Final Decision Expected June 15

US Administrative Law Judge Richard C. Goodwin found Tuesday increased terminal fees Los Angeles World Airports imposed on low-cost and international carriers at LAX earlier this year are "unreasonable and discriminatory."

During the course of a seven-week investigation, Goodwin held a 15-day hearing in Los Angeles, where numerous airport and airline officials told their sides of the story. The judge reviewed 11,000 pages of documents and 500 exhibits, according to the Los Angeles Times.

The agency's "entire accounting system is suspect and cannot be relied upon to provide accurate and timely information," Goodwin wrote. This ruling isn't binding, but its findings are so compelling that many participants expects Transportation Department officials to take it to heart when issuing a final decision June 15.

AirTran Airways, Alaska Airlines, ATA Airlines, Frontier Airlines, Midwest Airlines, Southwest Airlines, and US Airways Group issued a joint statement on the ruling.

"We are gratified by today's recommended decision in favor of the airlines serving Terminals 1 and 3 at LAX," the statement reads. "The Administrative Law Judge's ruling upholds clear and longstanding principles of law that are designed to protect consumers and air carriers from excessive, unreasonable, and discriminatory payments for the use of an essential public facility.

"It is unfortunate that Los Angeles World Airports (LAWA) once again compelled the airlines to initiate expensive and time-consuming legal proceedings before the US Department of Transportation (DOT) in order to protect our customers, employees and shareholders from LAWA's egregious actions."

The airlines filed a joint complaint in February with the Department of Transportation in opposition to new terminal charges at LAX that dramatically increased their costs.

If upheld, the ruling could potentially cost LAWA millions of dollars, and question how the agency will pay for added post 9/11 security and needed improvements at LAX.

The terminal fee increase was levied by the city Airport Commission and nearly quadrupled rent and maintenance costs for domestic carriers in LAX Terminals 1 and 3. Officials argued the raise was necessary because the airport is subsidizing the airlines.

Carriers complained the higher costs put them at a competitive disadvantage, because airlines with long-term leases would still pay lower rent.

FMI: www.lawa.org/lax, www.southwest.com