Oneida County Executive Says Everything Was Done Properly

The FAA has sent a letter to Oneida County, New York officials saying a contract with one of the FBO's at Griffiss International Airport may violate its exclusivity rules, putting future airport improvement grants in jeopardy.

A 2003 lease with Empire Aero Center gives the company rights to use hangar space that is not in the building it leases. FAA New York Airports District Office compliance program manager Andrew Brooks said in the July 20th letter to county Airport Commissioner Vernon Gray that, in his opinion, the lease gives Empire Aero "exclusive rights", which is against FAA regulations.

FAA Advisory Circular AC 150/5190-6 states: "The prohibition on the granting of exclusive rights is one of the obligations assumed by the airport sponsors of public airports that have accepted federal assistance, either in the form of grants or property conveyances." 

"The intent of the prohibition on exclusive rights is to promote fair competition at federally-obligated, public use airports for the benefit of aeronautical users. The exclusive rights prohibition remains in effect as long as the airport is operated as an airport, even if the original period for which an airport sponsor was obligated has expired.

The granting of an exclusive right for the conduct of any aeronautical activity on a federally-obligated airport is generally regarded as contrary to the requirements of the applicable Federal obligations, whether such exclusive right results from an express agreement, from the imposition of unreasonable standards or requirements, or by any other means. Existence of an exclusive right at an airport limits the usefulness of the airport and deprives the public of the benefits that flow from competition."

Utica.com, the online edition of the Utica Observer-Dispatch, reports that a long-standing dispute between Empire Aero and a competing firm, MidairUSA, is at the heart of the issue. Midair claims Empire has rights to hangar space it needs to conduct business, and it is now sending repair work that Empire would normally have done elsewhere. Complicating matters is a lawsuit filed by Empire, claiming Midair did not pay them for some work done in the past.

County Executive Anthony Picente said he’s confident the county did everything correctly, though he said he is concerned about the situation.  He and county attorneys are preparing a second letter asserting the county is in compliance with the FAA regulations. They plan a meeting with FAA officials, but that has not been scheduled.

County Board of Legislators Minority Leader Michael Hennessy (D) says the quickest way to solve the problem is to give MidairUSA access to the hangars it needs. “That, in my opinion, would satisfy FAA,” Hennessy told the paper. “That is the quickest, easiest and most reasonable way to solve this problem.” He has the backing of Legislator Frank Tallarino (D). They assert that Picente's approach puts future airport improvement grants, and jobs, in jeopardy. Picente disagrees, and said he's surprised the Legislature would be so quick to accede to the FAA's position without first backing up the county government.

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