metropolitan washington airports authority airport use agreement and premises lease

143 Pages·2012·0.27 MB·English

METROPOLITAN WASHINGTON AIRPORTS
AUTHORITY

AIRPORT USE AGREEMENT
AND
PREMISES LEASE

January 1, 2015
AIRPORT USE AGREEMENT
AND
PREMISES LEASE

TABLE OF CONTENTS

ARTICLE 1. SCOPE OF AGREEMENT; OBLIGATION TO LEASE
PREMISES DIRECTLY FROM THE AUTHORITY............ 1 
1.01 General Rights and Obligations. ................... 1 
1.02 Signatory Airlines. ............................... 1 
1.03 Signatory Status at a Second Airport. ............. 1 
1.04 Obligation to Lease Premises Directly from the
Authority. ........................................ 2 
1.05 Low Volume Airlines. .............................. 2 
1.06 Application of the Agreement to Each Airport. ..... 2 
ARTICLE 2. PERIOD OF AGREEMENT............................. 3 
2.01 Effective Date. ................................... 3 
2.02 Expiration Dates. ................................. 3 
2.03 Prior Agreements and Leases. ...................... 3 
ARTICLE 3. DEFINITIONS AND INTERPRETATION.................. 4 
3.01 Definitions. ...................................... 4 
3.02 Interpretation. .................................. 21 
ARTICLE 4. USE OF THE AIRPORTS............................ 23 
4.01 Airline Rights and Privileges at Both Airports. .. 23 
4.02 Exclusions, Reservations, and Conditions. ........ 27 
4.03 Operating Rights, Exclusions, and Conditions
Applicable Only at National. ..................... 30 
4.04 Operating Rights, Exclusions, and Conditions
Applicable Only at Dulles. ....................... 31 
4.05 Holdroom Concessions. ............................ 31 
ARTICLE 5. AIRLINE AFFILIATES............................. 32 
5.01 Designation of Affiliates and Airline
Obligations. ..................................... 32 
5.02 Rights of Affiliates. ............................ 32 
5.03 Multiple Affiliates. ............................. 33 
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5.04 Termination of Affiliate. ........................ 33 
5.05 Signatory Airline As Affiliate. .................. 34 
ARTICLE 6. LEASE.......................................... 35 
6.01 Lease of Premises and Equipment. ................. 35 
6.02 Changes. ......................................... 35 
6.03 Modification of Premises. ........................ 35 
6.04 Addition of Equipment. ........................... 35 
6.05 Adjustment of Dimensions. ........................ 36 
6.06 Dulles Permits. .................................. 36 
ARTICLE 7. OPERATION AND MAINTENANCE...................... 37 
7.01 Authority Responsibilities. ...................... 37 
7.02 Airline Responsibilities - General. .............. 38 
7.03 Additional Airline Responsibilities at
National. ........................................ 39 
7.04 Additional Airline Responsibilities at Dulles. ... 40 
7.05 Failure to Perform. .............................. 40 
ARTICLE 8. RENTALS, FEES, AND CHARGES..................... 41 
8.01 General. ......................................... 41 
8.02 Landing Fees. .................................... 43 
8.03 Terminal Rentals, Fees, and Charges. ............. 43 
8.04 Ramp Area Charges. ............................... 48 
8.05 Equipment Charges. ............................... 50 
8.06 FIS Charges at Dulles. ........................... 51 
8.07 Passenger Conveyance Charges. .................... 51 
8.08 Other Fees and Charges. .......................... 52 
8.09 Payments. ........................................ 54 
8.10 Information to be Supplied by the Airline. ....... 56 
8.11 Security for Payment. ............................ 57 
8.12 Rentals, Fees, and Charges During Construction
of the Capital Construction Program. ............. 58 
8.13 Passenger Facility Charges. ...................... 59 
8.14 No Other Fees and Charges. ....................... 59 
ARTICLE 9. CHANGES IN RATES FOR RENTALS, FEES, AND
CHARGES........................................ 61 
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9.01 General. ......................................... 61 
9.02 Annual Adjustment. ............................... 62 
9.03 Midyear Adjustment. .............................. 62 
9.04 Other Rate Adjustments. .......................... 64 
9.05 Transfers. ....................................... 65 
9.06 Creation of Funds and Accounts. .................. 70 
9.07 Settlement. ...................................... 72 
ARTICLE 10. CAPITAL IMPROVEMENTS........................... 74 
10.01 General. ......................................... 74 
10.02 Capital Construction Program. .................... 75 
10.03 Capital Construction Program Costs. .............. 78 
10.04 Additional Projects. ............................. 79 
10.05 Amortization. .................................... 82 
10.06 Capital Construction Program Audit. .............. 82 
10.07 Federal and State Grants. ........................ 83 
10.08 Funding Sources and Rate Treatment for
Particular Projects. ............................. 83 
10.09 Improvements by the Airline. ..................... 84 
10.10 Rail System. ..................................... 86 
10.11 Dulles Toll Road. ................................ 87 
ARTICLE 11. DAMAGE AND DESTRUCTION TO PREMISES;
INSURANCE...................................... 88 
11.01 The Authority's Responsibilities. ................ 88 
11.02 The Airline's Insurance Responsibilities. ........ 88 
11.03 Rental Abatement. ................................ 88 
11.04 Responsibilities if Damage or Destruction
Occurs. .......................................... 89 
ARTICLE 12. THIRD PARTY OBLIGATIONS; INDEMNIFICATION AND
INSURANCE...................................... 90 
12.01 Indemnification. ................................. 90 
12.02 Insurance. ....................................... 91 
12.03 Approval of Unrated Insurance Providers. ......... 96 
12.04 Occurrence Policies. ............................. 96 
12.05 Primary Coverage. ................................ 96 
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12.06 Evidence of Insurance. ........................... 96 
12.07 Required Endorsements. ........................... 98 
12.08 Cancellation of Coverage. ........................ 98 
12.09 No Waiver. ....................................... 98 
12.10 Immediate Termination. ........................... 99 
12.11 No Representation of Coverage Adequacy. .......... 99 
12.12 Commercial Umbrella Liability Insurance. ......... 99 
12.13 Adjustment of Insurance Requirements. ............ 99 
ARTICLE 13. AUTHORITY REMEDIES............................ 100 
13.01 Default. ........................................ 100 
13.02 Remedies. ....................................... 102 
13.03 Bankruptcy. ..................................... 104 
13.04 Special Cancellation Right. ..................... 105 
13.05 Elimination of Perimeter Rule. .................. 105 
ARTICLE 14. AIRLINE REMEDIES.............................. 106 
14.01 Default. ........................................ 106 
14.02 Airline's Remedy. ............................... 106 
14.03 Termination. .................................... 106 
ARTICLE 15. SURRENDER OF PREMISES; HOLDING OVER........... 108 
15.01 Surrender and Delivery. ......................... 108 
15.02 Removal of Property. ............................ 108 
15.03 Holding Over. ................................... 109 
ARTICLE 16. TRANSFER OF PREMISES: ASSIGNMENT,
SUBLETTING, AND HANDLING...................... 110 
16.01 General. ........................................ 110 
16.02 Authority Approval of Assignments. .............. 110 
16.03 Authority Approval of Subleases. ................ 111 
16.04 Authority Approval of Handling Agreements. ...... 112 
16.05 Reasons for Disapproval. ........................ 112 
16.06 Method of Obtaining Approval. ................... 112 
16.07 Administrative Charge. .......................... 112 
16.08 Airline to Remain Liable. ....................... 112 
16.09 Authority Determination of Type of Agreement. ... 113 
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ARTICLE 17. AVAILABILITY OF ADEQUATE FACILITIES........... 114 
17.01 General. ........................................ 114 
17.02 Periodic Reallocation of Premises. .............. 114 
17.03 Voluntary Accommodation of a Requesting
Airline. ........................................ 116 
17.04 Accommodation on Exclusive and Joint Use
Premises. ....................................... 116 
17.05 Accommodation on Preferential Use Premises. ..... 117 
17.06 Use of Equipment. ............................... 118 
17.07 Indemnification. ................................ 119 
17.08 Payment by the Requesting Airline. .............. 119 
ARTICLE 18. FEDERAL REQUIREMENTS.......................... 120 
18.01 Relationship to Federal Lease. .................. 120 
18.02 Other Government Agreements. .................... 120 
18.03 Federal Government's Emergency Clause. .......... 120 
18.04 Nondiscrimination. .............................. 120 
18.05 Airport Certification. .......................... 121 
ARTICLE 19. ENVIRONMENTAL STANDARDS....................... 122 
19.01 Restriction on Hazardous Substances. ............ 122 
19.02 Notice to Authority. ............................ 122 
19.03 Compliance and Remediation. ..................... 122 
19.04 Authority Remedies. ............................. 123 
19.05 Environmental Inspection. ....................... 124 
19.06 Termination. .................................... 124 
19.07 Stormwater Permitting. .......................... 124 
19.08 Environmental Indemnity. ........................ 124 
19.09 Survival of Obligations. ........................ 125 
ARTICLE 20. GENERAL PROVISIONS............................ 126 
20.01 Rights Reserved to the Authority. ............... 126 
20.02 Actions by the Authority and the Signatory
Airlines. ....................................... 126 
20.03 Majority-in-Interest Approval Procedures. ....... 126 
20.04 Authority Not Liable. ........................... 126 
20.05 Laws, Regulations, and Compliance. .............. 126 
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20.06 Inspection. ..................................... 127 
20.07 Relationship of the Parties. .................... 128 
20.08 Covenant Not to Grant More Favorable Terms. ..... 128 
20.09 Quiet Enjoyment. ................................ 128 
20.10 No Individual Liability. ........................ 128 
20.11 Waiver of Performance. .......................... 128 
20.12 Force Majeure. .................................. 129 
20.13 Severability. ................................... 129 
20.14 Subordination to Indenture. ..................... 129 
20.15 Prohibition Against Exclusive Rights. ........... 130 
20.16 SEC Rule 15c2-12. ............................... 130 
20.17 Visual Artists Rights Act. ...................... 130 
20.18 Airline Mergers and Consolidations. ............. 130 
20.19 No Third Party Beneficiaries. ................... 131 
20.20 Distribution of Funds Upon Termination. ......... 131 
20.21 Depreciation. ................................... 131 
20.22 Notices. ........................................ 131 
20.23 Governing Law. .................................. 132 
20.24 Venue. .......................................... 132 
20.25 Capacity to Execute. ............................ 132 
20.26 Execution. ...................................... 132 
20.27 Clear Title. .................................... 132 
20.28 Binding Effect. ................................. 132 
20.29 Entirety of Agreement. .......................... 132 

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List of Exhibits and Schedules

National Airport

N-A: National Airport Graphic

N-B-1: National Lease Drawings

N-B-2: National Airline Premises Information Sheets

N-C: National Operations and Maintenance Responsibilities Matrix

N-D: National Listing of Equipment

N-E: National Cost Centers

N-F: National Calculation of Rates for Rentals, Fees and Charges

Calculation Schedules for National
N-F-1: Calculation of Rates for Landing Fees
N-F-2: Calculation of Terminal Rentals – Terminal A
N-F-2(A): Calculation of Common Use Fees and Charges – Terminal A
N-F-3: Calculation of Terminal Rentals – Terminal B/C
N-F-3(A): Calculation of Common Use Fees and Charges – Terminal
B/C
N-F-4: Calculation of Equipment Charges
N-F-5: Calculation of Required Transfers
N-F-6: Space Summary for Current Rate Period

N-G: National Affiliate Operating Agreement

N-H: National Capital Construction Program – Summary

N-I: National Capital Construction Program – Project Information

N-J: National Airline Activity Reporting Forms

Dulles Airport

D-A: Dulles Airport Graphic

D-B-1: Dulles Lease Drawings

D-B-2: Dulles Airline Premises Information Sheets

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D-C: Dulles Operations and Maintenance Responsibilities Matrix

D-D: Dulles Listing of Equipment

D-E: Dulles Cost Centers

D-F: Dulles Calculation of Rates for Rentals, Fees and Charges

Calculation Schedules for Dulles
D-F-1: Calculation of Rates for Landing Fees
D-F-1(A): Calculation of Aircraft Parking Charges
D-F-2: Calculation of Terminal Rentals – Dulles Main
Terminal
D-F-2(A): Calculation of Common Use Charges and Fees – Dulles
Main Terminal
D-F-3: Calculation of Terminal Rentals – Concourse C&D
D-F-3(A): Calculation of Differential Midfield Rates
D-F-4: Calculation of Terminal Rentals – Concourse A
D-F-5: Calculation of Terminal Rentals – Concourse B
D-F-6: Calculation of Terminal Rentals – Z Gates
D-F-7(A): Calculation of Equipment Charges
D-F-7(B): Calculation of Equipment Charges – Operating Costs
for Kiosks 1, 2 and 3, and Baggage Systems
D-F-8(A): Calculation of IAB FIS Charges
D-F-8(B): Calculation of Midfield C FIS Charges
D-F-9: Calculation of Mobile Lounge Usage Fee
D-F-10: Calculation of Required Transfers
D-F-11: Space Summary for Current Rate Period

D-G: Dulles Affiliate Operating Agreement

D-H: Dulles Capital Construction Program – Summary

D-I: Dulles Capital Construction Program – Project Information

D-J: Dulles Airline Activity Reporting Forms

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ARTICLE 1. SCOPE OF AGREEMENT; OBLIGATION TO LEASE PREMISES
DIRECTLY FROM THE AUTHORITY
1.01 General Rights and Obligations. This Agreement grants
to the Airline certain rights to use facilities to conduct its
Air Transportation Business at either Ronald Reagan Washington
National Airport (“National”) or Washington Dulles International
Airport (“Dulles”), or both. This Agreement also provides for
the lease to the Airline of certain Equipment and Premises at
the Airport(s) for the same purpose. In consideration of these
benefits, the Airline agrees to abide by all of the terms and
conditions herein including the obligation to lease a
substantial portion, if not all, of its Premises directly from
the Authority, if such Premises are available, and to pay to the
Authority the rentals, fees, and charges as established in this
Agreement.
1.02 Signatory Airlines.
1.02.1 By executing this Agreement, the Airline
becomes a Signatory Airline at both airports if, and so long as,
(i) the Airline is conducting its Air Transportation Business at
both Airports and (ii) except as provided in Sections 1.03, 1.04
and 1.05, the Airline leases and continues to lease directly
from the Authority for the Period of this Agreement applicable
to National those Premises shown on Exhibit N-B-2 and, for the
Period applicable to Dulles, those Premises shown on Exhibit D-
B-2, as such exhibits may be amended, for the conduct of its Air
Transportation Business at each Airport.
1.02.2 By executing this Agreement, the Airline
becomes a Signatory Airline at only one Airport if, and so long
as, (i) the Airline is conducting its Air Transportation
Business at that Airport and (ii) except as provided in Section
1.03, 1.04 and 1.05, the Airline leases and continues, for the
Period of the Agreement applicable to National, to lease
directly from the Authority those Premises shown on Exhibit
N-B-2 as such exhibit may be amended or, for the Period of the
Agreement applicable to Dulles, those Premises shown on Exhibit
D-B-2, as such exhibit may be amended, for the conduct of its
Air Transportation Business at the Airport.
1.02.3 Nothing in this Section 1.02 shall imply or be
construed to confer upon the Airline a right to discontinue its
lease of Premises.
1.03 Signatory Status at a Second Airport. If the Airline
is conducting its Air Transportation Business as a Signatory
1