Name a type of airport user agreement.

• A. compensatory cost approach
• B. service-level agreement
• C. lease agreement
• D. vendor contract

Answer: (A)

In airport operations, relationships with users are formalized to ensure costs are recovered and services are provided fairly. The compensatory cost approach focuses on how the airport recovers its costs from a user for the facilities or services they use, outlining what charges apply and how they’re calculated. This makes it a direct method of establishing an agreement where a user pays for the specific costs incurred to support their operations, ensuring transparency and cost recovery for the airport.

A lease agreement, while also a type of arrangement with airport tenants, centers on long‑term occupancy of space rather than the ongoing cost recovery for a broader set of services. A service-level agreement sets performance standards for services supplied to a user but doesn’t inherently define how those services’ costs are calculated and charged. A vendor contract governs the purchase of goods or services, not the broader use of airport facilities or the cost sharing for those facilities.

So, the compensatory cost approach best fits the concept of an airport user agreement because it directly ties compensation to the costs of providing access and services to the user.