What is an airport revenue bond?
An airport revenue bond is a type of municipal bond in which the operating revenue of an airport is used to secure the bond. A municipality or airport authority will issue an airport revenue bond, with the funds going toward improving, expanding or building a new airport.
What is an example of a revenue bond?
For example, if a revenue bond is issued to build a new toll road, the tolls that are collected from motorists who drive on the road would be used to pay off the bond, after the building expenses have been paid.
What can airport revenues be used for?
Sponsors may use their airport revenue to promote public and industry awareness of the airport’s facilities and services. Airport revenue may be used to promote new air service and competition at the airport, but it may not directly subsidize air carrier operations.
What are special revenue bonds?
“Special revenue bond” means any security or other instrument, under which a payment obligation is created, issued by or on behalf of or payable or guaranteed by a governmental unit to finance a project serving a substantial public purpose, and not payable from any of the sources enumerated in subsection (p) of this …
What is the difference between general obligation and revenue bonds?
General obligation bonds are issued by municipalities are backed by the full faith and credit of the issuer. Revenue bonds are issued by municipalities and fund projects; they are backed by the revenues the projects bring in.
What happens when revenue bonds default?
Unlike a general obligation bond where a municipality backs the bonds with its full faith, revenue collection powers and credit, an issuer who defaults on a revenue bond has no obligation to redeem the bonds at a future date or to liquidate its assets in order to compensate bondholders, according to Public Bonds.
What is the difference between a general obligation bond and a revenue bond?
Are revenue bonds term bonds?
Since revenue bonds are used for long-term projects, the bonds feature long maturities. Generally, the maturity dates of the bonds often range from 20 to 30 years. In addition, they come with a face value. It is a static value of $1,000 or $5,000.
What is airport revenue?
Airport revenue typically comes from rents and leases of property and facilities. Additional revenue may come from user fees (such as facility charges), fuel flowage fees, and sales of goods and services provided by the airport such as food and beverage sales, aeronautical charts and deicing services.
What is revenue diversion?
The use of airport revenue for purposes other than airport capital or operating costs is generally considered “revenue diversion” and is prohibited by federal law.
What is the difference between revenue bonds and general obligation bonds?
How are revenue bonds taxed?
While the interest income is usually tax-exempt for municipal bonds, capital gains realized from selling a bond are subject to federal and state taxes. The short-term or long-term capital gain, or loss, on a bond sale, is the difference between the selling price of the bond and the original purchase price of the bond.
Who are the owners of Bond Aviation Group?
Bond Aviation Group was a British helicopter operator based at Gloucestershire Airport, Staverton. It was purchased by Babcock International in 2014. It incorporated Bond Air Services, now renamed Babcock Mission Critical Services Onshore, and Bond Offshore Helicopters, now renamed Babcock Mission Critical Services Offshore .
What kind of bond is an airport revenue bond?
An airport revenue bond is a type of municipal bond issued by a municipality or airport authority that uses the revenues of the airport facility to back the bond. In some cases, the airport revenue bond is a type of public-purpose bond.
What kind of aircraft does Bond Aviation use?
Bond mainly operated Eurocopter aircraft. A DH.86 Express of Bond Air Services at Liverpool Airport on the day of the Grand National in 1950. Founded in 1961 under the name of Management Aviation Limited, the company first entered the offshore transport industry in 1974, providing helicopters mainly in support of offshore oil and gas operations.
When did Bond Aviation start their helicopter business?
Founded in 1961 under the name of Management Aviation Limited, the company first entered the offshore transport industry in 1974, providing helicopters mainly in support of offshore oil and gas operations. By the late 1990s, Bond operated a fleet of over 200 helicopters. In 1995, the business was merged with Helikopter Service Group of Norway .
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