Airport Business - 31

AIRPORT GURU
a single FBO shall not be construed
as an exclusive right if both of the
following apply:
* It would be unreasonably costly,
burdensome or impractical for
more than one FBO to provide such
services
* If allowing more than one FBO to
provide such services would require
the reduction of space leased pursuant
to an existing agreement between the
single FBO and the airport
The fact that a single business
may provide most or all on-airport
aeronautical services is not, in itself,
evidence of an exclusive rights
violation. What is an exclusive rights
violation is the denial by the airport
sponsor to afford other qualified parties
an opportunity to be an on-airport
aeronautical service provider. While
the airport sponsor may allow qualified
parties to compete for the right to be
an on-airport service provider, it is not
required to accept all qualified parties
without limitation. Also, the fact that
only one entity pursued an opportunity
in a competitive offering would not
subject the airport sponsor to an
exclusive rights violation.However,
the airport sponsor cannot, in any
circumstance, choose to have only one
FBO provide services at the airport as
a matter of convenience.

Single-FBO airport sponsors
face two sources of controversy. First,
they must determine whether or not
a potential competitor is reasonably
qualif ied in terms of safety and
efficiency - which ultimately falls
under the jurisdiction of the FAA.
Second, the airport sponsor may appear
to place unreasonable restrictions on
an entity seeking to compete with an
airport's existing aeronautical service
providers.
Notably, when the owner of a
public-use airport elects to exclusively
provide any or all aeronautical services,
the same rules do not apply. In this
situation, the airport sponsor is simply
required to use its own employees
and resources. This means it cannot
exercise a proprietary exclusive right
to operate the airport's single FBO

While most airport sponsors recognize that
aeronautical services are best provided
by profit-driven private enterprises, there
are situations where the public or private
owner of an airport opts to perform the
aeronautical activity itself in order to
become financially self-sustaining.
NATA

through a management contract.
There may also be situations where an
airport sponsor chooses to perform an
aeronautical activity due to its revenue
potential, such as aircraft fueling.
However, aircraft owners may exercise
their right to install fuel systems, selffuel or obtain fuel at a lower price off
the airport providing they comply with
reasonable regulations and standards.
In such cases, the airport sponsor's
exclusive right may limit its ability to
generate revenue and provide healthy
competition.
When an airport sponsor elects to
provide any or all of the aeronautical
services at an airport, such as a single
FBO, it should adhere to the same
FAA policies imposed upon profitmotivated private enterprises providing
aeronautical services to the public.
Federal Grant Assurance 23 specifically
provides that a federally obligated
airport promote fair competition
for the benefit of aeronautical users.
Anything less not only betrays the
public trust, but threatens the airport's
future economic health. 
According to Federal Grant Assurance 23,
the owner or operator of any airport that
has been developed or improved with
federal grant assistance is required to
operate the airport for the use and benefit
of the public.
NATA

OCTOBER 2020 \ AVIATIONPROS.COM / 31


http://www.AVIATIONPROS.COM

Airport Business

Table of Contents for the Digital Edition of Airport Business

Inside the Fence: A Cold November Rain
Industry Update
Airport 5G Moves form Concept to Reality
Making Strides on Diversity and Inclusion in Aviation
How the Industry is Working to Combat COVID-19
Paving the Airfield
Airport Guru: Clearing the Air About Exclusive Rights at Airports
Legal Matters: Leasing Pitfalls in and Around Airports
The Right Stuff
Layer Surveillance Radar Technology into Physical Security Solutions for Real-Time Detection of Threats at Airport Sites
Product Profile: Go Quiet, Go Smooth, Go Big with Schweiss Hydraulic Doors
Airport Business - 1
Airport Business - 2
Airport Business - 3
Airport Business - 4
Airport Business - 5
Airport Business - Inside the Fence: A Cold November Rain
Airport Business - 7
Airport Business - Industry Update
Airport Business - 9
Airport Business - 10
Airport Business - 11
Airport Business - 12
Airport Business - 13
Airport Business - Airport 5G Moves form Concept to Reality
Airport Business - 15
Airport Business - 16
Airport Business - 17
Airport Business - Making Strides on Diversity and Inclusion in Aviation
Airport Business - 19
Airport Business - How the Industry is Working to Combat COVID-19
Airport Business - 21
Airport Business - 22
Airport Business - 23
Airport Business - Paving the Airfield
Airport Business - 25
Airport Business - 26
Airport Business - 27
Airport Business - 28
Airport Business - 29
Airport Business - Airport Guru: Clearing the Air About Exclusive Rights at Airports
Airport Business - 31
Airport Business - Legal Matters: Leasing Pitfalls in and Around Airports
Airport Business - 33
Airport Business - The Right Stuff
Airport Business - 35
Airport Business - Layer Surveillance Radar Technology into Physical Security Solutions for Real-Time Detection of Threats at Airport Sites
Airport Business - 37
Airport Business - Product Profile: Go Quiet, Go Smooth, Go Big with Schweiss Hydraulic Doors
Airport Business - 39
Airport Business - 40
Airport Business - 41
Airport Business - 42
Airport Business - 43
Airport Business - 44
https://www.nxtbook.com/endeavor/airportbusiness/marchapril2021
https://www.nxtbook.com/endeavor/airportbusiness/januaryfebruary2021
https://www.nxtbook.com/endeavor/airportbusiness/december2020
https://www.nxtbook.com/endeavor/airportbusiness/Airport_Business_November_2020
https://www.nxtbook.com/endeavor/airportbusiness/october2020
https://www.nxtbook.com/endeavor/airportbusiness/augustseptember2020
https://www.nxtbook.com/endeavor/airportbusiness/Airport_Business_June-July_2020
https://www.nxtbook.com/endeavor/airportbusiness/may2020
https://www.nxtbook.com/endeavor/airportbusiness/april2020
https://www.nxtbook.com/endeavor/airportbusiness/Airport_Business_February-March_2020
https://www.nxtbook.com/endeavor/airportbusiness/Airport_Business_December2019-January2020
https://www.nxtbook.com/endeavor/airportbusiness/november2019
https://www.nxtbook.com/endeavor/airportbusiness/october2019
https://www.nxtbook.com/endeavor/airportbusiness/augustseptember2019
https://www.nxtbook.com/endeavor/airportbusiness/Airport_Business_June-July_2019
https://www.nxtbook.com/endeavor/airportbusiness/may2019
https://www.nxtbook.com/endeavor/airportbusiness/april2019
https://www.nxtbook.com/endeavor/airportbusiness/februarymarch2019
https://www.nxtbookmedia.com