Citing the contribution regional jets make to congestion and delays at New York's LaGuardia Airport (LGA), the Federal Aviation Administration (FAA) is proposing a new Congestion Management Rule for the airport, similar to the final rule adopted for operations at Chicago O'Hare (ORD). (RAN, August 28, p.1) The FAA, which is trying to replace the High Density Rule (HDR) which expires in January, is also seeking the authority to conduct auctions or congestion pricing at LaGuardia in the future, which would require Congressional approval and a new rulemaking.

LaGuardia has consistently been one of the top five delayed airports in the United States. In fiscal year 2005, LaGuardia ranked as the third most delayed airport in the nation, with only 71 percent of operations arriving on time. FAA estimates that this proposed rule would result in about a 37 percent decrease in the average delay per operation at LaGuardia, saving airlines and passengers an estimated $4.3 billion between 2007 and 2019 or $7.5 billion over an infinite time horizon. The major costs relate to the implementation of a lottery for slots is estimated at $11.3 million over the 13-year analysis interval.

The rule not only sets a 75-operations-per-hour limit but sets an aircraft size target between 105 and 122 seats for aircraft operating at the airport. However, it also has several options to assure access from small and non-hub communities. Currently, such exemptions exist but FAA seems to be insinuating the major carriers, in scheduling their regional partner's aircraft, do not adhere to the spirit of the exemptions. On the other hand, it could just be saying that given the frequencies, airlines could use larger aircraft and fewer frequencies to serve the same or more passengers. However, the airline's motivations come into question, in light of the juxtaposition of its discussions on exemptions, the fact that it pointedly noted the size of the points served, and its examples in both the LGA and ORD rules.

"For example," said the FAA in its proposed rule, "on April 19, 2005, there were 16 flights to Baltimore, MD (a large hub) on aircraft with an average of 38 seats. Similarly, on the same day, there were 44 operations to Raleigh-Durham, NC (medium hub) on aircraft with an average of 50 seats, and 20 flights to Philadelphia, PA (large hub) on aircraft with an average of 58 seats. The use of commuter equipment (aircraft with fewer than 71 seats) at LaGuardia from medium and large hub airports has increased by more than 50 percent since August 2001. While we recognize that service to non-hub and small-hub airports may only support commuter aircraft, serving medium and large hub airports repeatedly throughout the day with the smaller gauge aircraft does not maximize passenger throughput or the use of a constrained resource. For this reason, the proposed rule explicitly encourages the use of larger aircraft within the constrained operating environment."

The aircraft size limitation could change depending on which option for small community air service is chosen. Under the proposed rule, the FAA would limit the number of scheduled flight arrivals and departures at LaGuardia Monday through Friday from 6:30 a.m. to 9:59 p.m. and Sunday from noon to 9:59 p.m. The FAA would create "operating authorizations" according to the hourly limit of 75 scheduled operations and six "reservations" for unscheduled operations. The operating authorizations would be allocated based on historic usage.

Operators would be required to meet an annual airport-wide average aircraft size target. Each carrier's annual "average seat size" would have to be equal to or greater than the airport-wide target, or the FAA would withdraw operating authorizations. The size of an aircraft would be measured by the number of seats that are offered for sale. The target for average fleet seat capacity would be based on a passenger throughput target for the airport. Compliance with the airport-wide target would be enforced through a Use- or-Lose provision.

The FAA indicated that while an important goal of this rule is to promote efficiency at LaGuardia, another objective is to avoid the elimination of service to the small and non-hub communities that rely on service at the airport. For that reason, FAA is exempting service to certain small and non-hub communities from the target aircraft size requirement. To that end, the FAA is proposing to create a separate pool of operating authorizations, to be used to provide service to non-hub and small-hub communities. Unlike the HDR or the AIR-21 slot exemption provisions, air carriers would have the flexibility to fly aircraft of whatever size they want to these communities. However, once an authorization is assigned as a Small Community Operating Authorization, it will retain that designation whether or not it is sold, bought or leased. The agency is offering three, complex options for exempting small community air service for which it seeks comment. (Docket No. FAA-2006-25709; Notice No.06-13)