Electric aircraft are already in the skies, and more are on the way. The airport industry is developing creative solutions to offset some of the charging infrastructure costs and create a new revenue stream from this emerging aviation market.
Cost Effects of Electrification
The costs of providing infrastructure will vary greatly depending on who oversees installation and maintenance of the equipment. Some airports may have tenants who want to do this themselves, while other airports will provide this infrastructure in a bid to attract more electric aircraft. Cost drivers include utility upgrades and extensions, the chargers and monitoring equipment, and ongoing maintenance of the equipment once it is installed.
Revenue Effects of Electrification
The FAA Certified Activity Tracking System (CATS) reported that in 2019 and 2021, fuel sales made up an average of three to four percent of revenue for 520 airports in the United States. This database is skewed towards commercial service airports and this percentage may be higher at general aviation airports. Electric aircraft are expected to make up the smaller part of the fleet and will not replace business jets or airlines any time soon, but it is important to note that as more aircrafts become electrified, revenue from fuel sales will be affected and airports should consider options to offset this loss.
FAA Airport Improvement Program Grant Assurance 25 states that revenue generated on the airport must be reinvested in the airport, and this certainly applies to revenues generated from electric aircraft.
Revenue Generation from the Provision of Electricity
The provision of electricity should be viewed as a service that airports are able to charge for. This works along the same principle as generating revenue from fuel sales: either directly or through a flowage fee. A potential complication to this is that there may be state-specific regulations that limit the re-sale of electricity, so airports need to work with their utility provider and regulator to understand what options are available locally.
If airports can do so, they can charge their users using an hourly rate, measured by software that is part of the charging system. Should state regulations prohibit such a practice, airports may want to consider establishing a fixed fee for tenants that operate and service electric aircraft to help offset the airport’s costs for providing services. This approach will require coordination between the airport, its tenants, and its service providers. Airports may consider adding car charging stations in the parking lot near the aircraft chargers, which can provide an additional revenue stream and a service to the non-flying public.
Revenue Generation from Ancillary Services
Airports can indirectly generate revenue from electric aircraft operators by offering products and services to purchase while they charge their electric aircraft. Much like passengers waiting for a flight, the more time the operators spend at the airport waiting for their aircraft to charge, the more revenue the airport may be able to generate. For this reason, consider charging infrastructure near a restaurant, FBO, or general aviation terminal to make it easy for the operators and passengers to access these services.