Signature Flight Support filed a Part 16 complaint yesterday with the FAA disputing the legality of the decision by the Orange County (California) Board of Supervisors to grant another FBO the leasehold held by Signature for more than two decades. The 28-page filing included a detailed legal case, and implications that political corruption was at the root of the board’s decision.
Among several other issues, Signature’s complaint focuses on the county’s request for qualifications (RFQ) process, which consisted of a complex matrix of criteria and qualifications. Of six applicants for the leasehold, Signature finished first in the ratings, with the other FBO on the field, Atlantic Aviation, finishing second and ACI Jet, a California entity that Signature characterizes as underqualified with only small-airport experience, finishing fifth. Despite an independent five-member advisory board and the five-member John Wayne Airport Commission unanimously deciding in favor of Signature and Atlantic, the county board nevertheless granted the leasehold to ACI Jet, according to the filing. The county further gave Signature 30 days to vacate the premises.
Signature is asking the FAA to intervene with a cease and desist order against the county to first, stop the eviction process, and then to re-evaluate the granting of the leasehold. The companiy claims the decision was based on what Signature characterizes as undue influence on the part of an individual who, Signature said, tried to encourage the board to allow him control of the leasehold.
Signature Flight Support filed a Part 16 complaint last month with the FAA disputing the legality of the decision by the Orange County (California) Board of Supervisors to grant another FBO the leasehold Signature held for two decades. Signature filed the complaint after the board on February 28 reaffirmed in a 4-1 vote its decision to hand the leasehold to ACI Jet, a local FBO chain and charter provider.
Before the board vote, dozens of interested parties, from tenants to employees, spoke on behalf of Signature, questioning why the board would make such a change without consulting the tenants and endorsing Signature’s service and community outreach. Since ACI Jet is a charter operator, and other such firms at the airport expressed fear that ACI Jet would be able to set the fuel prices that other charter operators pay.
However, Flight Safety Foundation general counsel and former FAA chief counsel Ken Quinn, who is a partner in the law firm Pillsbury and is representing ACI Jet, expressed confidence that the board would prevail in switching FBOs. FBO complaints are rarely successful, he told the board, and he is doubtful that grants would be jeopardized. “There’s been no discrimination,” he said, “You welcome new entrants."
A number of other people attended the February 28 board meeting to speak on behalf of ACI Jet or to address pricing issues, indicating a need for more fair pricing. William Borgsmiller, founder and CEO of ACI Jet, said his company’s “history of fair pricing speaks for itself.”
Process Questioned
Signature had tried to ward off the vote with an earlier less formal Part 13 complaint and a protest sent to the county. The board acknowledged the likelihood of facing a formal Part 16 complaint, but supervisor Shawn Nelson, who was an advocate for the switch in FBOs, noted that no matter how the board voted, there would be a complaint filed. “Somebody’s got to win and somebody’s got to lose,” he said.
After the board proceeded with the vote—an affirmation of a determination made in January—the FBO chain delivered a 28-page Part 16 filing to the FAA, laying out a detailed legal case, and implying that political corruption was at the root of the board’s decision.
Among several other issues, Signature’s complaint focuses on the county’s request for qualifications (RFQ) process, which consisted of a complex matrix of criteria and qualifications. Of six applicants for the leasehold, Signature finished first in the ratings, with the other FBO on the field, Atlantic Aviation, finishing second. ACI Jet finished fifth. Despite an independent five-member advisory board and the five-member John Wayne Airport Commission unanimously deciding in favor of Signature and Atlantic, the county board nevertheless granted the leasehold to ACI Jet, according to the filing. The county further gave Signature 30 days to vacate the premises.
Signature is asking the FAA to intervene with a cease-and-desist order against the county to stop the eviction process and then re-evaluate the granting of the leasehold. The company claims the decision was based on what Signature characterizes as undue influence on the part of an individual who, Signature said, tried to encourage the board to allow him control of the leasehold.