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Tennessee and Chattanooga Battle Over Airport Authority Control

September 29, 2026 Priya Shah – Business Editor Business

Chattanooga and its former airport authority are pressing forward with legal challenges in the Hamilton County Chancery Court against a state-backed takeover that shifted majority control of the municipal airport’s governing board from local officials to state appointees.

During a hearing on Monday, the Tennessee Attorney General’s Office and legal counsel for the new state-appointed board argued before a three-judge panel that politics should not be considered in the dispute. They also maintained that the entity in charge of the Chattanooga airport never truly changed when the law took effect on July 1. The legislation enables the governor and the Senate and House speakers to appoint a majority of board members while removing members previously appointed by the mayor.

Legal Arguments in Chancery Court

The state asked the judicial panel led by Hamilton County Chancellor Jeff Atherton to dismiss the lawsuit filed by Chattanooga and former airport authority members, while the city seeks a temporary injunction to overturn the state-appointed board. The court denied the state’s motion to withdraw the Chattanooga airport authority as a plaintiff and declined to pause the proceedings. The new state-appointed board had voted this summer to remove itself from the lawsuit.

Tennessee and Chattanooga Battle Over Airport Authority Control
Photo: yahoo.com

Assistant Attorney General Tyler Sanders and the new board’s attorney, former federal judge Sandy Mattice, argued that Chattanooga lacks standing to sue the state and can show no harm from the state-controlled appointments. They noted that the Federal Aviation Administration is confident in the new board based on a recent grant for new runway design. Sanders told the panel that the power to appoint airport board members originates from the legislature and that the Chattanooga Metropolitan Airport Authority is a subdivision of state government.

Federal Proceedings and Wider Context

A separate federal proceeding before the U.S. Court of Appeals for the D.C. Circuit is currently pending. Chattanooga and Nashville, which separately sued the state over airport authority control, argue that federal law prevents the Federal Aviation Administration from recognizing the new boards until the legal dispute over the operating entity is resolved. They also contend the measure violates the separation of powers between state and local governments and unfairly targets them.

3-judge panel blocks bid to drop Chattanooga Airport Authority from governance lawsuit

Lawmakers passed the measure this year giving state leaders a majority of appointments to boards overseeing airports in Nashville, Chattanooga, Memphis, Knoxville and Tri-Cities. The legislation followed court rulings that a previous state effort to take over Nashville’s airport authority was unconstitutional. During Monday’s arguments, Chancellor Atherton questioned whether the conflict is an attempt by a red legislature to intrude on blue cities, though Sanders argued political questions are not factors for the court to address.

The Governance Dispute

Under the law signed in May, the governor, lieutenant governor and House speaker receive two appointments each to nine-member boards overseeing several of the state’s largest airports, while local mayors retain three appointments. Chattanooga and its locally appointed board originally sued in June, arguing the change violated the Tennessee Constitution.

Tennessee Seeks Dismissal Of Chattanooga Airport Board Lawsuit
Photo: avweb.com

Circuit Court Judge Joseph “Woody” Woodruff of Williamson County raised a hypothetical scenario during the hearing asking if the controlling entity would change under the state’s logic if the People’s Liberation Army of Chattanooga stormed the airport, ousted the board, took over the conference room, declared themselves the lawful incumbents of the metropolitan authority. Sanders agreed with the scenario that the controlling entity would still not be considered changed.

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