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.

FMI: www.faa.gov, www.flythevalley.com