FAA Finds Kentucky FBO Lease in Violation

In response to an informal complaint from MSI Aviation–a maintenance service provider at Kentucky’s Lake Cumberland Airport in Somerset–over the lease terms offered to another limited FBO, the FAA has sent a letter to the airport’s board, warning it that it is in violation of the administration’s airport improvement program (AIP) grants. Under the provisions of the AIP grants program, the incentives the airport gave to Somerset Regional Aviation did not result in its getting fair market value for the lease as stipulated by the agreement. The FAA also states that “each fixed-based operator at the airport shall be subject to the same rates, fees, rentals and other charges as are uniformly applicable to all other fixed-based operators making the same or similar uses of such airport.” If the FAA finds the airport in non-compliance it could, as a last resort, suspend the airport’s federal funding. As of publication date, the sides were negotiating.