Air Transport World

A New York state of mind.(New York City and Port Authority of New York & New Jersey in legal battle over airport revenues)

The city and the airport authority are at loggerheads over what could be as much as $800 million in funds

NEW YORK--What's $400 million between friends? Friends? That's hardly the way to describe the state of current relations between New York and the Port Authority of New York & New Jersey, which has operated JFK and LaGuardia airports on lease from the city since 1947. The PA has invested $1.08 billion in capital improvements at the two airports in the last five years and says it plans to spend an additional $1.57 billion in the next five. In addition, the PA is obligated to pay the city rent equal to the net revenue generated by operations at the two airports.

So what's the problem? The city claims--the PA denies--that the PA has been shortchanging it on rent, at least since 1991. Payments that have run $50 million in past years fell to $6. …

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