Western Airlines, Inc. v. Lathrop Company

OPINION

RABINOWITZ, Justice.

Western Airlines, Inc., has appealed from an adverse judgment in the superior court finding Western liable to the Lathrop Company for breach of a lease agreement. As the circumstances leading up to this litigation are complex, our review requires a rather detailed analysis of the facts. 1

On October 1, 1953, the United States Government leased certain unimproved lands at the Anchorage International Airport to Pacific Northern Airlines, Inc. 2 In its relevant parts, the lease provided for a term of 10 years and gave PNA the option to renew the lease for an additional…