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Transportation Network Companies Pose Liability Risk to Airports, Group Claims

The Airport Ground Transportation Association has issued a warning claiming that transportation network companies – companies that use online-enabled platforms to connect passengers with drivers using their personal, non-commercial vehicles – are exposing airport authorities to liability risk by unlawfully transporting airport customers.

“For the protection of the airport and the safety of the airline traveling public, airports must insist that they be named as co-insured on a primary liability policy for every commercial vehicle operating on airport property,” said Ray Mundy, executive director of the Airport Ground Transportation Association. He specifically mentioned Uber and Lyft, two prominent TNCs, and said TNCs are “continue to serve the airports without assuming any of the liability and costs of doing so.”

In a separate online post, Mundy said that TNCs “have moved beyond city regulations to now challenge airport ground transportation regulations as not applying to them.”

“In the two states where they are legally permitted by state authority, California and Colorado, they have challenged the airport rules as being overly restrictive and the airports as being ‘uncooperative,’ thus no need to be restricted by such archaic requirements,” Mundy wrote. He said he thinks TNCs “intend to operate at airports and challenge airport officials to stop them.”

In response to Thursday’s warning from the AGTA, Uber Technologies Inc. issued the following statement:

“It’s unfortunate that special interest groups funded by Big Taxi are using airports to scare the public,” the statement said. “The truth is taking Uber to and from the airport is safest, most reliable and affordable option around. In cities where airports are unclear about how Uber can help administrators tackle long taxi cues [and] deadhead trips and reduce curbside churn times, we welcome the opportunity to work together.”

Lyft did not respond to a request for comment.

Although many states and airports are grappling with how to handle TNCs’ presence at airports, only California and Colorado have permitted the companies to operate legally, according to the AGTA. Operating at airports requires further permitting.

In California, the issue came to the fore last month when the state’s Public Utilities Commission sent letters to TNCs threatening to revoke permits to operate unless the companies and their drivers adhere to rules in place at airports. The move came after CPUC officials met with law enforcement personnel from five major California airports: Los Angeles International (LAX), Oakland International (OAK), San Diego International (SAN), San Francisco International (SFO) and Normal Y. Mineta San Jose International (SJC).

“The airports have strong documentary evidence that your drivers have been operating at airports without an airport permit,” CPUC president Michael Peevey wrote.

Other complaints included lack of proper “trade dress” on vehicles, lack of proof of insurance and the transfers of “apps” from one driver to another, with both using the same vehicle.

 

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