April 03, 2014

So Your Airport Sponsor Is Trying To Dictate Your Rate Structure For Subtenants & Customers?

By: Paul A. Lange, Esq. and Megan E. Bryson, Esq.

Well, for better or for worse, this is not prohibited. In fact, in some circumstances, your Airport Sponsor may have an affirmative obligation under its grant assurances to do so. That said, here is a brief primer on when and why your Airport Sponsor is allowed to dictate a rate structure for your services and how to protect yourself from unjust or arbitrary efforts to do so.

Let’s review the recent Part 16 decision in Valley Aviation Services, LLP v. City of Glendale, AZ, FAA Docket 16-09-06 (May 24, 2011) to illustrate some of these issues.

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