Skysign International, Inc. v. City and County of Honolulu Does 1-100

We must decide whether federal law preempts a local ordinance regulating advertisements borne by aircraft.

I

Skysign International, Inc. (“Skysign”), a Hawaii corporation, was a provider of aerial advertising on the island of Oahu. Its helicopters carried lighted signs beneath their fuselages, bearing advertisements for Skysign’s clients.

At all times relevant to this appeal, Sky-sign operated under the authority of certificates of waiver issued by the Federal Aviation Administration (FAA). Federal regulations prohibit the operation of “restricted category civil aircraft” in certain locations — “(1) [o]ver a densely populated area; (2) [i]n a congested airway; or (3) [n]ear a busy airport” — without a certificate of waiver from the FAA. 14 C.F.R. § 91.313 (e). The FAA issued Skysign a certificate of waiver good for about nine months on January 8, 1996, and a subsequent one-year certificate on August 22, 1996.

The two certificates waived the restrictions of 14 C.F.R. § 91.313 (e) and permitted Skysign to engage in “Night Time Aerial Advertising.” Each certificate included a standardized “Note” indicating: “This certificate constitutes a waiver of those Federal rules or…