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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at
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Tue, Aug 22, 2006

Los Angeles-Area Airport Management Company Cleared Of Wrongdoing

But The Battle Isn't Over

After looking into charges of finanical mismanagement and illegal fuel sales at a company that runs five airports in the Los Angeles area... the FAA has found nothing wrong.

That doesn't satisfy a group of tenants at the airports, however. They want a wider investigation... and plan to file their request with the FAA by the end of the year.

The group of pilots, business and hangar owners based at El Monte Airport say American Airports Corporation is diverting taxpayer money... overcharging for rent and hoarding fuel for its own sales.

The airport management company was cleared by the FAA's LA office last month. The agency said in a letter to American Airports that language in its agreement with the county be changed to do away with the possibility of misinterpretation. It also recommended American Airports and LA County that fuel must be available for sale by qualified operators.

"As to the attorney and the pilots, we do not believe that they will get any different response from the FAA in D.C. Through the stakeholder meetings, we hope to continue to improve the airport system by getting feedback from the users of the airports," said AAC President Kris Thabit. "This is a productive process, and we prefer it to the path this small group is considering taking."

But American Airports opponents say the FAA letter is a joke. Lawyer Tulane Peterson tells the Pasadena Star-News FAA investigators never talked with anyone -- except county officials and executives at American Airports -- and that he's taking his case to Washington.

"The DC FAA is beyond the political reach of local jokers out here at the local office. They will conduct a genuine investigation and not just send it off to the county who pooh-poohed it," he said.

FMI: www.americanairports.net/, www.faa.gov

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