What Is an Airport Revenue Bond?

A municipal bond in which the operational revenue of an airport is utilized to secure the bond is known as an airport revenue bond. An airport revenue bond will be issued by a municipality or airport authority, with the proceeds going toward upgrading, expanding, or building a new airport. An airport revenue bond is a form of public purpose bond in some situations. If no more than 10% of the bond revenues are utilized for private enterprise, the bonds are typically tax-free.