FAA Says Court Must Determine Charlotte Douglas Airport Governance

BRADENTON, Fla. — The Federal Aviation Administration has punted the issue of Charlotte Douglas International Airport's operating certificate back to a court after saying it could not determine who would operate the airport under a law passed by the North Carolina Legislature earlier this year.

The FAA said in a letter Sept. 26 that it was unable to obtain information from the state attorney general about whether a regional panel created by the Legislature to operate the airport is an agency of the city or an independent special district.

The FAA also said it could not determine who is responsible for the "key roles of the airport sponsor and operator" under the new structure, and it is up to the court to answer those legal questions. Until then, Charlotte retains the airport's operating certificate.

The issue came up as part of a lawsuit filed by Charlotte July 30 challenging the state law, which took the airport's governance away from the city and placed it with a new commission. The suit cited concerns raised by the FAA about the airport's operating license. A judge granted an injunction blocking the law until the FAA completed a review of the bill.

"The FAA's decision represents a major victory for our community in the city's fight to retain control of the airport Charlotte built, and validates what community leaders, the City Council, and I have said about the General Assembly's legislation from the beginning — it is significantly flawed," Charlotte Mayor Patsy Kinsey said in a statement regarding the FAA letter.

Kinsey said the city remains in charge of the airport and will continue to press its suit.

Charlotte has issued $694 million of senior-lien airport revenue bonds for Charlotte Douglas, which are rated A-plus by Fitch Ratings and Standard & Poor's, and Aa3 by Moody's Investors Service. About $175.2 million of special facility revenue bonds are also outstanding.

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