Charlotte Airport Fight Heads to Courtroom

BRADENTON, Fla. – A court fight is under way between the city of Charlotte and the North Carolina General Assembly over the ownership of Charlotte Douglas International Airport.

The battle moved from the state capitol to the courtroom July 18 after the Senate gave final approval to the Charlotte Douglas International Airport Authority Act.

The Act transfers governance of the airport from Charlotte and places it under an 11-member authority composed of city and neighboring county officials who have yet to be appointed.

Shortly after the Senate vote, Charlotte City Attorney Bob Hagemann appeared in the Mecklenburg County General Court of Justice Superior Court Division and successfully obtained a temporary restraining order to stop the transfer of governance.

In addition to arguing that the Act is illegal and unconstitutional partly because the transfer occurred through a local bill that did not require the governor’s signature, the airport bond trustee “has asserted that the transfer of the airport would cause a notice of default to be issued,” the city’s lawsuit said.

“The General Assembly has, therefore, impaired the obligation of contracts, violated its statutory covenant to airport bondholders, and will seriously and irreparably harm the city’s credit rating, and perhaps the state’s credit rating,” said the suit.

A hearing on further action in Charlotte’s lawsuit is scheduled July 29. The city is seeking a trial and permanent injunction to block imposition of the act.

The entire reasoning for the legislative action this year is murky, though local press accounts have mentioned concerns about airport oversight by the Democrat-controlled City Council. The bill was supported by Republican lawmakers who hold a majority of seats in the legislature.

It also has been suggested there is concern that Charlotte Douglas might lose its largest carrier, US Airways, because of increasing fees.

So far the biggest loser is long-time airport director Jerry Orr, who resigned upon passage the Act because he was to become director of the new airport authority.

The city has appointed Brent Cagle as interim airport director. Cagle is the airport’s chief financial officer.

Charlotte has issued $694 million of senior-lien airport revenue bonds for Charlotte Douglas International Airport. The bonds are rated A-plus by Fitch Ratings and Standard & Poor’s, and Aa3 by Moody’s Investors Service.

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