"Repair business alleges monopoly at Illinois airport"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Saturday, May 8, 2004

Repair business alleges monopoly at airport 
By Jake Griffin
The Chicago (IL) Daily Herald


An aircraft repair business has filed a federal lawsuit against the DuPage
Airport, claiming it illegally monopolizes fuel sales.

Airport officials counter that the Federal Aviation Administration regulates
airfield fuel sales and they are only following those guidelines.

Phil Luetkehans, an attorney for the West Chicago airport, said the FAA has
already ruled against Scott Aviation on this complaint, and the lawsuit is
simply sour grapes.

The suit asks the court to allow the repair business, which is based at
DuPage Airport and already runs a fuel pump for its own aircraft, to sell
fuel to other aircraft on the field.

The lawsuit also asks for relief from a 25 cents-per-gallon fee the airport
collects from Scott when it pumps its own gas.

"They're trying re-litigate an issue they've already litigated and lost,"
Luetkehans said.

Scott Aviation's attorney, Matthew Caruso, said the current system is unfair
to businesses on the airfield. He said the taxpayer-funded airport was
squeezing out private competition.

"Essentially, they have a monopoly on fuel sales," he said. "Businesses
should be selling products, not the government."

The airport relies heavily on fuel sales. In 2003, it sold more than 3.3
million gallons of aircraft fuel, earning $7.6 million, airport officials
said. Fuel sales make up about 51 percent of the airport's operating
revenue.

Tony Molinaro, a Chicago-based FAA spokesman, said the airport has the power
to hold exclusive fueling rights.

"They don't have to allow another company to come in," he said. "But they
can't exclude others if they allow (one) company to do it."

Allowing Scott to sell aircraft fuel could open the door to other businesses
to set up pumps throughout the airfield.

The airport recently imposed a landing fee for all transient aircraft, which
requires a small fee depending on the size of the plane or a certain amount
of fuel to be purchased to escape the fee.

The lawsuit doesn't ask for a specific dollar amount, but Scott claims to
have lost more than $1 million.


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