Financial Matters

Los Angeles International Airport: The firm has worked with Los Angeles World Airports (LAWA) since 2010 on federal regulatory and environmental law issues. That work has included advising LAWA in connection with the environmental reviews of the Airfield and Terminal Modernization Project, which addresses airfield, terminal and landside improvements within the airport’s existing footprint, as well as development of on-airport property. We have also advised on matters regarding requirements associated with other airfield, terminal, support and landside projects, including the Midfield Satellite Concourse and Northside area. Our lawyers support LAWA’s efforts in construction contract administration and disputes for the Landside Access Modernization Program being undertaken at Los Angeles International Airport, including the Automated People Mover and Consolidated Rental Car Facility P3 Projects. We successfully represented the City in federal court litigation challenging the environmental review for changes to LAX arrival patterns and provide continuing counsel on addressing community concerns about noise impacts for flight track changes throughout the City and counsel LAWA on a major cargo modernization public-private partnership project.

Reno-Tahoe Airport Authority: We served as outside counsel to the Reno-Tahoe Airport Authority in the negotiation of a new use and lease agreement that will serve as the financial underpinning supporting development of two replacement concourses. To make this program financially viable, we helped airport officials develop a new rates and charges methodology that provides security to the Authority and its bondholders, but also creates incentives for airlines to increase passengers to the airport. We also advised the Authority on financial and legal issues relating to development of a new consolidated rental car facility, comparing the benefits and detriments of a privately financed and developed model with those of a public finance approach, and negotiated the principal agreements with a private developer and the rental car companies.

Pittsburgh International Airport: Our team served as the airport authority’s counsel for negotiation of a new Airline Operating Agreement (AOA) with airlines operating at the airport. This agreement, the first new AOA in 30 years, serves as the financial foundation for the Authority’s over $1 billion Terminal Modernization Program (TMP). The AOA was finalized just prior to the impact of COVID-19, and so the airlines were not able to sign it. Accordingly, we worked with the Authority to negotiate a shorter-term agreement with the airlines that included the new rate methodology and a later amendment that extended the term and approved construction of the TMP and issuance of bonds secured by airport revenues.

Rental Car Bankruptcies: The firm represented two consortia with a total of 21 separate airports in both the Hertz and Advantage rental car bankruptcies, resulting in the bankruptcy courts holding in both cases, for the first time, that customer facility charges (CFCs) are property of the airports for whom they were collected and held in trust by the rental car companies, and not assets of the debtor rental car companies. We assisted our clients with issues relating to the assumption and assignment of agreements, collecting pre- and post-petition obligations and the like. We have represented many other airport sponsors in airline and airport industry bankruptcies over the last 20 years.

Hartsfield-Jackson International Airport:  We have provided counsel to the City of Atlanta on federal regulatory issues and legal issues specific to airport operations and development. Among the wide range of issues on which our team has provided counsel are matters involving: complex and unprecedented legal issues related to leasing, revenue use and commercial development; developing and implementing a corrective action plan arising from an adverse finding in a Part 16 complaint relating to its ACDBE program; counsel in a complex revenue use investigation; providing lead counsel in litigation related to an on-airport hotel concerning the proper level of rent payments to be made under the lease and the potential applicability of the federal grant assurances; and negotiation of an amended lease that was coupled with a complex property swap transaction, resulting in the acquisition of a new parcel of land that was valuable — monetarily and logistically — to Atlanta.

Harry Reid International Airport (LAS): We have been engaged by Clark County for decades to provide counsel regarding a suite of federal regulatory and compliance issues at LAS and development of a new supplemental airport to serve Las Vegas. The firm advised the Clark County Department of Aviation on an array of issues, including land use and development issues, specifically relating to the real estate policies and practices for concurrent commercial development of aeronautical property to generate revenue from property reserved for airspace protection at LAS. We represented the County amending its airline use and lease agreements at LAS and in connection with collection of PFCs by Part 135 operators. In addition, we assisted the Department of Aviation in securing a favorable FAA opinion that allowed the County to incentivize so-called up-gauging (replacing smaller aircraft with larger aircraft) at LAS to improve airfield efficiency. Our lawyers prepared a formal request for an FAA decision and assisted in drafting the interpretation of the rule and in implementing the program following the favorable FAA determination.

Tampa International Airport (TPA):  We counseled the Hillsborough County Airport Authority in negotiation of a new Use and Lease Agreement (ULA) that, due to the exigencies of the COVID-19 pandemic, became negotiation of a new rates resolution. We worked with the Authority and its consultants to develop a new ratemaking methodology and a strategy for negotiating a new ULA incorporating that methodology. We negotiated with the airlines serving TPA for nearly 18 months, but after air traffic dropped precipitously due to COVID-19, we assisted the Authority in negotiating a new rates resolution that was adopted by the Authority just before the former ULA expired. We also advised the Authority on matters related to the solicitation of a new concessions program, including a review of all proposed concessions contracts for compliance with applicable law, including FAA-based ACDBE requirements.

Lehigh-Northampton Airport: Our lawyers have represented Lehigh-Northampton Airport Authority on a wide range of matters for a number of years related to the airport in Allentown, Pennsylvania. One focus of that representation has been negotiating a multi-million dollar, non-aeronautical development project, which included obtaining the release of airport property. We also assisted with various aspects of COVID-19 response (rent deferrals, compliance with public health orders, etc.) and drafted and negotiated lease renewals, updates to minimum standards and updates to airline rates and charges.

Phoenix Sky Harbor International Airport: Our lawyers have counseled the City of Phoenix’s Airport Department on a variety of matters over many years, including issues arising from Part 135 (air taxi) operations and passengers transferring to commercial carriers, counsel regarding the application and requirements of the Uniform Relocation Act, advice regarding structuring financial relief to concessionaires in response to the COVID-19 pandemic, and serving as bankruptcy counsel in both the Hertz and Advantage bankruptcies. We successfully represented the City in precedent-setting litigation against FAA flight tracks in City of Phoenix v. FAA.

Tweed New Haven Airport: We represented the Tweed-New Haven Airport Authority on an approximately $100 million private investment and private sector partnership. The project, which includes structuring as a facility lease and management contract, encompasses operation of the existing terminal and development of a new terminal, as well as initiating new service by a start-up low cost airline. The firm also advised the Authority on related land use and environmental reviews necessary for a runway extension and the new terminal development.

Paine Field/Snohomish County Airport: The firm assisted the County on the development and coordination strategy for the introduction of commercial service for the first time at Paine Field. This included advice on securing necessary FAA approvals, changes to airline operations specifications and environmental review for those changes, as well as development of the new passenger terminal. The firm also represented the County in negotiations of a lease for a commercial terminal operator and negotiation and development of the plan for aeronautical and quasi-aeronautical development on the last remaining vacant parcels at the airport, as well as the negotiation among competing bidders for airfield access and commercial development opportunities. Our lawyers also structured and helped implement a litigation strategy concerning challenges to the lease in federal and state courts.