This will no doubt cause confusion and shouldn't be allowed to go through.
But I get where they're coming from. I'm sure there are plenty of SF visitors whose travel plans work would equally well with flying to OAK instead of SFO, but don't realize that Oakland is just across the bay from the city, or that SFO itself is a fair ways outside the the city limits and not really that much closer to downtown.
Hopefully they can work together and figure out a compromise that helps travelers realize they have options without being overly confusing.