# Petition for Writ of Certiorari — Delta Air Lines, Inc. v. Port Authority

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1987
- **Citation:** 484 U.S. 961

## Text

EILED

me iS
87-3 33 a
No. 87- JOSEPH F. SPANIOL, JR,
pinarumesns | — CLERK

IN THE

Supreme Court of the Gnited States
OCTOBER TERM, 1987

~ f Supreme Court, U.S,

DELTA AIR LINES, INC.,
Petitioner,
Wa

Port AUTHORITY OF NEW YORK AND NEW JERSEY,
Respondent.

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT

ALLYN O. KREPS
(Counsel of Record)

Of Counsel Louis TOUTON
ERWIN N. GRISWOLD ROBERT DEBERARDINE
ROBERT LAYTON JONES, Day, REAVIS
JONES, Day, REAVIS & POGUE

& POGUE 355 South Grand Avenue
1450 G Street, N.W. Suite 3000
Washington, D.C. Los Angeles, CA
20005-2088 90071
(202) 879-3939 (213) 625-3939
WALTER BRILL Counsel for Petitioner
Law Department

Delta Air Lines, Inc.
1030 Delta Boulevard
Atlanta, GA 30320
(404) 765-2692

PRESS OF BYRON S. ADAMS, WASHINGTON, D.C. (202) 347-8203

QUESTIONS PRESENTED

1. May a local governmental agency limit the dis-
tance of non-stop airline flights, in view of section
105(aX1) of the Airline Deregulation Act of 1978, 49
U.S.C. app. § 13805(aX1), which prohibits states and
interstate agencies from regulating the “‘rates, routes,
or services of any air carrier’?

2. Do the “proprietary powers’ of airport operators
preserved by section 105(b\(1) of the Airline Dere-
gulation Act, 49 U.S.C. app. § 1305(b\1), include the
power to impose an extraterritorial restriction upon
the distance of non-stop flights? -

3. Does a local governmental agency operating air-
ports have any jurisdiction over the use made by air-
lines of airport “landing slots” granted by the FAA
under 14 C.F.R. §§ 93.121-93.133?

iii

ii
PARTIES INVOLVED

The parties to this proceeding in the courts below
were Western Air Lines, Inc., and the Port Authority
of New York and New Jersey. On April 1, 1987, after
final briefing and argument in the Court of Appeals,
Western Air Lines, Inc. merged with Delta Air Lines,
Inc. This petition is brought by Delta Air Lines, Inc.,
as the surviving company following the merger.*

*The parent companies, subsidiaries (except wholly owned
subsidiaries) and affiliates of Delta Air Lines, Inc. are Atlantic
Southeast Airlines, Inc.; Comair, Inc.; and Gatwick Handling,
Ltd.

TABLE OF CONTENTS

Page
STINE IOS TEND os ccsccccccesescccscnscoscscnscccensensess i
coisa cindetiavescns untseastbovecsechsonsseesont il
EE TE RM INEU EINE iscicsescsescecccccescrcsecsseseosseonsese iv
Neen acs sa snannendeosonsvasnessassenrs 1
JURISDICTION .......... ESTE CS aa a eR 1
STATUTORY PROVISIONS INVOLVED ............sssseeeeeeeees 2
le kdk celal shicedoetnnisagudeniesansenenestes 3
REASONS FOR GRANTING THE WRIT ...........cceseeeeeeee 7
I. By Sanctioning Local Regulation of Airline
Routes as the Exercise of a “Proprietary
Power,” the Decision Below Conflicts in Ap-
proach with Decisions of this and Other
CN Rae Liicaaihid harsieunncepsbasdvanssevcediveaytarsens 7
A. This Court’s decision in City of
I alah cnaibeernduaiipaebintddvignaivensinveces 10
B. The decision of the Ninth Circuit in San
Diego Unified Port District ...........00000 11
II. The Decision Below Imperils the Congres-
sional Objective of Airline Deregulation ..... 12
III. This Court Should Grant Review to Preserve
the Exclusive Role of. the FAA to Manage
CE TM PRPS oe ciccccccscccscescsencesscnccooss 16
a ina sae teinanapercepucrininesdsnaneess 19
APPENDIX A: District Court Opinion, September 3,
(ESERIES PRES efatterae ete ten arp ea RE ee la
APPENDIX B: Second Circuit Opinion, April 22,
PEERS RESTOR SS” OIE tare er ie oe aa oe 19a

APPENDIX C: Second Circuit Order Denying
Rehearing, May 28, 1987 ............... 28a

iv

TABLE OF AUTHORITIES

CASES: Page
British Airways Board v. Port Authority, 564 F.2d

BE Ge Bae CED :stitineneniencpctacenvidsanianacinnsncs 11
City of Burbank v. Lockheed Air Terminal, Inc.,

PUR RRS Oe Be sR emer one 10,17-18
City of Houston v. FAA, 679 F.2d 1184 (5th Cir.

RITE. disses varioeeannicoabicerniiabndbendaimmubieabaumeonenes 14-15

Griggs v. Allegheny County, 369 U.S. 84 (1962) .. 11

Northwest Airlines, Inc. v. Minnesota, 322 U.S. 292
EEE sich ssiecaeshoacdohescareaacaubaishteiktiuids ns Undalisonetbas 10

Railway Express Agency v. CAB, 345 F.2d 445 (D.C.
Cir. 1965), cert. denied, 382 U.S. 879
CLIT: sisicctaiacrapilcnaiinndcpiabethadacsaetincimibadtiguninataente 8

San Diego Unified Port District v. Gianturco, 651
F.2d 1306 (9th Cir. 1981), cert. denied, 455

UB: a SR instincts sinters sdncxtbassdsiauiiinenvie 11-12
Santa Monica Airport Ass’n v. City of Santa Mon-

ica, 659 F.2d 100 (9th Cir. 1981) _................ 11
Southwest Airlines, Automatic Market Entry, 83 .

C.A.B: G44 (T9T9) — ncscsonreccrococsasoresnseressocscenssees 15
STATUTUES:
Airline Deregulation Act of 1978, Pub. L. No. 95-

NG, SE BRIE: RO sctinincantastennibnesiieincaastsrecesange 3,7-8

Metropolitan Washington Airports Act of 1986, Pub.
L. No. 99-591, §§ 6001-6012, 100 Stat.
UIA... cpancchshasccsesn Geel aaneacas te eeiaid aed nnndnenasis 15

International Air Transportation Competition Act
of 1979, Pub. L. No. 96-192, 94 Stat. 35
(SDI: iscantesinsestaniavaidtsubbebidinnassiastaieinatetiltinasensssess 15-16

SY ote Ss: RNIN Ui mere ye nee ieee 2
es = ceeaeccctsburaeancsoralacsicnednasnsraenye 6
es are isipccgrcnsednanpciongtieresennnse 6
OE WA Pe Senececctnschetnettsitindcinicn 6
BD UES. OD TD neccrccitctesctvscnesnstoscsccnss 8

Table of Authorities Continued

| Page
Fr, Be BD Siicscdinictecctwaiisisnsereiccdacadjavones 3,8
OF FE I D asseeciessnecenccnncnncegranzcsin’ 8
Bee ie SE Siadiisitasntcccntsnesccodannieniens 6
Be Fee Hy eI bipicsiccesieticccnsesecnssnssasensees 2,3,8
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Oe Sa i ean isoctarccnhreseresitanendntens v 16
Gre Te BD | sasincesetnsactescscsscshicintadecans 6
Oe ee TN aseiscsetccapateccientndencdaconnceionns 3
ey ee IE | denn snnnctadtnnscansannsesagtonions 6
REGULATIONS:
Special Federal Aviation Regulation No. 48, 51 Fed.
Reg. S682 (Mar: 12, 1986) ........0c....ccceccssesesess 17
EG Gee I MRD © sessbicdocacarsseonsnensicconcasess 5
14 C.F .R. $§ 96.211-98.229 (1987) _ ...........scccccsseeee 17
Sh Sa tee NED, Shits irknnsncscscnssnnssonaossens 15
14 C.F.R. § 399.110(f) (1987) __............. iiacmaniiaadlie 15

LEGISLATIVE MATERIALS:

Burbank, Calif., Airport—Noise and Safety Prob-
lems: Hearings Before a Subcomm. of the House
Comm. on Government Operations, 96th Cong.,
Eanes et al Oe rar geen 14

Regulatory Reform in Air Transportation: Hearings
Before Subcomm. on Aviation of the Senate

Comm. on Commerce, Science, and Transpor-
tation, 95th Cong., Ist Sess. (1977) ............. 9

H.R. Rep. No. 1211, 95th Cong., 2d Sess., reprinted
in 1978 U.S. Code Cong. & Admin. News

~ SIFT cncccnssastadadieaabialapiaiiiss ie scucijspiclettpaebinicke 8
H.R. Conf. Rep. No. 716, 96th Cong., 2d Sess.,
“reprinted in 1979 U.S. Code Cong. & Admin.

News 78

cnisilntdsuibincabaasicidecainodsddateiredcemanhetbits 16

Table of Authorities Continued

Page
H.R. Rep. No. 7938, 98th Cong., 2d Sess., reprinted
jo 1984 U.S. Code Cong. & Admin. News
TEUIET "ci kai fintnieanssccdpananbecumnsdecicialaaaiaiinnaaeasicbanies 8

OTHER AUTHORITY:

AIRLINE TRANSPORT ASS’N, AIR TRANSPORT-1987:
THE ANNUAL REPORT OF THE U.S. SCHEDULED
AIRLINE INDUSTRY (1987) ..........cccccscssseccesscees 4

IN THE

Supreme Court of the Gnited States
OCTOBER TERM, 1987

No. 87-

DELTA AIR LINES, INC.,
Petitioner,
Vv.

PorT AUTHORITY OF NEW YORK AND NEW JERSEY,

Respondent.

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT

Petitioner, Delta Air Lines, Inc., prays that a writ
of certiorari be issued to review the judgment of the
United States Court of Appeals for the Second Circuit
entered in these proceedings on April 22, 1987.

OPINIONS BELOW

The opinion of the United States Court of Appeals
for the Second Circuit, reported at 817 F.2d 222, is
reproduced in the appendix at pp. 19a-27a. The Dis-
trict Court’s opinion, reported at 658 F. Supp. 952,
is reproduced in the appendix at pp. 1a-18a.

JURISDICTION

The judgment of the United States Court of Appeals
for the Second Circuit was entered on April 22, 1987.

(App. 19a.) The Court of Appeals denied a timely
petition for rehearing on May 28, 1987. (App. 28a.)
The jurisdiction of this Court is invoked under 28
U.S.C. § 1254(1).

STATUTORY PROVISIONS INVOLVED
49 U.S.C. app. § 1305(aX1):!

Except as provided in paragraph (2) of this
subsection [relating to Alaska], no State or
political subdivision thereof and no interstate
agency or other political agency of two or
more States shall enact or enforce any law,
rule, regulation, standard, or other provision
having the force and effect of law relating
to rates, routes, or services of any air carrier
having authority under subchapter IV of this
chapter to provide air transportation.

49 U.S.C. app. § 1305(b\1):

Nothing in subsection (a) of this section shall
be construed to limit the authority of any
State or political subdivision thereof or any
interstate agency or other political agency of
two or more States as the owner or operator
of an airport served by any air carrier cer-

1 Since its 1982 edition, the official version of United States
Code has presented title 49 in a main portion (containing sections
enacted into positive law) and in an appendix (containing other
sections). The sections of title 49 referred to in this petition are
contained in chapter 20, which has not yet been enacted into
positive law, and are therefore cited to the appendix. The bound
volumes of U.S.C.A. and U.S.C.S. and the current pocket part
to U.S.C.A. present chapter 20 (the sections of which are
uniquely numbered) in the main portion of title 49.

|

tificated by the Board to exercise its vro-
prietary powers and rights.

STATEMENT

In 1978, Congress enacted the Airline Deregulation
Act, ending forty years of pervasive federal economic
regulation of commercial aviation under the auspices
of the Civil Aeronautics Board (““CAB’’). Pub. L. No.
95-504, 92 Stat. 1705 (1978). Premised on a decla-
ration that “‘maximum reliance [should be placed] on
competitive market forces and on actual and potential
competition,’ the Act provided that deregulation
would occur over a seven-year period during which
requirements that air carriers obtain prior CAB ap-
proval of the rates they charged, the routes they
served, and the services they provided would be elim-
inated in phases. 49 U.S.C. app. §§ 1302(a)4), 1551.
While federal economic regulation was eliminated, the
Federal Aviation Administration (“FAA”) remained
responsible for managing the nation’s airspace.

To prevent local authorities from regulating what
Congress intended to deregulate, the Act included
preemption provisions which, with certain limited ex-
ceptions, explicitly preempted regulations ‘‘relating to
rates, routes, or services of any air carrier.” 49 U.S.C.
app. § 1305(aX1). At the same time, the Act pre-
served the then-existing “proprietary powers and
rights” of local entities operating airports. 49 U.S.C.

app. § 1305(b\1).

Since deregulation, the airline industry has grown
substantially. With flexibility in rates and fares, ex-
isting airlines expanded and new ones emerged. Pas-
senger miles grew 61.5% between 1978 and 1986 and
takeoffs and landings rose 28.0%. In this atmosphere,

competition heightened and fares dropped, in many
cases dramatically. AIRLINE TRANSPORT ASS’N, AIR
TRANSPORT— 1987: THE ANNUAL REPORT OF THE U.S.
SCHEDULED AIRLINE INDUSTRY 2 (1987).

At the time this action was commenced, Western
Air Lines operated daily flights out of a hub located
in Salt Lake City, Utah,? and, after Western’s merger
with Delta Air Lines, Delta continues those operations
today. A hub is an airport used by an airline as its
central point of origination for connecting flights. By
coordinating flights through a hub, an airline can
serve various city pairs that cannot be served eco-
nomically on a non-stop basis.*

In 1984, respondent, the Port Authority of New
York and New Jersey, adopted a rule that established
the maximum permissible distance of non-stop flights
into and out of LaGuardia Airport at 1500 miles.‘
The stated purpose of the rule is to ‘“‘reduce ground
congestion and maintain LaGuardia as a short and
medium haul airport by diverting traffic to Newark
and Kennedy.’

In order to compete effectively in the New York
City airline market, Western determined that it must

provide nonstop service to LaGuardia from its Salt
Lake City hub. LaGuardia is one of four high-traffic

> App. 2a, 658 F. Supp. at 953.
3 Id.

‘ See id. (“Prior to 1984, the perimeter rule at LaGuardia was
an informal one... .’’).

> Jd. The Port Authority also operates Newark and Kennedy
International Airports. Jd.

airports® where arrivals and departures are limited by
the FAA through the use of “slots’.’ Accordingly,
Western applied for and received several highly de-
sirable slots at LaGuardia in a March 27, 1986, lottery
conducted by the FAA. (App. 20a, 817 F.2d at 223.)

Upon receiving these slots, Western requested the
Port Authority to allow it to commence non-stop ser-
vice between LaGuardia and Salt Lake City. The Port
Authority denied those requests solely because Salt
Lake City is 1,989 miles from LaGuardia. As a con-
sequence, the Port Authority allows Western’s (and
now Delta’s) biggest competitors for air traffic in the
Rocky Mountain region (United and Continental) to
fly directly between their Denver hubs and La-
Guardia,’ while it allows Delta to serve LaGuardia
from its Salt Lake City hub only by use of connecting
flights, greatly increasing travelling time and making
such routes noncompetitive. Accordingly, Delta is ef-
fectively precluded from serving LaGuardia, a vital
segment of the New York City market, from its Salt
Lake City hub.

On August 18, 1986, Western filed suit in the
United States District Court for the Southern District

* The other three high-traffic airports using the “‘slot’”’ system
are Kennedy International Airport, O’Hare International Airport
and Washington National Airport. 14 C.F.R. § 93.123 (1987).

7A “slot” is the authority to conduct one instrument flight
rule landing or takeoff during a specific period. At LaGuardia,
a slot allows a takeoff or landing within a thirty minute period.
App. la, 658 F. Supp. at 953.

8 Although Denver is 1,638 miles from LaGuardia, the Port
Authority has adopted an exception to the perimeter rule to
allow non-stop flights to Denver. App. 2a, 658 F. Supp. at 953-
54.

of New York challenging LaGuardia’s perimeter rule
under section 105(a) of the Deregulation Act, 49
U.S.C. app. § 1305(a),° and 42 U.S.C. § 1983. The
subject matter jurisdiction of the district court was
invoked under 28 U.S.C. §§ 1331 and 1343.

On September 3, 1986, after a one-day bench trial,
the district court denied Western’s request for in-
junctive relief, and dismissed the action. Although the
district court ruled that the perimeter rule affected
“‘rates, routes and services” and therefore fell within
section 105(a)’s ambit of preemption, it nonetheless
upheld the Port Authority’s direct and extraterritorial
limitation on non-stop flights. The court held that
section 105(b) permits a local governmental airport
proprietor to impose such rules provided they are
“reasonable in light of the legitimate objectives sought
to be achieved.” (App. 13a-14a, 658 F. Supp. at 959.)
Noting the Port Authority’s claim that business trav-
ellers create less congestion than do vacationers and
that the perimeter rule tends to encourage business
travel at LaGuardia and to divert vacationers to other
airports, the district court ruled that the Port Au-
thority’s decision ‘“‘was not unreasonable.”’ (App. 17a,
658 F. Supp. at 960.)'°

® Western also asserted claims under 49 U.S.C. app. § 1349(a)
(prohibiting exclusion of air carriers from airport facilities) and
49 U.S.C. app. § 2210(a) (the fair treatment provisions of the
Airport and Airway Improvement Act of 1982).

© It should be noted that all of Florida, probably New York’s
largest vacation destination, is within the perimeter and is served
by many flights from LaGuardia. The Port Authority presented
no evidence demonstrating that longer flights, such as New York-
Salt Lake City, carry more vacation travellers or create more
congestion than flights within the perimeter, such as New York-

Ac ternal

Western appealed to the United States Court of
Appeals for the Second Circuit. On April 22, 1987
that court affirmed, adopting the rationale of the dis-
trict court’s decision in all respects. With regard to
the section 105 preemption issue, the Second Circuit
held that ‘‘at least when enacted by a multi-airport
proprietor such as the [Port] Authority, [a perimeter
rule] falls within the proprietary powers of airport
operators exempted from preemption by section
1305(b\1).”’" While both the Second Circuit and the
district court alluded to the fact that the Port Au-
thority runs Newark and Kennedy International Air-
ports as well as LaGuardia, neither court explained
how that fact exempted the Port Authority from the
express preemption of section 105.

REASONS FOR GRANTING THE WRIT

I. By Sanctioning Local Regulation of Airline Routes as
the Exercise of a “‘Proprietary Power,’’ the Decision
Below Conflicts in Approach with Decisions of this and
Other Courts.

In enacting the Airline Deregulation Act of 1978,
Congress made fundamental changes to the manner
in which the airline industry operates and is regu-
lated. Noting that forty years of intensive economic
regulation by the Civil Aeronautics Board had re-
sulted in inflexible, inefficient, and noncompetitive op-
eration of the airlines, Congress determined that

Florida flights. Moreover, as noted in n. 8, supra, the Port
Authority has adopted an exception to the perimeter rule to
allow flights from LaGuardia to Denver, another major vacation
destination, even though Denver is more than 1600 miles from
LaGuardia.

4 App. 27a, 817 F.2d at 226.

competition and market forces. should determine
where airlines will fly and at what price to the public.'”

During the period of CAB regulation, it was clear
that regulation of interstate airline rates, routes, and
services by local governments was preempted.!* Con-
gress continued this preemption through section
105(aX1) of the Airline Deregulation Act, which ex-
pressly provides that—

no State or political subdivision thereof and
no interstate agency or other political agency
of two or more States shall enact or enforce
any law, rule, regulation, standard, or other
provision having the force and effect of law
relating to rates, routes, or services of any
air carrier having authority under subchapter
IV of this chapter to provide air transpor-
tation.

49 U.S.C. app. § 1805(aX1). Thus, local governments
were expressly prohibited from regulating what Con-
gress deregulated.

The courts below recognized that perimeter rules
adopted as local governmental regulations are
preempted by section 105(a). But the courts erro-

12, H.R. Rep. No. 1211, 95th Cong., 2d Sess. 2-5, reprinted in
1978 U.S. Code Cong. & Admin. News 3737, 3737-41; H.R. Rep.
No. 793, 98th Cong., 2d Sess. 2-3, reprinted in 1984 U.S. Code
& Admin. News 2857, 2858-59; see also 49 U.S.C. app.
§ 1302(aX3),(4),(9).

13 See, e.g., Railway Express Agency v. CAB, 345 F.2d 445,
449 (D.C. Cir. 1965), cert. denied, 382 U.S. 879 (1965) (‘“‘Under
the Feder | Aviation Act, the [CAB] is given exclusive authority
and responsibility for the economic regulation of the air trans-
portation industry ... .’’).

neously held that local governments may achieve this
result in their proprietary capacity as airport oper-
ators. In making this distinction, the courts below
relied on section 105(b\1) of the Act, a provision
which was enacted in response to a concern that sec-
tion 105(a) might prevent local governments owning
airports from continuing to exercise their then-exist-
ing powers to deal with strictly local problems, such
as noise and other environmental problems."

Instead of recognizing the limited scope of the pow-
ers reserved to local governmental airport proprie-
tors, the decision below held that they are free to
adopt rules which directly regulate rates, routes, and
services, so long as the means chosen are ‘‘reasonable

144 Thus, Dr. William J. Ronan, Chairman of the Port Author-
ity, submitted the following statement to the Senate subcom-
mittee concerning section 105:

The Port Authority is concerned that this provision may
unintentionally impair airport operators’ proprietary rights.
We understand the object of the provision to be the pre-
vention of states expanding their air transportation regu-
latory activities at the same time that Federal regulaions
[sic] are being loosened. However, its vague wording could
be misleading. Specifically, the prohibition against local gov-
ernmental laws, regulations or standards “‘relating to’’ rates,
routes and services could be interpreted as limiting the air-
port operator’s rights to levy charges and promulgate op-
erational regulations if they are deemed to be “related to”’
rates, routes and services. Any Federal preemption provi-
sions should therefore state clearly that it [sic] is not in-
tended to infringe on airport operators’ proprietary rights.

Regulatory Reform in Air Transportation: Hearings Before Sub-
comm. on Aviation of the Senate Comm. on Commerce, Science,
and Transportation, 95th Cong., 1st Sess., pt. 4, at 1990 (1977)
(statement of Dr. William J. Ronan) (emphasis added).

10

in light of the legitimate [local] objectives sought to
be achieved.’’® The decision below significantly ex-
pands the scope of the “proprietary powers’’ estab-
lished by prior decisions and constitutes judicial
legislation that seriously undercuts the economic der-
egulation scheme enacted by Congress.

A. This Court’s decision in City of Burbank

In City of Burbank v. Lockheed Air Terminal, Inc.,
411 U.S. 624 (1978), this Court held invalid a city’s
attempt to limit airport noise by imposing a curfew
on takeoffs and landings. This Court noted the broad
scope of federal preemption of aviation matters:

“Federal control is intensive and exclusive.
Planes do not wander about in the sky like
vagrant clouds. They move only by federal
permission, subject-to federal inspection, in
the hands of federally certified personnel and
under an intricate system of federal com-
mands.”’

Id. at 633-34 (quoting Northwest Airlines, Inc. v. Min-
nesota, 322 U.S. 292, 303 (1944)). The decision in
Burbank recognized that aviation requires ‘‘a uniform
and exclusive system of federal regulation.’’ 411 U.S.
634-35, 639.

In footnote 14, however, Burbank noted the “‘pro-
prietary powers’”’ exception to broad-federal preemp-
tion in aviation matters. That exception, as later
elaborated by the Courts of Appeals, allows local gov-
ernmental airport proprietors to regulate the manner
in which their airports are used in order to limit noise

15 App. 13a-14a, 658 F. Supp. at 959.

11

and other environmental problems.'* The Courts of
Appeals have considered this power necessary to al-
low airport proprietors to protect themselves from
liability to neighboring landowners for inverse con-
demnation under Griggs v. Allegheny County, 369 U.S.
84 (1962).}”

Never before, however, has a court construed the
proprietary power exception to allow a local govern-
mental airport operator to regulate extraterritorially
airline activities that do not occur on the airport’s
grounds and that do not give rise to any prospect of
liability by the airport operator.

B. The decision of the Ninth Circuit in San Diego Un-
ified Port District

In deciding that the “‘proprietary powers’’ exception
permits a local governmental airport proprietor to
regulate airline routes and other extraterritorial mat-
ters so long as the regulation is “‘reasonable,” the
decision below conflicts with the decision in San Diego
Unified Port District v. Gianturco, 651 F.2d 1306 (9th
Cir. 1981), cert. denied, 455 U.S. 1000 (1982). In that
case, the Ninth Circuit ruled that the proprietary
powers exception applies only to regulations imposed
by a local governmental agency that are designed to
limit the agency’s liability arising from its operation

16 Santa Monica Airport Ass’n v. City of Santa Monica, 659
F.2d 100 (9th Cir. 1981); see also San Diego Unified Port District
v. Gianturco, 651 F.2d 1306, 1316-19 (9th Cir. 1981), cert. de-
nied, 455 U.S. 1000 (1982); British Airways Board v. Port Au-
thority, 564 F.2d 1002, 1010 (2d Cir. 1977) (‘‘extremely limited
{proprietor’s] role’).

17 See authorities cited in n. 16, supra.

12

of the airport.'* The Ninth Circuit’s approach is in
sharp contrast to that of the decision below, which
would permit any local rule that is said to be rea-
sonably designed to address any local problem, with-
out regard to whether local governmental liability
might ensue and without regard to its direct effect
on rates, routes, or services.

II. The Decision Below Imperils the Congressional Objec-
tive of Airline Deregulation.

The decision below also departs from established
precedent by granting extraterritorial jurisdiction to
local government airport operators and by permitting
them to regulate airline rates, routes, and services
directly. Past decisions, as well as the legislative his-
tory of section 105(b), proceeded on the basis that
regulations based on an airport operator’s proprietary
powers would be limited to the proprietary boundaries
of the airport and would only incidentally affect rates,
routes, and services.

By permitting direct local regulation of the length
of non-stop flights and thus of rates, routes, and ser-
vices, the decision below undercuts the federal plan
of deregulation. A principal goal of deregulation was
to provide abundant, affordable, and convenient air
service. This goal was to be achieved by allowing
rates, routes, and services to be governed by market
forces, not by governmental regulations. Perimeter

18651 F.2d 1316-17, 1319. Thus, the Ninth Circuit stated that
“City of Burbank’s proprietor exception looks to who will pay
for the taking of air easements.”’ Jd. at 1319. The court found
that because the state agency seeking to regulate did not operate
the airport, it could not invoke the proprietary powers exception.
Id. at 1316-19.

wes

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13

rules, however, thwart this goal by directly prohib-
iting air carriers from flying where passengers wish
to go. Instead, such rules require airlines to make
arbitrary and unnecessary intermediate stops on long
flights. The ultimate effect is to make air service
unnecessarily inconvenient and expensive by prohib-
iting airlines from offering routes that the market
desires but that an airport operator deems undesir-

“able. If widely adopted by local airport authorities,

perimeter rules will greatly reduce the availability of
direct flights and accordingly will balkanize the na-
tion’s airline system.”

Moreover, the rationale of the decision below. per-
mits a broad range of local governmental regulations
covering all phases of-airline operations. Thus, the
rationale would justify a local governmental airport
proprietor in adopting measures intended to reduce
ground congestion that reach far beyond the airport’s
boundaries. For example, a local airport proprietor
could discourage vacation travel (which the Port Au-
thority claims its perimeter rule is designed to do) by
prohibiting airlines from offering discount fares to
vacation travellers. Similarly, a proprietor could limit
congestion by limiting the number of passengers air-
lines may carry, by regulating schedules, or by re-
stricting the amount of baggage that airlines may
carry for each passenger.

1° This effect would not be reduced significantly if application
of the decision below were limited to multi-airport proprietors.
Many cities, either directly or through local governmental airport
authorities, operate both a principal airport and one or more
smaller ‘‘satellite’ airports. Route limitations at any major air-
port, based solely on the desires of the local airport operator,
do serious harm to the Congressionally mandated market-based
system for air travel.

14

Until the decision below, the fundamental inconsis-
tency between economic deregulation and local rules
governing where airlines may fly, such as perimeter
rules, was well recognized. As the Civil Aeronautics
Board informed Congress during the deregulatory
process:

Enactments by state and local governments
relating to routes, rates and services are spe-
cifically preempted by the Deregulation Act.
What that means, for example, is that an
airport may not place procedural hurdles in
the path of new air service which have the
effect of preventing, or seriously inhibiting,
a carrier’s management from instituting new
service reasonably promptly. Jt also means
that a local airport authority cannot decide
that service to Denver or Salt Lake City is
more important than more service to San
Francisco. Such actions would thwart dere-
gulation and run counter to the ground rules
established by Congress.

Burbank, Calif., Airport—Noise and Safety Problems:
Hearings Before a Subcomm. of the House Comm. on
Government Operations, 96th Cong., 1st Sess. at 263
(1980) (statement of Civil Aeronautics Board, pre-
sented by Gloria Schaffer) (emphasis added). Thus,
under the administrative interpretation of section 105,
extraterritorial or direct regulations of routes are not
exercises of proprietary powers and are invalid.”

20 As the courts below apparently recognized, the decision in
City of Houston v. FAA, 679 F.2d 1184 (5th Cir. 1982), is not
to the contrary. That decision approved a 1000-mile perimeter

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This interpretation is embodied in both federal
regulations” and administrative decisions. In South-
west Airlines, Automatic Market Entry, 83 C.A.B.
644 (1979), the CAB rejected a claim by the govern-
mental agency operating Dallas/Fort Worth Regional
Airport and Dallas’ Love Field that it could divert
all interstate flights from Love Field to Dallas/Fort
Worth by use of its proprietary powers under section
105(b). Finding that section 105(b) ‘‘was not intended
to give airport operators additional proprietary
rights,” id. at 652, the CAB adopted a decision which
found that the prohibition on interstate flights at Love
Field ‘‘conflict{ed] with the provisions and policies of
the Act and [was] therefore invalid.” Id. at 688.”

rule at National Airport, which was then operated by the FAA,
based upon the fact that section 105 by its terms did not apply
to federal agencies. Jd. at i194.

In the Metropolitan Washington Airports Act of 1986, Pub.
L. No. 99-591, §§ 6001-6012, 100 Stat. 3341, 3341-376 to 3341-
388, the FAA was authorized to lease National Airport to the
newly-formed Metropolitan Washington Airports Authority. A
central purpose of that Act was to place National Airport on
par with other major airports by giving proprietary control over
the airport to a local governmental authority. Jd. §§ 6002(4),
(5), (6), (8). Apparently recognizing the inability of the local
airport authority to continue the FAA’s perimeter rule, Congress
itself enacted the perimeter rule in section 6012 of the Act, at
the same time expanding the perimeter to 1250 miles. See also
14 C.F.R. § 93.253 (1987).

7114 C.F.R. § 399.110(f) (1987) (proprietary powers must be
exercised “‘in a manner that does not conflict with the provisions
and policies of the [Airline Deregulation] Act’’).

22 In the International Air Transportation Competition Act of
1979, Pub. L. No. 96-192, Sec. 503, 94 Stat. 35, 59-60 (1980),
Congress included the so-called ‘‘Love Field Amendment,” which
adopted a legislative compromise prohibiting flights between Love

16

Thus, the decision below sharply conflicts not only
with prior court decisions, but also with applicable
federal administrative regulations and precedent.”

III. This Court Should Grant Review to Preserve the Ex-

clusive Role of the FAA to Manage the Nation’s Air-
space.

By permitting local governments to adopt and to
enforce their own regulations of airline rates, routes,
and services, the decision below seriously hampers the
FAA’s ability to carry out its duty to promote effi-
cient use of the nation’s airspace. 49 U.S.C. app. §
1348. The FAA’s need to have broad powers unen-
cumbered by local regulations is particularly acute in
view of the remarkable success of the Airline Dere-
gulation Act. Since the Act, there are more flights,
more convenient routes and schedules, and more af-
fordable fares. This success, however, has placed a
heavy strain on our aviation system.

The FAA, as the federal agency responsible for
overseeing the use of the nation’s airspace, has taken
a variety of steps to deal with these concerns. The
FAA has limited congestion at high-traffic airports,

Field and points outside a four-state area. Significantly, the -

House Conference Report reaffirmed the general applicability of
the preemption provisions of section 105, referred to the Love
Field situation as “unique in the air transportation industry,”
and stated, ‘Acceptance of this compromise should therefore
not be taken as a harbinger of any similar proposals for any
other airport or area.”’ H.R. Conf. Rep. No. 716, 96th Cong.,
2d Sess. 26, reprinted in 1979 U.S. Code Cong. & Admin. News
78, 88.

23 These regulations and decisions have, in effect, been ratified
by Congress, since the recent statutory provision with respect
to airports in the Washington, D.C., area would not be necessary
if the Second Circuit here were correct. See n. 20, supra.

= i ell ei al ee i ee alee i ee, Oe Hy

17

including LaGuardia, by instituting a slot system un-
der which landings and takeoffs by commercial air
carriers are allocated among airlines. 14 C.F.R.
§§ 93.211-93.229 (1987). The FAA could have awarded
those slots on the basis of a perimeter rule or some
other route-based criterion, but instead determined
that slots should be awarded without regard to rates,
routes, or services. In so doing, the FAA preserved
the effects of market forces to the maximum extent
possible. At the same time, unnecessary takeoffs and
landings at intermediate points entailed by perimeter
rules were avoided.

In establishing a perimeter rule at LaGuardia, the
Port Authority has undermined these goais. As this
Court recognized in striking down the landing curfew
in City of Burbank v. Lockheed Air Terminal, Inc.,
411 U.S. 624 (1973), the FAA must be allowed to
continue its exclusive control over use of the airspace
without interference from rules made by local gov-
ernments:

If we were to uphold the Burbank ordinance
and a significant number of municipalities fol-
lowed suit, it is obvious that fractionalized
control of the timing of takeoffs and landings
would severely limit the flexibility of the FAA
in controlling air traffic flow. The difficulties
of scheduling flights to avoid congestion and
the concomitant decrease in safety would be
compounded. . . . We are not at liberty to
diffuse the powers given by Congress to FAA

24 See Special Federal Aviation Regulation No. 48, 51 Fed.
Reg. 8632, 8635, 8637-38 (Mar. 12, 1986) (allocation by lottery;
slots only restricted to domestic passanger use).

18

. . . by letting the States or municipalities
in on the planning. If that change is to be
made, Congress alone must do it.

411 U.S. at 639-40. By upholding LaGuardia’s perim-
eter rule, the decision below lets the Port Authority
in on the planning and dilutes the FAA’s ability to
regulate congestion through its slot system and other
measures. As stated in City of Burbank, such dilution
of the FAA’s authority should be done only with
Congressional authorization.”

25 Congress did specifically authorize perimeter rules at Na-
tional Airport and Love Field. See nn. 20 & 22, supra. But there
is no such Congressional authorizat’on here.

19

CONCLUSION

Absent certiorari being granted, federal regulation
of the airline industry will be replaced by the regu-
lation of fifty states and countless airport authorities
and the mandate of Congress to deregulate may be
voided by the decision below. The petition for
certiorari should be granted.

Of Counsel

ERWIN N. GRISWOLD

ROBERT LAYTON

JONES, Day, REAVIS
& POGUE

1450 G Street, N.W.

Washington, D.C.

20005-2088

(202) 879-3939

WALTER BRILL

Law Department
Delta Air Lines, Inc.
1030 Delta Boulevard
Atlanta, GA 30320
(404) 765-2692

August, 1987

Respectfully submitted,

ALLYN O. KREPS
(Counsel of Record)

Louis TOUTON
ROBERT DEBERARDINE
JONES, Day, REAVIS
& POGUE
355 South Grand Avenue
Suite 3000
Los Angeles, CA
90071
(218) 625-3939

Counsel for Petitioner

ea et de

we =

APPENDIX

la

APPENDIX A

WESTERN AIR LINES, INC.,
Plaintiff,
Vv.

Port AUTHORITY OF NEW YORK AND NEW JERSEY,
Defendant,

No. 86 Civ. 6259 (JMC).

United States District court,
S.D. New York.

Sept. 3, 1986.
Roger M. Deitz, New York City, for plaintiff.
Patrick J. Flavey, New York City (Arthur P. Berg, Jay
Adlai Selcov, of Counsel), for defendant.

OPINION

CANNELLA, District Judge:

After a nonjury trial on the merits, plaintiff's claims for
preliminary and permanent injunctive relief are dismissed.
Fed. R. Civ. P. 65(aX2).

FACTS

Plaintiff Wetern Airlines [‘‘Western’’] brings this action
against defendant Port Authority of N.Y. & N.J. [‘‘Port
' Authority” or ‘‘Port’’], seeking preliminary and permanent
injunctive relief against enforcement by the Port of its so-
called perimeter rule. The undisputed facts are as follows.

Western is the holder of several slots at LaGuardia Air-
port [‘“‘LaGuardia’’]. Each slot permits Western to conduct
one landing or takeoff operation during a 30-minute period.

2a

Western obtained these slots in a lottery conducted by the
Federal Aviation Administration [‘‘FAA’’] on March 27,
1986 and will lose them unless it commences service at
LaGuardia by September 17, 1986.

Western maintains its hub in Salt Lake City. The hub
permits the airline to serve city pairs by one stop or con-
necting flights when such city pairs cannot be served eco-
nomically on a point-to-point nonstop basis. Western
intended to begin operating three daily nonstop flights in
each direction between LaGuardia and Salt Lake City on
September 3, 1986.

The Port Authority operates Kennedy International Air-
port [‘‘Kennedy’’], LaGuardia, and Newark International
Airport [‘‘Newark’’]. Since the late 1950’s, the Port has
had a perimeter rule at LaGuardia, which forbids airlines
using LaGuardia to run nonstop flights beyond a set dis-
éance. The stated purpose of the rule is to reduce ground
congestion and maintain LaGuardia as a short and medium
haul airport by diverting longer haul air traffic to Kennedy
and Newark. Of the three airports operated by the Port,
LaGuardia is the smallest with 662 acres, followed by New-
ark with 2300 acres, and Kennedy with 4930 acres. Neither
Newark nor Kennedy is subject to a perimeter restriction.

Prior to 1984, the perimeter rule at LaGuardia was an
informal one, prohibiting most international operations, and
nonstop operations in excess of 2000 miles. In 1984, the
Port Authority set in place a formal rule, which reduced
the permissible distance for nonstop operations to 1500
miles. The new rule does permit flights to Denver, al-
though Denver is more than 1600 miles from LaGuardia.
According to the Port Authority, Denver was “‘grandfath-
ered’”’ under the new rule because there had been contin-
uous nonstop service between LaGuardia and Denver since
1981 and that service accounted for a significant portion
of LaGuardia operations. At the time the rule was adopted,
three air carriers operated LaGuardia-Denver service.

3a

Salt Lake City is located almost 2000 miles from
LaGuardia. Western now serves Salt Lake City with two
daily round-trip flights at Kennedy. Because Western be-
lieves that LaGuardia serves a lucrative business market,
it has sought permission from the Port authority, in May
1985 and again in early 1986, to conduct New York-Salt
Lake City operations from LaGuardia. The Port has denied
permission on the basis of the perimeter rule.

In this action, Western alleges that the perimeter rule
violates various federal aviation statutes! and the Civil
Rights Act of 1871,? and is invalid under the Supremacy,°
Equal Protection,* Due Process,’ and Commerce® clauses
of the United States Constitution. On August 19 and Sep-
tember 2, 1986, the Court held a full hearing on the merits,
consolidating plaintiff's claims for preliminary and per-
manent injunctive relief pursuant to Fed.R.Civ.P. 65(a)\(2).
For reasons that follow, Western’s claims are dismissed.

DISCUSSION

Western’s principle contentions center on three federal
aviation statutes: Section 105(aX1) of the Deregulation Act,
49 U.S.C. § 1305(aX1) [Section 1305(aX1)’’]; the Airport
& Airway Improvement Act, 49 U.S.C. § 2210 [‘‘Section
2210’); and the Federal Aviation Act of 1958, 49 U.S.C.
§ 1349(a) [‘‘Section 1349(a)’’]. Section 1305(aX1) is a
preemption statute. It provides:

[N]o State or political subdivision thereof and no in-
terstate agency or other political agency of two or

149 U.S.C. §§ 1305(aX1), 1849(a), 2201 et seg.
*42 U.S.C. § 1983.

3U.S. Constitution, Art. VI, cl. 2.

‘U.S. Constitution, Amendment XIV.

‘Td.

‘U.S. Constitution, Art. I, Sect. 8, cl. 3.

4a

more States shall enact or enforce any law, rule, reg-
ulation, standard, or other provision having the force
and effect of law relating to rates, routes, or services
of any air carrier having authority under subchapter
IV of this chapter to provide air transportation.

Sections 2210 and 1349(a) respectively require that an air-
port proprietor receiving federal funds (1) make its facil-
ities available to the public on fair and reasonable terms
and without unjust discrimination, and (2) not grant to any
air carrier an exclusive right to use the facilities.

Western contends that the perimeter rule violates Sec-
tion 1305(aX1) and thus the Supremacy Clause because the
rule is a regulation of Western’s “routes and services.”
Western also argues that the rule impermissibly discrim-
inates against Western in violation of the Commerce Clause
and Sections 2210 and 134%a) because it permits flights
to Denver but not to Sait Lake City. Finally, Western
asserts that the rule places an undue burden on interstate
commerce.’

The Port Authority argues that Western has failed to
state a cause of action. It points to Montauk-Caribbean
Airways v. Hope, 748 F.2d 91 (2d Cir. 1986), which held
that neither Section 1305(aX1) nor 1349%a) confers a pri-
vate right of action, and implied the same for Section
2210.8 Western claims that even if it has no private action

"Western makes no argument with respect to its claims under the
Civil Rights Act or the Equal Protection & Due Process clauses and
the Court does not consider these claims. See Local Civil Rule 3b);
see also Midway Airlines v. County of Westchester, 584 F.Supp. 436,
441 n. 18 (S.D.N.Y.1984).

*The Court did not address the issue with respect to Section 2210,
but affirmed the district court’s dismissal of the claim. It also cited
favorably to Hill Aircraft & Leasing Corp. v. Fulton County, 561
F.Supp. 667, 673 (N.D.Ga. 1982), affd, 729 F.2d 1467 (11th Cir.1984).
In Hill Aircraft the court considered both Section 1349(a) and Section
1718, 49 U.S.C. § 1718, the predecessor to Section 2210. The court

en Paras
a

e BEST AVAILABLE COPY

5a

under the statutes it may still sue to invalidate the pe-
rimeter rule under the Supremacy Clause. In this respect,
Western maintains, the statutes demonstrate the preemp-
tive force of federal legislation in the area of aviation. The
Port Authority responds that such an argument merely
circumvents the rule in Montauk and, if adopted, would
render that decision meaningless.

The Court finds the Port Authority’s argument unper-
suasive and contrary to the Montauk decision itself. In
Montauk, the plaintiff sought to operate as a fixed-base
operator and air carrier on a year-round basis at an airport
owned by the Town of East Hampton. Pursuant to a lease
with the Town, the plaintiff was limited to seasonal op-
erations. Plaintiff sought to modify the lease but the town
denied its request. Plaintiff then challenged the Town’s
actions both under the federal aviation statutes at issue
here and on antitrust grounds.

The district court dismissed the complaint. On appeal,
the Second Circuit rejected the claims under the Sherman
Act. The court reasoned that N.Y.Gen.Mun.Law § 352,
which permits municipal airport operators to enter into
exclusive lease arrangements, constitutes a clearly ex-
pressed state policy authorizing municipalities to pursue
anticompetitive activity. Consequently, the court held, the
Town was immune from the antitrust challenge by virtue
of the state action doctrine.

The plaintiff then argued that Section 1305(a) preempted
state law in this area and thus there was no state au-
thorization for the anticompetitive activity. The court re-
jected this argument, but on the merits, holding that the
Town’s actions fit an exception to Section 1305(a) preemp-
tion. See 784 F.2d at 96-97. The court therefore drew a

concluded there to be no private right of action under either section.
Subsequently, the Eleventh Circuit, which had affirmed the district
court’s opinion in Hill Aircraft, squarely addressed Section 2210, and
held there to be no private right of action.

6a

distinction between a Supremacy Clause challenge and a
private right of action. See also New York Airlines v.
Dukes County, 623 F.Supp. 1435 (D.C. Mass. 1984) (dis-
tinguishing private cause of action from a Supremacy
Clause challenge).

This Court concludes that Montauk does not foreclose
Western’s Supremacy Clause challenge to the extent that
it relies on Section 1305(aX1) preemption. However, the
Court finds no support for such a challenge in Sections
1349(a) or 2210. Unlike Section 1305(aX1), which renders
void as preempted any regulation affecting ‘‘routes or ser-
vices” not contemplated by that section, Sections 1349(a)
and 2210 merely impose obligations on airport proprietors.°
Although these sections may have some relevance in dem-
onstrating the extent of federal preemption,’® Western’s

‘It is difficult to see how Section 1305(aX1) could give rise ta cause
of action when that section creates no rights or obligations.

10

The supremacy clause, U.S. Const., art VI, cl. 2, invalidates
state laws that “interfere with or are contrary to’’ federal law.
Gibbons v. Ogden, 9 Wheat 1, 211, 6 L.Ed. 23 (1824). Congress
may preempt state law by an express provision. Jones v. Rath
Packing Co. 430 U.S. 519, 525, 97 S.Ct. 1305, 1309, 51 L.Ed.2d
604, reh’g denied, 431 U.S. 925, 97 S.Ct. 2201, 53 L.Ed.2d 240
(1977). In addition, an intent to preempt state law may be inferred
where Congress has enacted a sufficiently comprehensive scheme
of federal regulation or where the federal interest is dominant so
as to preclude state legislation in the same area. Rice v. Santa
Fe Elevator Corp., 331 U.S. 218, 280, 67 S.Ct. 1146, 1152, 91
L.Ed. 1447 (1947); see Hines v. Davidowitz, 312 U.S. 52, 67, 61
S.Ct. 399, 404, 85 L.Ed. 581 (1941). Where Congress has not acted
to supersede completely regulation by the states, state law is nu-
lified to the extent that it conflicts with federal law. Florida Lime
& Avocado Growers, Inc. v. Paul, 373 U.S. 132, 141-43, 83 S.Ct.
1210, 1216-18, 10 L.Ed.2d 248, reh’g denied, 347 U.S. 858, 88
S.Ct. 1861, 10 L.Ed.2d 1082 (1963). See generally Hillsborough
County v. Automated Medical Laboratories, Inc. 471 U.S. 707, 105

BEST AVAILABLE COPY

Ta

attempt to establish a violation of these sections amounts
to a private right of action, which is not permitted.

Turning to Western’s Supremacy Clause challenge, Sec-
tion 1305(aX1), as previously noted, establishes federal
preemption in the field of “rates, routes and services’’ of
air carriers. The Port Authority’s perimeter rule may be
fairly characterized as a regulation touching this area and
the Port advances no significant arguments to the con-
trary. The Port does argue that its perimeter rule is none-
theless valid under Section 1305(bX1), 49 U.S.C. §
1305(bX1) [Section 1305(bX1)’’], which provides:

Nothing is subsection (a) of this section shall be
construed to limit the authority of any State or po-
litical subdivision thereof or any interstate agency or
other political agency of two or more States as the
owner or operator of an airport served by any air
carrier certificated by the Board to exercise its pro-

prietary powers and rights.

The extent of “proprietary powers and rights’ has not
as yet been established. The legislative history of Section
1305(bX1) indicates that the airport proprietor would be
permitted to take those actions “presently accepted as
valid exercises of proprietary powers.’”’ 124 Cong.Rec.
18799 (remarks of Sen. Kennedy). The issue has most fre-
quently arisen in the context of noise regulations.

In City of Burbank v. Lockheed Air Terminal, 411 U.S.
624 (1973), the Court struck down a municipal ordinance
which imposed a curfew on jet air traffic at a local airport.
The Court focused on Section 611 of the Federal Aviation
Act, 49 U.S.C. § 1431, which, as the Court put it, rep-
resents a “comprehensive scheme of federal control of the
aircraft noise problem.” Jd. at 629. The Court ruled the

S.Ct. 2371, 85 L.Ed.2d 714 (1985).

New York Airlines v. Dukes County, 623 F.Supp. 1435, 1441
(D.C.Mass. 1985).

8a

ordinance preempted due to the “pervasive nature of the
scheme of federal regulations of aircraft noise.”’ Jd. at 633.
Expressly left open, however, was the question whether
there is any limitation on an airport proprietor’s ability to
regulate noise. See id. at 636 n. 14. In this respect, the
Court noted a letter by the Secretary of Transportation,
quoted with approval in the Senate Report on Section 611,
which expressed the view that

The proposed legislation will not affect the rights
of a State or local public agency, as the proprietor of
an airport, from issuing regulations or establishing
requirements as to the permissible level of noise which
can be created by aircraft using the airport. Airport
owners acting as proprietors can presently deny the
use of their airports to aircraft on the basis of noise
considerations so long as such exclusion is nondiscri-
minatory.

Id. at 635 (emphasis in original).

Several courts that have since considered the viability
of the proprietor exception alluded to in City of Burbank
have held such an exception to exist. See, e.g., Santa Mon-
ica Airport Ass’n v. City of Santa Monica, 659 F.2d 100,
103 (9th Cir. 1981); British Airways Bd. v. Port Authority,
558 F.2d 75, 83 (2d Cir. 1977). In British Airways Bd.,
our Court of Appeals upheld the Port Authority’s tem-
porary ban on SST flights at Kennedy Airport pending
the promulgation of reasonable regulations establishing ac-
ceptable noise levels for the airfield. The court relief on
the legislative history of Section 611, in particular the
history cited to in City of Burbank, and concluded that it
was Congress’ intent to permit proprietor regulations in
the field of noise, despite the otherwise total federal
preemption in this area.

The court also indicated limits on an airport proprietor’s
power. It said that the proper domain of the airport pro-
prietor is to establish regulations regarding “‘the permis-

9a

sible level of noise which can be created by aircraft using
the airport.” 558 F.2d at 84. In a subsequent decision,
British Airways Bd. v. Port Auth., 564 F.2d 1002 (2d Cir.
1977) (“British Airways Bd. II’, the court reiterated its
conclusion that airport proprietors have an ‘‘extremely lim-
ited role” in the system of aviation regulation 564 F.2d
at 1010.

Western seizes upon the above-quoted language and ar-
gues that noise regulation is the only recognized exception
to the otherwise total federal preemption of aviation. Al-
though the cited language is quite narrow, British Airways
Bd. and British Airways Bd. I were principally concerned
with Section 611, the noise statue, and whether Congress,
in enacting that section, intended that airport proprietors
be permitted to regulate noise. The cases do not reject
the existence of other proprietary interests, but merely
seek to insure that when such an interest exists, such as
the control of noise, the proprietor not regulate beyond
the scope of that interest.”

Section 1305(bX1) does not expressly limit proprietary
powers to the regulation of noise, although presumably
Congress would have so limited the section if that is what
it had in mind. As Judge Weinfeld said in Midway Airlines
v. County of Westchester, 584 F.Supp. 436 (S.D.N.Y. 1984),
“(t]he legislative history is unmistakably clear that Con-
gress did not intend that the preemptive force of 49 U.S.C.
§ 1305(aX1) would interfere with ‘long recognized powers
of the airport operators to deal with noise and other en-
vironmental problems at the local level.’”’ Jd. at 440 n.
18 (quoting 124 Cong. Rec. 37419 (1978) (remarks of Sen.
Kennedy)). Judge Weinfeld interpreted British Airways II

"Even in this respect the Second Circuit has recently upheld a reg-
ulation which limited the cumulative level of noise exposure at an air-
port rather than the decibel levels of individual take*offs and landings.
See Globel Int’l Airways Corp. v. Port Authority, 727 F.2d 246 (2d
Cir, 1984).

—————

" 10a

as holding that airport proprietors may issue reasonable
rules pertaining to the permissible level of noise or other
danger which can be caused by aircraft using the airport.
Id. at 441. He went on to uphold an airport proprietor’s
temporary refusal to grant airport access for a reasonable
period necessary to “develop rational and nondiscrimina-
tory rules for allocating scarce space and landing and take-
off slots.’’ Id. at 440.

In another airport capacity case, Aircraft Owners & Pil-
ots Ass’n v. Port authority, 305 F.Supp. 93 (E.D.N.Y.1969),
Judge Dooling upheld the Port Authority’s imposition of
a “‘takeoff’’ fee on certain small aircraft for the purpose
of reducing airport congestion. The court specifically noted
that the fee was imposed to divert air traffic during the
busiest periods of the day but recognized this as a legit-
imate basis for regulation.

As these cases make plain, although questions of per-
missible noise regulation predominate in the courts, other
proprietor-imposed regulations are “presently accepted as
valid exercises of proprietary powers.” A proprietor’s in-
terest in regulating ground congestion at its airports would
appear to be at the core of the proprietor’s function as
airport manager, perhaps even more so than the regulation
of noise; and the ability of a proprietor such as the Port
Authority to allocate air traffic in its three airport system
is important to the advancement of this interest.

In City of Houston v. FAA, 679 F.2d 1184 (5th cir.
1982), the court considered a 1000-mile perimeter rule im-
posed by the FAA at Washington National Airport [‘‘Na-
tional’). The FAA owns both National and Dulles
International Airport. For reasons markedly similar to
those of the Port Authority, the FAA imposed its perim-
eter restriction.

The Fifth Circuit upheld the rule. It first noted that
section 1305(aX1), which preempts state regulation, does
not restrict the powers of the FAA, an arm of the federal

eee pee 44 a wa Bek iy

lla

government. The court then proceeded to decide the case
on alternative grounds. Although holding that the FAA
had power to impose a perimeter based on its authority
under the Federal Aviation Act alone, it also held, as an
independent ground, that the FAA’s proprietary interest
was sufficient to justify the rule. The court implied that
the result might have been different had the proprietor
not been the FAA, and cited to the Second Circuit’s lan-
guage in British Airways Bd. II that airport proprietors
have an “extremely limited role” in aviation management.
Nonetheless, the court carefully -distinguished Pacific
Southwest Airlines v. County cf Orange, No. CV 81-3248
(C.D.Cal. Nov. 30, 1981), a case which held that a local
airport proprietor could not impose a 500-mile perimeter
rule, saying: “A local airport with no connection to nearby
Los Angeles International or Ontario Airports, [the pro-
prietor] could not blithely take such an action upon itself.”
Id. at 1194.

Here, as in City of Houston, there is in issue a multi-
airport system. The effect of the perimeter rule in each
case is to divert air traffic from one airport to another
within the respective systems, and not to close down met-
ropolitan area runways to all air traffic to or from points
outside the perimeter. This court sees no real distinction
between the FAA’s interest, as proprietor of an airport
system, to manage its congestion problems by use of a
perimeter rule, and the interest of the Port Authority, as
proprietor of LaGuardia, Kennedy, and Newark, to do the
same.

Of course, the FAA, acting as airport proprietor, is
likely to promulgate rules that are compatible with the
overall scheme of federal regulation. This factor undoubt-
edly played a role in the City of Houston decision. How-
ever, no aspect of federal aviation is more heavily regulated
than the field of noise and yet in this area local limitations
are permitted. The Second Circuit in British Airways Bad.
evaluated the reasons for permitting a proprietor to reg-

12a

ulate noise. It first noted that airport proprietors are liable
for compensable takings resulting from unreasonable air-
port use and therefore should have the ability to protect
themselves. 558 F.2d at 83. The court went on to say “i]t
is perhaps more important ... that the inherently local
aspect of noise control can be most effectively left to the
operator, as the unitary local authority who controls air-
port access.”’ [d—Fhis- reasoning applies with equal force
to the control of ground congestion. The court in City of
Houston recognized a legitimate proprietary function. This
Court concludes that, in the absence of conflict with FAA
regulations,’ a perimeter rule, as imposed by the Port
Authority to manage congestion in a multi-airport system,
serves an equally legitimate local need and fits comfortably
within that limited role, which Congress has reserved to
the local proprietor.

This does not end the inquiry, however, for as the Sec-
ond Circuit has instructed in British Airways Bd., 558
F.2d at 84-85, and again in British Airways Bd. II, the
airport operator is circumscribed to the issuance of rea-
sonable, nonarbitrary and nondiscriminatory rules that ad-
vance the local interest. The Court must “carefully

scrutinize all exercises of local power under this. rubric ‘to’ *:

insure that impermissible parochial considerations do not
unconstitutionally burden interstate commerce or inhibit
the accomplishment of legitimate national goals.” British
Airways Bd. II, 564 F.2d at 1011.

The Court first dispenses with Western’s claim that the
perimeter rule unreasonably discriminates against West-
ern. Western contends that permitting flights to Denver,
while not allowing nonstop flights to places such as Salt
Lake City, discriffiinates against all air carriers with hubs

'tAlthough the FAA has imposed High Density Regulations to reduce
air traffic at LaGuardia, Western points to no conflict between these
regulations and the perimeter rule. Cf. Globel Int’l Airways Corp. v.
Port Authority, 727 F.2d 246 (2d Cir.1984) (noise regulation).

13a

beyond the 1500-mile point. Western points out that its
major competitors, which operate from LaGuardia, use a
Denver hub and thus Western is unable to compete ef-
fectively with these airlines. Western does not argue that
the Denver exception was created with the purpose of
favoring certain airlines, and has offered no evidence which
would tend to show that the “grandfathering” of Denver
was in any other way improper. From Western’s point of
view, therefore, it would have been no different had the
perimeter rule been set at 1700-miles, thereby encom-
passing Denver.

As the court in City of Houston said in a somewhat
different context but in terms no less applicable here:

The accident of geography, not any deliberate dis-
crimination against the western states, underlies the
FAA’s rule. The perimeter does not discriminate
against a named state or states. It does not declare
that Texans may not fly nonstop to National. Rather,
it sets a limit of 1000 miles on nonstop flights. Some
states, e.g. Louisiana, straddle the line. Some Loui-
siana airports meet the requirement, others do not.
Just as the Rocky Mountain states possess beautiful
scenery, Texas its reservoirs of oil and natural gas,
and California its sandy beaches, so the accident of
geography places some states within 1000 miles of
National and others beyond. The perimeter rule, ..
for geographic reasons has an incidental effect on air
travel from certain states.

679 F.2d at 1198.

In truth, all regulations tend to discriminate in some
way, see, e.g., Global Int’l Airways v. Port Authority, 727
F.2d 246 (2d Cir. 1984); Aircraft Owner’s & Pilots Ass’n
v. Port Authority, 305 F.Supp. 93 (E.D.N.Y.1969). The
critical inquiry is whether that discrimination is unjust; or
to put it another way, whether the discrimination is rea-

14a

sonable in light of the legitimate objectives sought to be
achieved. ‘

On the issue of reasonableness, as previously discussed,
the Port Authority implemented the perimeter rule to re-
duce groundside congestion and maintain LaGuardia as a
short and medium haul airport, and an airport catering to
business customers. The Post believes that opening La-
Guardia to long range aircraft, and with it the leisure
traveler, would reduce runway capacity, increase delays,
result in increasing congestion at the gates, place a heavier
demand on ticketing, baggage claim facilities and public
areas, increase use of parking lot facilities and cause road-
way and terminal frontage access to become more con-
gested. In the Port’s view, the short haul or business
traveler moves more quickly through the airport with less
luggage and fewer ‘“‘meters and greeters’”’. It is for similar
reasons that the FAA imposed a perimeter at National
Airport. See City of Houston, 679 F.2d 1184.

A brief survey of the evidence shows that the Port’s
conclusions are not unfounded. In 1984 the Port authority
staff commenced an evaluation of the perimeter rule. In-
cluded in this evaluation was a study of LaGuardia’s ca-
pacity. The study concluded that at “current traffic levels —
LaGuardia Airport is operating near or above its capacity
in major components of the airport system including CTB
apron area and certain passenger processing areas, de-
parture roadway and access roadways, during peak pe-
riods. The delays and congestion which are currently being
experienced during these periods are symptomatic of this
condition.’’ Defendant Ex. D, Attachment III at 11. Sim-
ilarly, a study performed on the LaGuardia airside capacity
concluded that “[djespite the constant near-capacity utili-
zation, LaGuardia does experience hours when traffic ex-
ceeds the airport capacity by as much as 23 percent.”
Defendant Ex. D, Attachment II at 3. Another study ob-
served that LaGuardia “is fast approaching saturation in
many areas, with ground access the major constraint... .

15a

[A]dditional passenger growth can be expected.’’ See Ex.
D, Attachment I at 2.

At the hearing, Mr. George Howard, the Port author-
ity’s Assistant Director for Aviation, testified that elimi-
nation of the rule would result in an increase of 1.5 million
passengers, including a higher percentage of long haul pas-
sengers. The result would be more use of parking lot and
baggage handling facilities as well as greater congestion
at the terminal. Tr. at 91. According to the staff study,
it was anticipated that some 27 daily roundtrip flights to
Los angeles, San Francisco, Seattle, San Diego, San Juan,
Bermuda, Calgary, Nassau and St. Croix would likely be
introduced at LaGuardia if the perimeter rule were dis-
carded. See Defendant Ex. C at 10.

The Port Authority staff also circulated questionnaires
to airlines, the FAA, the Department of Transportation
and the State Department. The questionnaires sought com-
ment on four possible alternatives for the perimeter rule:
(1) retention of a 2000-mile policy; (2) imposition of a 1500-
mile rule; (3) imposition of a 1500-mile rule with continued
service to cities currently served; and (4) imposition of a
1000-mile rule. The majority of those respondiy . favored
retention of some form of perimeter restriction. See
Plaintiff Ex. 16.

The staff ultimately recommended a 1500-mile rule. Its
report notes that about 20 percent of the survey
respondents favored a 1500-mile rule with most of the
group favoring continuing service to cities currently served.
The report concluded:

After assessing the survey results and the objections
raised by respondents, staff affirms its tentative con-
clusion that the interests of the public and the airlines
are best served by the continuation of some type of
perimeter policy, particularly in view of the limited
physical facilities and other inherent limitations of
LaGuardia Airport and the larger capacities at Ken-

16a

nedy International and Newark International Air-
ports. However, in view of the concerns expressed by
the State Department and suggestions by several car-
riers and other parties for modification of the rule,
staff recommends that the current interim rule be
modified by reducing the mileage radius from 2,000
statute miles to 1,500 statute miles but allowing the
continuation of service to Denver, expand the current
policy to permit non-stop flights to such Canadian
cities as Winnipeg which already have preclearance
facilities as well as to other Canadian cities within
1,500 statute miles of LaGuardia which may acquire
preclearance facilities in the future This would exclude
Calgary which is beyond 1,500 statute miles and where
although service was recently instituted the stipula-
tion entered into by the parties gives Air Canda no
vested rights.

Defendant Ex. A at P-3.

Western contends that the rule does not achieve its
purpose and that reducing the perimeter to 1500 miles
was a purely arbitrary act.'* However, the Port Authority
conducted a careful study and review of its policy and
concluded that a 1500-mile rule was necessary to meet
increasing congestion problems. It is important to keep in
mind that at the time of the study, which reflected in-
creasing airport use, there was already in place an infor-
mal 2000-mile perimeter. Survey results indicated that the
majority of those responding favored some form of perim-
eter policy and 20 percent favored a 1500-mile rule. In
setting in place a formal rule, therefore, and in light of

‘To the extent Western argues that the Port Authority should have
created an exception for Western in light of the fact that the market
Western seeks to serve is compatible with the Port Authority’s designs
for LaGuardia, Western should seek relief pursuant to Sections 1349(a)
and 2210. In this respect Western’s remedy is with the FAA. See
MontaukjCaribbean Airways v. Hope, 784 F.2d 91 (2d Cir.1986).

17a

the prospect of ever burgeoning traffic at LaGuardia, it
was not unreasonable to impose a 1500-mile limit. This is
especially true when access to the New York area remains
unimpeded at the other area airports.

As Justice Holmes once remarked: when a legal dis-
tinction is determined, as no one doubts that it may
be, between night and day, childhood and maturity,
or any other extremes, a point has to be fixed or a
line has to be drawn, or gradually picked out by suc-
cessive decisions, to mark where the change takes
place. Looked at by itself, without regard to the ne-
cessity behind it, the line or point seems arbitrary.
It might as well, or nearly as well, be a little more
to one side or the other. But when it is seen that a
line or point there must be, and that there is no
mathematical or logical way of fixing it precisely, the
decision of the legislature must be accepted unless we
can say that it is very wide of any reasonable mark.

Louisville Gas & Electric Co. v. Coleman, 277 U.S. 32, 41,
48 S.Ct°423, 426, 72 L.Ed. 770, 775 (1928) (Holmes, J.,
dissenting), quoted in City of Houston, 679 F.2d alt 1193.
Although Western contends that there were other means
available to reduce the congestion problem, this Court will
not second guess the actions of the Port Authority as long
as they are reasonable. The Court finds them to be so in
the instant case.’

CONCLUSION

For the foregoing reasons, Western’s claims for prelim-
inary and permanent injunctive relief are dismissed.
Fed.R.Civ.P. 65(aX2). The Clerk of the Court is directed

“The Court notes Western’s objection to the introduction of
Defendant’s Exhibits B and F. Although these exhibits were received
for nonhearsay purposes, the Court did not rely on them in any event.

18a

to enter judgment for the defendant and dismiss the com-
plaint.
SO ORDERED.

19a

Appendix B
WESTERN AIR LINES, INC.,
Plaintiff-A ppellant,
Vv.
Port AUTHORITY OF NEW YORK
AND NEW JERSEY,
Defendant-Appellee,

No. 829, Docket 86-7859.

United States Court of Appeals,
Second Circuit

Argued Feb. 19, 1987
Decided April 22, 1987.

Allyn O. Kreps, Los Angeles, Cal. (Jones, Day, Reavis
& Pogue, William T. Drescher, Robert DeBerardine, Robert
Layton, Thomas L. Abrams, Jones, Day, Reavis & Pogue,
New York City, of counsel), for plaintiff-appellant.

Arthur P. Berg, Atty., The Port Authority of New York
and New Jersey, for defendant-appellee.

Before FEINBERG, Chief Judge, TIMBERS and
PRATT, Circuit Judges.

FEINBERG, Chief Judge:

Western Air Lines, Inc. (Western) appeals from a judg-
ment of the United States District Court for the Southern
District of New York, after a bench trial before John M.
Cannella, J., that dismissed its complaint seeking an in-
junction.—F.Supp.—(S.D.N.Y.1986). Western argues that a
“perimeter rule,” promulgated by the Port Authority of
New York and New Jersey (the Authority), is preempted
by a provision of the Airline Deregulation Act, 49 U.S.C.

20a

§ 1305(aX1) and violates the substantive provisions of two
other aviation statutes, 49 U.S.C. §§ 1349(a) and 2210(a).
Western also appeals from the dismissal of its claims for
enforcement of the aviation statutes under 42 U.S.C. §
1983. Substantially for the reasons stated by the district
court, we affirm the dismissal of the complaint.

Background

The Authority owns and operates LaGuardia, Kennedy
International and Newark International Airports. In order
to reduce ground congestion at LaGuardia, by far the
smallest of the three airports, the Authority uses a perim-
eter rule. The current rule prohibits, with certain excep-
tions, non-stop flights to or from LaGuardia in excess of
1500 miles. The Authority believes that business travelers
create considerably less airport congestion than vacation-
ers and uses the perimeter rule to encourage the use of
LaGuardia by business people, who often make relatively
short trips, and the use of Newark and Kennedy for va-
cation flights.

The Federal Aviation Administration (the FAA) limits
flights to and from LaGuardia through the use of ‘“‘slots,”’
each of which authorizes one landing or takeoff by the
holder during a thirty-minute period. Western obtained
several slots at LaGuardia as a result of a lottery con-
ducted by the FAA. Western sought to use these slots for
three daily non-stop flights in each direction between
LaGuardia and Salt Lake City, where Western has a
“hub.” A hub is an airport used by an airline as the central
point of its connecting flights. Airlines use hubs to connect
two cities that cannot be served economically by non-stop
flights. On the basis of its perimeter rule, however, the
Authority refused Western permission to conduct La-
Guardia-Salt Lake City operations, since Salt Lake City is
more than 1,500 miles from LaGuardia.

In the district court, Western’s effort to enjoin the pe-
rimeter rule centered on three federal aviation statutes:

2la

49 U.S.C. § 1305, which limits local authority to regulate
airlines’ “rates, routes of services.’’! 49 U.S.C. § 2210(a),
which requires an airport proprietor receiving federal funds
to make its facilities available on a reasonable and non-
discriminatory basis,? and 49 U.S.C. § 134%a), which pro-

‘49 U.S.C. § 1305 provides in relevant part:

(a) Preemption

(i) Except as provided in paragraph (2) of this subsection, no
State or political subdivision thereof and no interstate agency or
other political agency of two or more States shall enact or enforce
any law, rule, regulation, standard, or other provision having the
force and effect of law relating to rates, routes, or services of
any air carrier having authority under subchapter IV of this chap-
ter to provide air transportation.

(b) Proprietary powers and rights

(1) Nothing in subsection (a) of this section shall be construed
to limit the authority of any State or political subdivision thereof
or any State or political subdivision thereof or any interstate agency
or other political agency of two or more States as the owner or

operator of an airport served by any air carrier certificated by _

the Board to exercise its proprietary powers and rights.

249 U.S.C. § 2210 provides, in relevant part:

(a) Sponsorship

As a condition precedent to approval of an airport development
project contained in a project grant application submitted under
this chapter, the Secretary shall receive assurances, in writing,
satisfactory to the Secretary, that—

(1) the airport to which the project relates will be available for
public use on fair and reasonable terms and without unjust dis-
crimination, including the requirement that (A) each air carrier
using such airport (whether as a tenant, nontenant, or subtenant
of another air carrier tenant) shall be subject to such nondiscri-
minatory and substantially comparable rates, fees, rentals, and
other charges and such nondiscriminatory and substantially com-
parable rules, regulations, and conditions as are applicable to all
such air carriers which make similar use of such airport and which
utilize similar facilities, subject to reasonable classifications such
as tenants or nontenants, and combined passenger and cargo flights
or all cargo flights,and such classification or status as tenant shall

22a

hibits such proprietors from granting exclusive access to
any airline.* Western claimed that there is an implied pri-
vate right of action under each statute; Western also relied
on 42 U.S.C. § 1983. Western also claimed that under the

not be unreasonably withheld by any airport provided an air carrier
assumes obligations substantially similar to those already imposed
on tenant air carriers, and (B) each fixed-based operator at any
airport shall be subject to the same rates, fees, rentals, and other
charges as are uniformly applicable to all other fixed-based op-
erators making the same or similar uses of such airport utilizing
the same or similar facilities, and (C) each air carrier using such
airport shal] have the right to service itself or to use any fixed-
base operator that is authorized by the airport or permitted by
the airport to serve any air carrier at such airport.

*49 U.S.C. § 1349 provides, in relevant part:

(a) No Federal funds, other than those expended under this
chapter,shall be expended, other than for military purposes (whether
or not in cooperation with State or other local governmental! agen-
cies), for the acquisition, establishment, construction, alteration,
repair, maintenance, or operation of any landing area, or for the
acquisition, establishment, construction, maintenance, or operation
of air navigation facilities thereon, except upon written recom-
mendation and certification by the Secretary of Transportation that
such landing area or facility is reasonably necessary for use in air
commerce or in the interests of national defense. Any interested
person may apply to the Secretary of Transportation, under reg-
ulations prescribed by him, for such recommendation and certifi-
cation with respect to any landing area or air navigation facility
proposed to be established, constructed, altered, repaired, main-
tained, or operated by, or in the interests of, such person. There
shall be no exclusive right for the use of any landing area or air
navigation facility upon which Federal funds have been expended.
For purposes of the proceeding sentence, the providing of services
at an airport by a single fixed-based operator shal] not be construed
as an exclusive right if it would be unreasonably costly, burden-
some, or impractical for more than one fixed-based operator to
provide such services, and if allowing more than one fixed-based
operator to provide such services would require the reduction of
space leased pursuant to an existing agreement between such sin-
gle fixed-based operator and such airport.

23a

Supremacy Clause, the perimeter rule was preempted by
section 1305(a\1).

The district court, relying on our holding in Montauk-
Caribbean Airways, Inc. v. Hope, 784 F.2d 91 (2d Cir.),
cert. denied, —— U.S. ——, 107 S.Ct. 248, 98 L.Ed.2d
172 (1986), ruled that the statutes relied on by Western
do not provide a private right of action. In addition, the
court dismissed Western’s claims under section 1983 for
lack of prosecution. The district court did find that West-
ern could assert its preemption claim based on the Su-
premacy Clause. On the merits, however, it found that the
Authority’s perimeter rule was not preempted by section
1305.

Discussion

In Montauk-Caribbean, we held that there are no implied
private rights of action to enforce sections 134%a) and
1305(a). 784 F.2d at 97-98. We are, of course, bound by
that decision, fairly construed. The district court correctly
recognized that our analysis in Montauk-Caribbean applies
equally to a suit claiming an implied right of action to
enforce section 2210(a).‘ See also Interface Group, Inc. v.
Massachusetts Port Authority, 816 F.2d 9, 14-16 (lst
Cir.1987); Arrow Airways, Inc. v. Dade County, 749 F.2d
1489, 1490-91 (11th Cir.1985). We also held in Montauk-
Caribbean that sections 1305(a) and 1349(a) cannot be en-
forced through section 1983. 784 F.2d at 98. That holding
would require dismissal of Western’s section 1983 claims
with respect to sections 1305(a) and 1349(a) in this case.
We need not decide, however, whether there is a persu-

‘Indeed, the district court decision in Montauk-Caribbean, which this
court affirmed, concluded that section 2210(a) does not provide a private
right of action. See Montauk-Caribbean Airways, Inc. v. Hope, No. 85-
CV-420, slip op. at 10—11 (E.D.N.Y.Sept. 4, 1985), aff'd, 784 F.2d 91
(2d Cir.), cert, denied, —— U.S. ——, 107 S.Ct. 248, 93 L.Ed.2d 172
(1986).

24a

asive basis for reaching a different conclusion with respect
to section 2210(a), see New York Airlines, Inc. v. Dukes
County, 623 F.Supp. 1435 at 1448-48 (D.Mass.1985), be-
cause Judge Cannella did not abuse his discretion in hold-
ing that Western did not press its section 1983 claims in
the district court.

Despite the lack of a private right of action to enforce
the statutes, the district court held that Western could
bring a Supremacy Clause challenge to the perimeter rule
by claiming that the rule is preempted by section 1305(a\1).
The Authority argues that the absence of a private right
to enforce section 1305(aX1) requires dismissal of West-
ern’s Supremacy Clause claim. The Authority argues that
Montauk-Caribbean settles the issue because the preemp-
tion claim based directly on section 1305(aX1) that the
Montauk-Caribbean court refused to recognize implicitly
relied on the Supremacy Clause. The Authority also argues
that as a general matter, the Supremacy Clause by itself
cannot create a right of action. Although we recognize the
potential anomaly of rejecting a private right of action to
enforce a statute while allowing a claim under the Su-
premacy Clause that the statute preempts a local regu-
lation, we find that Western properly brought its
Supremacy Clause claim.

As a preliminary matter, we note that whether the Su-
premacy Clause will support a suit claiming that section
1305(aX1) preempts a local regulation was not ruled upon
in Montauk-Caribbean. The plaintiff in that case made no
claims directly under the Supremacy Clause.’ Our holding
that a private party has no implied right of action to
enforce the substantive provisions of section 1305(aX1) did
not decide whether a private party can allege that a local

‘Indeed, plaintiff's petition for rehearing conceded that its prior ar-
gument “may not have adequately emphasized ... the Supremacy
Clause.”

25a

regulation is preempted by section 1305(aX1) on Suprem-
acy Clause grounds.

A claim under the Supremacy Clause that a federal law
preempts a state regulation is distinct from a claim for
enforcement of that federal law. “‘The primary function of
the Supremacy clause is to define the relationship between
state and federal law. It is essentially a power conferring
provision, one that allocates authority between the national
and state governments. .. .”” White Mountain Apache Tribe
v. Williams, 810 F.2d 844, 848 (9th Cir.1987). A claim
under the Supremacy Clause simply asserts that a federal
statute has taken away local authority to regulate a certain
activity. In contrast, an implied private right of action is
a means of enforcing the substantive provisions of a fed-
eral law. It provides remedies, frequently including dam-
ages, for violations of federal law by a government entity
or by a private party. The mere coincidence that the fed-
eral law in question in this case contains its own preemp-
tion language does not affect this distinction.

For example, in Rollins Environmental Services (FS),
Inc. v. Parish of St. James, 775 F.2d 627 (5th Cir.1985),
plaintiff's Supremacy Clause claim was based on a pro-
vision of the toxic Substance Control Act, 15 U.S.C. §§
2601-2629, that like section 1305(aX1), explicitly preempts
certain state regulation. See 15 U.S.C. § 2617. Even though
the section of the Act providing private rights of action
did not provide for suit for violation of the preemption
section, see 15 U.S.C. § 2619, the court, relying on the
Supremacy Clause, considered the effect of the preemption
provision. See Rollins, 775 F.2d at 631, 632-37. Similarly,
in New York Airlines Inc. v. Dukes County, 623 F.Supp.
at 1441-48, 1450 n. 18, the court held that section
1305(aX1) provides a basis for a Supremacy Clause chal-
lenge to an airport regulation, but that it does not provide
a private right of action.

26a

In arguing that the Supremacy Clause does not provide
a cause of action, the Authority mistakenly relies on White
Mountain Apache Tribe v. Williams, 798 F.2d 1205 (9th
Cir.1986), cert. denied, -—— U.S. ——, 107 S.Ct. 940, 93
L.Ed.2d 990 (1987).® In that case, the court distinguished
actions for an injunction based on the Supremacy Clause
from private rights-of-action to enforce the Supremacy
Clause under section 1983:

The question whether the Supremacy Clause
(U.S.Const. art. VI cl. 2) may be used as a sword in
bringing a § 1983 action is, of course, different from
that decide [in the affirmative] by the Supreme Court
in [White Mountain Apache Tribe v. Bracker, 448 U.S.
136, 100 S.Ct. 2578, 65 L.Ed.2d 665 (1980)]—whether
the Supremacy Clause may be invoked as a shield
against the imposition of state taxes on . . . operations
heavily regulated by the federal government.

810 F.2d at 847. The court held that although the Su-
premacy Clause can be used to enjoin enforcement of a
state statute that runs afoul of a federal legislative scheme,
it does not provide a basis for a claim under section 1983.
Thus, White Mountain highlights the distinction between
a Supremacy Clause claim and other private rights of ac-
tion. See also Citizens for an Orderly Energy Policy, Inc.
v. County of Suffolk, 604 F.Supp. 1084, 1089-91
(S.D.N.Y.1985), aff'd, 813 F.2d 570 92d Cir.1987) (per cur-
iam). Indeed, many courts have considered Supremacy
Clause challenges to local airport regulations without de-
termining whether there was a private right of action from
another source. See, e.g., City of Burbank v. Lockheed Air
Terminal, Inc., 411 U.S. 624, 93 S.Ct. 1854, 86 L.Ed.2d
547 (1973); Pirolo v. City of Clearwater, 711 F.2d 1006

‘The Ninth Circuit withdrew this version of its opinion and replaced
it with an amended opinion, White Mountain Apache Tribe v. Williams,
810 F.2d 844 (9th Cir.1987). The portions of the Ninth Circuit's opinion
relevant to this appeal, however, were substantially unchanged.

27a

(11th Cir.1983). Accordingly, the district court was correct
in examining Western’s Supremacy Clause claim.

Turning to the merits, we affirm on the basis of Judge
Camella’s well-reasoned opinion, to which we refer the
reader, holding that the Authority’s perimeter rule is not
preempted by section 1305. Although, as Judge Cannella
recognized, the perimeter rule may be a regulation “re-
lating to ... routes” within the meaning of section
1305(aX1), we agree with his conclusion that the rule, at
least when enacted by a multi-airport proprietor such as
the Authority, falls within the proprietary powers of air-
port operators exempted from preemption by section
1305(bX1). Cf. City of Houston v. FAA, 679 F.2d 1184,
1196 (5th Cir.1982).

Western’s other contentions require little discussion. In
its reply brief on appeal Western argues, apparently for
the first time, that the FAA, by granting slots, has
preempted any regulation of those slots by the Authority.
The statute, however, authorizes the Authority to regulate
those slots in accordance with its proprietary powers. Since
the district judge did not err in finding that the perimeter
rule is within those proprietary powers, Western’s con-
tention fails. Western’s remaining claims, that it was im-
properly denied an opportunity to cross-examine the
Authority’s witness at trial and that it is entitled to a
new trial because the district court made inadequate find-
ings of fact and conclusions of law, are without merit.

Accordingly, the judgment of the district court is af-
firmed.

28a

APPENDIX C

UNITED STATES COURT OF APPEALS
- SECOND CIRCUIT

At a stated term of the United States Court of Appeals,
in and for the Second Circuit, held at the United States
Courthouse, in the City of New York, on the 28th day of.
May one thousand nine hundred and eighty-seven.

WESTERN AIR LINES, INC.,

Plaintiff-Appellant,
V
Port AUTHORITY OF NEW YorRK and NEW JERSEY,
Defendant-Appellee.

Docket No. 86-7859

A petition for rehearing containing a suggestion that
the action be reheared in banc having been filed herein
by counsel for the Appellant WESTERN AIR LINES INC.,

Upon consideration by the panel that heard the appeal,
it is
Ordered that said petition for rehearing is DENIED.

It is further noted that the suggestion for rehearing in
bane has been transmitted to the judges of the court in
regular active service and to any other judge that heard
the appeal and that no such judge has requested that a
vote be taken thereon.

/s/ELAINE B. GOLDSMITH
ELAINE B. GOLDSMITH
Clerk

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385019_0830%3A1. Public record. Not legal advice.
