Sacramento International Airport Competition Plan
The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) adopted on April 5, 2000, requires certain large and medium hub airports to prepare and submit a Competition Plan to the FAA, as well as to provide annual updates to that Competition Plan. The airports that are required under this legislation to submit a Competition Plan ("covered airports") are characterized as having one or two airlines controlling more than 50 percent of annual passenger enplanements. Because United and Southwest Airlines carry in excess of 50 percent of the passengers boarding at Sacramento International Airport, the Airport is obliged to prepare and present a Competition Plan to the Secretary of Transportation as a condition for receiving AIP grants from the Federal Aviation Administration beginning October 1, 2000 or authorization to levy new or increased Passenger Facility Charges (PFCs) after April 5, 2000.
The Competition Plan requirement is a result of Congress determining that "major airports must be available on a reasonable basis to all carriers wishing to serve those airports." The House Report accompanying AIR 21 offered additional insights into the congressional objectives:
The underlying purpose of the competition plan is for the airport to demonstrate how it will provide for new entrant access and expansion by incumbent carriers. By forcing the airport to consider this, it would be more likely to direct its AIP and PFC money to that end.
Therefore, to ensure that certain airports are available on a reasonable basis, Congress has required covered airports to submit competition plans to the Secretary of Transportation.
