Airports derive their revenues from a number of sources:
1) landing fees
2) space rental fees from airlines (gates, offices, ticket counter, baggage claim and makeup)
3) concessionaires (minimum amount, plus a percentage of revenues, as well as space)
4) parking lots (if self-operated, all revenues come straight to the airport; if operated under a contract, airport takes minimum amount, plus a percentage)
5) taxis, limos, off airport shuttles (yearly fee)
6) PFC's (used only for capital consruction projects, or possibly for bonds)
7) rental car agencies
8) game room (video games)
10) aircraft parking
11) fuel flowage fees from fueling companies
12) FBO's: space, fuel flowage
13) hangar rentals
14) interest income from bonds, PFC's, etc
Now, how do airports create their yearly budgets?
Refering to the list of revenue sources I detailed above.
The airport derives its anticipated expenses for the year being budgeted. These expenses include, but not limited to:
1) operation and maintenance (very wide ranging)
2) capital improvements (can be exceedingly variable)
4) debt service on bonds
5) depreciation of facilities
Those expenses are then totalled up. Then we do the anticipated revenue side. We figure out all anticipated revenues listed in my previous post EXCEPT landing fees. That amount is then totalled up, and the remaining difference between anticipated revenues and expenses is made up via the landing fee.
Now, depending on if the airport winds up with a surplus or a deficit, that amount will be made up (either as a credit to the tenant/airline, or as an extra charge the following year).
We can get really technical by getting into different types of rate making methodologies, such as compensatory, or residual, etc. but that's another topic.
I hope that helps with your understanding of how airports make their money. Sometimes it not as easy as "1, 2, 3" to increase revenues. It is a process.
Hope this helps. Let me know if you have other questions.
Tom at MSY
"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina