Cite as: 510 U. S. 355 (1994)
Opinion of the Court
the Airport). Petitioners are seven commercial airlines serving the Airport (the Airlines).
The Airport collects rent and fees from three groups of users: (1) commercial airlines, including petitioners; (2) "general aviation," i. e., corporate and privately owned aircraft not used for commercial, passenger, cargo, or military service; and (3) nonaeronautical concessionaires, including car rental agencies, the parking lot, restaurants, gift shops, "rent-a-cart" facilities, and other small vendors. Since 1968, the Airport has allocated its costs and set charges to aircraft operators pursuant to a "cost of service" accounting system known as the "Buckley methodology." 1 This system is designed to charge the Airlines only for the cost of providing the particular facilities and services they use.2
Under its accounting system, the Airport first determines the costs of operating the airfield and the passenger terminal, and allocates these costs among the users of the facilities. Costs associated with airfield operations (e. g., maintaining the runways and navigational facilities) are allocated to the Airlines and general aviation in proportion to their use of the airfield. No portion of these costs is allocated to the concessions. Costs associated with maintaining the airport terminal are allocated among the terminal tenants— the Airlines and the concessions—in proportion to each tenant's square footage.3
The Airport then establishes fees and rates for each user group. It charges the Airlines 100% of the costs allocated to them, in the form of aircraft landing and parking fees (for use of the airfield), and rent (for the terminal space the Air-1 See James C. Buckley, Rental Fee Recommendations (Feb. 1969), App. 223-275.
2 In contrast, "residual cost" accounting systems base rates and fees on the total cost of operating the airport. See Brief for City of Los Angeles as Amicus Curiae 5.
3 The parking lot is owned and operated by the Airport itself and is not material to this dispute.
359
Page: Index Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: October 4, 2007