Playing to Peoria: Controversial Fee Policy Issued by DOT

December’s announcement setting caps at Kennedy and Newark airports and calling for a capacity Czar to address delay problems makes it sound as if the government is really working on stemming the delays that have plagued travelers for over a year. While these efforts, as well as the Department of...

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December’s announcement setting caps at Kennedy and Newark airports and calling for a capacity Czar to address delay problems makes it sound as if the government is really working on stemming the delays that have plagued travelers for over a year. While these efforts, as well as the Department of Transportations landing fee policy change, announced last week, calling for airports to move away from the decades-old practice of charging aircraft landing fees based on aircraft weight, are unlikely to make a substantial difference, although such initiatives make for good press. Even so, the changes will impact regionals whose aircraft are not favored in such a peak-hour fee scheme and will likely mean a disruption of service to regional communities.
In separate, but related, news, the FAA confirmed limitations imposed on Chicago O’Hare will be allowed to expire on schedule October 31, some 20 days before a new north runway there opens, according to officials marking the opening of a new Air Traffic Control tower at the airport. Last fall, the FAA said caps would remain, but after any angry response by city officials, reversed itself. The caps, imposed in 2004 at 88 arrivals per hour compared to the 120 before the caps, have had little impact on delays given the fact that O’Hare was ranked at the bottom of 32 airports for on-time departures and at 28 for on-time arrivals. The new north runway is designed to accommodate an additional 52,000 operations.
The DOT’s new landing fee policy can be imposed after a 45-day comment period. Even so, all the political window dressing in the world will not make up for the collective failure of DOT, the Federal Aviation Administration and Congress to address the route cause of delays – an antiquated air traffic control system. Without that, all the fixes proposed by DOT and the recent Aviation Rulemaking Committee are but Band Aids applied to a hemorrhage. Related Story
The proposed policy change, allowing higher fees based on time of day was called “nothing more than congestion pricing disguised as an airport fee” by Air Transport Association President James May. Indeed, congestion pricing has long been roundly condemned as ineffective. In addition to condemning the practice, industry said the plan did nothing to increase capacity at the root of the entire problem, something mentioned in most dispatches released by industry groups, including the Port of New York and New Jersey, which manages the New York airports. In addition, the Air Transport Association said the only thing the new policy will accomplish will drive up costs and force fare increases.
Airports Council International – North America welcomed the fee change, however, saying "airport proprietors are in the best position to manage the use of the facilities they planned, financed, built and currently operate." However, analysts suggest that it introduces competition among airports as smaller airports refuse to match any fee hikes at larger airports.
Once completed, the new policy, would also allow fees to be distributed throughout an airport authority’s airfields, meaning fees from JFK could be used at under-used airports such as Stewart, with the hopes of increasing use of these facilities. In addition, FAA’s proposed Policy on Airport Rates and Charges, allows airport to use them for current airport projects rather than waiting for such projects to be completed before factoring them into 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,” Secretary Peters said. However, the International Air Transport Association condemned the change saying it would eliminate the current market-based system for judging the necessity of airport projects which now require airports to convince the financial community the project is needed. However, Secretary Peters said the change would lower the cost of construction projects by helping airports avoid hefty finance fees.

Delays Down in November
In separate news, airlines recorded lower rates of flight delays, cancellations and mishandled bags this past November than during both the same month last year and in October 2007, according to the Air Travel Consumer Report. Airlines reported overall on-time arrival rate of 80.0 percent in November, better than both November 2006’s 76.5 percent and October 2007’s 78.2 percent. In addition, airlines canceled 1.0 percent of their scheduled flights in November, down from both November 2006’s cancellation rate of 1.6 and October 2007’s 1.2 percent.
DOT said 6.77 percent of November flights were impacted by aviation system delays, compared to 7.54 percent in October; 6.07 percent by late-arriving aircraft, compared to 6.62 percent in October; 5.39 percent by factors within the airline’s control, such as maintenance or crew problems, compared to 5.63 percent in October; 0.51 percent by extreme weather, compared to 0.64 percent in October; and 0.04 percent for security reasons, compared to 0.05 percent in October. In November, 37.82 percent of late flights were delayed by weather, down 7.12 percent from November 2006, when 40.72 percent of late flights were delayed by weather, and down 5.05 percent from October when 39.83 percent of late flights were delayed by weather.
While only majors made it into the highest on-time arrival rates, Atlantic Southeast joined United and American in posting the lowest on-time arrival rates. Regionals also had the highest flight cancellation rate including Mesa at 2.9 percent, American Eagle at 1.7 percent and SkyWest at 1.5 percent. Regionals ExpressJet and Mesa were included in the list of most frequently delayed flights which included:
• ExpressJet Airlines flight 2979 from Hartford, CT/Springfield, MA to Newark, NJ – late 88.46 percent of the time
• Continental Airlines flight 1532 from Houston Bush to New York LaGuardia – late 87.50 percent of the time
• ExpressJet Airlines flight 2076 from Newark, NJ to Indianapolis – late 85.19 percent of the time
• Mesa Airlines flight 7462 from Washington Dulles to New York LaGuardia – late 85.19 percent of the time
• American Airlines flight 350 from Chicago O’Hare to New York LaGuardia – late 83.33 percent of the time
• American Airlines flight 1497 from Newark, NJ to Chicago O’Hare – late 83.33 percent of the time
• ExpressJet Airlines flight 2717 from Newark, NJ to St. Louis – late 83.33 percent of the time