LARGE LEASE CONTRACT GOES TO AMC
The General Services Administration of the federal government has awarded the American Motors Corporation a $15-miIlion three-year contract to lease 5,838 cars. The transaction boosts the GSA fleet to 78,000 vehicles nationwide with that figure expected to rise to 80,600 by next year. Cars for the GSA are usually purchased, but the agency said it has leased the cars because they don't have enough money authorized to purchase the vehicles. Since the beginning of the fiscal year on October 1, 1976, the GSA has purchased 8,700 cars from AMC for $30-million.
AIRPORT RENTALS UNDER FTC SCRUTINY
Agreements between major airports and car-rental companics have come under the scrutiny of the Federal Trade Commission in an attempt to determine if the contracts restrict competitions. The FTC's Bureau of Competition wants to see copies of the contracts between 50 major airports and car-rental companies and has asked both parties a number of questions concerning car-rental dealings. The commission is specifically looking for any influence airports may exert over car rentals that try to fix rates. There is some question, however, of the FTC's authority in the matter, since all the airports involved are under state or local control. It is felt by some sources the FTC's authority would be tested in court if formal FTC charges are filed against any airports or rental companies.