News & Publications

FAA Dismisses Part 16 Complaint Against the City of Cincinnati

On September 12, 2014, the FAA issued a Director's Determination dismissing a Part 16 complaint filed by a user of the now-closed Blue Ash Airport against Firm client the City of Cincinnati.  The complaint alleged the City had illegally diverted proceeds from the sale of the Blue Ash Airport.  The City demonstrated that it had not spent any of the proceeds from the sale until after a prior sales agreement had been rescinded and the Blue Ash Airport closed.  Based on that showing, the FAA found that there had been no revenue diversion and dismissed the complaint.  The FAA also reiterated that airport sponsors are not required to keep airport revenues in segregated, interest bearing accounts, although airport sponsors should be prepared to account for all airport revenues to demonstrate that airport revenues are spent for permitted airport purposes.