PrivateSky has accused the Lee County Port Authority of trying to put it out of business.
In a lawsuit filed in Lee County Circuit Court, the company alleges that "turnover at positions of importance within the authority" has challenged what has otherwise been a "fruitful" landlord-tenant relationship for years.
For more than two decades, PrivateSky has served as the sole fixed-base operator, or FBO, for private aircraft at Southwest Florida International Airport in Fort Myers, known as RSW. In this role, the company provides both fuel sales and jet services, from hangar rentals and aircraft maintenance to catering.
The crux of the complaint? The company asserts the authority, which owns and operates the airport, is trying to "take over" the FBO business, by bringing in a second operator, when there isn't enough business to support two of them.
Victoria Moreland, the authority's chief communications and marketing officer, said the agency is "in receipt of the complaint," but doesn't comment on "legal matters of this nature."
PrivateSky points to what happened at Page Field, the authority's general aviation airport, when a second FBO operator opened there, describing it as a "death blow." The authority ended up taking over both operations, when there weren't enough fuel sales to keep them going independently, according to the suit.
The authority is now PrivateSky's nearest competitor, as well as its landlord, the suit says.
A request for proposals for a second FBO at Southwest Florida International went out in May. The deadline to submit proposals is Aug. 1.
The new operator would lease the land, but pay for all the improvements needed to support the business, from a terminal and hangars to fueling stations and an aircraft parking apron. According to the RFP, the minimum capital investment is $15 million.
The minimum lease is for 10 acres.
In the solicitation for proposals, the authority states that it issued the RFP "in response to interest expressed by several potential FBO operators" in doing business at the airport.
PrivateSky questions Lee County Port Authority's motives
In the suit, PrivateSky questions the motivation behind the RFP, saying "it appears some of the newguard do not particularly like the principals" who own the company and want to "put it out of business."
To support two operators at a single airport, there must be at least three million gallons of Jet-A fuel sold annually, and sales are "nowhere close to that standard," according to PrivateSky.
The company claims the authority is well aware of that fact, due to the required disclosures about those sales under its lease agreement.
PrivateSky further alleges: "The authority has not been fully transparent with bidders under the new RFP, with the hope that they will not discover the inability of RSW to support the second FBO. For example, the authority has not disclosed its own competition down the street, has not produced its forecasts, refuses to answer basic questions about limitations to the opportunity, and has not done an economic feasibility study, which is industry standard."
PrivateSky seeks temporary and permanent injunctions to cancel the RFP and stop the development of a second FBO at Southwest Florida International "at this moment in time, at least until the Retail Jet-A fuel volume meets the industry standard" to support it.
Recently, those sales have trended downward, falling from 1,220,181 gallons in 2022 to 902,504 gallons in 2023, a 26% drop.
Prior to 2000, a second FBO, Jet South, was operating at RSW.
"Jet South and PrivateSky recognized that they would be cannibalizing each other’s sales and were destinedto go out of business. To avoid this, PrivateSky acquired Jet South," according to the suit.
PrivateSky also points out that general aviation aircraft movements at RSW fell 32% from 9,161 in 2022 to 6,227 in 2023, so they're not growing, as some might think.
A 'death sentence" for PrivateSky?
PrivateSky argues the authority as a competitor at Page Field has unfair advantages, including no rent or development costs to pay back, and suggests it will only take over the second FBO at Southwest Florida International "when it fails" by design.
"The authority will have a nearly brand new $15 million facility at RSW to compete with PrivateSky. This will negate PrivateSky's location advantage," at the larger, more recognized airport, and will be a "death sentence," the company asserts.
In the suit, PrivateSky describes itself as a "feather in the cap," at the airport.
It boasts: "The tens of millions of dollars PrivateSky has invested into its first-class facilities at RSW brings prestige, renown, and, importantly, high-value customers to RSW and the Fort Myers community. For example, when Air Force One visits the area, it is stationed and serviced at PrivateSky. PrivateSky has cemented a reputation as the premier Gulfstream jet customization and service center in the world."
The company has a team of 25 employees who live and work in Fort Myers. It's received numerous awards, for its top-rated customer service.
The Wolanin family, who own the business, have been recognized for their humanitarian and charitable efforts, including by the Lee County Port Authority after their help with the community's recovery in the aftermath of Hurricane Ian.
PrivateSky's current lease is set to expire on Sept. 30, 2032, but the company has the option to extend the agreement an additional 28 years, until 2060, by making more capital improvements.
To exercise the second option, PrivateSky must invest a total of $5.6 million in improvements by 2032. To date, the company has spent about $600,000 of the required amount, but it's now concerned those investments could be for naught.
PrivateSky would prefer a settlement
In an email, Paul Thanasides, who represents the company in its lawsuit, said a "settlement is always preferred."
The company's representatives talked "at length" with the Port Authority's leadership in hopes of avoiding litigation, he said, but their concerns weren't addressed.
In sum, Thanasides stated: "Private business cannot compete on price with government agencies that pay no rent, no development costs, no taxes, and receive taxpayer grants."
It's hard to say how long the case might take to resolve, he said.
A summons has yet to be issued. When it is, the authority will have 20 days to file its answer to the complaint, unless the court grants an extension.
Most Popular
Comments / 0