airport revenue bond

Airport Revenue Bond

A municipal bond used to construct or expand an airport. The bond is secured by the revenue the airport receives in the course of its operations, or by the revenue from lease payments made by a particular airline. In either case, the issuing municipality does not back the bond itself. Generally speaking, an airport revenue bond is riskier than other municipal bonds because airports have no power to tax, and thus a sudden fall in revenue may result in an inability to repay the bond.
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airport revenue bond

Tax-exempt debt issued by a city, county, state, or airport authority with debt service guaranteed either by general revenues generated by the airport or by lease payments for facilities used by a particular airline. A second type of airport revenue bond depends on the financial strength of a private company and may be more risky than a bond guaranteed by an airport's general revenues.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The terminal cost $1.5 billion and was financed through LAX's operating revenue, capital improvement programme funds, airline fees and airport revenue bond proceeds.
The project is being funded by LAX's operating revenues, fees from airlines, passenger facility charges and airport revenue bond proceeds.
The remainder of the cost is funded by airport revenue bond proceeds.
Funds for the Bradley West projects will come from LAX's operating revenues, capital improvement programme funds, fees from airlines, passenger facilities charges and airport revenue bond proceeds.
Fitch has set Memphis airport revenue bond rating at 'A+' with a Negative Rating Outlook, while Cleveland airport's revenue bonds hold an 'A-' rating, with a Stable Rating Outlook.
New York: Fitch Ratings has affirmed Lee County, FL's outstanding $254.5 million airport revenue bonds (issued on behalf of Southwest Florida International Airport (SWFIA, or the airport) at 'A'.
TULSA S&P Global Ratings raised Tulsa International Airport's rating on its general airport revenue bonds to "A-" from "BBB+."
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