FAA upholds 82 percent hangar rent increase at Centennial Airport

The FAA has rejected requests to reconsider its decision involving an 82 percent hangar rent increase at Colorado's Centennial Airport, according to AVweb. In an Oct. 7 response, the agency upheld its earlier determination that tenants had not established a violation of federal airport grant assurances.

Denver jetCenter increased monthly T-hangar rents from $660 to $1,200 on April 1. Affected pilots formed the Centennial Airport Pilots Association and pursued legal action against the FBO, also filing an informal complaint under Part 13 arguing that the increase violated federal requirements for reasonable and nondiscriminatory airport fees.

The FAA's position

FAA Regional Compliance Program Manager Peter Doyle rejected the reconsideration requests, maintaining that complainants must provide sufficient evidence to substantiate alleged violations. The agency said its responsibility to investigate does not require it to independently develop evidence on behalf of complainants.

AOPA General Counsel Fernando Campoamor had asked the FAA in a Sept. 29 letter to reconsider its August determination and examine the FBO's operating costs, rental revenue and occupancy records. According to the letter, 15 of 45 hangars were vacated following the increase, and the waiting list dropped from 108 to 64.

AOPA argued that the financial information necessary to evaluate the increase remained largely in the possession of the FBO and airport sponsor. "Complainants brought forward what they could obtain, and only the FAA can and should obtain the rest," Campoamor wrote.

Impact and next steps

The decision comes as aircraft owners at other airports face similar increases. AVweb reports that at Salt Lake City, some general aviation hangar rates are scheduled to rise by more than 150 percent next year.

Under FAA procedures, airport users may pursue informal Part 13 complaints or formal Part 16 proceedings. It is unclear from available reporting whether the Centennial Airport Pilots Association intends to pursue a formal Part 16 proceeding or other legal remedies.