Northwest Airlines, Inc. v. Indianapolis Airport Auth. -- No. 16-07-04 -- No. FAA-2007-28786

FAA Docket No:

16-07-04

Author:

Lang, Catherine M., Acting Associate Administrator for Airports

Author Title:

Acting Associate Administrator for Airports

Complainant(s):

Northwest Airlines, Inc.|Delta Airlines, Inc.|AirTran Airways Inc.|Continental Airlines, Inc.|Southwest Airlines, Inc.

Respondent(s):

Indianapolis (Ind.) Airport Authority|BAA Indianapolis LLC

Airport(s):

Indianapolis (Ind.) International Airport (IND)

Holding:

Affirming Director’s Determination of Aug. 18, 2008. See Determination No. 197.

Abstract:

Complainants, Northwest Airlines, Inc. and several other Signatory passenger airlines, alleged that Respondent, the Indianapolis Airport Authority, sponsor of the Indianapolis International Airport in Indiana, violated Grant Assurances 22, 23, 24 and 25 when it amended a lease agreement between itself and FedEx. That amendment, called Amendment No. 3 to the IAA-FedEx Land Lease Agreement, provided for the financing of new cargo facilities, in part by providing FedEx with a Special Facility Rental Credit. The Director dismissed all claims. Respondent appealed dicta in the Director’s Determination that stated although Complainants’ claim was not ripe for review as part of the Part 16 process, Respondent may have nevertheless potentially violated Grant Assurance 22.|The Acting Associate Administrator affirmed the Director’s ability to make that determination, noting that the opinion was qualified to make clear that it was not actually making findings on an unripe claim, and that “[p]articularly in light of their own defense of the fees on the merits, Appellants make no showing that the Director violated federal law in providing guidance to assist them in understanding their federal grant assurance obligations and achieving voluntary compliance.” (p. 16).|The Acting Associate Administrator then affirmed the factual bases of the Director’s Determination, and determined that the Complainant airlines could not be charged in such a manner that they would subsidize other carriers. (p. 29).|Finally, the Acting Associate Administrator determined that it was irrelevant whether BAA-Indianapolis was properly named as a party despite not being an airport sponsor because it in no way affected the Director’s outcome or determination on matters of law. (p. 28).

Index Terms:

Economic Nondiscrimination (Grant Assurance 22)|Exclusive Rights (Grant Assurance 23)|Jurisdiction – Part 16|Rates and charges