THE Federal Aviation Administration has determined that the Commonwealth Ports Authority did not violate its grant obligations, and Star Marianas Air should pay any of its past dues to CPA as soon as possible.
Star Marianas owes CPA a total of $4.7 million, according to CPA records obtained by Variety.
The total account receivable as of Jan. 31, 2023, was broken down as follows:
• Aviation fees — $4,711,806.25
• Miscellaneous fees — $1,647.49
• Airline settlement — $45,650
In a letter on Monday, FAA Safety and Standard Branch Manager Brian Armstrong informed Star Marianas Air President Shaun R. Christian that the FAA has completed its review of Star Marianas Air’s allegations against CPA.
On Jan. 24, 2022, Christian filed a complaint with the FAA alleging that CPA unilaterally imposed new rates in Oct. 2021. CPA’s proposed rates failed to meet appropriate criteria for rate setting methodology, Christian said.
But according to Armstrong, the FAA has determined, based on available information, that CPA “did not violate its grant obligations as it relates to reasonableness of the fees CPA charges.”
Specifically, he said there is no federal regulation requiring any single approach to rate setting other than that the methodology be applied consistently to similarly situated aeronautical users and conforms to the U.S. Department of Transportation’s policy regarding airport rates and charges.
Armstrong said airline rates and fees may not unjustly discriminate against aeronautical users. He cited Title 49 United States Code (USC) § 47107 (l)(3) which requires airports to, at a minimum, be as self-sustaining as possible when entering into new agreements or establishing rates, charges and fees.
Armstrong added that the policy regarding airport rates and charges provides that any newly established fee or fee increase that is the subject of a complaint under Title 49 USC 47129 that is not dismissed by the U.S. Department of Transportation secretary, “must be paid to the airport proprietor under protest by the complainant.”
He said Star Marianas “should pay any past due fees to the airport as soon as possible to resolve any delinquent accounts on SMA’s part.”
“Therefore, based on our investigation, the FAA finds this informal complaint warrants no further FAA action. This preliminary determination is not a final agency decision subject to judicial review. If you believe this office has erred, you may file a formal complaint under 14 Code of Federal Regulations (CFR) Part 16, Rules of Practice for Federally Assisted Airport Enforcement Proceedings,” Armstrong told Christian.
Variety was unable to get a comment from Christian.
