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- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- No. 92-97
- --------
- NORTHWEST AIRLINES, INC., et al., PETITION-
- ERS v. COUNTY OF KENT, MICHIGAN, et al.
- on writ of certiorari to the united states court
- of appeals for the sixth circuit
- [January 24, 1994]
-
- Justice Ginsburg delivered the opinion of the Court.
- Seven commercial airlines, petitioners in this case,
- assert that certain airport user fees charged to them are
- unreasonable and discriminatory, in violation of the
- federal Anti-Head Tax Act (AHTA), 49 U. S. C. App.
- 1513, and the Commerce Clause. Because the record,
- as it now stands, does not warrant a judicial determina-
- tion that the fees in question are unreasonable or
- unlawfully discriminatory, we affirm the judgment of the
- Court of Appeals.
- I
- A
- The user fees contested in this case are charged by
- the Kent County International Airport in Grand Rapids,
- Michigan. The Airport is owned by respondent Kent
- County and operated by respondents Kent County Board
- of Aeronautics and Kent County Department of Aeronau-
- tics (collectively, 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, restau-
- rants, 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.- This system is designed to charge the
- Airlines only for the cost of providing the particular
- facilities and services they use.
- Under its accounting system, the Airport first deter-
- mines the costs of operating the airfield and the passen-
- ger terminal, and allocates these costs among the users
- of the facilities. Costs associated with airfield opera-
- tions (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.
- 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 Airlines occupy). General aviation,
- however, is charged at a lower rate. The Airport
- recovers from that user group a per gallon fuel flowage
- fee for local aircraft and a landing fee for aircraft based
- elsewhere. These fees account for only 20% of the
- airfield costs allocated to general aviation.
- In relation to costs, the Airport thus -undercharges-
- general aviation. At the same time, measured by
- allocated costs, the Airport vastly -overcharges- the
- concessions. The Airlines pay a cost-based per square
- foot rate for their terminal space. The concessions,
- however, pay market rates for their space. Market
- rates substantially exceed the concessions' allocated costs
- and yield a sizable surplus. The surplus offsets the
- general aviation shortfall of approximately $525,000 per
- year, and has swelled the Airport's reserve fund by more
- than $1 million per year.
- B
- Using the -Buckley methodology- just described, the
- Airlines and the Airport periodically negotiated and
- agreed upon fees to be charged through December 31,
- 1986. Following a new rate study made in 1986, the
- Airport proposed increased fees beginning January 1,
- 1987. App. 193 (Plaintiffs' Exh. 6). The Airlines
- objected to the higher fees and failed to reach an
- agreement with the Airport. Ultimately, the County
- Board of Aeronautics adopted an ordinance unilaterally
- increasing the fees. On the effective date of the
- ordinance, April 1, 1988, the Airlines sued the Airport,
- primarily challenging post-December 31, 1986 rates.
- The Airlines attacked (1) the Airport's failure to allocate
- to the concessions a portion of the airfield costs, (2) the
- surplus generated by the Airport's fee structure, and (3)
- the Airport's failure to charge general aviation 100% of
- its allocated airfield costs. These features, the Airlines
- alleged, made the fees imposed on them unreasonable
- and thus unlawful under the AHTA, 49 U. S. C. App.
- 1513, and the Airport and Airway Improvement Act of
- 1982 (AAIA), 49 U. S. C. App. 2210. The Airlines also
- asserted that the Airport's treatment of general aviation
- discriminates against interstate commerce in favor of
- primarily local traffic, in violation of the Commerce
- Clause, U. S. Const., Art. I, 8, cl. 3.
- The parties filed cross-motions for summary judgment.
- In the first of three opinions, the District Court denied
- the motions, holding that the Airport's cost methodology
- is not per se unreasonable. App. to Pet. for Cert. 57.
- In its second opinion, the District Court held that the
- Airlines have an implied right of action to challenge the
- fees under the AHTA but not under the AAIA, and that
- the Airlines have no cause of action under the Com-
- merce Clause. Id., at 42-46. Following a bench trial,
- the District Court issued its third and final opinion,
- concluding that the challenged fees are not unreasonable
- under the AHTA. 738 F. Supp. 1112 (WD Mich. 1990).
- The Court of Appeals for the Sixth Circuit affirmed
- the District Court's judgment in principal part. 955 F.
- 2d 1054 (1992). In accord with the District Court, the
- Court of Appeals held that the AHTA impliedly confers
- a private right of action on the Airlines, but the AAIA
- does not. Id., at 1058. On the merits, the Court of
- Appeals (1) upheld as reasonable under the AHTA the
- bulk of the charges that the Airport imposes on the
- Airlines, and (2) rejected the Airlines' dormant Com-
- merce Clause claim on the ground that the AHTA
- regulates the area. Id., at 1060-1064.
- On one matter, however, the Court of Appeals re-
- versed the District Court's judgment and remanded the
- case. The District Court had upheld as reasonable
- under the AHTA the Airport's decision to allocate to the
- Airlines 100% of the costs of providing -crash, fire, and
- rescue- (CFR) services. 738 F. Supp., at 1119. Empha-
- sizing that the CFR facilities service all aircraft, not just
- the Airlines, the Court of Appeals held that the Airport
- must allocate CFR costs between the Airlines and
- general aviation. 955 F. 2d, at 1062-1063, 1064.
- Petitioning for this Court's review, the Airlines
- challenged the Court of Appeals' adverse rulings on the
- AHTA and Commerce Clause issues. The Airport did
- not cross-petition for review of the Sixth Circuit's
- judgment to the extent that it favored the Airlines;
- specifically, the Airport did not petition for review of the
- remand to the District Court for allocation of the costs
- of CFR services between the Airlines and general
- aviation. We granted certiorari, 508 U. S. ___ (1993), to
- resolve a conflict between the decision under review and
- a decision of the Court of Appeals for the Seventh
- Circuit, Indianapolis Airport Authority v. American
- Airlines, Inc., 733 F. 2d 1262 (1984), which declared key
- parts of a similar fee structure unreasonable under the
- AHTA.
- II
- A
- In Evansville-Vanderburgh Airport Authority Dist. v.
- Delta Air Lines, Inc., 405 U. S. 707 (1972), this Court
- held that the Commerce Clause does not prohibit States
- or municipalities from charging commercial airlines a
- -head tax- on passengers boarding flights at airports
- within the jurisdiction, to defray the costs of airport
- construction and maintenance. We stated in Evansville:
- -At least so long as the toll is based on some fair
- approximation of use or privilege for use, . . . and is
- neither discriminatory against interstate commerce nor
- excessive in comparison with the governmental benefit
- conferred, it will pass constitutional muster, even though
- some other formula might reflect more exactly the
- relative use of the state facilities by individual users.-
- Id., at 716-717.
- Concerned that our decision in Evansville might
- prompt a proliferation of local taxes burdensome to
- interstate air transportation, Congress enacted the
- AHTA. See Aloha Airlines, Inc. v. Director of Taxation
- of Haw., 464 U. S. 7, 9-10 (1983) (summarizing history
- of AHTA's enactment); S. Rep. No. 93-12, p. 4 (1973)
- (Congress intended AHTA to -ensure . . . that local
- `head' taxes will not be permitted to inhibit the flow of
- interstate commerce-); id., at 17 (-The head tax . . . cuts
- against the grain of the traditional American right to
- travel among the States.-).
- The AHTA provides in pertinent part:
- -(a) Prohibition; exemption
- -No State (or political subdivision thereof . . .)
- shall levy or collect a tax, fee, head charge, or other
- charge, directly or indirectly, on persons traveling in
- air commerce or on the carriage of persons traveling
- in air commerce or on the sale of air transportation
- or on the gross receipts derived therefrom . . . .
-
- -(b) Permissible State taxes and fees
- -[N]othing in this section shall prohibit a State (or
- political subdivision thereof . . .) from the levy or
- collection of taxes other than those enumerated in
- subsection (a) of this section, including property
- taxes, net income taxes, franchise taxes, and sales
- or use taxes on the sale of goods or services; and
- nothing in this section shall prohibit a State (or
- political subdivision thereof . . .) owning or operat-
- ing an airport from levying or collecting reasonable
- rental charges, landing fees, and other service
- charges from aircraft operators for the use of airport
- facilities.- 49 U. S. C. App. 1513.
- Primarily, the Airlines urge that the Airport's fees
- overcharge them in violation of the AHTA. Before
- reaching that issue, however, we face a threshold
- question. The United States as amicus curiae and, less
- strenuously, the Airport, urge that the Airlines have no
- right to enforce the AHTA through a private action
- commenced in a federal court of first instance. Instead,
- they maintain, complaints under the AHTA must be
- pursued initially in administrative proceedings before the
- Secretary of Transportation, subject to judicial review in
- the courts of appeals.
- The threshold question is substantial: If Congress
- intended no right of immediate access to a federal court
- under the AHTA, then the Airlines' AHTA claim should
- have been dismissed, not adjudicated on the merits as
- it was, indeed in part favorably to the Airlines. Howev-
- er, the Airport filed no cross-petition for certiorari
- seeking to upset the judgment to the extent that it
- rejected the Airport's CFR cost allocation (100% to the
- Airlines) as inconsonant with the AHTA. For that
- reason, we decline to resolve the private right of action
- question in this case.
- A prevailing party need not cross-petition to defend a
- judgment on any ground properly raised below, so long
- as that party seeks to preserve, and not to change, the
- judgment. See, e.g., Thigpen v. Roberts, 468 U. S. 27,
- 29-30 (1984). A cross-petition is required, however,
- when the respondent seeks to alter the judgment below.
- See, e.g., Trans World Airlines, Inc. v. Thurston, 469
- U. S. 111, 119, n. 14 (1985); United States v. New York
- Telephone Co., 434 U. S. 159, 166, n. 8 (1977); Federal
- Energy Administration v. Algonquin SNG, Inc., 426 U. S.
- 548, 560, n. 11 (1976); United States v. ITT Continental
- Baking Co., 420 U. S. 223, 226-227, n. 2 (1975).
- Alteration would be in order if the private right of
- action question were resolved in favor of the Airport.
- For then, the entire judgment would be undone, includ-
- ing the portion remanding for reallocation of CFR costs
- between the Airlines and general aviation. The Airport's
- failure to file a cross-petition on the CFR issue-the
- issue on which it was a judgment loser-thus leads us
- to resist the plea to declare the AHTA claim unfit for
- district court adjudication.
- The question whether a federal statute creates a claim
- for relief is not jurisdictional. See Air Courier Confer-
- ence v. American Postal Workers Union, 498 U. S. 517,
- 523, n. 3 (1991); Burks v. Lasker, 441 U. S. 471, 476,
- n. 5 (1979); Mt. Healthy City Bd. of Ed. v. Doyle, 429
- U. S. 274, 278-279 (1977); Bell v. Hood, 327 U. S. 678,
- 682 (1946). Accordingly, we shall assume, solely for pur-
- poses of this case, that the alleged AHTA private right
- of action exists.
- B
- The AHTA prohibits States and their subdivisions
- from levying a -fee- or -other charge- -directly or
- indirectly- on -persons traveling in air commerce or on
- the carriage of persons traveling in air commerce.- 49
- U. S. C. 1513(a). Landing fees, terminal charges, and
- other airport user fees of the sort here challenged fit
- 1513(a)'s description. As we confirmed in an opinion
- invalidating a State tax on airlines' gross receipts,
- 1513(a)'s compass is not limited to direct -head- taxes.
- Aloha Airlines, 464 U. S., at 12-13.
- But 1513(a) does not stand alone. That subsection's
- prohibition is immediately modified by 1513(b)'s per-
- mission. See Wardair Canada Inc. v. Florida Dept. of
- Revenue, 477 U. S. 1, 15-16 (1986) (Burger, C. J., con-
- curring in part and concurring in judgment) (1513(b)'s
- saving clause was enacted in response to the States'
- concern that 1513(a)'s -sweeping provision would pro-
- hibit even unobjectionable taxes such as landing fees
- . . .-). Sections 1513(a) and (b) together instruct that
- airport user fees are permissible only if, and to the
- extent that, they fall within 1513(b)'s saving clause,
- which removes from 1513(a)'s ban -reasonable rental
- charges, landing fees, and other service charges from
- aircraft operators for the use of airport facilities.-
- While 1513(b) allows only -reasonable rental charges,
- landing fees, and other service charges,- the AHTA does
- not set standards for assessing reasonableness. Courts,
- we recognize, are scarcely equipped to oversee, without
- the initial superintendence of a regulatory agency, rate
- structures and practices. See Colorado Interstate Co. v.
- FPC, 324 U. S. 581, 589 (1945) (-Rate-making is essen-
- tially a legislative function.-); cf. Far East Conference v.
- United States, 342 U. S. 570, 574 (1952) (-in cases
- raising issues of fact not within the conventional experi-
- ence of judges or cases requiring the exercise of admin-
- istrative discretion, agencies created by Congress for
- regulating the subject matter should not be passed
- over-). The Secretary of Transportation is charged
- with administering the federal aviation laws, including
- the AHTA. His Department is equipped, as courts
- are not, to survey the field nationwide, and to regulate
- based on a full view of the relevant facts and circum-
- stances. If we had the benefit of the Secretary's rea-
- soned decision concerning the AHTA's permission for the
- charges in question, we would accord that decision
- substantial deference. See Chevron U. S. A. Inc. v.
- Natural Resources Defense Council, Inc., 467 U. S. 837,
- 842-845 (1984). Lacking guidance from the Secretary,
- however, and compelled to give effect to the statute's
- use of -reasonable,- we must look elsewhere.
- The parties point to the standards this Court employs
- to measure the reasonableness of fees under the Com-
- merce Clause, as stated in the Evansville case, see
- supra, at 5-6; they invite our use of the Evansville
- standards as baselines for determining the reasonable-
- ness of fees under the AHTA. We accept the parties'
- suggestions. Although Congress enacted the AHTA
- because it found unsatisfactory the end result of our
- Commerce Clause analysis in Evansville-the validation
- of -head- taxes-Congress specifically permitted, through
- 1513(b)'s saving clause, -reasonable rental charges,
- landing fees, and other services charges.- The formu-
- lation in Evansville has been used to determine -reason-
- ableness- in related contexts. See, e.g., American
- Trucking Assns., Inc. v. Scheiner, 483 U. S. 266,
- 289-290 (1987) (applying Evansville test to assess valid-
- ity under Commerce Clause of state taxes applied to
- interstate motor carrier); Massachusetts v. United States,
- 435 U. S. 444, 466-467 (1978) (applying Evansville test
- to determine constitutionality of tax under intergovern-
- mental immunity doctrine). It will suffice for the pur-
- pose at hand.
- To recapitulate, a levy is reasonable under Evansville
- if it (1) is based on some fair approximation of use of
- the facilities, (2) is not excessive in relation to the
- benefits conferred, and (3) does not discriminate against
- interstate commerce. 405 U. S., at 716-717. The Air-
- lines contend that the Airport's fee structure fails the
- Evansville test on three main counts. We consider each
- contention in turn.
- 1
- As noted above, the Airport allocates its air operations
- costs between the Airlines and general aviation; the
- concessions in fact supply the lion's share of the
- Airport's revenues, see supra, at 3, but are allocated
- none of these costs. The Airlines contend that the
- concessions benefit substantially, albeit indirectly, from
- air operations, because those operations generate the
- concessions' customer flow. Therefore, the Airlines urge,
- the Airport's failure to allocate to the concessions any of
- the airfield-associated costs violates Evansville's require-
- ment that user fees be -based on some fair approxima-
- tion of use or privilege for use.- 405 U. S., at 716-717.
- The cost reallocation sought by the Airlines would not
- change the market-based rent paid by the concessions,
- see supra, at 3, but it would lower the charges imposed
- on the Airlines.
- We see no obvious conflict with Evansville in the
- Airport's allocation of the costs of air operations to the
- Airlines and general aviation, but not to the conces-
- sions. Only the Airlines and general aviation actually
- use the runways and navigational facilities of the Air-
- port; the concessions use only the terminal facilities.
- The Airport's decision to allocate costs according to a
- formula that accounts for this distinction appears to
- -reflect a fair, if imperfect, approximation of the use of
- facilities for whose benefit they are imposed.- 405
- U. S., at 716-717.
- The District Court found that (with one minor excep-
- tion) the Airport charged the Airlines -the break-even
- costs for the areas they use.- 738 F. Supp., at 1119.
- In this light, we cannot conclude that the Airlines were
- charged fees -excessive in comparison with the govern-
- mental benefit conferred.- Evansville, supra, at 717.
- See also Brief for United States as Amicus Curiae 25
- (-As long as an airport's charges to air carriers do not
- result in revenues that exceed by more than a reason-
- able margin the costs of servicing those carriers, the
- Secretary would normally sustain those charges as
- reasonable under federal law.-) (citing Federal Aviation
- Administration, Airport Compliance Requirements, Order
- No. 5190.6A 4-13, 4-14, pp. 20-22 (Oct. 2, 1989), and
- 14 CFR 399.110(f) (1993)).
-
- 2
- The Airlines also contend that the Airport's fee meth-
- odology is unlawful because, by imposing on the Airlines
- virtually all of the air-operations costs, and exacting
- fees from the concessions far in excess of their allocated
- costs, the methodology generates huge surpluses. The
- AHTA, however, does not authorize judicial inquiry
- focused on the amount of the Airport's surplus. The
- statute requires only that an airport's fees not -be
- excessive in relation to costs incurred by the taxing
- authorities- for benefits conferred on the user. Evans-
- ville, supra, at 719. As we have explained, the Airlines
- are charged only for the costs of benefits they receive.
- The Airport's surplus is generated from fees charged to
- concessions, and the amounts of those fees are not at
- issue. As the Court of Appeals pointed out, 1513(b)
- applies only to fees charged to -aircraft operators.- 955
- F. 2d, at 1060.
- The Airlines urge us to consider the effect of the
- concession revenues when deciding whether the fees
- charged the Airlines are reasonable, pointing to the
- Seventh Circuit's analysis in Indianapolis Airport v.
- American Airlines, Inc., 733 F. 2d, at 1268 (invalidating
- the Indianapolis Airport's fee structure on the ground,
- inter alia, that the Airport's generation of a surplus
- from the concession fees indirectly raises the costs of air
- travel). The Seventh Circuit, however, overlooked a key
- factor. It reasoned explicitly from the incorrect premise
- that -[n]o agency has regulatory authority over the rate
- practices of the Indianapolis Airport Authority.- Ibid.
- The Seventh Circuit panel believed that -the duty of
- regulation [fell] to the courts in the enforcement of the
- state and federal statutes forbidding unreasonable
- rates.- Ibid. That court thought it necessary to -imag-
- ine [itself] in the role of a regulatory agency.- Ibid. In
- contrast, our opinion in this case emphasizes that the
- Department of Transportation has regulatory authority
- to enforce the federal aviation laws, including the AHTA
- and the AAIA, see supra, at 10, and n. 11, so there is
- no cause for courts to offer a substitute for -convention-
- al public utility regulation,- 733 F. 2d, at 1268.
- We resist inferring a limit on airport surpluses from
- the AHTA for a further reason. That measure does not
- mention surplus accumulation, but another statute, the
- AAIA, directly addresses the use of airport revenues.
- The AAIA requires that -all revenues generated by the
- airport . . . be expended for the capital or operating
- costs of the airport . . . .- 49 U. S. C. App.
- 2210(a)(12) (emphasis supplied). The Airlines do not
- suggest that the Airport is using its surplus for any
- purpose other than Airport-related expenses, nor did
- they seek review of the lower courts' holding that they
- had no right of action under the AAIA. 955 F. 2d, at
- 1058-1059. For these reasons, even if the AAIA is read
- to impose a limit on the accumulation of surplus reve-
- nues, see Brief for United States as Amicus Curiae
- 26-27, the question whether the Airport's surpluses are
- excessive is not properly before us.
-
- 3
- Finally, the Airlines contend that the Airport's fees
- discriminate against them in favor of general aviation,
- in violation of Evansville's instruction that airport tolls
- be nondiscriminatory regarding interstate commerce and
- travel. As earlier recounted, see supra, at 2-3, the
- Airlines pay 100% of their allocated costs while general
- aviation users are assessed fees covering only 20% of
- their allocated costs.
- We need not consider whether the Airlines would have
- a compelling point had they established that general
- aviation is properly categorized as intrastate commerce.
- Cf., e.g., Chemical Waste Management, Inc. v. Hunt, 504
- U. S. ___, ___ (1992) (slip op., at 4-13) (invalidating
- state fee on hazardous wastes generated outside, but
- disposed of inside, the State, because it discriminated
- against interstate commerce); American Trucking Assns.,
- Inc. v. Scheiner, 483 U. S., at 268-269 (invalidating
- state highway use taxes because they discriminated
- against interstate motor carriers). The record in this
- case, it suffices to say, does not support the Airlines'
- argument. We cannot assume, in the total absence of
- proof, that the large and diverse general aviation popu-
- lation served by the Airport travels typically intrastate
- and seldom ventures beyond Michigan's borders.
- III
- The Airlines assert that, even if the Airport's user fees
- are not unreasonable under the AHTA, they violate the
- -dormant- Commerce Clause. Even if we considered the
- AHTA's express permission for States' imposition of
- -reasonable rental charges, landing fees, and other
- service charges from aircraft operators for the use of
- airport facilities,- 49 U. S. C. App. 1513(b), insuffi-
- ciently clear to rule out judicial dormant Commerce
- Clause analysis, petitioners' argument would fail. We
- have already found the challenged fees reasonable under
- the AHTA through the lens of Evansville-that is, under
- a reasonableness standard taken directly from our dor-
- mant Commerce Clause jurisprudence.
- * * *
- For the reasons stated, and without prejudging the
- outcome of any eventual proceeding before or regulation
- by the Secretary of Transportation, we affirm the judg-
- ment of the Court of Appeals.
- It is so ordered.
-
- Justice Blackmun took no part in the consideration
- or decision of this case.
-