSIVE RIGHTS AT Date: January 4, 2007 AC No: 150/5190 -6 FEDERALLY- OBLIGATED AIRPORTS Initiated by: AAS -400 Change: L PURPOSE. This advisory circular (AC) provides basic information pertaining to the Federal Aviation Administration's (FAA's) prohibition on the granting of exclusive rights at federally - obligated airports. The prohibition on the granting of exclusive rights is one of the obligations assumed by the airport sponsors of public airports that have accepted federal assistance, either in the form of grants or property conveyances. This AC provides guidance on how an airport sponsor can comply with the statutory prohibition on the granting of exclusive rights. Section 1 explains FAA's policy on exclusive rights, the statutory basis for the policy, and exceptions to the policy. Section 2 provides an overview of how the FAA ensures compliance with applicable Federal obligations. 2. CANCELLATION. AC 150 /5190 -5, Exclusive Rights and Minimum Standards for Commercial Aeronautical Activities (Change 1), dated June 10, 2002, is cancelled. 3. DEFINITIONS. Definitions for some of the terms used in this AC are found in Appendix 1. 4. BACKGROUND. In accordance with the FAA Airport and Airway Improvement Act of 1982, 49 U.S.C. § 47101, et seq., 49 U.S.C. § 40103(e), and the Airport Improvement Program (AIP) grant assurances, the owner or operator of any airport that has been developed or improved with Federal grant assistance is required to operate the airport for the use and benefit of the public and to make it available for all types, kinds, and classes of aeronautical activity and without granting an exclusive right.' The Surplus Property Act of 1944 (as amended by 49 U.S.C., §§ 47151- 47153) contains parallel obligations under its terms for the conveyance of Federal property for airport purposes. Similar obligations exist for airports that have received non - surplus government property under 49 U.S.C. § 47125 and previous corresponding statutes. Airports that have received real property under AP -4 agreements remain obligated by the exclusive rights prohibition even though all other obligations are considered expired by the FAA.- It is FAA policy that the sponsor of a federally obligated airport will not grant an exclusive right for the use of the airport to any person providing, or intending to provide, aeronautical services or commodities to the public and will not, either directly or indirectly, grant or permit any person, frnn, or corporation, the exclusive right at the airport to conduct aeronautical activities. The exclusive rights ` The legislative background for the exclusive rights provisions discussed in this AC began as early as 1938 and evolved under the Federal -Aid Airport Program (FAAP), Airport Development Aid Program (ADAP), and Airport Improvement Program (AIP) and was also adopted in land conveyances. See FAA Order 5190.6A (Section 2 -18) for additional information.