May/June 2023 - 40

LEGAL MATTERS
AUTHOR Paul Grocki
Does a Federally Funded
Airport Sponsor's
Prohibition Against
Conveying Exclusive
Rights Apply to
Nonaeronautical Activity?
AIRPORT TENANTS may generally be aware that a federally
funded airport sponsor has various federal obligations tied
to the airport sponsor's federal funding. One of the most
commonly known federal obligations is the airport sponsor's
prohibition against providing exclusive rights to airport
tenants. It may be lesser known to airport tenants, however,
that the prohibition against exclusive rights is limited to
aeronautical activity. An airport sponsor is within its rights
to grant exclusive rights to airport tenants that involve nonaeronautical
activity. This article examines this exception to
an airport sponsor's exclusive rights prohibition.
Grant Assurances
Applicable to
Airport Sponsors
Under federal grant programs, an
airport sponsor will agree to certain
ABOUT THE AUTHOR
PAUL GROCKI
Paul Grocki is an attorney with the Law
Offices of Paul A. Lange, LLC with offices
in New York and Connecticut. He focuses
his practice primarily on litigation,
insurance and aircraft transactional
matters. Grocki also represents aircraft
owners and fixed-based operators
(FBOs) in connection with negotiation
of management, charter agreements,
various types of ground leases and
airport disputes.
federal obligations in the application
for federal funding. Those federal obligations
get built into the grant offer,
thereby binding the airport sponsor
upon receipt of the federal funds to
develop the airport.
The primary grant program
applicable to airport sponsors is the
Airport Improvement Program (AIP),
pursuant to the Airport and Airway
Improvement Act of 1982 (AAIA), as
amended. See 49 U.S.C. § 47101, et
seq. When an airport sponsor accepts
funds under the AIP, the airport
sponsor agrees to comply with the
Federal Aviation Administration's
(FAA) airport sponsor grant assurances
( " Grant Assurances " ).
40 \ AIRPORT BUSINESS / MAY/JUNE 2023
Grant Assurance 22
- Prohibition Against
Exclusive Rights
The Grant Assurances contain 39
obligations that an airport sponsor is
bound by upon accepting AIP funds.
One of the most well-known and
commonly litigated Grant Assurances
is Grant Assurance 23 - Exclusive
Rights. Grant Assurance 23 provides
in relevant part that an airport sponsor
" will permit no exclusive right for
the use of the airport by any person
providing, or intending to provide,
aeronautical services to the public. "
Grant Assurance 22 is the oldest
federal obligation applicable to federally
funded airports. It applies to
both private and public airport sponsors
who accept federal funds. Airport
sponsors remain obligated to comply
with Grant Assurance 22 in perpetuity
as long as the airport remains
an airport.
The primary intent of Grant
Assurance 22 is to ensure fair competition
and protect against monopolies
at federally obligated airports. Indeed,
FAA Order 5190.6B - FAA Airport
Compliance Manual - Change 2
(the " Airport Compliance Manual " ),
provides that the " FAA has taken
the position that the existence of an
39693222 |IVANBOGUN , 39693222 | IVANBOGUN | DREAMSTIME

May/June 2023

Table of Contents for the Digital Edition of May/June 2023

Inside the Fence
Industry Update
Newark Liberty International Airport’s Very Jersey Terminal A
Practical ICS Integration for Airport Operators
DFW Uses Passenger360 for Multilingual Wayfinding
How to Address Competing Audio Needs at Airports
Address Today’s Traveler Needs: A Holistic Approach to Credential Security
Is Profiling Still a Four-Letter Word
MCO Goes Secure with dormakaba Exit Lane Breach Control Technology
Prepare Your Airport for AAM
Taking a Look at O’Hare 21
TPA Goes Electric with BYD
Airport Guru
Legal Matters
May/June 2023 - 1
May/June 2023 - 2
May/June 2023 - 3
May/June 2023 - 4
May/June 2023 - Inside the Fence
May/June 2023 - Industry Update
May/June 2023 - 7
May/June 2023 - 8
May/June 2023 - 9
May/June 2023 - Newark Liberty International Airport’s Very Jersey Terminal A
May/June 2023 - 11
May/June 2023 - 12
May/June 2023 - 13
May/June 2023 - 14
May/June 2023 - 15
May/June 2023 - Practical ICS Integration for Airport Operators
May/June 2023 - 17
May/June 2023 - DFW Uses Passenger360 for Multilingual Wayfinding
May/June 2023 - 19
May/June 2023 - How to Address Competing Audio Needs at Airports
May/June 2023 - 21
May/June 2023 - Address Today’s Traveler Needs: A Holistic Approach to Credential Security
May/June 2023 - 23
May/June 2023 - Is Profiling Still a Four-Letter Word
May/June 2023 - 25
May/June 2023 - MCO Goes Secure with dormakaba Exit Lane Breach Control Technology
May/June 2023 - Prepare Your Airport for AAM
May/June 2023 - 28
May/June 2023 - 29
May/June 2023 - Taking a Look at O’Hare 21
May/June 2023 - 31
May/June 2023 - 32
May/June 2023 - 33
May/June 2023 - 34
May/June 2023 - 35
May/June 2023 - TPA Goes Electric with BYD
May/June 2023 - 37
May/June 2023 - Airport Guru
May/June 2023 - 39
May/June 2023 - Legal Matters
May/June 2023 - 41
May/June 2023 - 42
May/June 2023 - 43
May/June 2023 - 44
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