Tue, May 17, 2005
They Refuse To Back Down In FAA Dispute Over AirTran
Subsidies
When the city of Wichita, KS, responds to FAA demands that it
drop millions of dollars in subsidies to AirTran, one officials
said there will be no concessions. That could likely spark a legal
showdown over the FAA's contention that Wichita is favoring one
airline over another in a move that could jeopardize the city's
federal airport grants.
"We're not changing our position," City Attorney Gary Rebenstorf
told the Wichita Eagle.
As ANN reported earlier this month, Wichita came
under fire from the FAA for giving AirTran $7.5 million in direct
payments over the past three years to subsidies flights to and from
Atlanta. Delta Airlines, which flies the same route,
receives no such payments from the city. Wichita leaders said they
want to provide a low-cost alternative to Delta and couldn't
otherwise attract another discount carrier without the
subsidies.
The FAA sent a chilling
letter to the Wichita City Council last month, warning that
Mid-Continent Airport could lose millions in government grants for
violating a basic tenet of those grants -- discriminating against
one or more airlines by favoring another.
Delta complained to the FAA, asking not that Wichita end its
payments to Airtran. Instead, the Atlanta-based carrier demanded it
receive similar subsidies to fly the exact same route.
The FAA suggested Wichita city officials reconstitute its
airport board, disbanded in 1999. That way, if the city wanted to
continue payments to AirTran, it could do so without violating the
FAA's airport grant provisions.
But Wichita city officials not only refused to reconstitute the
airport board. Earlier in the month, they approved another $2.5
million in payments to keep AirTran flying from Mid-Continent for
another year. Sedgewick County commissioners this month voted to
kick in another $1 million.
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