City Wins Round in Fight Over Airport Landing Fees

Scoring another point for Los Angeles Mayor Richard Riordan in his ongoing battle with the airline industry, a federal appeals court on Friday ruled that the city can charge rent for its landing fields based on their current market value, which could trigger a windfall of about $50 million for Los Angeles International Airport.

The ruling says the U.S. secretary of transportation was incorrect to assume that only the historic cost of the land should be used to calculate fees, and asks the secretary to reconsider the legality of a 25-cent rental charge the airport has been imposing on the airlines since 1993. If upheld, that 25-cent charge would generate about $15 million annually for the airport, in addition to the $50 million that has been collected but held in escrow since the fee was imposed and disputed by the airlines.

“It’s big dollars, but it’s also vindication given a lot of carping against the airport,” said Steve Rosenthal, the lawyer handling the case for the city.

But the airline industry had its own spin on the latest development in the years-long fight. David Berg, a lawyer for the Air Transport Assn., said the ruling simply asks the secretary to review the material and provide a more expansive explanation for why the historic value should be used to calculate fees.

“We’re confident the secretary will make the same ruling. The court didn’t say he was wrong, the court sent it back to him to look at the issue again,” said spokesman John Ek.