UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, D.C. RECEIVED HTX HELICOPTERS, LLC, JUL 28 2021 D/B/A HELIBLOCK, Complainant, PART 16 DOCKETS V. FAA Docket No. 16-21-10 RIIHIODE ISLAND AIRPORT CORPORATION, Respondent. RESPONDENT RHODE ISLAND AIRPORT CORPORATION'S ANSWER TO THE COMPLAINT Designation of persons to receive service for Rhode Island Airport Corporation: W. Eric Pilsk [email protected] Adam Gerchick agerchickkaplankirsch.com KAPLAN KIRSCH & ROCKWELL LLP 1634 I (Eye) Street, NW, Suite 300 Washington, D.C. 20006 Telephone: (202) 955-5600 David Y. Bannard [email protected] KAPLAN KIRSCH & ROCKWELL LLP 101 Federal Street, Suite 1900 Boston, MA 02110 Telephone: (617) 329-4687 1 ANSWER Respondent Rhode Island Airport Corporation ("RIAC" or "Respondent"), by and through its undersigned counsel, pursuant to 14 C.F.R. § 16.23(h), hereby responds to the allegations ofthe Complaint filed by HTX Helicopters, LLC, d/b/a HeliBlock ("HeliBlock" or "Complainant") as set forth in the numbered paragraphs below. RIAC denies all allegations contained in the Complaint except to the extent that such allegations are specifically admitted in this Answer. In further support of its Answer, and pursuant to 14 C.F.R. § 16.23(i), RIAC submits a Memorandum Of Law In Support Of Its Answer To The Complaint, filed with this Answer and herein incorporated by reference, with a concise statement ofthe facts upon which RIAC relies and a discussion of the legal principles demonstrating that the Complaint should be dismissed in its entirety and RIAC found to be in compliance with its federal grant assurances. Each numbered paragraph below corresponds with the paragraph ofthe Complaint that is numbered identically, and the admission, denial, or other statement within each numbered paragraph below pertains to the allegation(s) ofthe corresponding paragraph in the Complaint. 1. RIAC is without sufficient information to admit or deny these allegations, but RIAC does not contest HeliBlock's statement of who it is. 2. Admitted. 3. Admitted. 4. RIAC admits only that HeliBlock operates an aerial sightseeing business out of Block Island State Airport ("BID") and that it operates an aerial sightseeing business from an FBO located adjacent to Westerly State Airport ("WST") and otherwise denies the allegations of Paragraph 4. 2 5. RIAC admits oniy that HeliBlock operates a charter service between BID and an FBO located adjacent to WST and otherwise denies the allegations of Paragraph 5. 6. RIAC admits only that it is charged with the management of all Rhode Island state airport facilities, including both WST and BID. RIAC does not own any Rhode Island state airport facilities, and thus that allegation is denied. 7. Admitted. 8. Admitted. 9. Admitted. 10. Admitted. 11. Admitted. 12. RIAC admits only that the leases between RIAC and HeliBlock gave HeliBlock exclusive use of office space at the BID passenger terminal. RIAC denies all other allegations in this paragraph, including but not limited to the allegation that HeliBlock's ramp access under the lease was "illusory." 13. Denied. RIAC has long had a policy requiring based commercial aeronautic operators to have a lease to operate at RIAC operated airports. In October 2020, that policy was memorialized in a written Leasing Policy. Effective July 1, 2021, that policy is incorporated into Minimum Standards for RIAC-operated airports. 14. Denied. RIAC has consistently required commercial aircraft operators to enter into a lease or other written agreement as a condition of basing their operations out ofthe Rhode Island state airports operated and managed by RIAC. RIAC does not require transient operators to secure a lease merely to fly into or out of such Rhode Island state airports. 15. Admitted only to the extent that RIAC has not required HeliBlock to enter into a lease or written agreement with respect to HeliBlock's commercial operations adjacent to WST because HeliBlock operates from an FBO that is not located on WST. Otherwise, the allegations are denied. 16. RTAC is without sufficient information to admit or deny these allegations. 17. RIAC is without sufficient information to admit or deny these allegations. 18. RIAC admits only that its own prescribed noise-mitigation measures include those listed in Paragraph 18 ofthe Complaint. RIAC is without sufficient information to admit or deny whether HeliBlock has, in fact, complied with such noise-mitigation measures. 19. Denied. HeliBlock has failed to honor its indemnity obligations under its lease with RIAC and has failed to pay RIAC' s costs of litigation for the matter described in Paragraphs 21 and 22 of the Complaint pursuant to the indemnity provision ofthe lease. 20. Admitted. 21. Admitted. 22. RIAC admits these allegations, but states that HeliBlock moved to dismiss the Block Island plaintiffs' ("Plaintiffs") initial complaint in part on the grounds that the Plaintiffs had failed to include RIAC as a necessary party, and that HeliBlock suggested that the Plaintiffs assert a claim of inverse condemnation against RIAC. By its actions, HeliBlock exposed RIAC to unnecessary litigation and financial risk. 23. Admitted. 24. RIAC admits only that HeliBlock objected to RIAC's tender and claim for indemnification and that it asserted the arguments provided in Paragraph 24 of the Complaint as El its basis for such objections. Otherwise, RIAC denies all allegations in Paragraph 24, including but not limited to the validity of RIAC's legal arguments. 25. RIAC admits only that RIAC claimed that HeliBlock's refusal to accept its tender and fully indemnify and defend RIAC was a breach ofthe lease. RIAC denies that HeliBlock's legal conclusion that it owed no duty of indemnification under state law was either correct or made in good faith. 26. RIAC admits oniy that RIAC claimed that HeliBlock (further) breached its lease by failing to promptly notify it ofthe litigation with the Plaintiffs. RIAC denies that there existed clear evidence contrary to RIAC's claim. 27. Admitted. 28. Admitted. 29. Denied. RIAC's decision was based on HeliBlock's failure to indemnify RIAC in compliance with HeliBlock's lease obligations, not HeliBlock's decision to contest or challenge the indemnity provision. Furthermore, RIAC specifically denies that its position was "dubious." 30. RIAC admits only that it conditioned the possibility of future leases upon HeliBlock agreeing to honor its indemnity obligations under the lease and denies the other allegations of Paragraph 30. 31. RIAC admits only that it is free to require a lease for the use of office space within the terminal building. Otherwise, Paragraph 31 ofthe Complaint sets forth allegations of law to which no response is necessary. To the extent that a response to such allegations of law is necessary, RIAC denies all such allegations within Paragraph 31 that are inconsistent with applicable law and FAA regulation and guidance. 32. RIAC admits oniy that it has received federal funding for the construction or improvement ofthe physical plant at BID. Otherwise, Paragraph 32 ofthe Complaint sets forth allegations of law to which no response is necessary. To the extent that a response to such allegations of law is necessary, RIAC denies all such allegations within Paragraph 32 that are inconsistent with applicable law and FAA regulation and guidance. 33. RIAC is without sufficient information to admit or deny these allegations. RIAC states that HeliBlock has operated at BID since May 3, 2021, without a lease or permission from RIAC over RIAC's objections. 34. Admitted. 35. Denied. 36. Denied, as explained in detail in RIAC's Memorandum Of Law In Support Of Its Answer To The Complaint filed with this Answer. 37. Denied. In particular, RIAC denies that any "similarly situated" commercial operators use BID without a lease or other agreement. RTAC also observes that fleliBlock has offered no facts, evidence, or citations to support its allegation that "numerous similarly situated commercial operators use BID without the benefit of a written lease or other agreement," despite the requirement of 14 C.F.R. § 16.23(b)(3) that complaints filed under Part 16 "[p]rovide a concise but complete statement of the facts relied upon to substantiate each allegation." This failure to comply with § 16.23(b)(3) pervades the Complaint and makes it significantly more challenging for RIAC to research or respond to HeliBlock's allegations. 38. RTAC is without sufficient information to admit or deny these allegations. 39. Admitted. 40. RIAC is without sufficient information to admit or deny these allegations. 41. RIAC is without sufficient information to admit or deny these allegations. 42. RIAC is without sufficient information to admit or deny these allegations. 43. Denied. RIAC has chosen not to "evict" HeliBlock from, or otherwise terminate or curtail, its lease at BID. To the contrary, RIAC permitted HeliBlock to continue operating at BID for the full duration of its lease, which expired last year. RIAC has merely elected not to offer HeliBlock a new lease based on HeliBlock's failure to honor its indemnity obligations and the substantial litigation and financial risk to which HeliBlock's actions have, and continue to, expose RIAC. 44. Denied. The July 9, 2020 letter to which Paragraph 44 ofthe Complaint refers only reflected RIAC's intent to prohibit fleliBlock from basing its commercial aeronautical operations at BID, not to prohibit HeliBlock from using BID in general, such as for genuinely transient use. The context of the letter makes this distinction clear, including with respect to the letter's request that HeliBlock "remove any of its belongings" from the airport, which indicates that the letter concerns HeliBlock's ongoing attempt to use BID as a base of operations, not merely as an occasional facility for refueling and other transient use. See Compl., Ex. M. 45. Denied. RIAC has not attempted to "ban HeliBlock from the use of any part of {BID]." As RIAC has made clear to HeliBlock repeatedly, RIAC is prepared to extend a new lease to HeliBlock if HeliBlock respects and fulfills its indemnity obligations under its most recent BID lease.