The airport board has the legal authority to exclude the a second restaurant which is nationally recognized as a means of protecting the one owned by a local community. In this case, the national restaurant chain is an entity that does not fall within the prohibitions of the Exclusive Rights policy that id dictated by the Federal Aviation Administration. The restaurant does not provide its services on the airfield such as air carriers, flight schools and charter services all of which are under the prohibition of the FAA policy. As a result, the airport board could help ensure the local restaurant can expand its business without high competition.
Though the airport board has good intentions in protecting the locally owned FBO from competition from the big chain, its action would be considered illegal. According to the FAA policy, the sponsor cannot grant an exclusive right for airport use to entities that wish to provide aeronautical services to the public. Such services include pilot training, charter operations, fueling, sale of aircraft parts, storage and aircraft rental amog other things. The fixed-base operator is subject to receive fair competition even though it is from an international company. This prohibition is an intentional means of ensuring that a monopoly is not realized in federally obligated airports.
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Rejecting the international FBO would be considered a violation to the provisions of the agreement with the FAA. As a result, the rejected applicant may report to the FAA who may take significant action against the airport board. In order for the sponsor to remain an eligible candidate for the Airport Improvement Program (AIP) it is necessary that the requirements established under federal regulations are followed to the letter. The airport sponsor would be required to demonstrate the significant reasons for violating the exclusive rights policy set by the FAA. This action will either lead to denial of federal funds for improvement on the airport or the airport board will withdraw its grant for exclusive rights for the local FBO.
