The Wall Street Journal-20080115-Airports May Boost Runway Fees In Peak Hours to Reduce Crowding
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Airports May Boost Runway Fees In Peak Hours to Reduce Crowding
WASHINGTON -- In a move that caught airlines off guard, the Bush administration said it will allow airports to charge airlines higher runway fees during rush hours in an effort to reduce congestion and spread flights more evenly throughout the day.
Transportation Secretary Mary Peters, speaking in New York, proposed rules that would let airports vary take-off and landing fees throughout the day. Currently, runway fees are based on aircraft weight and generally remain the same at all hours, a policy some critics say has added to congestion because it doesn't discourage airlines from scheduling flights on smaller, regional jets during the busiest periods at congested hubs.
The Transportation Department hopes that by charging higher fees during times of peak demand, airports will give airlines an incentive to rely more on larger jets and to schedule more flights during less busy hours in New York and at other crowded hubs.
"Airports will be able to use the power of pricing to encourage aircraft operators to spread their schedules more evenly throughout the day," Ms. Peters said. "This change would allow airports to handle flights more efficiently, give passengers fewer delays, and help all of us avoid the need for government intervention."
The announcement came as a shock to the airline industry, which thought it had defeated the administration's effort to increase rush- hour runway fees after a lobbying effort in the fall.
"This appears to be nothing more than congestion pricing in sheep's clothing," said Betsy Talton, a spokeswoman for Delta Air Lines Inc. Reviving the language the industry used to oppose the idea last year, Ms. Talton said the administration is pushing "a tax which would result in increased ticket prices for consumers without fundamentally addressing the real issue -- congestion resulting from inefficient management of the New York airspace."
Industry officials said they expect that many Democrats in Congress will oppose the administration's proposal, which will be open for comment for 45 days. Opposition may also come from European Union officials, who have warned the administration that charging international carriers additional fees would run afoul of bilateral agreements.
Administration officials clashed with airlines over congestion pricing last year during a broader fight over how to reduce delays at New York airports, which cause as many as 75% of delays nationwide. Airlines had the support of many Democrats in Congress as well as the Port Authority of New York and New Jersey, which operates New York's three major hubs.
By the time Ms. Peters announced the administration's plan in December, congestion pricing had been dropped and attention shifted to capping the number of flights scheduled at Kennedy and Newark this year.
Industry officials said they received assurances from D.J. Gribbin, the Transportation Department's general counsel, and others that the administration wouldn't push congestion pricing any further.
"We never saw this coming," said Douglas Lavin, a regional vice president with the International Air Transport Association who took part in the negotiations last year. "This is a back-door attempt to do what they couldn't do directly."
Brian Turmail, a spokesman for Ms. Peters, said Mr. Gribbin told airline representatives that the change was coming last year. "He said we'll have a change to our rates and charges" policy, Mr. Turmail said. "This really shouldn't be a surprise."
Groups representing travelers also spoke out against the plan. "We see this as a passenger-punishment policy," said David Stempler, who runs the Air Travelers Association and also took part in last year's talks on behalf of airline consumers.
