Industry News

Briefings ... airmall®—at Baltimore/Wash-ington Int’l Thurgood Marshall (BWI) Airport opens an M&T Bank full-service branch, pre-security. air taxi assn. (atxa)—is formed with the backing of major next-generation air taxi providers in the...

int’l spy museum—begins selling its products in Mid-Atlantic airports this summer. The museum sells merchandise in its F Street Northwest (D.C.) store, online, and by catalog.

macquarie infrastructure co. (MIC)—enters a definitive agreement to acquire SJJC Aviation Services LLC, which owns fixed base operations doing business as San Jose Jet Center and ACM Aviation. SJJC Aviation Services LLC will be acquired by Macquarie Infrastructure company in an expansion of the acquisition of Mercury Air Centers, announced in April. MIC will acquire a total of 26 FBOs in the Mercury transaction. The total purchase price, including all fees, expenses, debt service reserves and pre-funded integration costs, will be approximately $615 million.

orlando int’l airport—awards concession contracts to Areas/Hojeij , a partnership between a subsidiary of a Barcelona, Spain-based concession company, an Atlanta food firm, and two Orlando restaurants, who take over the newly renovated food court and restaurant space in Airside 3 next year. Contract is valued at $350 million over 15 years.

san bernardino int’l airport—sets in motion a $38 million project to bring the 66,000-sq.ft. terminal building up to standards, after post-9/11 security measures rendered the building obsolete.

signature flight support —and NetJets Europe announce the execution of a Europe-wide handling agreement, designating Signature as NetJets’ preferred handler at locations in Belgium, France, Greece, Ireland and the United Kingdom.

southwest airlines—plans to sell seats on ATA Airlines flights from the U.S. East Coast to Canada, Mexico, and the Caribbean by 2009 and later to Europe, according to Southwest CEO Gary Kelly.

transportation security administration—selects Trinity Technology Group, Inc., of Fairfax, Va., as the private screening contractor for Charles M. Schulz-Sonoma County (CA) Airport under the Screening Partnership Program.

  • TSA also issues guidance to airports titled “Enhanced Fuel Farm/Fuel Storage Facility Security Measures and Fuel Vehicle Access Procedures,” following threats at JFK Int’l. Grants the authority to airports to inspect fuel trucks each time they enter the Security Identification Display Area or other secure areas of an airport.

u.s. dot—issues its Final Decision in Alaska Airlines v. Los Angeles World Airports (LAX III), validating much of the methodology adopted by Los Angeles World Airports (LAWA) in 1996 for terminal rental fees, and adopts many of the arguments offered in intervenor briefs filed by ACI-NA and funded by the ACI-NA Legal Center.

Case was initiated by seven domestic and 21 int’l airlines, alleging that increases in the terminal rates for domestic Terminals 1/3 and the Tom Bradley Int’l Terminal (TBIT) at LAX are unreasonable and discriminatory. The terminal rental increases do not apply to several carriers which still operate under long-term leases at LAX.

DOT held that an airport does not violate requirements that its rates be reasonable if it uses a “commercial compensatory” method that allocates costs of public terminal space on the basis of “rentable” (revenue-producing) space (versus “useable” space); concluded that fair market value (FMV) is not inherently unreasonable and can be used in setting terminal rental rates, provided that FMV is determined either by agreement or by an independent objective appraisal of what other aeronautical users would pay; and upheld LAWA’s allocation of indirect costs, including airport security costs.

u.s. house—passes the FAA Reauthorization Act of 2007 (H.R. 2881), which provides $15.8 billion for the Airport Improvement Program; nearly $13 billion for FAA Facilities & Equipment (“F&E”); $37.2 billion for FAA Operations over four years; increases the Passenger Facility Charge cap from $4.50 to $7; funds the Essential Air Service program with increases each year from $127 million to $133 million over four years.

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