Airports (Economic Regulation) Act

Link to law: http://www.moj.gov.jm/laws/airports-economic-regulation-act
Published: 2002-12-31

AIRPORTS (ECONOMIC REGULATION)

THE AIRPORTS (ECONOMIC REGULATION) ACT

ARRANGEMENT OF SECTIONS

1. Shorttitle.

PART I. Preliminaw

2. Interpretation.

3. Performance of functions of Authority under this Act.

1. Airports subject to economic regulations.
5. Directions to airport operator in interests of natiod security.

PART II. Airport Improvement Fee
6. Airport improvement fee.

PART III. Airport Charges

7. Requirement for permission to levy charges.

8, Grant or refusal of permission to levy charges.

PART IV. Conditions

9. Conditions.

10. Mandatory conditions for scheduled airports.
1 1. Investigations by Authority.

1 2. Report of Authority.

13. Obligation for secrecy.

14. Discretionary conditions.

15. Provisions supplementary to section 14.

16. Enforcement of conditions other than accounts conditions.
17. Validity and effect of compliance order.
18. Breach of accounts conditions and penalties.

19. Supplementary provisions re conditions.

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2 AIRPORTS (ECONOMIC REGULATION)

PART V. General

20. Regulatory fee.

2 1 . Regulations.

SCHEDULE.

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AIRPORTS (ECONOMIC REGULATION) 3

ACt
6 of 2002.

THE AIRPORTS (ECONOMIC REGULATION) ACT

[ 3Zst December, 2002. ]

1. This Act may be cited as the Airports (Economic Shorttitle.
Regulation) Act.

PART I. Preliminary
2.-( 1) In this Act- Interpre-

taaon.
“aircraft operator” means the person who, at the relevant

“airport charges”, in relation to an airport, means charges

(a) on an aircraft operator in connection with the
landing, parking or taking off of aircraft at the
airport (including charges that are to any
extent determined by reference to the number
of passengers on board the aircraft but
excluding charges payable in respect of air
navigation services);

(b) on aircraft passengers in connection with their
arrival at or departure by air from an airport
but excluding-

time, has the management of the aircraft;

levied-

(i) departure tax;

(ii) the airport improvement fee; and

(iii) any other fee or charge payable in
respect of an airport pursuant to any
enactment for the time being in
force and which forms part of the
general revenues of Jamaica;

“airport improvement fee” means the fee imposed pursuant
to section 6;

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AIRPORTS (ECONOMIC REGULATION)

“Airports Authority” means the Airports Authority of
Jamaica established under the Airports Authority Act;

“appointed day” means the 31st day of December, 2002;

“approved airport operator” means the Airports Authority or
any other person approved by the Minister to operate
an airport or any part thereof under section 4;

“Authority” means the Civil Aviation Authority established
under the Civil Aviation Act;

“international air transport” means air transport between a
place in Jamaica and a place outside Jamaica;

“operational activities” means activities-

(a) that are carried out wholly or mainly for the
benefit of users of an airport; and

(b) the revenues fiom which are wholly or mainly
attributable to payments by those users;

“relevant activities”, in relation to an airport, means the
provision of services or facilities at that airport for the
purposes of-

the landing, parking or taking off of aircraft at the
airport;

the servicing of aircraft at the airport (including
the supply of fbel); or

subject to subsection (2), the handling of
passengers or their baggage or of cargo at all
stages while on the airport premises (including
the transfer of passengers and their baggage or of
cargo to or from an aircraft).

(2) The facilities referred to in paragraph (c) of the
definition of “relevant activities” in subsection (1) do not
include-

~~

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AIRPORTS (ECONOMIC REGULATION) 5

(a) the parking of motor vehicles;

(b) the refieshrnent of passengers; or

(c) the supply of consumer goods or services.

(3) The Minister may, by order, make such
modifications to the definition of “operational activities” as he
thinks necessary or expedient having regard to Jamaica’s
international obligations.

3.-(1) The Authority shall perform its functions under this Perform-
M C O of
hnctions of Act in such manner as it considers best calculated to-
Authoritv

hrther the reasonable interests of users of airports :*his
within Jamaica and to provide economical and
reliable services to those users by establishing a
system for the regulation of airports that takes
account of those interests;

promote the efficient, economic and profitable
operation of airports;

ensure compliance with such international obligations
of Jamaica as may be notified to the Authority by the
Minister;

create an enabling environment for potential investors
in airports;

encourage investment in new facilities at airports in
time to satisfi demands by users of the airports;

impose such restrictions on the airport operator as are
consistent with the performance by the Authority of
its hnctions;
hrther such vital public interests as may be notified
to the Authority by the Minister fiom time to time;
and

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6 AIRPORTS (ECONOMIC REGULATION)

(h) ensure that the airport is operated in accordance with
performance standards and service levels consistent
with best industry practices.

(2) In making a decision in the exercise of its finctions
under this Act, the Authority shall observe reasonable standards
of procedural fairness, act in a timely fashion and observe the
rules of natural justice, and, without prejudice to the generality
of the foregoing, the Authority shall-

(a) consult with persons who are or are likely to be
affected by the decision;

(b) give to such persons an opportunity to make

(c) have regard to the evidence adduced at any such
hearing and to the matters contained in any such
submission;

(6) give reasons in writing for each decision;

c submissions and to be heard by the Authority;

(e) give notice of each decision in the prescribed manner.

Avp-
subject to
economic
EgUldOU
Schedule.

4.-(1) The airports specified in the Schedule shall be subject
to economic regulation under this Act.

(2) The Minister may amend the Schedule by order
subject to flirmative resolution.

(3) Where an airport is the subject of economic regulation
under this Act; the provisions of section 24 of the Airports
Authority Act (Power of Minister to reassign Authority’s
knctions) shall not apply to that airport and the Minister may
authorize the Airports Authority to enter into arrangements for
the airport or parts thereof to be operated by an approved airport
operator on such terms and conditions as the Minister may
approve.

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AIRPORTS (ECONOMC REGULATION) 7

(4) The terms and conditions referred to in subsection (3)
shall not affect the exercise by the Authority of its regulatory
powers under this Act.

( 5 ) WheYe the Minister approves arrangemknts under
subsection (3) he may, by order, provide for the transfer fiom
the Airports Authority to the approved airport operator, of such
of its assets and liabilities and on such terms and conditions as
may be specified in the order.

(6) The Minister may by order designate a person to
operate an airport or parts thereof as an approved airport
operator for the purposes of this Act.

5.-(1) The Minister responsible for national security may Diredims
give to any approved airport operator or operators generally, b-yh
to be necessary or expedient in the interests of national security,
including a direction requiring him (according to the
circumstances of the case) to do, or not to do, a particular thing
specified in the direction, if the Minister considers such a
direction necessary or expedient in the interests of national
security.

such directions of a general character as appear to the Minister b of
Mtid

(2) The Minister may give to-

(a) any approved airport operator such directions of a
general character as appear to the Minister to be
necessq or expedient in the interests of relations with
a count+y or territory outside of Jamaica;

(b) an approved airport operator or any company which is
an associate of that operator, a direction, in relation to
any airport, requiring that operator or company
(according to the circumstances of the case)-

(i) to do, or not to do, in connection with any
operational activities relating to the airport,
a particular thing specified in the direction;
or

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(ii) to ensure that a particular thing specified in
the direction is done or not done in
connection with any such activities,

if the Minister considers such a direction necessary or
expedient in order to discharge or facilitate the
discharge of any international obligation of Jamaica.

(3) In so far as any direction applying to an approved
airport operator by virtue of subsection (1) or (2) conflicts with
the requirements of any other enactment or instrument having
effect in relation to him as an airport operator, those
requirements shall be disregarded; and it is hereby declared that
nothing in this Act shall be construed as prejudicing the
generality of subsection (2).

(4) The Minister shall cause a copy of every direction
given under this section to be laid on the Table of the House of
Representatives and of the Senate, unless he is of the opinion
that disclosure of the direction is against-

(a) the interests of national security or of relations with a

(b) the commercial interests of any person.

country or territory outside of Jamaica; or

( 5 ) A person shall not disclose, or be required by virtue of
an enactment or otherwise to disclose, any direction given or
other thing done by virtue of this section if the Minister has
notified him that, in the Minister’s opinion, disclosure of that
direction or thing is against the interests specified in subsection
(4) (4 and (b).

(6) The Minister responsible for national security or the
Minister, shall, before giving a direction under subsection (1) or
(2)-

(a) to a particular person, consult that person;
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AIRPORTS (ECONOMIC REGULATION) 9

(6) to approved airport operators generally, consult such of
the following persons as he considers appropriate,
namely-

(i) approved airport operators who appear to
him to be likely to be affected by the
directions; and

(ii) organizations representing approved airport
operators.

(7) Any person who contravenes subsection ( 5 ) shall be
guilty of an offence and liable on summary conviction before a
Resident Magistrate, to a fine not exceeding two million dollars
or to imprisonment for a term not exceeding two years.

PART 11. Airport Improvement Fee

6.-(1) The Minister may, by order subject to affirmative ~ i rpoc t
improve- resolution, impose an airport improvement fee to be paid by matfee.

each passenger using an airport for the purpose of travel from
Jamaica.

(2) The airport improvement fee shall not be payable by
such categories of passengers as may be prescribed.

(3) The Minister may, upon application made by or on
behalf of any person who has paid or is liable for payment of the
airport improvement fee under this Act, waive, remit or refbnd
such fee in whole or in part if, in the circumstances of the case,
he deems it expedient to do so and any such waiver, remission
or r e b d may be subject to such special conditions as the
Minister may impose.

(4). &I order under subsection (1) shall provide for the
payment and collection of the airport improvement fee.

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10 AIRPORTS (ECONOMC REGULATION)

Schedule.

Requirement
for permission
to levy
charges.

GTant or
refusal of
permission to
levy charges.

(5) Moneys collected by way of airport improvement fee
shall be paid into a special fund which shall be established for
that purpose and be applied to purposes conducive to capital
improvements at airports specified in the Schedule, on such
terms and conditions as are specified in regulations under
section 2 1.

(6) The Minister shall authorize all expenditure from the
fbnd referred to in subsection (5 ) .

PART IIL Airport Charges
7.-(1) No airport charges shall be levied at a scheduled

(a) they are levied by the approved airport operator; and

(b) the Authority has granted permission for and has

(2) Where any person levies any airport charges in
contravention of subsection (1) he shall not be guilty of an
offence by reason only of that contravention but any airport
charges so levied shall not be recoverable by him and in so far
as they have been paid to him, shall be recoverable from him.

8.-(1) An approved airport operator may apply to the
Authority for permission to levy airport charges.

airport unless-

approved the levying of such charges.

(2) An application under subsection (1) shall-

(a) contain such particulars with respect to such matters as
the Authority may specify in a notice published in the
prescribed manner; and

(b) be accompanied by the prescribed fee.

(3) Where an application is made under subsection (l),
then.as from the date of the application or the date when the
airport becomes a scheduled airport under this Act (whichever is
the later) there shall, by virtue of this subsection, be deemed for
all purposes to be a permission in force under this Act in respect
of any existing airport charges levied at that airport until-

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AIRPORTS (ECONOMC REGULATION) 11

(a) the Authority grants permission in relation to the
application; or

(b) the application is withdrawn or the Authority notifies
the applicant in writing that the permission is refused.

(4) Any permission granted under this section in relation
to an airport shall come into force on the later of the following
dates, namely-

(a) the date on which it is granted; or

(b) the date on which the airport becomes a scheduled

and such permission shall remain in force until it is revoked
pursuant to section 17.

(5) Where the Authority grants permission to an approved
airport operator to levy any airport charges, that approved
airport operator shall, before levying such charges-

(a) consult with such categories of persons as may be

( 6 ) obtain the approval of the Authority for the levying of

(6) In determining whether to approve airport charges the

airport under this Act,

prescribed; and

such charges.

Authority shall take into account-

(U) the objectives referred to in section 3;

(b) the efficiency of the operations;

(c) compliance with quality and performance standards;

(d) performance by the operator in terms of commitments
undertaken under the conditions by which he was
approved as an airport operator;

(e) whether the proposed charges would be reasonable in
light of the services provided;

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12 AIRPORTS (ECONOMIC REGULATION)

v) whether the proposed charges can be justified taking
into account revenues fiom the operations of the
airport fiom all sources including aeronautical and so
much of the non-aeronautical revenues. as the
Authority deems appropriate.

(7) A permission granted under this section shall remain
in force notwithstanding any change in the approved airport
operator.

PART IV. Conditions

Conditions. 9.-( 1) Every approved airport operator to whom permission
is granted under this Act shall comply with such conditions as
are imposed by the Authority in relation to the grant of such
permission.

(2) The Authority shall impose such conditions as it
considers necessary for the proper performance of its fhctions
under this Act.

Mandatory

airports.

10.-(1) Where an airport becomes a scheduled airport for
the purposes of this Act, the. Authority shall, at the time when it
grants permission under section 8(3), impose any conditions as
to the accounts and airport charges in relation to the airport
within the period of nine months beginning with the date on
which the airport becomes a scheduled airport.

conditions for
scheduled

(2) The conditions as to accounts referred to in
subsection (1) are-

(a) such conditions as the Authority considers appropriate
to ensure that the approved airport operator's accounts
disclose-

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AIRPORTS (ECONOMC REGULATION) 13

(i) any subsidy given (whether by the
making of loans on non-commercial terms
or otherwise) by any person or authority
to the approved airport operator in
connection with his business consisting of
the canying on of operational activities
relating to the airport and the identity of
any such person or authority;

(ii) any subsidy so given to that business by
the approved airport operator out of f h d s
attributable to any other activities carried
on by him;

(iii) the approved airport operator’s aggregate
income and expenditure attributable to
the levying by him of airport charges at
the airport;

(iv) the approved airport operator’s aggregate
income and expenditure attributable to
operational activities relating to the
airport (whether carried on by that airport
operator or any other person) being
income and expenditure which are taken
into account by him in fixing airport
charges; and
where the approved airport operator has
for the time being the management of
two or more airports, the airport
operator’s aggregate income and
expenditure attributable to the business
carried on by him at each of those
airports; and

where the approved airport operator’s accounts are not
required to be delivered to the Registrar of Companies
in accordance with the Companies Act, such conditions
as the Authority considers appropriate with respect to
the publication of those accounts.

(v)

14 AIRPORTS (ECONOMIC REGULATION)

(3) The approved airport operator shall deliver to the
Authority copies of accounts delivered to the Registrar of
Companies in accordance with that Act or published in
accordance with subsection (2) (b).

(4) The conditions as to airport charges referred to in
subsection (1) are such conditions as the Authority considers
appropriate for regulating the maximum amounts that may be
levied by the approved airport operator by way of airport
charges at the airport during the period of five years beginning
with such date as may be specified by the Authority when
imposing the conditions, being not later than the end of the
period of twelve months after the date on which the conditions
are imposed.

( 5 ) Subject to subsection (11), the Authority shall-

(a) at the end of the period of five years specified in

(b) at the end of each succeeding period of five years,
make such modifications in the conditions imposed pursuant to
subsection (4) as it thinks appropriate for regulating during the
succeeding period of five years, the maximum amounts that may
be levied by the approved airport operator by way of airport
charges at the airport.

subsection (4); and

(6) Notwithstanding the provisions of subsection (S) , the
period of review referred to therein may be modified to take into
account any agreement between the approved airport operator
and the Airports Authority which has been approved by the
Government and notified to the Civil Aviation Authority by the
Minister.

. (7) Any reference in this Part to the making of
modifications in any such conditions includes a reference to the
making of a modification the effect of which is merely to extend
the application of a particular condition or conditions for a
firther period of five years.

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AZWORTS (ECONOMIC REGULATION) 15

(8) Without prejudice to the generality of subsections (4)
and (9, conditions imposed or modified pursuant to those
subsections may-

(a) provide for-

(i) an overall limit on the amount that may be
levied by the approved airport operator by
way of airport charges at the airport;

(ii) limits to apply to particular categories of
charges; or

(iii) a combination of any such limits;

(b) operate to restrict increases in any such charges or to
require reductions in them, whether by reference to any
formula or otherwise;

(c) provide for different limits to apply in relation to
different periods of time within the period of five years
for which the conditions are in force.

(9) Notwithstanding the foregoing provisions of this
section, if exceptional circumstances arise during a five-year
period which may justify reconsideration of airport charges, the
approved airport operator may submit an application to the
Authority which shall, after conducting an investigation under
section 11, consider that application, taking into account the
provisions under section 8(5) and (6).

(10) The Authority may, if it thinks fit and after
consultation with the approved airport operator concerned,
determine, at any time during the period of five years for which
conditions under subsection (4) are in force, that such period
shall be extended by such period (not exceeding twelve months)
as may be specified; and accordingly, any reference in this Part
to that period shall be construed as a reference to the period as
extended pursuant to this subsection.

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(1 1) Where the Authority makes any such determination
in the case of conditions providing for different limits to apply
in relation to different periods of time, any limit applying to the
last of those periods shall apply also in relation to the additional
period referred to in subsection (10) unless the Authority and the
approved airport operator agree that some other limit shall apply
instead .

subsection (4) or making any modifications pursuant to
subsection (5) in relation to an airport, the Authority shall act in
accordance with section 1 1 unless the Minister otherwise
directs.

\
(1 2) Before imposing any conditions pursuant to ,

Inwstigations 11.-(1) For the purposes of section 10 (12), the Authority

(a) the question as to what are the maximum amounts that
should be capable of being levied by the approved
airport operator by way of airport charges at the
airport during such period of five years as the
Authority may determine; and

shall investigate- bv Authority

(b) the matters specified in subsection (2).

(2) The matters referred to in subsection (1) (b) are-

(a) whether the approved airport operator has, at any time
during the period determined by the Authority,
pursued a course of conduct which might be expected
to operate against the public interest, in relation to-

(i) any airport charges levied by him at the

(ii) any operational activities carried on by
him and relating to the airport; or

(iii) the granting of a right by virtue of which
any such operational activities may be
carried on by any other person; and

airport;

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AIRPORTS (ECONOMIC REGULATION) 17

(b) whether the effects adverse to the public interest
which that course of conduct has had or might be
expected to have, could be remedied or prevented by
the imposition of any conditions in relation to the
airport or by the modification of any conditions
already in force in relation to that airport.

(3) In determining whether any particular matter has
operated or might be expected to operate, against the public
interest, in the case of a matter relating to the granting of a right
by virtue of which any operational activities may be carried on
by any person, the Authority shall have regard to the objective
of hrthering the reasonable interests of persons granted such
rights.

12.-(1) The Authority shall submit to the Minister, a report &portof
Authority. of its findings in respect of an investigation under section 11 and

shall give a copy thereof to the approved airport operator
concerned.

(2) In making a report in relation to an investigation the

(a) shall include definite conclusions on the matters
specified in section 11 (1) together with an account of
the reasons for those conclusions as, in the Authority’s
opinion, is expedient for facilitating proper
understanding of those matters and of the conclusions;

Authority-

(b) where the Authority concludes-

(i) that any course of conduct specified has
operated or might be expected to operate,
against the public interest, it shall specify
the effects adverse to the public interest
which that course of conduct has had or
might be expected to have; and

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18 AIRPORTS (ECONOMIC REGULATION)

(ii) that any such adverse effects could be
remedied or prevented by the imposition of
any conditions in relation to the airport in
question or by the modification of any
existing conditions,

it shall specify the conditions that should be imposed or
modified, as the case may be.

(3) The Authority shall, subject to subsection (4),
publish the report in such manner as the Authority considers
appropriate for bringing the report to the attention of persons
likely to be affected thereby.

(4) If it appears to the Minister that the publication of
any matter in such a report would be against the public interest
or the commercial interest of any person, he may, within twenty-
one days after receiving a copy *of the report, direct the
Authority to exclude that matter from the report as published
under subsection (3).

Obligationfor 13.-(1) Every person having an official duty or being
employed in the administration of this Act shall- secrecy.

(a) regard and deal with as secret and confidential all
information relating to applicants and applications for
permission under this Act and the management and
operation of approved airport operators; and

(b) upon assuming such duty or employment, make and
subscribe a declaration to that effect before a Justice of
the Peace.

(2) Every person referred to in subsection (1) having
possession of or control over any documents, information or
records, who at any time communicates or attempts to
communicate anything contained in such documents or records
or any such idormation to any person-

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AlRPORTS (ECONOMIC REGULATION) 19

(a) other than the Authority, or any other person to whom
he is authorized by the Minister or the Authority to
communicate it;

(b) without the written consent of the applicant or the
approved airport operator; or

(c) otherwise than pursuant to a court order or for the
purposes of this Act,

shall be guilty of an offence and liable on summary conviction
before a Resident Magistrate to a fine not exceeding one million
dollars or to imprisonment for a term not exceeding twelve
months or to both such fine and imprisonment.

(3) Any person to whom information is communicated
pursuant to subsection (2) shall regard and deal with such
information as secret and confidential and shall make and
subscribe a declaration to that effect before a Justice of the
Peace.

(4) A person referred to in subsection (3) who at any
time communicates or attempts to communicate any information
referred to in that subsection to any person otherwise than for
the purposes of this Act, shall be guilty of an offence and liable
on summary conviction before a Resident Magistrate to a fine
not exceeding one million dollars or to imprisonment for a term
not exceeding twelve months or to both such fine and
imprisonment.

14.-(1) Where, at the time of granting a permission under Discretion-
section 8 in respect of an airport or at any other time while such znpdi-
permission is in force, it appears to the Authority that the
approved airport operator is pursuing a course of conduct
specified in subsection (2), the Authority may, if it thinks fit,
impose in relation to the airport such conditions as it considers
appropriate for the purpose of remedying or preventing what it
considers are the adverse effects of that course of conduct.

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20 AIRPORTS (ECONOMIC REGULATION)

(2) The courses of conduct referred to in subsection (1)
are-

(a) the adoption by the approved airport operator, in
relation to any relevant activities carried on by him at
the airport, of any trade practice or pricing policy
which-

(i) unreasonably discriminates against any
class of users of the airport or any
particular user; or

(ii) unfairly exploits his bargaining position
relative to users of the airport generally;

(b) the adoption by the approved airport operator, in
relation to the granting of rights by virtue of which
relevant activities may be carried on at the airport by
any other person, of any practice which-

(i) unreasonably discriminates against persons
granted any class of such rights or any
particular grantee of such a right or unfairly
exploits his bargaining position relative to
the grantees of such rights generally; or

(ii) unreasonably discriminates against any
class of persons applying for such rights or
any particular applicant, or unreasonably
limits the number of such rights that are
granted in the case of any particular
services or facilities,

or which has resulted in the adoption by any other
person of a practice that does any of those things;

(c) the fixing by the approved airport operator of any
charges levied by him at the airport in relation to any
relevant activities carried on by him there at levels
which-

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AIRPORTS (ECONOMIC REGULATION) 21

(i) are insufficient (after taking into account
such other revenues (if any) as are relevant
to the fixing of such charges) to cover the
costs of providing the services or facilities
to which the charges relate or are, in the
Authority’s opinion, artificially low; and

(ii) materially harm (or are intended to
materially harm) the business carried on by
an approved airport operator at any other
airport.

(3) In subsection (2) (c) (i) the reference to the levels at
which charges are fixed being artificially low is a reference to
such levels being significantly lower than they would otherwise
have been-

(a) by reason of any subsidy as described in section 10 (2)
(a) (i) and (ii); or

(b) where the approved airport operator is a comgany, by
reason of any conduct by the company which, in the
Authority’s opinion, has resulted or is likely to result
in a failure by the company-

(9

(ii)

(iii)

to achieve a reasonable return on the
capital employed by it in w i n g on
operational activities relating to the
airport; or

to distribute to members of the company a
reasonable proportion of the profits
available for distribution; or
to reach a level of borrowing which is
appropriate having regard to its share
capital.

(4) In determining for the purposes of subsection (3) (b)
what is reasonable or appropriate, as the case may be, the
Authority shall-

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22 AIRPORTS (ECONOMIC REGULATION)

(a) disregard the fact that the relevant conduct by the
company was in conformity with any policy for the
time being of a person having control of the company;

(b) have regard to any circumstances which, in its
opinion, would affect any company carrying on the
business of operating the airport as a commercial
undertaking.

(5) Before imposing any conditions under subsection
(l), the Authority shall notify in writing the approved airport
operator concerned of the course of conduct specified in
subsection (2) which it appears to the Authority that he is
pursuing and of the conditions which the Authority intends to
impose.

(6) For the purposes of this section the Authority shall
investigate whether-

(a) any course of conduct referred to in subsection (2) has
operated or might be expected to operate against the
public interest; and

(b) the effects adverse to the public interest which that
course of conduct has had or might be expected to
have, could be remedied or prevented by the
imposition of any conditions in relation to the airport
or by the modification of any existing conditions.

15.-(1) Nothing in section 14 (1) shall be construed as

(a) providing for any such overall limit as is mentioned in
section 10 (8) (a) (i) (limit on airport charges); or

(b) regulating the maximum amount that may be levied by
an approved airport operator by means of any
particular category of charges levied by him at an
airport if the same category of charges is for the time
being subject to any limit or limits imposed pursuant
to section 10 (8) (a) (i) or (iii).

Provisions

authorizing the Authority to impose a condition- supplemen- tary to section
14.

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AIRPORTS (ECONOMIC REGULATION) 23

(2) In determining whether-

(a) an approved airport operator is pursuing a course of

(b) conditions should be imposed by it under section 14 (1)

the Authority shall take into account any advice given by the
Minister for the purposes of this subsection as to practices
currently adopted at airports outside Jamaica.

(3) Where an aircraft operator whose principal place of
business is outside Jamaica makes representations to the
Authority to the effect that the Authority’s powers under section
14 ( I ) appear to be exercisable in relation to an airport on the
ground that the approved airport operator is pursuing a course of
conduct within section 14 (2) (a), the Authority shall notify the
Minister of those representations for the purpose of enabling the
Minister to determine whether to give any advice to the
Authority for the purposes of subsection (2) of this section.

conduct falling within section 14 (2) (a); or

in relation to the airport in question,

16.-(I) Where- Enforce-
ment of

other than
(U) a complaint is made to the Authority that an approved conditions

airport operator is in contravention of any condition
imposed by the Authority in relation to any airport; and conditions.

(i) by any person on whom any airport
charges have been levied by the approved
airport operator at the airport (whether or
not actually paid by the person); or

(ii) by any other approved airport operator who
claims that the business carried on by him
at another airport in Jamaica has been or is
being materially harmed by the alleged
contravention,

the Authority shall investigate that complaint, unless it considers
it to be fiivolous.

(b) such complaint is made-

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24 AIRPORTS (ECONOMIC REGULATION)

(2) Where any such complaint is made to the Authority
by a person not falling within subsection (1) (b), the Authority
may investigate the complaint if it thinks fit.

(3) This section shall not apply to a condition to which
section 18 applies (breach of accounts conditions).

(4) Where, upon an investigation %he Authority is
satisfied that an approved airport operator has contravened the
condition in question the Authority shall-

(a) by order (hereinafter referred to as a compliance
order) provide such measures as it considers
appropriate for the purpose of securing compliance
with that condition and for remedying any loss or
damage or injury suffered by any person in
consequence of the contravention; or

(b) subject to subsection (9, modify the condition in such
manner as it considers appropriate in the
circumstances.

( 5 ) A compliance order under subsection (4) (a)-

(a) shall require the approved airport operator concerned
to do or to refiain from doing, such things as are
specified in the order; and

(b) shall, as respects any such requirement, take effect
upon service of a copy on the approved airport
operator or at such later time as may be specified by
the Authority;

(c) may be revoked by the Authority at any time.
17.-(1) An approved airport operator who is aggrieved by

any compliance order applying to him may, within thirty days of
the service of a copy of the order on him, make an application
to the Court under this section on the ground that the order is not
within the powers of section 16.

Validityand

order

effect of
compliance

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AIRPORTS (ECONOMIC REGULATION) 25

(2) On any such application the Court may quash the
compliance order or any part thereof if the Court is satisfied that
the order is not within the powers conferred by section 16.

(3) No criminal proceedings shall, by virtue of the
making of a compliance order, lie against any person on the
ground that he has committed or aided, abetted, counselled or
procured the commission of any contravention of the order.

(4) The obligation to comply with a compliance order is
a duty owed to any person who may be affected by a
contravention of it and accordingly-

(a) any breach of the duty which causes that person to
sustain loss or damage; and

(b) any act which, by inducing a breach of that duty or
interfering with its performance, causes that person to
sustain loss or damage and that is done wholly or
partly for the purpose of achieving that result,

shall be actionable at the suit or instance of that person.

( 5 ) In any proceedings brought against any person
pursuant to subsection (4) (a), it shall be a defence for him to
prove that he took all reasonable steps and exercised all due
diligence to avoid contravening the order.

(6) Without prejudice to any right which any person may
have by virtue of subsection (4) (a) to bring civil proceedings in
respect of any contravention of a compliance order, the
Authority may enforce compliance with any such order by
proceedings for an injunction or any other appropriate relief

(7) Where it appears to the Authority that an approved
airport operator has contravened a compliance order and is
unlikely to comply with it in the immediate fbture, the Authority
may, instead of proceeding under subsection (6), revoke the
permission for the time being in force under this Part in respect
of the airport to which the contravention relates.

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26 AIRPORTS (ECONOMC REGULATION)

(8) Where any such permission is revoked pursuant to
subsection (7), a permission shall not again be granted under this
Part in respect of the airport in question so long as that person
remains the approved airport operator unless the Authority is
satisfied as mentioned in subsection (9).

(9) Permission may be granted in respect of the airport
referred to in subsection (8) if it appears to the Authority that, if
it .were to impose any condition corresponding to the one the
breach of which gave rise to the making of the compliance
order, the approved airport operator would comply with that
condition.

Breach of

pmalties.

18.-(1) An approved airport operator who fails to comply
with any condition imposed pursuant to section 10 (2) (a) shall
be guilty of an'offence and liable on summary conviction before
a Resident Magistrate to a fine not exceeding two million
dollars.

(2) Where an approved airport operator has failed to
comply with a condition referred to in subsection (l), then,
whether or not proceedings are brought under that subsection in
respect of that contravention, the Authority may impose, in
relation to the airport to which the contravention relates, such
conditions as it considers appropriate with respect to the
publication of any matter to which the contravention relates.

(3) An approved airport operator who fails to comply
with any condition imposed pursuant to subsection (2) before
the end of the period allowed for such compliance, shall be
guilty of an offence and liable on summary conviction before a
Resident Magistrate to a fine not exceeding five million dollars.

(4) In any proceedings for an offence under this section
it shall be a defence for the person charged to show-

accounts
conditions and

(U) in the case of an offence under subsection (l), that he
took all reasonable steps for securing compliance with
the relevant condition; or

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AIRPORTS (ECONOMIC REGULATION) 27

(b) in the case of an offence under subsection (3), that he
took all reasonable steps for securing compliance with
the relevant condition before the end of the period
allowed for such compliance.

19.-(1) Any condition imposed by the Authority under this Suppiemen-
Part otherwise than pursuant to section 10 (4), shall remain in visions
force for a particular period or without limit of time, as the re
Authority may determine, and, in imposing the condition, the
Authority shall specify-

(a) the period that it is to remain in force; or

(b) that the duration thereof is unlimited.
(2) Where the Authority specifies a period under

subsection (1) (a), it may, if it thinks fit, determine that the
period shall be extended by such fbrther period as may be
specified in the determination.

(3) The Authority may at any time revoke or modify any
conditions in force in relation to a scheduled airport pursuant to
section 10 (2).

(4) Where any conditions referred to in section 14 (1)
are in force in relation to a scheduled airport, the Authority may
at any time revoke or modify those conditions.

( 5 ) Before making any modification under subsection (4)
for the more effective securing of the purpose for which the
relevant conditions were imposed, the Authority shall in writing
notify the approved airport concerned of the course of conduct
within section 14 (2) which it appears to the Authority he is
pursuing and of the modifications which it proposes to make.

(6) The Authority shall, in the prescribed manner, notify
the relevant approved airport operator of any condition imposed,
revoked or modified pursuant to this Part or of any extension of
the period of operation of any such condition.

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28 AIRPORTS (ECONOMIC REGULATION)

(7) An approved airport operator shall, on the request of
any person and on payment by that person of such reasonable
fee as the operator may determine, provide that person with a
copy of the permission granted under this Act in respect of the
relevant scheduled airport and of any conditions in force in
relation to that airport.

PART V. General

Regulatory 20.-( 1) The Authority may impose an annual regulatory fee
in accordance with this section in relation to all approved airport
operators.

fee.

(2) The amount of the regulatory fee shall be such sum
as, in the opinion of the Authority, is a reasonable estimate of
the costs which will be incurred by the Authority in relation t a
its functions under this Act (hereinafter in this section referred to
as “regulation costs”).

(3) In determining the amount of the regulatory fee
payable by an airport operator, the Authority shall apportion
regulation costs reasonably and equitably among airport
operators.

(4) Where an airport operator fails to pay the amount of
the regulatory fee within the time required by the Authority for
such payment, the operator shall be liable to such amount by
way of surcharge as the Authority may determine, not exceeding
twenty-five per cent of the amount unpaid.

( 5 ) An appeal shall lie to the Court of Appeal against a
decision of the Authority to impose an annual regulatory fee, on
a ground of appeal which involves a question of law alone.

21.-(1) The Minister may make regulations generally for
giving effed to the provisions and purposes of this Act.

(2) Regulations made under this section shall be subject
to affirmative resolution.

Regulations.

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AIRPORTS (ECONOMC REGULATION)

SCHEDULE

dirports Subject to Economic Regulation

1. The Norman Manley Intemational Auport.
2. The Sangster International Aqort.

29

(Section 4)

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Read Entire Law on www.moj.gov.jm