DOT Airport Congestion Pricing Proposed  

Saying it will alleviate aviation congestion, U.S. Transportation Secretary Mary E. Peters recently released a new policy that would make it easier for overcrowded airports to add capacity and reduce delays by encouraging airlines to spread their flights more evenly throughout the day. The move, in effect...

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Saying it will alleviate aviation congestion, U.S. Transportation Secretary Mary E. Peters recently released a new policy that would make it easier for overcrowded airports to add capacity and reduce delays by encouraging airlines to spread their flights more evenly throughout the day. The move, in effect, would implement 'congestion pricing' nationwide.

The new policy outlined in a Notice of Proposed Rulemaking (NPRM) immediately drew industry ire since congestion pricing is something it has opposed. The Air Transport Association (ATA) released a statement saying that the new policy did nothing to address the main cause of delays, an outdated air traffic control system. It also said, it would do little except increase the cost of flying. "The policy announced by the DOT is nothing more than congestion pricing disguised as an airport fee," ATA stated.

The proposed policy change is open to public comment for 45 days before being finalized.

Once finalized, DOT will allow congested airports to move away from the decades-old practice of charging aircraft landing fees based simply on the weight of the plane.

Instead, airports would have the flexibility to vary charges based on the time of day and the volume of traffic. Fees could also be distributed among an airport authority's airports, meaning, for example, that fees from New York's Kennedy International could instead be used for airport projects at New Jersey's Newark International or New York's under-utilized Stewart Airport.

Changes to the FAA's Policy on Airport Rates and Charges would allow airport operators to include the cost of projects designed to expand capacity in the new landing fees. Currently, airports can only include those costs after the projects have been completed. She said the change would lower the cost of construction projects by helping airports avoid hefty finance fees.

"Airports will now be able to more efficiently and effectively finance the kind of projects that will give travelers more options, airlines more opportunities, and cities like New York more visitors. All told, these new market-based measures will help reduce congestion and increase airport investments," Peters believes

Airports Council International-North America (ACI-NA) commended the DOT for its NPRM, saving it provides airports additional financing tools to add capacity and respond to delays and congestion.

"We're pleased that Secretary Peters has recognized that airport proprietors are in the best position to manage the use of the facilities they planned, financed, built and currently operate," said ACI-NA President Greg Principato.

"DOT's proposed policy would enable airports to include the cost of existing construction projects in their rates and charges. ACI-NA and its member airports continue to work to expand airport capacity wherever possible, and use new technologies and procedures to relieve existing problems of congestion and delay," Principato added.

There is a critical need to expand runway and terminal capacity to accommodate the more than 1 billion passengers expected to travel by air in 2015.

According to ACI-NA's Capital Needs Survey, airports' capital development needs for 2007 - 2011 total $87.4 billion or $17.5 billion every year. The survey also indicates there are currently about $40 billion in airport runway and terminal projects under construction.

ACI-NA believes that DOT's proposed measures can effectively be combined with existing policies that recognize the importance of promoting competition and providing service to small communities---essential components of any program designed to align demand with capacity at congested airports.

Transportation Secretary Peters previously announced new measures to reduce airline delays and new actions designed to reduce congestion in the New York area starting next summer. In effect, fewer flights will be allowed in and out of New York area airports at the busiest times. The region's three major airports, Kennedy International, LaGuardia and Newark Liberty, have the worst on-time arrival record of all major U.S. airports.

The agreement among the major airlines serving JFK caps the number of flights at either 82 or 83 per hour, depending on the time of day. The pact was hammered out after months of closed-door wrangling. The hourly caps will take effect March 15, 2008 and will be in place for 2008 and 2009. Airlines will be able to shift their flights to times of the day when the airport has unused capacity, allowing 50 more flights per day than were offered last summer - just more reasonably spaced.

Peters also directed the FAA to enter into negotiations with air carriers to set hourly caps at Newark International Airport, so that flights aren't simply shifted there, erasing gains made at JFK. LaGuardia already has limits on flights.

Peters also announced new take-off patterns at Newark and Philadelphia International Airport that will allow aircraft to fan out after take off and provide more options for aircraft waiting to depart.

She said the FAA is working closely with airports and airlines to make similar operational improvements next year, including new satellite-based navigation procedures for the New York and Philadelphia airports that will allow improved bad weather routing, and allowing shorter flights to operate at lower altitudes to open more room for long-haul flights at higher altitudes.

Peters also authorized the appointment of an aviation "czar" to serve as director of the newly-created New York Integration Office. The czar will coordinate regional airspace issues and all projects and initiatives addressing problems of congestion and delays in New York. And as operational improvements increase capacity at area airports, new slots will be leased to airlines with the revenue being used for airspace and airport improvements in the region.