Atlantic Aviation Sues San Jose To Stall Rival FBO

AINalerts » May 14, 2013
May 14, 2013, 3:25 PM

Atlantic Aviation has filed suit against the city of San Jose, Calif., in its efforts to block development of a new Signature Flight Support facility at Norman I. Mineta International Airport. Last month, Signature, in partnership with a group representing the business aircraft of Google’s executives, was awarded a 50-year lease by the San Jose City Council and intends to begin construction on the $82 million FBO this year.

Signature’s proposal, which called for $2.6 million in annual rent and a minimum guarantee of $400,000 in annual fuel flowage fee revenue, was selected over bids by Ross Aviation and Atlantic, which currently operates the only FBO on the airport. Atlantic’s earlier appeal of approval of the Signature plan by the airport’s evaluating staff was rejected.

The petition filed in California Superior Court claims San Jose failed to follow California and city law in meeting its obligations for addressing known safety issues and analyzing environmental impact. Atlantic has issue with the airport’s failure to permanently close a seldom used runway that abuts its property, claiming that if the runway is reinstated, it will likely lose a sizable portion of its leasehold due to FAA safety requirements.

In a statement, Signature said its San Jose FBO “development remains ‘full speed ahead,’ with a projected groundbreaking in the fall.”

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