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CALIFORNIA / News and Insight on Business in the
Golden State
| THE STATE / SMALL BUSINESS

Court to Rule Today on LAX Shuttle Plan

October 22, 1998|Marla Dickerson

Mom-and-pop shuttle operators are awaiting a court decision that could determine whether airport officials can reduce from 38 to three the number of van-shuttle companies operating at Los Angeles International Airport. Shuttle 2000, a consortium of 14 small van-shuttle operators asked Los Angeles Superior Court Judge Robert O'Brien to issue a restraining order to prevent airport officials from moving ahead with their plans. O'Brien is expected to decide today. If he issues an injunction, airport officials will be forced to reopen the bidding process and consider additional competitors. The dispute arose when LAX officials, in an effort to improve shuttle service at the airport, decided to award SuperShuttle, Prime Time Shuttle and Xpress Shuttle near-exclusive operating rights at the nation's third-busiest airport. Shuttle 2000 filed a lawsuit against LAX officials and the city of Los Angeles last month, alleging that the Board of Airport Commissioners violated the city's public contracting laws by altering the bidding process to favor the three contract winners. The three companies have agreed to pay the airport a minimum of $1 million annually for rights to pick up passengers at LAX.

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