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 the industry for over a year. While these efforts, as well as the Department of Transportation's announcement last week’s 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.
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 an 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 the 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.
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 airports 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.