Court upholds Airport Shoppes’ food concession rights in Aerostar lawsuit
* With updates throughout.
A Carolina Superior Court judge has dismissed with prejudice a lawsuit filed by Aerostar Airport Holdings, rejecting the company’s attempt to bypass longstanding exclusivity rights held by Puerto Rican concessionaires at Luis Muñoz Marín International Airport.
The ruling, issued June 2, marks the fifth time a court has sided with Airport Shoppes Corp. and Airport Catering Services Corp. — local operators with exclusive rights to provide food and beverage services at the airport — in legal disputes with Aerostar, the private manager of Puerto Rico’s main international gateway.
The dispute centered on Aerostar’s lease agreement with CAVU Experiences America LLC to operate a branded Escape Lounge in Terminal B. Aerostar argued the space would not violate exclusivity rights because guests would pay for access in advance or gain entry through eligible American Express cards, with food and beverage included but not sold separately. The court rejected that argument.
“This court understands that from the 2004 Addendum, AS and ACS preserved their exclusive right to provide food in Terminal B of LMMIA,” the ruling states, using the airport’s abbreviation.
The judge found that the Escape Lounge did not meet the exemption for “private clubs operated by airlines,” which is the only category allowed to serve complimentary food and drinks under the original 1984 Concession Agreement and its many amendments. The ruling noted that the lounge was not operated by an airline, nor was it limited to airline club members.
“Thus, it violates [Airport Shoppes and Airport Catering Services’] exclusivity rights,” the decision reads.
“We were surprised by the Court’s ruling because we believe it is inconsistent with the provisions of the contracts,” an Aerostar official said in a written statement.
“Furthermore, it could result in limiting the service offering at Puerto Rico’s main airport. At Aerostar, we seek to diversify our offering of amenities and services to provide passengers with a greater variety of options and thus improve their experience,” the statement read.
“An example of this is the specialized clubs that provide service while waiting for flights, as operated at all leading airports around the world. Aerostar will exhaust all judicial review remedies to achieve its goal of expanding its service offering to local and international travelers and thus continue to enhance their experience,” the company spokesperson added.
The court reviewed decades of agreements — including supplementary agreements from 1991 and 1993, a 1997 addendum, the 2004 Addendum, and amendments from 2008 and 2013 — and found that none eliminated or modified the exclusivity clause. Any exceptions, it said, required the express consent of AS and ACS.
Aerostar’s own contract with CAVU acknowledged the lounge’s entry would be based on payment or card eligibility, and the court ruled that such an arrangement still contravened the concessionaires’ rights, regardless of whether food and drinks were sold separately inside the lounge.
The lawsuit, filed by Aerostar in October, sought a declaratory judgment that AS and ACS had waived their rights in Terminal B and that its agreement with CAVU did not violate enforceable provisions. But the court sided with the defendants, concluding that Aerostar’s claims failed to state a valid cause of action under Puerto Rico contract law.
“We welcome the court’s decision, which validates our rights as the exclusive operator of food and beverage concessions at the Luis Muñoz Marín International Airport,” said José Algarín, president of Airport Shoppes and Airport Catering Services. “This ruling allows us to continue offering our excellent services with confidence and steady resolve.”
He added, “We hope this ruling will lead Aerostar to correct its ongoing improper conduct and finally choose to work hand in hand with the Puerto Rican companies that have supported the airport’s progress for years.”
