Jet 1 Center Predicts A Change In The Wind

Does the Naples Airport Authority have exclusive rights to sell fuel? That's what J. Scott Phillips wants to know. So far, the answer has been an unequivocal "yes."

Phillips, who owns the Jet 1 Center at Naples (FL) Municipal Airport, wants to sell jet fuel at the airport. In fact, he has sold fuel there -- much to the dismay of airport officials, who are now in the process of revoking his lease and throw him off the property.

But, while the winds of state and federal law have so far blown sand in Phillips' face, he's still fighting. He even thinks he can win. Phillips has now filed a Part 16 request for an FAA ruling on the matter.

"By federal law, the Naples Airport Authority is prohibited from having an exclusive right to sell petroleum products at the airport and does not qualify for any exception to the rule," the Part 16 complaint states. Phillips says the AP-4 agreement signed by Naples many years ago requires the airport be operated in the best interest of the public -- no exclusivity allowed.

That's not the end of it for Phillips. He figures that, should the FAA rule in his favor, he'll have just that much more ammunition to fight the airport authority, member Eric West and Executive Director Ted Soliday. He's suing all three and it IS personal.

"And then I'm going to have huge damages, and then, to me, the city of Naples could get dragged into this, because the city of Naples in reality gave an exclusive right by allowing the airport authority to do what they did," he said in an interview with the Naples Daily News. "I can tell you it's going to be a mess."

But just who is in whose sights? The airport authority is suing Phillips for $5 million, money it says he made in profits from his fuel sales. And members cite the very same FAA regulation that Phillips says will win him the case:

Aeronautical Activities Conducted by the Airport Owner (Proprietary Exclusive). The owner of a public-use airport (public or private owner) may elect to provide any or all of the aeronautical services needed by the public at the airport.

Phillips says the city of Naples owns the airport, not the airport authority. City lawyer Louis Amato says he understands. "If I were in his position, I'd be saying same thing. I'm sure they are clutching at whatever straws they believe they might have."

Another lawyer, Joseph McMackin, who represents the airport authority, said as much recently when he updated board members on the fight, which is now being played out in bankruptcy court as well as in front of the FAA.
"They (Jet 1) are beginning to labor under this. They are under constant assault, as are we, and you shouldn't underplay the fact that we could learn tomorrow that commissioner West and the executive director (Soliday) are parties to this lawsuit. It would be a very unpleasant thing for those gentlemen. But I really believe their (Jet 1's) machinery is beginning to seize up."

Phillips scoffs at the notion. "They keep digging the hole deeper. They are making a lot of mistakes. It (the legal battle) is driven by attorneys," he said.

It's one of the hairier legal battles in aviation these days. Get your popcorn and find a ringside seat. The FAA might just set some precedents with this one.

FMI: www.jet1.net