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Study: Airport Delays Threaten NYC Economy

City's comptroller wants feds to modernize air traffic system

December 3, 2007

"One of the New York City's major competitive advantages is its outstanding air connections with the rest of the nation and the world," Thompson said. "This advantage is now being degraded by the declining reliability of air travel into and out of New York."

"Locally, residents in neighborhoods adjacent to the airports, as well as the wetlands and wildlife close by, are being affected by increased pollution," Thompson said. "Even the Federal Aviation Administration itself has stated that emissions from large airports may be comparable to a power plant or petroleum refinery -- in that context any significant growth in air traffic congestion that leads to more pollution must be addressed immediately."

In a new report, Thompson examined the causes of the deterioration in on-time performance and its impact on New York City's economic competitiveness as well as local air quality.

The study analyzed recent flight and passenger trends, departure and arrival delays, and flight cancellations at John F. Kennedy International Airport, LaGuardia Airport and Newark International Airport. Among Thompson's findings:

• Airline on-time performance at the major New York airports has plummeted, and the decrease has been much greater than in other cities. In 2003, the New York airports' average on-time arrival rate was five percentage points below the national rate but in the first three-quarters of 2007 it was 13 points below the national rate.

• The average taxi-out (the period between gate departure and "wheels up") has increased several times as much in New York than elsewhere in the country.

• New York airports have among the nation's highest flight cancellation rates.

• The leading contributors to delays are: an antiquated air traffic control system; poor management by the Federal Aviation Administration (FAA) of efforts to modernize the system; not enough certified air traffic controllers and poor labor relations with controllers; and, airlines' over-scheduling of flights during peak hours.

"Unless it is reversed, the much larger decline in on-time performance in New York than elsewhere will harm the city's economy," Thompson said. "It could discourage employers from locating new jobs and facilities in New York and encourage some firms to relocate jobs elsewhere."

The comptroller noted that on-time performance at local airports is one factor businesses consider when determining the location of facilities and jobs. A Citizens Budget Commission study in 2001 placed the City nearly last out of 13 major U.S. metropolitan areas in economic competitiveness in part due to airline on-time performance, and since then the city's relative position has only worsened.

Additionally, the increase in flight delays in New York City is financially costly.

In a study to appear in the December issue of the American Economic Review, economists Steven A. Morrison and Clifford Winston estimate the median value of pleasure and business air travelers' time at $47.97 per hour. Comparing the increased average taxi-out at the New York airports for 1995-1997 with 2005-2007, in 2007 passengers are spending 3.9 million extra hours a year waiting for their plane to take off after it has already left the gate. Based on the median hourly amount, this additional time is costing travelers $187 million.

Thompson noted that the flight delays also have a direct cost impact on businesses shipping through New York airports, as just over a quarter of air cargo is carried on passenger planes.

Large increases in flights in recent years, coupled with longer taxiing time, are adding to airport pollution. Thompson noted that the 70,000 additional annual take-offs and landings at the area's three major airports in 2006 compared to 2000 are producing substantial additional amounts of volatile organic compounds and nitrogen oxide, which react together to create ozone. New York City currently exceeds federal air quality standards for ozone.

Thompson noted that the FAA recently awarded a $1.8 billion contract for ground equipment for nationwide GPS-based aircraft tracking, the first piece of a $15 billion-plus program to modernize the nation's outmoded air traffic control system. New York was not included among the first four regions where this equipment will be installed by 2010. New York currently may have to wait until as long as 2013 when the national roll-out is scheduled to be completed.

The Comptroller made the following recommendations:

• The FAA must accelerate modernization of the nation's air traffic control system and prioritize New York, which has by far the worse flight delays in the nation. The Port Authority of New York and New Jersey and the airline industry must press the FAA to add New York to the list of those regions receiving GPS ground-equipment by 2010.

• The FAA must employ enough certified air traffic controllers to efficiently handle air traffic and must settle its differences with the controllers' union.

• Landing fees should be restructured to encourage airlines to utilize lower-emission aircraft. In addition, the State Legislature should enact legislation introduced by New York State Senator John Sabini and Assembly Member Jeffrion Aubry to require the State Department of Environmental Conservation to install air monitoring equipment within a one-mile radius at LaGuardia and Kennedy airports.

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