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Feds Unveil New Airport Policy

Airports could charge higher landing fees during busy times

By Truman Lewis
ConsumerAffairs.com

January 15, 2008

The policy would authorize airports to charge airlines based on the time of day and volume of traffic, much as some states are building toll roads that are priced according to demand at any given time.

For decades, airports have charged aircraft landing fees based simply on the weight of the plane.

“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 Mary E. Peters said.

As a result, airports would be able to spread traffic more evenly throughout the day -- allowing them to serve more passengers, reduce delays, and help avoid the need for sustained federal government intervention, said Peters.

The change is at least partly intended to mollify New York City officials, who have recently argued that chronic airline delays are hurting the city's economy.

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

Thompson also argued that the delays were imposing an environmental burden on the region.

"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."

Small steps

But Peters' proposal isn't likely to mollify New York and other cities that operate mega-airports.

In a statement, the Port Authority said it was glad the federal government is addressing the overcrowding issue but added, "these small steps don't address the fundamental problem when dramatic action is needed."

"The right solution is expanding capacity through 21st century technologies, working with the airlines on more rational schedules, and better customer service. The Port Authority has an extensive plan on the table with more than 100 recommendations, formulated by a broad coalition of advocates," the statement said.

Sen. Charles Schumer (D-N.Y.), also denounced the plan as inadequate.

"When there is a huge fire, you don't take out a garden hose and say this will do the job," Schumer said. "We are still waiting for the FAA to adequately put in new technology, man the control towers, and settle the long-standing labor dispute with the air traffic controllers."

Construction costs

The proposed changes also would allow airports to include the cost of projects designed to expand capacity in the new landing fees. Currently, airports can include those costs only after the projects have been completed.

The change would lower the cost of construction projects by helping airports avoid hefty finance fees, Peters said.

The new policy also would let airport operators like the Port Authority of New York and New Jersey that operate multiple airfields distribute landing fee revenue among those different facilities, she said.

For example, landing fees collected at LaGuardia, Newark or JFK would be available for improvements to Stewart airport. As a result, more travelers may soon be able to take advantage of under-used airports, relieving pressure on the other airports and giving the city’s travelers even more options.

“All told, these new market-based measures will help reduce congestion and increase airport investments,” Peters said.

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