Through-the-Fence Maintenance Continued from page 41 the relationship between airports and independent service providers. Grant Assurance 23 “Exclusive Rights”: Airports are prohibited from granting an “exclusive right” to conduct an aeronautical business by way of lease, operating permit or other restrictions,4 except under certain limited conditions that are seldom applicable. The purpose of the exclusive rights prohibition is to prevent monopolies and to promote competition at federally-obligated airports (which, inciden- tally, is supposed to improve safety and lower prices).5 The FAA’s position is that an exclusive right limits the usefulness of the airport and deprives the aeronautical community of the benefit of competitive services. 4 49 U.S.C. § 40103(e), No Exclusive Rights at Certain Facilities; 49 U.S.C. § 47107(a), General Written Assurances; and 49 U.S.C. § 47152, Terms of Conveyances. Grant Assurance 23 says, in part, that the airport sponsor “will permit no exclusive right for the use of the airport by any person providing, or intending to provide, aeronautical services to the public.” 5 Exclusive Rights at Federally-Obligated Airports, FAA AC 150/5190-6, at 1.2 (hereinafter “150/5190-6”). An airport violates the exclusive rights prohibition if it excludes others, either intentionally or unintentionally, from participating in an on-airport aeronautical activity.6 This grant assurance is unique in that it is in effect for as long as the airport is in existence—even if the original 20-year grant period has expired. An exclusive right may be expressly granted, for instance, by a lease agreement that promises to exclude competitors offering the same type of services.7 It may also be inadver- tently created by unreasonable minimum standards or rules that have the effect of excluding aeronautical businesses.8 The presence of only one repair station or maintenance provider is not necessarily evidence of an exclusive right by itself.9 6 AC 150/5190-6, at 1.2. 7 Hilton v. City of Arcadia, FL, No. 13-93-22, Preliminary Findings and Analysis (Nov. 29, 1995). 8 AC 150/5190-6, at 1.1-1.2. 9 Lytton v. Sheridan Cnty. Bd. of Cnty. Comm’rs, FAA Docket 16-01-16, Director’s Determination (Dec. 20, 2002). NATA P&C Plus Insurance Program NATA offers a P&C Plus Insurance Program with Chubb Insurance, exclusively for members to protect their business, employees, and assets. The Program provides a full suite of insurance coverage for members. This broker-driven program delivers flexible coverage options with a quick and simple enrollment process. The NATA P&C Plus Program offers a range of coverages including: • Commercial Property • Inland Marine • Business Auto • Storage Tank Liability - TankSafe® • Premises Pollution Liability • Cyber Liability • Management Liability – Directors & Officers, Employment Practices, Fiduciary • Crime Coverage • Kidnap Ransom and Extortion • Workplace Violence Expense Get started today! Speak with your broker about this offering or visit www.nata.aero/PCPlus. 42 Aviation Business Journal | Spring 2019
