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US DoT Filing: Alaska Airlines, et al v. Los Angeles World Airports - DC Circuit Court Decision

12th August, 2009

Alaska Airlines, et al v. Los Angeles World Airports - DC Circuit Court Decision(OST-2007-27331)

OST-2007-27331

Alaska Airlines, et al v. Los Angeles World Airports

Argued 11-Dec-2008 | Decided 7-Aug-2009

DC Circuit Court Decision

We grant both the City’s and the Airlines’ petitions in part, deny both in part, and remand this matter to the DOT for further consideration. With respect to the Airline petitioners, we uphold the increased M&O fees as non-discriminatory, and direct the DOT to explain why an airport may use FMV to set non-airfield rates but not airfield rates. We further hold 49 U.S.C. § 47129(a) is not a jurisdictional statute of limitation and direct the DOT to determine whether the 60 day filing requirement should be tolled with respect to the T1 Airlines. Finally, we direct the DOT on remand to consider whether LAX has monopoly power and, if so, how that affects the City’s methods for calculating the rent to be paid by the T1/T3 Airlines.

As to the City’s petition, on remand the DOT shall explain or abandon its position that, in establishing the FMV for non-airfield space, the City may consider only “other aeronautical uses.” We find no fault with the DOT’s requirement that FMV be established by an independent appraisal. Finally, we hold the DOT unlawfully placed the burden of persuasion upon the City to justify its use of different methods for determining rentable space for the T1/T3 Airlines and the long-term tenants.

Source: AirlineInfo, http://airlineinfo.com

This report includes original source company information.