FORT LAUDERDALE, Fla. -- ANC Rental Corp. said the U.S. District
Court in Delaware issued two rulings on May 22 that are favorable
to the company.
ANC said the court denied requests by its two chief rivals,
Hertz and Avis, for emergency stays that would have prevented ANC
from consolidating its Alamo and National brands at a number of
airports nationwide.
ANC had already received court approval to operate at 27
airports under a single concession agreement.
In addition, the court also granted approval for ANC to operate
its Alamo and National brands under a single concession agreement
at 10 more airports: Tampa, St. Petersburg/Clearwater and Fort
Walton Beach, all in Florida; Nashville; Reno, Nev.; Grand Rapids,
Mich.; Moline, Ill.; Eugene, Ore.; Lubbock, Texas; and Aspen, Colo.
ANC said the Fort Walton Beach ruling is significant because it is
the first consolidation to be approved over an airport's
objections.
In his ruling, U.S. District Judge Gregory Sleet said, "Hertz
and Avis have failed to demonstrate the necessary irreparable
harm," that is required to grant a stay of relief. Addressing
Hertz' and Avis' claim that the advantage gained through
consolidation would cause them irreparable harm, the court ruled
that, "revenues and customers lost to competition, which can be
regained through competition, are not irreparable."
The judge said that Hertz and Avis failed to, "make even a prima
facie showing which demonstrates that approval for consolidation
would result in a tangible financial or other loss to them."
The rulings "were very significant for us," said Larry
Ramaekers, chief executive officer of ANC Rental Corp. "We were
particularly pleased with the court's admonition that the
marketplace is where Hertz and Avis should focus to correct any
alleged harm they suffered," Ramaekers said.
ANC has been under Chapter 11 protection in the U.S. Bankruptcy
Court in Wilmington, Del., since Nov. 13.