Aug. 14--SCRANTON -- Representatives of the Wilkes-Barre Scranton International Airport will be in court today arguing against a request that a judge temporarily halt the awarding of a contract to a new fixed-base operator at the airport.
Saker Aviation, the current FBO at the airport, sued Luzerne and Lackawanna counties and the airport on July 26, stating the board's July 18 vote to award a 15-year FBO contract to Aviation Technologies breached the board's contract with Saker, which is set to expire Aug. 31.
Saker officials contend the company will suffer "various harms" if Aviation Technologies is allowed to begin FBO services on Sept. 1 and that many of Saker's 34 local employees would lose their jobs.
The airport board consists of the three Lackawanna County commissioners and, from Luzerne County, Manager Robert Lawton, county council President Tim McGinley and Councilman Rick Williams.
According to the civil lawsuit, which seeks unspecified monetary damages, the current 10-year contract gives Saker the right to extend the contract for two additional five-year periods if terms are acceptable to both parties. It also says an FBO contract would not be awarded to another provider without offering it to Saker on the same terms.
Also according to the complaint filed in Lackawanna County Court:
--Saker in October 2012 began lease renewal discussions with airport officials, who provided Saker with parameters for contract renewal. The "potential discussion points" for negotiations were given to Saker "with the understanding that Saker was not to be a mere 'stalking horse' used by (the airport) to solicit a third-party offer."
--On Feb. 5, Saker gave a presentation on what the company would offer, including refurbishing the customer service area/pilot lounge, new entry awnings, a new sump pump recovery system, installation of an internal security camera system and repair or replacement of the HVAC rapid air unit in the hangar.
--On Feb. 8, Saker received an email from Assistant Airport Director Mike Connor requesting a proposal for a five-year lease that included a $150,000 investment from Saker, and Saker confirmed airport officials weren't interested in any additional investment. Saker sent a proposal on Feb. 22.
--On March 12, Saker received a letter from Airport Executive Director Barry Centini ceasing negotiations and stating that the board was "evaluating all available options for the near-term future of the FBO."
--On April 1, the board issued a request for proposals for an FBO, seeking, at minimum, the five improvements Saker offered. Saker submitted its proposal and, at a July 3 meeting with the defendants, Saker was told to "sharpen their pencils" with respect to the proposal and submit any revisions by July 12. Without ever releasing Aviation Technologies' offer and giving Saker a chance to match it, the board awarded the FBO contract to Aviation Technologies on July 18 .
The suit notes Saker invested about $1 million in the airport from 2006 through 2012, paid the airport another $1.5 million in rents and fees and cooperated with the airport to reduce its fees to attract new airlines. A national company, Saker also maintains corporate headquarters at the airport and employs 34 local people.
Copyright 2013 - The Times Leader, Wilkes-Barre, Pa.
