Albany Airport Authority Sued for $3 Million

COLONIE - A Rochester-based company that provided fuel, de-icing and other services at Albany International Airport has shut down its local operation and is suing the airport for $3 million.

US Airports Flight Support - Albany LLC provided those services as a "fixed-base operator" competing with Signature Air. The complaint filed this week in state Supreme Court in Monroe County alleges that the Albany County Airport Authority made a number of commitments if US Airports would set up shop there, but then began offering the same services, undercutting its fees and taking its clients.

"We were anxious to get on site," said Glenn E. Pezzulo, an attorney representing US Airports. "We were working out of a trailer. We were going to construct and erect our own building and hangar space."

But he says that, once the airport authority saw what a successful operator could do, it began competing directly, by buying out Signature Air and then bringing in another operator, Million Air, to manage it.

"The airport is now in the FBO business," Pezzulo said. "The airport owns the FBO. All Million Air gets is a management fee."

But an airport spokesman on Friday said US Airports was given the same opportunity to manage the FBO as Million Air. It submitted a proposal, the spokesman said, but the proposal wasn't accepted.

Airport officials said that US Airports also stopped making its rental payments.

"On Nov. 3, 2005, the Airport Authority sent US Airports a letter notifying them that they are in default of their agreement and owed back rental payments in the amount of $72,612.60," John A. O'Donnell, the airport authority's chief executive officer, said in a prepared statement. "Shortly after, US Airports abandoned their FBO operation at Albany International Airport.

"We believe the US Airports lawsuit is without merit and we intend to pursue back rental payments vigorously," O'Donnell added.

"We shut down operations because of the anti-competitive nature" of conducting business there, Pezzulo said.

Earlier this month, the company that formerly managed day-to-day operations at Albany International Airport sued the airport authority for reimbursement of $2 million in expenses.

TBI Airport Management Inc. and its subsidiary, Airport Group New York Inc., filed the suit in early November in U.S. District Court in Albany. Airport Group New York, formerly Lockheed Air Terminal of New York, managed operations at the airport in Colonie from September 1991 until last month, when it was replaced by Baltimore-based AvPorts.

The figure included legal costs, pension fund payments and premiums for workers' compensation insurance. The suit also sought reimbursement for costs associated with partial termination of the pension plan.

Eric Anderson can be reached at 454-5323 or by e-mail at [email protected].

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.