Lanier Aviation LLC v. City of Gainesville, Ga. -- No. 16-05-03 -- No. FAA-2005-22367

Director's Determination (11/25/2005) [Determination No.146].

FAA Docket No:

16-05-03

Author:

Bennett, David L., Director

Author Title:

Director

Complainant(s):

Lanier Aviation LLC

Respondent(s):

Gainesville (Ga.)|Gainesville (Ga.) Airport Authority

Airport(s):

Lee Gilmer Memorial Airport (GVL)

Holding:

Dismissing complaint.

Abstract:

Complainant, Lanier Aviation, LLC, filed a complaint against Respondent, the City of Gainesville, Georgia, sponsor of the Lee Gilmer Memorial Airport, alleging that Respondent violated Grant Assurances 22 and 23 by denying Complainant's proposed self-service retail fuel operation. The Director found Respondent not in violation and dismissed the Complaint.|Economic Nondiscrimination (Grant Assurance 22):|Respondent did not violate Grant Assurance 22 by denying Complainant's proposed self-service retail fuel operation, because aviation fuel retailing is not a Specialized Aviation Services Operation (SASO) as discussed in AC 150/5190-5 and Grant Assurance 22 does not prohibit a sponsor from reasonably bundling services with retail fueling. (p. 12).|Respondent did not violate Grant Assurance 22 by delaying the approval of Complainant's business proposal where Respondent accepted FAA's guidance during the informal complaint process, implemented standards and continued to discuss the site locations with Complainant. (p. 14).|Respondent's Minimum Standards did not unreasonably deny Complainant access in violation of Grant Assurance 22 where Complainant merely argued that they were not consistent with its particular business plan, but did not argue that their level-of-service requirements were excessive to the needs or desires of airport users; were impossible for the Complainant to achieve; or were otherwise in excess of a level-of-service designated by Respondent to achieve a reasonable business goal to develop aeronautical services at the Airport. (p. 15).|"Simply not agreeing to a specific proposal is insufficient evidence of unreasonable denial of access by a sponsor." (p. 17).|Respondent's Minimum Standards were not unjustly discriminatory in violation of Grant Assurance 22 where they applied equally to both FBOs at the Airport. (p. 18).|Exclusive Rights (Grant Assurance 23):|Respondent was not in violation of Grant Assurance 23 for granting a constructive exclusive right where FAA did not make a finding of unjust economic discrimination and the competing FBO's lease contained a clause stating that it did not grant an exclusive right. (p. 18).

Index Terms:

Unjust economic discrimination|Economic Nondiscrimination (Grant Assurance 22)|Exclusive Rights (Grant Assurance 23)|Self-service fueling|Denial of access|Specialized Aviation Services Operation (SASO)|Fixed-base operator (FBO) agreement|Delay by airport sponsor