Rick Aviation, Inc. v. Peninsula Airport Comm’n-167

FAA Docket No:

16-05-18

Lexis Cite:

2007 FAA LEXIS 353

Westlaw Cite:

2007 WL 4854322|2007 WL 4109715

Author:

Shaffer, D. Kirk, Associate Administrator for Airports

Author Title:

Associate Administrator for Airports

Complainant(s):

Rick Aviation, Inc.

Respondent(s):

Peninsula Airport Commission (Va.)

Airport(s):

Newport News/Williamsburg International Airport (PHF)

Holding:

Affirming Director's Determination of May 8, 2007. See Determination No. 175.

Abstract:

In the original complaint, Complainant, Rick Aviation, Inc., alleged that Respondent, Peninsula Airport Commission, sponsor of Newport News/Williamsburg International Airport, unjustly discriminated against it in violation of Grant Assurance 22 by (1) permitting its competitor, Mercury, to operate without complying with Minimum Standards while requiring compliance by Complainant; (2) providing substantially favorable lease terms to Mercury; and (3) taking action to prevent Complainant from providing services that it was permitted to provide under its lease. Complainant also alleged that Respondent's actions resulted in the granting of an exclusive right in violation of Grant Assurance 23.|The Director found no violation and Complainant appealed. The Associate Administrator affirmed all findings of the Director’s Determination and additionally found the following:|Complainant's departure from the Minimum Standards in offering flight training under Part 61 rather than under Part 141 was a de minimus departure and the requirement that flight training be under Part 141 was unreasonable; FAA suggested that Respondent consider revising its Minimum Standards to allow flight training under Part 61 as well as Part 141. (p. 16).|Complainant had ample opportunity to cure its noncompliance with the Minimum Standards even though it was given only six weeks notice that its lease would be terminated where (1) Complainant had from December, 1993 (when its Part 141 certification was placed in inactive status) to September, 2004 (when it finally received its Part 141 certification) to come into compliance with the Minimum Standards; and (2) the lease was a month-to-month lease with no provisions regarding additional notice or cause of action. (pp. 16-17).|FAA did not have jurisdiction to arbitrate the parties' disputes over lease terms. (p. 20).

Index Terms:

Rick Aviation, Inc. v. Peninsula Airport Comm'n -- No. 16-05-18 -- No. FAA-2006-25222