Tuesday, January 6, 2009

The Federal Aviation Administration has dismissed a business discrimination complaint against Monroe County in connection with its role as operator of Key West International Airport.

The complaint could have cost the county millions of dollars in FAA grants.

The federal agency issued a preliminary ruling against airport managers in September for violating a discrimination clause in a grant assurances agreement. In order to receive funding for airport projects, such as the new terminal construction, airport managers cannot favor one business over another.

Wilson Gilliam Jr., who operated Atlantic Helicopters at the Key West airport until nearly two years ago, filed the complaint with the FAA, alleging that airport officials engaged in unfair business practices that benefited only a few.

Because the county took corrective actions, including offering the company a three-year lease, the FAA dismissed the complaint, according to a ruling by Randall Fiertz, director of the FAA's Office of Compliance and Field Operations.

County Airports Director Peter Horton contends the county did not correct anything, because it already had offered Gilliam a lease before the complaint was filed.

"We will [again] offer him the same three-year lease at the same rate," Horton said.

Gilliam, who did not return telephone messages Monday, no longer operates a helicopter business at the airport.

Nonetheless, Horton said the county will offer him an $800 a month lease, and will attempt to set up a meeting between Gilliam and Island City Flying, a company that oversees leasing of the ramp, tarmac and hangars under a county contract.

Island City Flying and Atlantic Helicopters had been at odds on several issues related to Gilliam's operation, and Gilliam complained that the company, and by extension the county, ran him out of business by not giving him enough space, not allowing him to train pilots on site nor operate a second helicopter.

Gilliam said even after the FAA permitted his company's operations at the airport, the county continued to ignore specific requests for information and for approval to expand operations.

Horton said Gilliam was offered a long-term lease and three different spots at the airport. Gilliam requested space at two other spots, but the airport could not accommodate him because of safety and security issues, Horton said.

The FAA views the debate as moot. "The county has resolved the issues of unreasonable denial of access raised in the complaint, and [the FAA] finds the county is in compliance with its federal obligations," Fiertz wrote.

tohara@keysnews.com