The Airport Lawyer

I've Moved!

2005-10-19T13:39:00.000-04:00

Nothing in life is constant, but change.

Things having happily settled down to mere pandemonium, I'm pleased as punch to report we're back up and running (that's the royal "we" I suppose) at The Airport Lawyer, and with new/improved functionality to boot (let's hear it for categories!).

We hope to see you there.

Sincerely,

Queen Sheryl

Closing Up Shop

2005-05-18T10:43:00.000-04:00

For various reasons (some personal, some professional), this blog is closing up shop. I will not delete it, but am no longer going to post to it actively. Should anyone be interested in taking it over, please email me at schelinlaw at hotmail dot com, and we will discuss the possibility of taking the appropriate steps to transfer it over to you.

The South Carolina County Attorney's blog will not be affected by this decision.

Regards,

Sheryl

Bankruptcy News

2005-05-10T13:37:00.000-04:00

In Delta's quarterly filing with the SEC, the struggling airline used its "most aggressive language" to date, according to Helane Becker, an analyst with the Benchmark Company. See the MSNBC.com article here. With forecasters predicting a third-quarter bankruptcy filing, Delta can't be having too good a day.

Meanwhile, United is in the unenviable position of arguing in favor of an abandonment of its employee pensions. More here. According to the article, the Chicago federal bankruptcy court had a capacity crowd. United is looking for permission to have the Pension Benefit Guaranty Corp., the government's pension insurer, take control of the defined-benefit plans. This would, according to the article, result in the "largest-ever U.S. pension default" and could trigger a threatened strike by its work force.

Sioux Falls Goes Private

2005-05-02T09:01:00.000-04:00

Count Sioux Falls Regional Airport among the number of 'ports (seven thus far) going private for airport security purposes. Read more about it from the Argus Leader here. FSD's Airport Authority voted last Tuesday to take the security function to the private sector.

A Really Useful Site

2005-04-25T11:24:00.000-04:00

JD Bliss bills itself as "balancing life and the law" - something I have been keenly interested in here recently. I encourage everyone to go check it out.

Helpful Hints for Monitoring Court Dockets For Free

2005-04-15T15:51:00.000-04:00

Free Court Case Docket Monitoring by Paul Bush of Legal Dockets Online, shares some freebie methods of monitoring court cases. Great tips.

The Hits Just Keep On Comin'...

2005-04-14T16:29:00.000-04:00

Airline Industry Losses to Widen In 1st Quarter (washingtonpost.com) - to the tune of - excuse me - two billion dollars?!

Wow. I don't even think I can count that high.

Airline Quality Keeps Going Downhill ...

2005-04-04T10:17:00.000-04:00

... but good news for ASA, Air Tran, Jet Blue, and - surprise! - United, in this report from MSNBC.com.

Keep an eye on this page, which seems to be the home page of the report annually, for an update. Right now, the lead item is the 2004 study with the PDF document itself available online.

Blawggers Get Props

2005-03-31T10:03:00.000-05:00

In the cover story for this month's Washington Lawyer, titled "Do You Blog?" and written by Sarah Kellogg, the world of law-centric blogs, sometimes called "blawgs," is examined and found fruitful. I highly recommend the article for its reasoned approach. Recently, the world of blogging has been taken to task by the so-called Main Stream Media (MSM for short, if you ever happen across that acronym) for being too unaccountable or "biased" - in short, all the things that MSM itself (theoretically) strives not to be. Apples and oranges, I say. Blogs are not journalism, per se (though they can be, and sometimes are). Blogs are merely a tool of publication; to my mind, they are incredibly useful tools for altruism, for knowledge management, for practice, for client relations, for - well, for many purposes, actually.

What motivated this particular blog for Airport Lawyers was, quite frankly, my perception of a lack of unified resources for this unique practice area. Part corporate law, part HR/employment law, part contracts, part government contracts, part regulatory/administrative law, part construction law, part public law - it's a Frankenstein's Monster of the legal world, and there didn't seem to be anyone out there putting it all together and flipping the switch.

News of the Day

2005-03-31T09:52:00.000-05:00

MSNBC - Continental flight attendants reject wage cuts

Delta announces tech-operations cuts

FAA orders inspections on some Airbus planes - after jet's rudder nearly fell off

(US Airways) Airline fate may hinge on hearing - seeks to complete deal for Republic Airways, which will provide at least $125 million, necessary for the airline to emerge from bankruptcy by its self-imposed target date this summer

From yesterday's Forbes website - Airline shares up and away

Every Airport Should Be So Lucky

2004-12-10T10:03:00.000-05:00

From Findlaw:

Willis Offers to Donate Land for Airport

HAILEY, Idaho (AP) - Bruce Willis stole the show at the Friedman Airport Authority meeting this week, offering to donate a portion of land he owns at the eastern end of Camas County in Idaho to help build a new airport.

Willis' property along Highway 20 is part of one of three sites being considered. The offer was unexpected, airport authority Chairwoman Mary Ann Mix said.

The actor, whose screen credits include the "Die Hard" movies, "Pulp Fiction" and "The Sixth Sense," pitched his plan at a meeting Tuesday.

Mix said the room erupted in applause when Willis announced his intended donation, saying he was concerned with the safety conditions at the present airport.

"Bruce is a fabulously decent man - always very concerned about what's good for his community," Mix said.

Willis owns part of the proposed site on the Camas Prairie, she said, though it wasn't clear exactly what he was offering.

FAA Clears Wilkes-Barre Scranton in Revenue Case

2004-12-09T10:41:00.000-05:00

Wilkes-Barre/Scranton International and Director Barry Centini got some good news yesterday. The FAA notified the airport that it had been cleared of any wrongdoing related to its reimbursement of $600,000 to Lackawanna and Lucerne counties for their incentives to Vacation Express airlines. VE, you may recall, was a low-cost air carrier that shuttled Pennsylvanians to points south. (Full disclosure: Myrtle Beach International Airport was one of two destinations served by the airline.)

The letter from Wayne T. Heibeck (FAA manager Harrisburg ADO) referenced the agency's review of audited financial statements from the airport from 1998 to 2004, and concluded that the reimbursement complied with sponsor assurances and guidelines pertaining to the permitted use of airport revenues.

"These documents support the airport's explanation that the payments made to Lackawanna and Luzerne counties were reimbursements for county contributions made within the past six years ... FAA policy permits the use of airport revenue for the repayment of the airport owner or sponsor contributions that have not been previously reimbursed if the request for reimbursement is made with [sic] 6 years of the contribution."

Quoted as is in above-linked article, from The Times-Leader.

Article on Aircraft Title Issues

2004-11-29T10:40:00.000-05:00

Written by Gregory Reigel of Reigel & Associates, and aimed primarily at purchasers, the article, found here, also has some useful information for airport attorneys seeking to recover unpaid storage and/or servicing fees via liens.

Exclusive Rights and You

2004-11-29T09:08:00.000-05:00

In Boca Airport, Inc. v. F.A.A., the District of Columbia Court of Appeals held that the plaintiff FBO had no enforceable rights to compel development of the last remaining aviation parcel at Boca Raton Airport. The complaint had its genesis in an amendment to a contract between the Airport and the plaintiff FBO, which was the subject of a later Part 16 hearing in which the FAA determined the Airport was violating its sponsor assurances by contracting away the last developable parcel to this FBO. A subsequent amendment voided that right. The Airport Authority later requested proposals from third parties for the development of that parcel, and did not allow the plaintiff to bid. The FBO tried various legal tactics to enforce the original amendment and void the bid award to the third party developer.

The case is important for many reasons, not the least of which is the recounting of the plaintiff's various legal attempts to shut down the third party development deal, including a Contracts Clause claim. There is also good discussion from the Court regarding the interplay of the various assurances.

FAA to Act Against Chicago for Meigs Closing

2004-10-08T14:30:00.000-04:00

The FAA issued a press release last week announcing it would pursue legal action against the City of Chicago for failure to comply with the notice requirements prior to closing Meigs Field in 2003. The agency said it will also investigate whether revenue was impermissibly diverted in deconstructing the runway and turning Meigs into a City park.

Air Canada emerges, and United cuts back

2004-10-06T10:25:00.000-04:00

Air Canada emerged from bankruptcy this week. President/CEO Robert Milton credits reinvention and restructuring with the successful emergence. More here.

Meanwhile, in an ongoing effort to cut costs, UAL announced it will cut international flights by 14% and domestic flights by 12%. More here from MSNBC.com.

Back in the Saddle...

2004-09-27T09:10:00.000-04:00

... so to speak. Once more into the fray of a Monday morning's aviation/airport industry news cycle.

As reported below, the FAA is seeking comments on proposed revisions to the sponsor assurances. The deadline has been extended to November 8, 2004. AAAE is seeking comments from airports to aid it in its response, but also encourages airports to respond directly to the FAA as well.

Dubai (United Arab Emirates) saw the collapse of a terminal building today (Monday, 9/27/04), with a loss of eight lives and many more injured. MSNBC.com is tracking the story here; details seem to be sketchy at the time of this entry.

UAL has said in a court filing dated last week that eliminating pensions is the "best of a bad set of options" to see it out of Chapter 11. More here from MSNBC.com, and the Motley Fool asks the question, "Why even own stock in a legacy in the first place?"

Did Delta's last-week tentative deal with its pilots save the day? Not close, but it does help save the pilots' pensions, and gets them one step closer to being able to address the real problem - one million dollars in pay cuts the board is seeking to keep the beleagured airline afloat.

It's Official

2004-09-13T10:01:00.000-04:00

US Airways has filed for Chapter 11 protection for the second time. The company's bankruptcy attorneys will be in federal court in Alexandria Virginia sometime today, for one of the first steps (the very first one was filing, obviously) in the sequence that will, according to Bruce Lakefield, lead the legacy carrier out of the red and into a restructured existence as a leaner, meaner competitive flying machine. Articles on what was largely seen as inevitable can be found at MSNBC.com, TheStreet.com, and SmartMoney.com.

A question and answer page for travelers can be found here, courtesy of the Washington Post.

FAA Notices Changes to AIP Assurances

2004-09-07T11:27:00.000-04:00

From Reigel & Associates, Ltd.:

On Tuesday the FAA published a Notice of modification of Airport Improvement Program grant assurances in the Federal Register for public comment. The AIP grants are provided to airport sponsors for airport planning, airport development, noise compatibility planning or noise mitigation. “Upon acceptance of the Airport Improvement Program (AIP) grant by an airport sponsor, the assurances become a contractual obligation between the airport sponsor and the Federal government.”
...
Comments to the proposed modifications may be delivered or mailed to the FAA, Airports Financial Assistance Division, APP-500, Attn: Mr. Kendall Ball, Room 619, 800 Independence Ave., SW., Washington, DC 20591 no later than September 23, 2004. If you have questions or would like further information you can contact Mr. Kendall Ball, Airport Improvement Program Branch, APP 520, Airports Financial Assistance Division, Room 619, FAA, 800 Independence Avenue, SW., Washington, DC 20591, Telephone (202) 267-7436.

Find the docket here, and the Notice itself here and here (in PDF format)

Allegheny Airport Authority Credit Rating Affirmed

2004-09-07T09:08:00.000-04:00

Back in July, Standard & Poor's gave both Allegheny County Airport Authority's Pittsburgh International and US Airways a BBB rating on outstanding debt. According to AAAE's News, that rating was affirmed as to Pittsburgh following the airline's decision to abandon the Pittsburgh hub. A bright spot for the Authority: this report suggests low-fare carriers are taking a second look at the formerly US-Airways-dominated market.

US Airways Pilots Reject Proposal

2004-09-07T09:05:00.000-04:00

See full story from MSNBC.com here. This doesn't bode well, obviously, for the company's attempt to avoid "Chapter 22."

From that page you may also link to a video of former American Airlines CEO Donald Carty's appearance on CNBC today, discussing the bleak financial outlook for many airlines.

End of Week Wrap-Up

2004-09-03T08:46:00.000-04:00

Reuters reports that US Airways pilots are drafting a new agreement to take back to company leaders... Louisville Regional Airport Authority has a new public safety director, Steven Petty (more here from AAAE's news services)... Indianapolis International reports traffic increase over last year figures of 8.4% - good stuff! ...Also from AAAE's news headlines, Robert Olislager has received the Mary E. Griffith Airport Operator of the Year Award from the National Organization to Insure a Sound Environment. Olislager is the director of Centennial Airport.

More on the Airline Industry's Troubles

2004-09-02T09:30:00.000-04:00

Keith Alexander of the Washington Post paints a bleak picture of three airlines - United, US Airways, and Delta - struggling to keep their collective corporate heads above stormy bankrupt waters (and I promise, that's the end of the bad metaphors - there's a reason I'm not a novelist, and I just reminded myself what it is). Is US Airways headed for "Chapter 22"? Is United ever going to make headway with its workers' unions? And if it does, is it going to be enough? And will Delta find a way to cut costs without hurting its ability to operate at some basic level? Stay tuned...

Industry Roundup

2004-09-01T08:29:00.000-04:00

United has received FAA approval to mount locking gates in cockpits as an added security measure... Australia's Virgin Blue is thinking about adding a Macau based airline...US Airways discussions with the International Association of Machinists went pretty much nowhere, as the company arranged for further talks with its pilots...

US Airways Pilots Get New Proposal

2004-08-31T08:23:00.000-04:00

The leadership council of the union received the 40-odd page proposal from the company on Sunday, apparently, and met yesterday in Virginia to act on the proposal. I'll update this story as developments come in. Read the Bloomberg.com article here.

Case Note: W & W Contractors, Inc. v. Tunica County Airport Commission

2004-08-31T08:14:00.000-04:00

This case, unpublished as of yet, according to Westlaw, can be found at 2004 WL 1879503. The case was heard by the Mississippi Court of Appeals, and concerns a competitor's efforts to overturn an award of a contract for fencing, let via a competitive bid process, on the grounds that the Commission improperly allowed the competitor to supplement its bid to include DBE information, as required by the bid documents.

The opinion focuses on the old "arbitrary and capricious" analysis, and finds that the decision to allow the supplementation of the bid was neither. If the DBE program requirements were met, the project would be eligible for federal funding (presumably AIP discretionary funding). The Court also held that because the supplement "bore no relation to economic provisions in the bid such as price which could affect the competitiveness of sealed bids," the Commission did not act outside the scope of its powers in allowing the supplement.

The opinion reinforces the discretion governmental bodies have when deciding on the award of contracts, and at the same time stresses the importance of complying with all those technical requirements of the bidding process (be they imposed by ordinance, regulation, statute, or policy) which serve to further the governmental purpose of increasing competition, which in turn allows for the public dollar to secure more value in circulation.

Case Note: Heide v. FAA

2004-08-27T09:34:00.000-04:00

2004 WL 1900575 (8th Cir.) unpublished slip opinion, dated August 26, 2004.

Petitioners Heide et al. attempted to persuade a court to review the FAA's FONSI (Finding of No Significant Impact) on some revised runway operation and use rules at MSP (Minneapolis-St. Paul). Problem? The order was issued in 1990. HELD: No "impossibility" of earlier action existed where petitioners claimed they had no notice of the FAA order, but where the record indicated FAA had publicly released the order and engaged in the statutorily required comment period. The press release accompanying the order might have had something to do with the court's reluctance to accept the petitioner's claims. Also HELD: no standing existed in case where petitioners' only alleged claims were bare statements of property ownership in the general vicinity and living near MSP - no sustainable "injury in fact" shown in these facts.

FAA Cuts to Close Training Center

2004-08-27T09:26:00.000-04:00

From the Duluth News Tribune, we learn that the FAA funding cut will close the ATC training center at Flying Cloud Airport in Eden Prairie sometime this fall. Paul Turk, FAA spokesperson, calls it "entirely a budget matter." The article notes the closure comes despite FAA's concerns regarding a possible shortage of air traffic controllers in about four years' time. The article also notes the FAA budget includes about $9 million for a training academy in Oklahoma.

News on Singapore Airlines

2004-08-25T10:46:00.000-04:00

Singapore Airlines is ordering up to 31 Boeing 777-300's in a fleet expansion effort. SA made a firm order for 18 and carries an option on another 13. Details can be found via MSNBC.com, on this page; for instance:

The twin-engined B777-300ER - which stands for extended range - can seat about 350 passengers, and can cover 7.000 nautical miles. Singapore Airlines said it would use them on its long-haul and medium-haul routes.

Why should you care? According to the article, "Aircraft orders from state-linked Singapore Airlines are highly prized by plane manufacturers as analysts say the company’s purchasing decisions can act as a guideline for other carriers."

This follows yesterday's news on Tiger Airways, calling for a September start. There's an excellent article up at The Business Times by Ven Sreenivasan on Tiger's aggressive ticket pricing strategy, up here.

US Airways discussions with pilots break down

2004-08-24T08:43:00.000-04:00

Jack Stephan, spokesperson for the company's ALPA chapter, didn't have much positive to say about the experience.

"Since the beginning of these talks, we have witnessed a disturbing trend by the company to seemingly dismiss several significant proposals form our pilot negotiators... Instead, management has responded by 'piling on' additional demands to their counterproposals."

David Castelveter, the airline spokesperson, refuted that, saying they've negotiated in good faith with the pilots' group, and that "ALPA is well aware of the need for us to successfully implement the transformation plan as quickly as possible." (sic)

Central to the US Airways deal, which will be put before the membership, is a proposed 16% paycut. Even if the pilot talks prove fruitful, the airline still has to negotiate successfully with the other employee groups.

Read the story here from MSNBC.com

Case Note: Barry Aviation v. Land O'Lakes Municipal Airport Commission et al.

2004-08-23T08:22:00.000-04:00

This opinion, reversing and remanding the district court's grant of the defendant commission's motion for summary judgment, can be found here. The plaintiff FBO's case alleged that it was fraudulently induced to enter into its contract. This claim was apparently based on presentations and documents provided by the defendant Commission during a meeting with the plaintiff at which certain representations were made about level of traffic. When the FBO's business reached "unprecedented" lows, the Commission and its employees allegedly indicated the poor business levels were the fault of the FBO itself. In reversing the district court, the Seventh Circuit held specifically that the cause of action accrued when operator became aware of possibility of injury as business levels continued to fall short of anticipated goals, and also that the allegation that the documents produced by the commission were falsified or contained erroneous information triggered the doctrine of equitable estoppel.

Airlines bankruptcy news

2004-08-20T14:06:00.000-04:00

First up, we have this story from MSNBC.com stating that UAL has agreed with its creditors commitee to a 30-day extension to its deadline to file its reorganization plan. This is somewhat shorter than the recent four-month extension requested by United, and will have to be approved by the court. Earlier this week, we learned that United is likely to terminate and replace its existing pension plan.

Next story comes from local newspaper The Sun News regarding US Airways financial woes. The CEO of the company Bruce Lakefield tells the Washington Post here (free registration required) that any such filing would be "survivable."

Monday Miscellany

2004-08-02T10:34:00.000-04:00

Airport Codes: The ABC's - A History and Explanation - it's ten years old, but still informative and entertaining. Also contains a link to a "huge list of airport codes."

Chicago O'Hare PFC struck as arbitrary by DC Circuit Court of Appeals

2004-08-02T10:31:00.000-04:00

The opinion, which starts with a Mark Twain quote, can be found in .pdf format here. It's always nice when judges support literature, no?

The background: three communities (suburbs of Chicago) petitioned for a full review of the FAA's approval of the city's request to impose a PFC (passenger facility charge) to fund a $6 billion program for improvements at ORD, alleging violations of the Federal Aviation Act, the Administrative Procedure Act (APA), NEPA, and the FAR.

The holding: the FAA acted arbitrarily and capriciously in approving the new fee.

The reasoning behind the holding: The agency's action failed to pass muster "[b]ecause the FAA did not find, as required by statute, that Chicago's passenger facility fee will generate only that revenue necessary to fund the EIS."

For more background on the story, go here for the Chicago Tribune's take on it (free registration required).

Delta pilots offer to take cut in pay

2004-07-21T12:29:00.000-04:00

Details here. Will it be enough? CEO Gerald Grinstein isn't so sure.

United to Offer Service from MYR to Chicago, D.C.

2004-07-21T12:03:00.000-04:00

Article here. Service to begin February 15, 2005.

Newsworthy Notes for the Day

2004-07-16T10:45:00.000-04:00

From USATODAY.com - O'Hare competes with Hartsfield for world's busiest airport.

This from the AP, as reported in the Boston Globe, details how the rise in passenger traffic since the recovery from the September 11, 2001 terrorist attacks has also led to an unwelcome consequence - more delays. Those who joined the party before the events of 9/11 (and those like me who did their research) may remember how the booms culminating in high numbers of 2000 and the first eight months of 2001 created a real problem in the unfriendly skies - delays, sure, but also increases in "air rage" and worries over whether maintenance plans were keeping up with increased wear and tear. Airlines aren't the only stakeholders who have to deal with such issues, of course. More delays mean more people (more stressed-out people, that is) in our airports. More takeoffs and landings mean more budget allocations for pavement maintenance. More passengers mean more opportunity to maximize revenues in concessions. How this impacts the airport attorney? Right now, it means more time allotted to make it to the office on time. Later, it could mean issuance of new RFPs for concessionaires will take into consideration maximization of revenue and/or space utilization plans. Could mean adding LEOs to staff (budget ordinances to amend current payroll appropriations), emergency procurements to deal with sudden apron failures.... other impacts?

Save the date...

2004-07-14T10:03:00.000-04:00

The AAAE "Basics of Airport Law Workshop" is on for October 24-26 in historic Boston. Click the link for more information. I went last year, during my first twelve months as an in-house attorney for airports, and found it to be the single most well-run, well-organized, content-rich CLE I've been to in eight years as an attorney.

Federal Contract Provisions for Procurement and Contracting Under AIP

2004-07-02T10:06:00.000-04:00

Federal Contract Provisions for Procurement and Contracting Under AIP is a handy page of links that can operate as a checklist for all your AIP projects. Each link takes you to suggested language, a statement of applicability (i.e., whether the language should be incorporated into bid documents, contract documents, or both, and whether the clause is required of subcontractors as well), and a cite reference to the appropriate statutory/regulatory language and/or FAA Advisory Circular. An excellent resource, and as a web page, very well laid out with the user's needs in mind. Kudos to the FAA and its webmaster.

From the UK: Legal battle hits no-frills 'toytown' airport

2004-06-28T10:36:00.000-04:00

The Guardian reports here on an ongoing legal epic battle between the Coventry airport and the local council. The airport took advantage of what is termed a "legal loophole" regarding development under a specific size, the council sued and lost, and the airport is now suing the local authority to recover lost profits from bad publicity stemming from the initial suit.

United Airlines - strike three?

2004-06-28T10:27:00.000-04:00

Here is the story from MSNBC.com on the latest rejection of the revised loan application from UAL. It was a unanimous decision, apparently.

Independence Air takes off from Columbia, SC

2004-06-23T10:45:00.000-04:00

WIS TV's web site brings the story here. Independence is a unit of Atlantic Coast Airlines Holdings. One-way air fares are reported to be as low as $49; a total of 35 cities are expected to appear on its roster by the end of summer. At CAE, the expectation is seven flights from Columbia to Dulles International, which serves as the carrier's hub.

UAL scales back request for federal aid

2004-06-23T10:42:00.000-04:00

Story here of changes filed to UAL's previous application reducing the total amount requested from $1.6 billion to $1.1 billion. United says its counting on private equity to make up the difference. This is actually the third time it's gone to the ATSB board for help.

Charleston's Going WiFi

2004-06-18T08:28:00.000-04:00

Charleston Airport's Aviation Authority has approved a WiFi project for the airport at a cost of slightly over $21,000.00. See the story from the Charleston Post and Courier here (free registration required).

Morning! Airline News

2004-06-18T08:23:00.000-04:00

UAL's request for $1.6 billion in federal loan guarantees was denied. However, two of three agencies represented on the Air Transportation Stabilization Board indicated a willingness to reconsider their votes if UAL amends and improves its application. UAL indicated it would do so.

Delta's pilots union indicated yesterday that it was overhauling its objectives in order to restart negotiations on wage trimming, in a bid to avoid bankruptcy for the carrier. (Note: the link is to the New York Times and requires free registration.)

Best Practices for Airport Debt Disclosures

2004-06-16T09:58:00.000-04:00

The kind people at the National Federation of Municipal Analysts have made available for your "light reading" Recommended Best Practices in Disclosure for Airport Debt. Click on the title to be taken to the .pdf file. If you need to download the Adobe Acrobat viewer (freely available, and required to read the file), click here.

Please make sure your trays are in the upright and locked position...

2004-06-15T20:37:00.000-04:00

Airport Law: The Blog is about to take off.