Airport Business - 31

LANDSIDE
P2P car sharing is the latest to
attempt to carve out a niche in the
lucrative airport transportation
market, facing similar confusion as
Transportation Network Companies
experienced, regarding airport
licensing, concession fees and permits
to operate on airport property.
MARBLE STREET STUDIOS, COURTESY OF HNTB

agreements, while Indiana airport
commissioners were given the power to
regulate P2P at their airports.

Impacts to Cities,
Airports and the Rental
Car Industry
The effects of the rise of P2P car sharing
were first felt in rental car heavy markets,
with initial legal actions filed in 2016
by Miami, San Francisco, Dallas/Fort
Worth, Denver, Tampa and Phoenix
Sky Harbor international airports. As
P2P popularity increases, it continues
to spread to airports and cities across.
P2P car sharing is the latest to
attempt to carve out a niche in the
airport transportation market, facing
similar confusion as Transportation
Network Companies experienced,
regarding airport licensing, concession
fees and permits to operate.
Traditional multi-f leet car rental
operation is a $30-billion-a-year industry.
These companies pay airports concession
licenses, permits and fees in order to
operate at an airport. Passengers walk to
designated parking areas adjacent to the
terminal or their shuttles deliver travelers
offsite where the rental agreement is
signed and the car is checked.

Enterprise is leading the charge with
lawsuits around the country, urging
airports to regulate, license, permit and
levy fees to P2P operators, since they
are competing as traditional rental car
providers. One key difference according
to lawyers for the P2P industry, is the
rental car companies do not pay sales tax
on their fleet while owners participating
in P2P car sharing pay taxes on the
purchase of their vehicle. P2P industry
lawyers argue that in order to "level
the playing field" traditional rental car
companies need to pay sales tax if P2P
is to be regulated and taxed in the same
manner.
Ground transportation and other
services provided on airport property
result in revenue generation and are
regulated by the airport operator.
Ground transportation and rental car
providers at almost all airports pay fees
to be able to do business, either through
a fee associated with each trip into the
airport, a fee for each transaction or a
percent of gross revenues.
Turo and other P2P companies claim
they're simply technology providers who
are connecting people and are exactly
like the arguments initially made by
Uber and Lyft. However, these P2P car
sharing companies are facilitating the
rental of a vehicle and directly competing
with rental car companies, without the
same regulations and requirements that
leads to an unfair advantage.
More and more airport operators
are dealing with this growing trend and
attempting to regulate P2P companies,
institute fees and issue permits to allow
them to conduct commercial activity
on their property, just like traditional
rental car companies and ground
transportation operators already do.
Many cities and counties levy taxes on
rental car operators for doing business
within their jurisdiction and expect
any company conducting business to
pay taxes in exchange for operating a
commercial business.
The airport location of where
the P2P transaction occurs can be
problematic. P2P transactions between
vehicle owners and renters takes place on
the terminal curbsides, in parking lots
or garages, or airport roadways. It can
lead to increased congestion and safety
concerns.

Also, it takes extended time for the
P2P transaction to be completed, which
usually encompasses drivers walking
around the vehicle to look for damage,
discussing the vehicle operations and
other interactions, in addition to loading
luggage into the vehicle.
Sometimes owners also leave vehicles
in parking areas with the keys left on
the outside of the vehicle, taking up
parking spaces that could be used by
other travelers and potentially for a
longer duration. This can impact parking
revenue and can create a target for thieves
within airport parking areas which can
increase other theft at the airport and
compromise traveler safety.
Airports with consolidated rental car
facilities provide direct curbside service
to the rental car companies located in the
facilities in exchange for fees. The rental
car operators choosing not to be located
in the facility are typically required to
pick-up and drop-off passengers at those
facilities rather than on the terminal
curbside in order to ensure they do
not receive any advantages over those
companies paying for direct service.
Airports around the globe remain at
the forefront of traveler ease of passage
and safety, as well as advocating and
embracing innovators and entrepreneurs.
It took lengthy negotiations before
ridesharing or Transportation Network
Companies like Uber and Lyft were
accepted in cities and airports across the
world.
Now is the time to put the
framework in place to plan for and
regulate these P2P services. This includes
issuing permits, determining a fare and
fee structure based on existing rental car
agreements and designating locations
where transactions can take place safely
and without disrupting traffic. Potential
locations that could be considered include
at the designated curbside pick-up areas
used by off-airport rental car operators
or parking area within a consolidated
rental car facility or within an identified
area of an airport parking lot or garage.
Underutilized parking spaces, potentially
at the back of lots/garages or in remote
lots, could be assigned for this use. In
exchange for paying transaction fees,
lockboxes could be provided with codes
for renters to facilitate the transactions
and reduce incidences of theft. 

AUGUST | SEPTEMBER 2020 \ AVIATIONPROS.COM / 31
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Airport Business

Table of Contents for the Digital Edition of Airport Business
