Fri, Jun 17, 2011
FAA Is Investigating Allegations Of Favoritism
The FAA is investigating
allegations that Valley International Airport (KHRL) in Harlingen,
TX, has shown favoritism for one FBO over another, and millions of
dollars of federal grant money could be lost as a result.
FBO company Sun Valley filed a complaint with the FAA accusing
the airport of favoring long-time tenant Gulf Aviation. Sun
Valley had made a bid to set up shop at KHRL utilizing some of the
space occupied by the 30-year tenant when its lease was about to
expire in 2007. The airport board told the new company that it
would build new facilities on the east side of the airport, and
renewed Gulf Aviation's lease for another 10 years. But the new FBO
never came out of the ground, because the city council voted
against spending the money.
Television station KRVG in Rio Grande Valley, TX, reports that
the FAA is now looking into whether the city and/or the airport
showed favoritism towards Gulf Aviation to the economic detriment
of Sun Valley. Guidelines for federal funds for airports state that
no one company can be granted exclusive rights to do business at
airports which receive federal funds ... and Vally International
reportedly receives several million dollars in grants.
The FAA has sent a warning letter to the airport board, and
Aviation Director Michael Browning said that the airport is still
in negotiations with Sun Valley. The agency has also requested
additional information from both the airport and Sun Valley
concerning the lease extension with Gulf Aviation. Those documents
have reportedly been sent to the FAA.
Browning said he is confident that the FAA will not pull funding
for the airport, and that the city council will go along with the
FAA's findings.
Meanwhile, the president of Gulf Aviation said he spent over a
million dollars in the process of having his lease extended, and
filed a separate complaint of "economic discrimination" with the
FAA.
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