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Florida FBO PrivateSky Sues Landlord Lee County Port Authority over New RFP
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Private Sky believes a second FBO at KRSW would be its death knell
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PrivateSky, an FBO at Southwest Florida International Airport in Fort Myers, has filed a lawsuit against Lee County Port Authority over the issuance of an RFP.
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PrivateSky, the lone FBO at Southwest Florida International Airport (KRSW) in Fort Myers, has filed a lawsuit against its landlord, Lee County Port Authority (LCPA), seeking an injunction over a request for proposals that the authority issued on May 31 for a second FBO at KRSW. In its complaint, PrivateSky alleges that the retail fuel sales volumes at KRSW, which the FBO must report to the authority, are not large enough to support two FBOs and claims that this is an attempt to eventually drive it out of business following a change in LCPA leadership.

The FBO operator indicated that jet-A sales at KRSW dropped from 1.2 million gallons in 2022 to 900,000 last year, while movements declined 32%—from 9,161 to 6,227. Yet, according to the airport’s master plan, growth is anticipated and there is space designated for additional general aviation development.

FAA guidelines under the Airport Compliance Manual specify that all an airport sponsor requires to grant a new FBO lease is available land and interested businesses that meet minimum standards who wish to pursue it. Article 23 in the agency's airport grant assurances states, "The providing of the services at an airport by a single fixed-based operator shall not be construed as an exclusive right if both of the following apply: a. It would be unreasonably costly, burdensome, or impractical for more than one fixed-based operator to provide such services, and b. If allowing more than one fixed-based operator to provide such services would require the reduction of space leased pursuant to an existing agreement between such single fixed-based operator and such airport."

This is not the first time PrivateSky has sought legal action against the LCPA, which is not only its landlord but its rival as well. LCPA owns and operates the sole FBO at nearby Page Field (KFMY), which PrivateSky said can undercut it on pricing due to not having to pay any rent or fuel flowage fees. PrivateSky argued that LCPA illegally used government funds to build its new FBO at KMFY in competition with its own at KRSW. That 2011 case was dismissed by the court without prejudice after both sides agreed to pay their own legal fees.

An LCPA spokesperson told AIN that the agency had not yet been served with the papers in this latest suit and added that it would not have any comment once the lawsuit is received.

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Florida FBO Sues Landlord over New RFP
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PrivateSky, the lone FBO at Southwest Florida International Airport (KRSW) in Fort Myers, has filed a lawsuit against its landlord, Lee County Port Authority (LCPA), seeking an injunction over a request for proposals that the authority issued on May 31 for a second FBO at KRSW. In its complaint, PrivateSky alleges that the retail fuel sales volumes at KRSW (which it must report to the authority) are not large enough to support two FBOs and claims that this is an attempt to eventually drive it out of business following a change in LCPA leadership.

The FBO operator indicated that jet-A sales at KRSW dropped from 1.2 million gallons in 2022 to 900,000 last year, while movements declined 32%—from 9,161 to 6,227. Yet, according to the airport’s master plan, growth is anticipated and there is space designated for additional general aviation development.

This is not the first time PrivateSky has sought legal action against LCPA, which is not only its landlord but also its rival. LCPA owns and operates the sole FBO at nearby Page Field (KFMY), which PrivateSky said can undercut it on pricing due to not having to pay any rent or fuel flowage fees. PrivateSky argued that LCPA illegally used government funds to build its new FBO at KMFY in competition with its own at KRSW. That lawsuit was later dismissed.

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