# HOGA N &

HARTSO N g ( g [ 1 0 W d
SEP , 1 8 200 8

FA AAIRPORT S PAR T1 6 DOCKET S Hoga n & Hartso n LL P Columbi a Squar

e 555 Thirteent h Stree t N

W Washington , D

C 20004 +1.202.637.560 0 Te l +1.202.637.591 0 Fa

x www.hhlaw.co m Septembe r

18 , 200 8 Rober t E
. Coh n (202 ) 637-499 9 recohn@hhl aw .co m Randal l S
. Fiert z Director , Airpor t

Complianc e an dFiel dOperation s Federa l Aviatio nAdministratio n 80 0 Independenc e Avenue , S.W
. Washingto nD.C
. 2059 1

Re : Director' s Determination

- FAA Docke t No
. 16-07-0 4 Dea r Mr
. Fiertz : = QO O c/ > Th e Complainants ' hereb y see k clarificatio nof

th e Director' s Determinatio n serve do n Augus t

19 , 2008 , a s discusse dbelow
. Th e Director' s Determinatio ndismisse dth e Complain t o n th e groun dtha t th e Authorit y ha drepresente dtha t i t wil l no t appl y th e Landin g Fe e Ren t Credi t throug hth e en dof

th e curren t

Leas e betwee nth e Airline s an dth e Authorit y (Decembe r

31 , 2010) , and , a s aresult , th e FAA wa s unabl e t o fin d"current " violation s becaus e "ther e i s n o advers e impac t t o th e Airline s withou t th e FedE x Credit. " Nevertheless , th e Director' s Determinatio nrepeatedl y make s clea r tha t an y unilatera l impositio no f th e FedE x Landin g Fe e Ren t Credi t o n th e Complainant s b y th e Authorit y woul dviolat e th e Gran t Assurance s an dth e Rate s an dCharge s an dRevenu e Diversio nPolicies , whic hprohibi t th e Respondent s fro m unilaterall y imposin g th e cost s o f th e Landin g Fe e Ren t Credi t o n othe r

carrier s unles s approve db y thos e carriers
. Th e Authorit y an dth e Airline s ar e i n th e proces s o f discussin g atwo-yea r extensio nof

th e curren t

Leas e Agreemen t

throug hDecembe r

31 , 2012
. I n tha t context , th e Complainant s see k clarificatio no f

th e followin g statemen t o n pag e 3 3 o f th e Director' s Determination :

' Northwes t

Airlines , Inc. , Delt aAi r Lines , Inc. , Ai r

Tra nAirways , Inc. , Southwes t

Airline s Co. , an dContinenta l Airlines , Inc
.

.•,\D C • 029399/00000 1 • 278907 9 v lReques t of Complainant s for

Clarificatio n Pag e 2 "If th e Complainant s agre e t o exten dth e Leas e Agreemen t an dno t amen di t t o recogniz e th e Credit , [t]hi s matte r woul dcontinu e t o b e acontrac t disput e an dPar t 1 6 woul dno t

b e th e appropriat e venue. " Decisio na t 33
. Th e Complainant s rea dthi s statemen t t o mea ntha t

i f th e Airline s an dth e Authorit y wer e t o agre e t o a nextensio nof th e ter mo

f th e curren t

Lease , th e Leas e i s no t amende dt o recogniz e th e Landin g Fe e Ren t Credit , an dth e Authorit y continue s no t

t o appl y th e Landin g Fe e Ren t Credi t durin g th e Leas e extension , unde r thos e circumstance s ther e woul db e n o advers e impac t o nth e Airlines , an d Par t 1 6 woul dno t

b e th e appropriat e venue . However , i f th e Airline s an dth e Authorit y wer e t o agre e t o th e extensio no f th e ter mo

f th e Lease , th e Leas e i s no t amende dt o recogniz e th e Landin g Fe e Credit , bu t th e Authorit y wer e t o unilaterall y appl y th e Credi t an y tim e durin g th e extende dter mof th e Lease , the n Par t 1 6 woul db e a nappropriat e foru mt o challeng e th e Authority' s action
. Thi s i s th e onl y plausibl e readin g o f thi s statemen t

tha t ca nb e reconcile d wit hth e numerou s othe r unequivoca l assertion s i nth e Director' s Determinatio n tha t th e Gran t

Assurance s an dth e Rate s an dCharge s an dRevenu e Diversio n Policie s woul dno t

permi t th e Authorit y t o impos e th e Landin g Fe e Credi t unilaterall y o nth e Airlines
. See , for example , th e followin g statement s i nth e Director' s Determination :

"If FedE x claim s th e Credi t agains t it s Additiona l Specia l Facihtie s Renta l an dth e Airpor t Syste mOperatin g Revenu e unde r th e Leas e Agreemen t

decrease s b y th e amoun t o f th e Credit , i t

coul dcaus e th e Airpor t Syste mRequiremen t

t o rise , resultin g i nahighe r landin g fee tha nwoul dotherwis e b e th e cas e withou t th e Credit
. Unde r

th e existin g Leas e Agreement , th e FedE x Credi t canno t b e impose d unilaterall y o nth e Complainants
. Thi s i s tru e eve ni f th e Airline s benefi t fro madditiona l FedE x operation s becaus e airfiel dcost s ar e sprea dove r

mor e operation s an dth e Complainant s actuall y pa y les s a s aresult. " Decisio na t

21
. "Th e [Rate s an dCharges ] Polic y woul dno t permi t th e Authorit y t o unilaterall y impos e th e cost s o f on e carrie r

o nal l othe r

carrier s b y addin g suc hcost s t o it s commo nrat e bas e unles s approve db y thos e carriers. " Decisio na t

33
. "Absen t awritte nagreement , th e takin g o f 'commo nuse ' revenu e an d usin g i t for a n'exclusiv e use ' FedE x apro ncoul damoun t t o aviolatio n o f Gran t Assuranc e #22. " Decisio na t 32-33
. "[S]inc e th e Complainant s an dFedE x ar e similarl y situated , i f th e Authorit y wer e t o implemen t Amendmen t

No
. 3 a t thi s tim e contrar y

- \-D C - 029399/00000 1 - 2789079v lReques t of Complainant s for

Clarificatio n Pag e 3 t o th e term s o f

th e Leas e Agreement , i t coul damoun t

t o aviolatio nof Gran t Assuranc e 22... " Decisio na t 35
. "[T]h e Authorit y canno t impos e th e cos t

of FedEx' s ren t

Credi t o nothe r carrier s eve ni f

th e othe r

carrier s benefi t

fro mth e additiona l operation s b y FedEx , a s aresul t o f havin g th e airfiel dcost s sprea d ove r mor e operations , an deve ni f th e othe r

carrier s actuall y pa y les s a s aresul t

of th e overal l deal
. Moreover , th e FAA ha s mad e clea r i t i s no t reasonabl e for

th e cost s o

f eve naone-o r

two-yea r

promotiona l fee waive r t o b e born e b y othe r carriers
. Thus , i t

woul dclearl y b e unreasonabl e t o impos e th e muc hlonger-ter mfacilit y ren t Credi t fo r FedE x a t IN D o nothe r

carriers. " Decisio na t

40
. "Th e Directo r

conclude s tha t

th e benefit s o

f FedEx' s landin g fee s fo r th e ne w operation s d o no t cance l ou t

th e issu e of

chargin g FedEx' s facilit y cost s t o th e othe r carriers
. FedEx' s additiona l operation s wil l impos e cost s o nth e airfiel dproportionat e t o th e additiona l fee s i t i s payin g i nth e formo

f pavemen t

wea r an dtea r

an dairpor t

operation s costs. " Decisio na t

43
. "Th e Rate s an dCharge s Polic y offer s th e airline s tw o significan t protections : a nairpor t ma y no t

withou t writte nagreemen t

includ e exclusiv e us e facilitie s i nit s rat e base , an dlimit s cost s tha t ca nb e include di nit s commo nus e rat e base. " Decisio na t 44
. Th e Complainant s reques t tha t th e Directo r

clarif y th e Director' s Determinatio ntha t

Par t 1 6 woul db e a nappropriat e foru mt o challeng e th e Authority' s action s i f

th e Leas e ter mwer e extende dwithou t recognizin g th e Landin g Fe e Credit , an dth e Authorit y wer e t o unilaterall y impos e th e cost s of th e Landin g Fe e Credi t o nothe r

airlines , unles s th e Credi t wa s approve db y thos e airlines
. Respemully^submitted , 

## L peCMuiiy^suDmitt

e lober t E
. Coh n Patric k R
. Rizz i Hoga n& Hartso nL.L. P Attorney s fo r Northwes t

Airlines , Inc
. an d Delt aAi r

Lines , Inc
.

\D C - 029399/00000 1 • 278907 9 v lReques t of Complainant s for

Clarificatio n Pag e 4

Dav e Aschenbac h Director , Propertie s an dContrac t Service s Fo r AirTra nAirways , Inc
.

Thoma s Newto nBoilin g / Managin g Attorney , Regulator y Affair s Lorrain e B
. Hallowa y Crowel l & Morin g LL P 100 1 Pennsylvani aAvenue , N.W
. Washington , D.C
. 2000 4 Fo r Continenta l Airlines , Inc
.

Rober t W
. Kneisle y ' Associat e Genera l Counse l Lesli e Abbott , Attorne y 190 1 LStreet , N.W
. Washington , D.C
. 2003 6 Fo r Southwes t

Airline s Co
.

^D C - 029399/00000 1 • 278907 9 v lReques t of Complainant s for

Clarificatio n Pag e 5 CERTIFICAT EO FSERVIC E
I hereb y certif

y tha t I hav e thi s da y serve dth e foregoin g Lette r o f Northwes t Airlines , Inc. , Delt aAi r Lines , Inc. , AirTra nAirways , Inc. , Continenta l Airlines , Inc. , an dSouthwes t

Airline s Co. , o nth e followin g b y hand-delivery , fax , and/o r email , a s note dbelow , a t

th e followin g addresses : 

# ( ^ ^<LI^/£A.r^ ' Date dthi s Septembe r

18 , 200 8 R
. Dian e Carlso n
Offic e o f th e Chie f

Counse l Attention

- FAA Par t

1 6 Airpor t

Proceeding s Docke t AGC-610 , Roo m92 5 Federa l Aviatio nAdministratio n 80 0 Independenc e Ave. , S W Washington , D C 2059 1 (hand-delivery ) Rober t A
. Dunca n Genera l Counse l Indianapoli s Airpor t

Authorit y Indianapoli s Internationa l Airpor t 250 0 Sout hHig hSchoo l Road , Suit e 10 0 Indianapolis , I N46241-494 3 Counse l fo r

Respondent s Pabl o O
. Nuesc h Jeffre y A
. Schwar z Spiege l & McDiarmi d 133 3 Ne w Hampshir e Avenue , N.W
. Washington , D C 2000 5 Email : pablo.nuesch@spieQelmcd.co m Counse l fo r

Respondent s

\\\D C - 029399/00000 1 - 278907 9 v