airport revenue bond Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: airport revenue bond

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airport revenue bond

tax-exempt bond issued by a city, county, state, or airport authority to support the expansion and operations of an airport. The repayment of principal and interest is backed by either the general revenues of airport authority or lease payments generated by one or more airlines using the facilities. In some cases, airport revenue bonds are backed directly by the financial strength of the major airline using the airport, which makes the bonds more risky, because airlines are particularly sensitive to economic cycles and could go out of business in a down cycle.

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