Are there restrictions on what limitations a city-managed airport can impose on its usage?

City-managed airports often receive federal funding, which comes with specific obligations and regulations. The correct answer highlights that these airports can impose limitations on usage, provided that they adhere to the terms set forth in the grant agreements they receive. These grants typically require compliance with Federal Aviation Administration (FAA) regulations, ensuring that the airports operate in a manner that promotes safety and accessibility while preventing discrimination and maintaining fair competition among users.

By complying with grant terms, the airport ensures that it is meeting federal expectations, which can include maintaining certain levels of service, ensuring open access to all users, and following operational protocols that protect the public interest. Thus, under these conditions, while there is flexibility for the airport in managing its operations and defining its usage limitations, those limitations must be consistent with imposed federal requirements.

In contrast, the other options misrepresent the complexities of airport management. The idea that there are "no restrictions" or that the limitations are free from oversight is misleading; city-managed airports operate within a framework governed by both federal requirements due to funding and local, state regulations. Furthermore, while notification of the FAA might be necessary for various operational changes, it does not constitute a blanket freedom from restrictions, nor does it replace the need to comply with funding terms.