Key Takeaways
• Modern Aviation terminated CFCA’s sublease at ILM with sixty days’ notice, sparking ongoing legal and regulatory battles.
• A $90 million investment, expansion plans, and over 70,000 square feet of new hangar space are at risk.
• CFCA has appealed the court decision and filed an FAA complaint, citing discrimination and unlawful eviction by Modern Aviation.
A high-profile legal battle at Wilmington International Airport (ILM) has drawn attention across the aviation world, raising questions about how airport landlord-tenant relationships can shape the future of airport development. The dispute involves Modern Aviation, a prominent airport tenant and fixed-base operator (FBO), and Cape Fear Coastal Aviation (CFCA), a local flight school. At the center of this case is a $90 million investment that could spark major growth at ILM, but this progress may be at risk due to the legal wrangling between these two companies.
How the Dispute Began
The trouble started in December 2024, when Modern Aviation, which leases hangar and office space directly from ILM, delivered a termination notice to CFCA. CFCA worked out of the airport under a sublease, renting their space from Modern Aviation. According to CFCA, they still had over a year left on their three-year lease. Nonetheless, Modern Aviation wanted CFCA out and decided to move forward with ending the sublease, sparking confusion and frustration.
In court filings, Modern Aviation said the sublease allowed them to end CFCA’s agreement at any time for any reason—if they gave sixty days’ notice. The company delivered its official notice to CFCA on December 5, 2024, sticking to the required timeline. This move set off a chain of responses from both CFCA and ILM.
Legal Battle Moves to the Courts
By early March 2025, the matter landed in New Hanover County Superior Court. The judge sided with Modern Aviation, ruling that the sublease contract with CFCA was clear: Modern could stop the sublease at will, as long as sixty days’ notice was provided. This decision supported Modern’s claim that it had followed the rules stated in the contract.
But the fight didn’t stop there. As Modern Aviation moved to enforce the court’s ruling, tensions rose. According to CFCA’s lawyer, Cory Reiss, Modern Aviation changed the office locks and placed CFCA’s aircraft outside. This aggressive move pushed CFCA to act. They hired private security guards who began staying in the former office space around the clock, leading to direct run-ins between the security staff and Modern Aviation’s employees.
CFCA’s Expanded Legal Complaints
CFCA decided not to rely just on the state court system for help. They launched several legal actions that highlighted the depth of the rift between the parties:
- CFCA filed a lawsuit against Modern Aviation, seeking both the enforcement of specific terms in their lease and some compensation for what they saw as unfair treatment.
- Unhappy with the Superior Court’s decision, CFCA appealed to the North Carolina Court of Appeals, hoping for a different outcome.
- On April 29, 2025, CFCA also filed a formal complaint with the Federal Aviation Administration (FAA), asserting that ILM had failed to protect CFCA’s rights as a tenant when Modern Aviation kicked them out.
In their communications, CFCA said Modern Aviation had removed them not for lease reasons but to make room for another flight school. They also argued that ILM did not step in as it should have, calling their actions “discriminatory and unlawful.”
What ILM Says About the Situation
For its part, the leadership at ILM has strongly denied any suggestion that it did not handle the conflict properly. According to airport records and public statements:
- ILM says it was never told by Modern Aviation before CFCA received the termination notice. In other words, the airport’s management found out about the dispute after the fact.
- Once made aware of possible problems, ILM started an internal review and spoke with both Modern and CFCA. ILM’s stated purpose was to help both sides reach some sort of solution.
- When Modern Aviation began to remove CFCA from the property without court-backed procedures—a tactic sometimes called “self-help”—ILM asked the company to stop. On April 24, 2025, Modern returned CFCA’s key to the disputed office space, pausing any further direct confrontations, at least for the time being.
Jeff Bourk, ILM’s Executive Director, said he stands firmly behind the airport’s actions, stating, “I remain confident in the legality of ILM’s actions and its commitment to supporting the general aviation community at the airport.”
The Risk to a $90 Million Investment
The stakes at ILM are unusually high. In the background of this legal fight is a significant $90 million investment planned for the airport—a number that has meaning not only for the businesses involved but also for the local economy in the Wilmington area and for general aviation prospects across the United States 🇺🇸.
As explained in ILM’s press release on May 8, a company known as ARQ (working with CFCA) put in site plans for a large development at the airport on January 24, 2025. When they did, airport leaders responded just a few weeks later, sharing their feedback and comments to keep the project moving.
These plans were ambitious. In addition to the work by ARQ and CFCA, ILM has already signed several contracts to bring new hangars and facilities to the airport. In total, more than 70,000 square feet of new hangar space could soon be built—most of it slated for completion in 2026.
But with the ongoing dispute, the entire project hangs in the balance. If legal troubles continue, there is a real risk that the $90 million investment will be delayed or canceled. That could slow airport growth for years, cost jobs, and keep needed aviation services from reaching the region.
Who Could Be Affected?
This dispute reaches far beyond the local flight school and its landlord. Its outcome may have lasting effects on multiple groups:
- Students and Flight Schools: If CFCA is forced out and replaced by another provider, students may face interruptions, higher prices, or changes in service.
- Airport Workers: Planned expansions could mean new jobs. If the dispute pauses or cancels construction, those benefits are put on hold.
- Aviation Businesses: Other potential tenants may think twice about bringing new business to ILM if they fear their leases can be easily revoked.
- The Economy: The $90 million investment is expected to create jobs, boost construction, and add more transportation options. A stall could have ripple effects in North Carolina 🇺🇸 and beyond.
How Lease Agreements Shape Airports
This case highlights the power and risk in legal contracts for airport tenants. The sublease between Modern Aviation and CFCA had a clause letting Modern end it at any time, as long as they gave sixty days’ notice. When the court enforced this, it reminded everyone how strict language in legal paperwork can change careers and business plans in a single legal move.
It also helps show why clear rules and fair protections are important in airport leases. If tenants, especially smaller ones like flight schools, do not have some security, it may be harder for communities to attract and keep aviation services that help train pilots and provide jobs.
What Next? The Road Ahead for ILM and Its Partners
With multiple lawsuits and complaints in play, plus an appeal headed to the North Carolina Court of Appeals and an FAA complaint open, it could be months before the situation is finally settled. In the meantime:
- Negotiations may continue behind the scenes, possibly leading to a new agreement or at least less open tensions.
- The development plans, including those connected to the $90 million investment, remain in limbo. Construction that was supposed to start soon may have to wait for legal clarity.
- Both ILM and Modern Aviation will face public and government pressure to reach a solution that is fair—not just for the business parties, but for everyone who relies on the airport.
Deeper Questions Raised by the Dispute
Beyond the specifics of the ILM dispute, this case is a warning to airports and aviation businesses everywhere. Simple contract wording can have deep and complex effects. The incident calls for a closer look at standard lease language, especially in high-value settings where millions of dollars and many jobs can be put at risk by a single notice or lawsuit.
The case also raises questions about the role of airport authorities in managing disputes among tenants. While ILM states it acted fairly and followed all of its legal duties as a landlord, CFCA claims the airport had some responsibility to protect them as a tenant. Who is right remains for the courts and FAA to decide, but the lack of clear agreement has led to confusion, accusations, and lost time.
Controversy and Clashing Stories
As with many legal fights, each side shares a different story. Modern Aviation and ILM say the contract’s rules were clear and followed. CFCA insists there was a hidden motive to bring in a new flight school and claims the process was not fair or even legal. The truth may lie somewhere in between, but for now, a full court process will have to find out.
This case could shape how other airports across the United States 🇺🇸 write leases and handle disputes. As reported by VisaVerge.com, cases like this may encourage airport operators to review their policies, looking for ways to keep conflicts from threatening jobs, businesses, or much-needed construction.
Where to Find Official Information
For those interested in official details about the dispute, ILM has posted its public responses and updates on its website. Anyone who needs more information about airport rules or how the Federal Aviation Administration handles complaints can look at the FAA’s official Airport Compliance Program page.
What This Means for the Future
The Wilmington International Airport dispute may be one of the first big airport lease fights in 2025, but it won’t be the last. As airports in the United States 🇺🇸 keep growing and more private companies look to invest or lease space, the need for clear, strong lease terms—and fair treatment for both landlords and tenants—will only get bigger.
Until a final decision is made by the courts or the FAA, the $90 million investment at ILM, the fate of CFCA’s flight school, and the direction of airport growth in Wilmington remain uncertain. For now, what seemed like just another landlord-tenant disagreement is shaping the future of modern aviation in the region, reminding everyone how much can be at stake when business, law, and public interests all come together at an airport.
Learn Today
Fixed-base operator (FBO) → A company granted the right to operate at an airport and provide aviation services, such as fueling and hangar rental.
Sublease → A legal arrangement allowing a tenant to lease their rented space to another party under specific contract terms.
Self-help eviction → When a landlord removes a tenant without court involvement, sometimes by changing locks or physically moving out possessions.
Federal Aviation Administration (FAA) → U.S. government agency regulating civil aviation, handling airport complaints and safety enforcement.
Superior Court → A state court that handles major civil and criminal cases, including significant disputes over contracts and property.
This Article in a Nutshell
Wilmington International Airport faces a tense legal battle between Modern Aviation and flight school CFCA. At risk is a transformative $90 million investment and airport expansion. The case highlights how lease contracts—for tenants and landlords—can affect jobs, growth, and aviation in the U.S., extending far beyond one local dispute.
— By VisaVerge.com
Read more:
• Spain’s Golden Visa shutdown lifts Greece as top residency-by-investment hub
• Vietnam plans 10-year Golden Visa to boost tourism and investment
• Portugal Golden Visa restricts options to fund and business investments
• U.S. investments in Italy bring key tax implications for expats
• Golden Visas reshape global migration and investment trends
