Airport Revenue Bond

AAA

DEFINITION of 'Airport Revenue Bond'

A bond issued by a municipality or airport authority that uses the revenues of the airport facility to back the bond. An airport revenue bond is tax-exempt and is typically issued when a municipality or airport is looking to expand its facilities or pay for upgrades. Because this debt is issued by a municipality or airport authority it is more likely to have a lower interest rate, making the long-term financing costs for the airport lower.

INVESTOPEDIA EXPLAINS 'Airport Revenue Bond'

The tax-exempt status of an airport revenue bond may depend on the airport's mix of public and private use. The more an airport is used for private purposes rather than public, the less likely the bond will offer the full extent of tax-exempt options. The rating of this type of bond by credit analysts is dependent on the amount of traffic the airport receives, how well the airport performs financially and how likely it is that airlines will continue use the facility.

RELATED TERMS
  1. Airport Tax

    A tax levied on passengers for passing through an airport. The ...
  2. Tax-Exempt Sector

    The market niche comprised of investment vehicles exempt from ...
  3. Municipal Bond Fund

    A mutual fund that invests in municipal bonds, or "munis." Municipal ...
  4. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  5. Tax Exempt

    To be free from, or not subject to, taxation by regulators or ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. Find The Right Bond At The Right Time
    Bonds & Fixed Income

    Find The Right Bond At The Right Time

  3. Avoid Tricky Tax Issues On Municipal ...
    Taxes

    Avoid Tricky Tax Issues On Municipal ...

  4. Fatal Seduction Of The Municipal Bond ...
    Mutual Funds & ETFs

    Fatal Seduction Of The Municipal Bond ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center