Federal regulators are investigating a complaint filed by a local airport group alleging that the City of St. Joseph violated federal grant regulations and bidding processes by awarding an airport lease to Pan-Am Flight Services.
The complaint, filed by local entrepreneur Lute Atieh, claims the city violated federal grant assurances by improperly awarding the lease. Atieh’s bidding group, St. Joseph Air Center, alleges that the city failed to properly evaluate airport bid proposals and allowed internal pressure campaigns to influence the selection process. The city has until February 12 to respond to the allegations, and the FAA will review the case to determine potential noncompliance.
Atieh’s proposal emphasized preserving existing facilities and investments, while the current plan with Pan-Am allegedly violates grant regulations by consolidating property and displacing independent aeronautical businesses.
