Denver’s City Council voted to deny a lease at the airport to a carrier based on their politics, in clear violation of federal law on Monday.
The council voted down a proposed agreement with Key Lime Air 11-1 for 1,200 square feet of space near the south cargo area to store equipment for snow removal and an office trailer. The overwhelming rejection was done because Key Lime has operated ICE deportation flights.
Two Key Lime aircraft have been used in ICE operations, including flights moving shackled detainees between ICE hubs like El Paso, Texas and Alexandria, Louisiana. Key Lime, which is based in Colorado, has not carried out ICE flights from the state.
During the hearing, several councilmembers condemned the administration’s immigration policies, saying they wouldn’t support providing city support and logistics to a company tied to those flights.
- This doesn’t remove Key Lime Air from the airport. They are already there.
- It just denies them this new dedicated leased space. And they can still use common-use cargo apron space. They operate at lower cost, albeit less convenience.
BOOM ✈️
“When we’re talking about the values of our city, and we stand up here and we say time after time that we support our immigrant community and that we are a welcoming city — I cannot support a corporation that does not prescribe to that,” Council member Serena Gonzales-Gutierrez said.
— JJ in DC (@jjindc.bsky.social) December 15, 2025 at 9:12 PM
Enilria says “the FAA has to take action here because it’s a very slippery slope if airports are allowed to block airlines from leasing space at an airport. What if Delta lobbies board members to deny a lease to a competitor to keep them out?” and concludes, “The Airline Deregulation Act specifically prohibits this for a reason.”
Actually, airports frustrate new service all the time, and in the Delta example that pretty much describes the history of the Atlanta airport making things difficult for new competitors. Just ask JetBlue about its experience as it began service there.
Airline Deregulation Act preemption blocks state and local “laws, regulations, or other provisions having the force and effect of law” that relate to an air carrier’s price, route, or service. Here’s a decision motivated by Key Lime service, but that won’t block such service. And the airport will argue that they retain proprietary powers over the facility. The outcome on this doesn’t seem entirely clear to me, though I’m interested to hear from subject matter experts.
However this seems like a clear violation of Airport Improvement Program grant assurances. Denver airport accepts FAA funding, and agrees that it will make its facilities available “on reasonable terms and without unjust discrimination.”
The question is whether the airport is imposing unequal conditions or effectively denying needed access and facilities.
The council has clearly stated the reason for the lease denial is ‘we don’t like the flights you are running for ICE.’ Airports can make these decisions for safety, capacity, environmental, and operational efficiency – they can’t favor or disfavor an air carrier because of its customers. Key Lime is explicitly singled out by the city council.
The city’s only real defense here is that their move is purely symbolic, doesn’t deny access, and doesn’t actually impair Key Lime’s ability to conduct is activity at the airport.
However it’s going to be difficult for the aiprot to point to any neutral land use or operational reason that treats Key Lime consistent with how other airport tenants are treated. And the fact that it’s the administration’s immigration policies being attacked almost forces the administration to respond.
Key Lime can pursue the FAA’s airport compliance process, seeking a finding that the airport violated grant assurances and seeking corrective action. If the airport doesn’t take corrective action, it jeopardizes its federal funding. And regardless of how any lawsuit would ultimately adjudicate the airport’s (and city council’s) rights, there is certainly enough of a hook for the Trump administration to respond.
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