San Diego Air Sports Center (SDAS) operates a sports parachuting business in Otay Mesa, California. SDAS offers training to beginning parachutists and facil- itates recreational jumping for experienced parachutists. The majority of SDAS jumps occur at altitudes in excess of 5,800 feet.
The jump zone used by SDAS overlaps the San Diego Traffic Control Area (TCA). Although the aircraft carrying the parachutists normally operate outside the TCA, the parachutists themselves are dropped through it. Each jump must be approved by the air traffic con- trollers.
In July 1987, an air traffic controller in San Diego filed an Unsatisfactory Condition Report complaining of the strain that parachuting was put- ting on the controllers and raising safety concerns. The report led to a staff study of parachute jumping within the San Diego TCA. In October 1987, representatives of the San Diego Terminal Radar Approach Control (TRACON) facility met with SDAS operators.
In December 1987, the San Diego TRACON sent to SDAS a draft letter of agreement outlining agreed-upon proce- dures and coordination requirements. Nonetheless, the San Diego TRACON conducted another study between January 14, 1988, and February 11, 1988, and about two months after the draft letter was sent, the San Diego TRACON withdrew it.
SDAS states that the air traffic manager of the San Diego TRACON assured SDAS that it would be invited to attend all meetings on parachuting in the San Diego TCA. However, SDAS was not informed of or invited to any meetings.
In March 1988, the Federal Aviation Administration (FAA) sent a letter to SDAS informing SDAS that "[e]ffective immediately parachute jumping within or into the San Diego TCA in the Otay Reservoir Jump Zone will not be authorized." The FAA stated that the letter was final and appealable.
SDAS challenged the letter in federal court on grounds that it constituted rulemaking without compli- ance with required APA procedures. Evaluate SDAS's challenge to the letter by applying administrative law and procedure.