Denver pilots fight hangar rent hike in court
Group seeks help as legal costs mount
A legal fight unfolding in Colorado stands to either make it easier or more difficult for FBOs around the country to charge egregious hangar rents in apparent defiance of FAA policy, and Denver pilots are seeking donations to sustain their effort to stop the practice from spreading.
The 82-percent increase in hangar rents was imposed unilaterally in April by Denver jetCenter at Centennial Airport. The company operates FBOs at three Colorado airports. Local pilots contacted AOPA in December to report the issue, and AOPA has since engaged on multiple fronts, including helping affected tenants understand the process for their FAR Part 13 complaint that is now under investigation by the FAA.
"From the complaint it appears as if the rent increases have not been implemented by the airport authority but by an aeronautical service provider," wrote FAA Northwest Mountain Regional Compliance Program Manager Peter Doyle. "However, Grant Assurance #22 states that if a right or privilege at the airport is granted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to furnish services on a reasonable, and not unjustly discriminatory, basis to all users. The focus of this investigation will be whether unjust discrimination occurred in the implementation and the reasonableness of the fees for aircraft storage with Jet Centers of Colorado."
In court, the FBO provider argued the opposite, and moved to dismiss the lawsuit. CAPA members, concerned that costly litigation could extend beyond their means to sustain the fight in court, established a GoFundMe appeal for donations to help with legal expenses, along with a website that explains the issue in detail and invites additional tenants to sign on.
AOPA Northwest Mountain Regional Manager Brad Schuster encouraged CAPA members to also engage with their state and federal representatives and seek legislative relief; the issue of FBO pricing remains one of AOPA's top priorities.
"These tenants are using every available tool, and they are strongly arguing their case, but the fight could be long and enormously costly, on top of the egregious rents they've been forced to pay since April," Schuster said. "While the FBO's argument that they are exempt from airport grant requirements because they, too, are tenants fails to pass a commonsense test, it will be an expensive proposition to prove that in court. If jetCenters of Colorado prevails, it is only a matter of time before other FBOs impose egregious fees with no attempt to justify them."
Schuster noted that financial incentives often affect how airport sponsors approach grant assurance compliance. Contracts between FBOs and airport sponsors across the country generally include profit sharing clauses that create a clear disincentive for sponsors to challenge excessive FBO rate increases, dispute special event fees, or potentially even enforce grant assurance obligations—because airports generally benefit from FBO and other Specialized Aeronautical Service Operator rate increases, whether they are reasonable or not.
If something at your airport is of concern, consider reaching out to your AOPA regional manager or Airport Support Network volunteer. If your airport does not have an ASN volunteer, consider joining our ranks to engage with, promote, and protect your airport today at aopa.org/asn.
