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PrivateSky sues Lee County Port Authority over second FBO proposal

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PrivateSky sues Lee County Port Authority over second FBO proposal
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Aviation International News | Aviation International News

PrivateSky, the sole fixed-base operator (FBO) at Southwest Florida International Airport in Fort Myers, has initiated legal proceedings against its landlord, Lee County Port Authority (LCPA). The lawsuit seeks an injunction concerning a request for proposals issued by LCPA on May 31 for establishing a second FBO at the airport. PrivateSky claims that the current retail fuel sales volumes are insufficient to support two FBOs and alleges that this move is aimed at driving it out of business following changes in LCPA leadership.

The FBO operator reported a decline in jet-A sales from 1.2 million gallons in 2022 to 900,000 last year, with aircraft movements dropping by 32%, from 9,161 to 6,227. Despite these figures, the airport's master plan anticipates growth and designates space for additional general aviation development.

According to FAA guidelines under the Airport Compliance Manual, an airport sponsor can grant a new FBO lease if there is available land and interested businesses meeting minimum standards. Article 23 of 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."

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This lawsuit marks another instance where PrivateSky has taken legal action against LCPA. The authority owns and operates Page Field's sole FBO nearby, which PrivateSky argues can offer lower prices due to not having rent or fuel flowage fees. In a previous case from 2011 involving similar issues regarding competition between their operations at KRSW and KFMY, the court dismissed it without prejudice after both parties agreed on covering their own legal expenses.

An LCPA spokesperson informed AIN that they had not yet been served with documents related to this latest suit and stated they would refrain from commenting once received.

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