NEWS RELEASE                                                                               FOR IMMEDIATE RELEASE

For info rmation contact:                                                                           November 30, 2007

Carl G. Olson, Executive Director (309) 663-7384          

Central Illinois Regional Airport

FEDERAL AVIATION ADMINISTRATION REJECTS APPEAL FILED BY PLATINUM AVIATION ON COMPLAINT AGAINST

 BLOOMINGTON-NORMAL AIRPORT AUTHORITY

BLOOMINGTON , IL  -November 30, 2007 – The Federal Aviation Administration (FAA) has resoundingly rejected an appeal filed by Platinum Aviation and Platinum Jet Center BMI on a previous FAA ruling regarding the Central Illinois Regional Airport .  FAA Director of Airport Safety and Standards David L. Bennett, issued a Director’s Determination on June 4, 2007 that dismissed the Part 16 complaint filed by Platinum Aviation against the Bloomington-Normal Airport Authority (BNAA).  In the initial complaint, Platinum alleged the Bloomington-Normal Airport Authority violated multiple grant assurances.  The Director’s Determination dismissed every allegation presented by Platinum Aviation and Platinum subsequently elected to appeal the Director’s Determination.  After a review by the FAA’s Associate Administrator for Airports, D. Kirk Shaffer, the FAA issued a Final Decision and Order dated November 28, 2007 that affirms the Director’s Determination in its entirety and dismissed the appeal.   The Bloomington-Normal Airport Authority is cleared of all grant assurance violations.

            Grant assurances are set forth by the United States Secretary of Transportation as a condition for the airport to receive federal financial assistance for airport development.   These assurances are included in every airport improvement program (AIP) grant agreement and become a binding obligation between the airport and the federal government.  

“The FAA has once again confirmed that BNAA’s actions in this matter were appropriate, justified and necessary when questions arose regarding the possibility of grant assurance violations,” said Paul Harmon, Chairman of the Bloomington-Normal Airport Authority. “The Final Decision and Order states repeatedly that BNAA had federal obligations that cannot be subordinated by contractual rights.  As an airport receiving federal assistance we must comply with the FAA’s stipulations or risk losing our Airport Operating Certificate.  The Final Decision and Order issued by the FAA confirms BNAA’s stance with Platinum in these matters.”

One of the major issues involved in the complaint was Platinum’s contention that a Priority Use Area referred to in the agreement between BNAA and Platinum would allow Platinum exclusive rights to an area on the general aviation ramp of the Central Illinois Regional Airport that would include an active taxiway and aircraft and ground vehicle movement areas.  The FAA flatly rejects this assertion.   While the FAA did review the contractual agreements between Platinum Aviation and BNAA and found they did contain terms and conditions that were inconsistent with BNAA’s grant assurances, the Director found that “the steps taken by (BNAA) to address the issues of noncompliance were reasonable and consistent…..That is, steps were taken to ensure the public-use taxiways and movement areas are kept open for public use and are not restricted for (Platinum’s) use.”

The FAA also categorically rejected Platinum’s claims of BNAA’s economic discrimination and that BNAA granted exclusive rights to Platinum’s competitor at Central Illinois Regional Airport .

“We continue to maintain that the airport’s responsibility to sustain a safe, efficient facility that complies with our obligations to the FAA government is of the highest priority,” said Carl Olson, Executive Director of the Central Illinois Regional Airport . “Our actions to ensure compliance and provide a safe airfield for all users of the airport have been validated by the FAA’s Determination and Final Decision and we will continue with this approach going forward.”

  Aside from the FAA Part 16 Complaint and Appeal, Platinum had filed suit in Illinois State Court seeking $6.4 million in damages and was awarded $8500 by a jury in June of 2006.  In yet another action, Platinum has again filed suit in State Court alleging breach of contract and is seeking in excess of $3 million.  That lawsuit is scheduled to go to trial in December of this year.

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