Los Angeles to Ask Judge to Toss Ontario Airport Lawsuit

By City News Service:

Key elements of a lawsuit filed by the city of Ontario against Los Angeles seeking to void L.A.’s control over Ontario Airport on the grounds of neglect could be decided Friday in a Riverside courtroom.

Lawyers for Los Angeles World Airports, L.A.’s aviation authority and the agency responsible for LAX, Ontario and Van Nuys airports, will argue before Riverside County Superior Court Judge Gloria Trask that the agreements signed by Ontario giving LAWA control of the regional airport cannot be challenged.

According to the defendants, the original joint powers compact that placed Ontario under LAWA’s management in the late 1960s cannot be undone absent a showing of fraud.

The plaintiffs contend that LAWA has intentionally shelved marketing to enhance the airport’s appeal in order to ensure a steady and growing stream of business for LAX.

In court papers, Ontario’s attorneys cited remarks by former Los Angeles City Councilman Richard Alarcon, former airport commissioner Alan Rothenberg and current LAWA Executive Director Gina Marie Lindsey indicating apparent hostility to any effort that might boost business at Ontario.

Attorneys allege in court documents that Lindsey characterized a proposal to direct more passenger flights to Ontario as a “waste of time.”

Ontario filed its suit in June 2013 after negotiations for a transfer of ownership between officials from LAWA and Ontario hit an impasse. One of the chief stumbling blocks was L.A.’s request for $475 million to relinquish the airfield. According to LAWA, nearly $500 million has been invested in runway and other terminal upgrades since the late 1990s.

The plaintiffs are alleging breach of contract and breach of fiduciary duty against LAWA, which maintains there’s no evidence of a failure to faithfully manage the facility.

Ontario wants the joint powers agreement that placed the airport under LAWA’s authority dissolved, alleging that the agency -- and by extension, the city of Los Angeles -- has neglected the field and left it at a competitive disadvantage by keeping ramp fees high while lowering them at LAX in order to draw more traffic to that location.

Supporters of the “Set Ontario Free” campaign made a counter-offer of $50 million cash, and offered to assume debts attached to the airport, according to Roy Goldberg, one of the attorneys representing Ontario.

Most inland governing bodies, including the Riverside City Council, back an independent Ontario Airport. Last year, the Ontario International Airport Authority was formed to handle an ownership transfer.

The OIAA commissioned a study indicating that, without steps to increase the airport’s visibility through general promotional campaigns and direct marketing to airlines, the field’s future prospects will continue to dim.

Passenger loads at the airport have fallen 40 percent -- from 7.2 million to 3.9 million annually -- since 2007, according to the study, which noted that at the current rate, passenger levels will fall below 2 million by 2024, costing the regional economy an estimated $430 million in lost economic activity annually.

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