Which item is another exception to FMV for non-aeronautical rates?

Which item is another exception to FMV for non-aeronautical rates?

• A. Transit
• B. Not-for-Profits
• C. Military
• D. Community Purposes

Answer: (A)

When setting non-aeronautical rates, fair market value is the starting point, but some public-service entities are treated differently to support essential functions. Transit is an example of an exception because airports coordinate with regional transit systems to ensure travelers have affordable, convenient access to the airport and to promote good intermodal mobility. This public-benefit purpose justifies pricing outside FMV in many cases. Not-for-profits, military, and community purposes are also commonly exempt categories, but transit is another recognized exception in this context.

When setting non-aeronautical rates, fair market value is the starting point, but some public-service entities are treated differently to support essential functions. Transit is an example of an exception because airports coordinate with regional transit systems to ensure travelers have affordable, convenient access to the airport and to promote good intermodal mobility. This public-benefit purpose justifies pricing outside FMV in many cases. Not-for-profits, military, and community purposes are also commonly exempt categories, but transit is another recognized exception in this context.