SFGate: Feds Change Airport-Landing Fees Policy

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Monday, January 14, 2008 (AP)
Feds Change Airport-Landing Fees Policy
By DAN CATERINICCHIA, AP Business Writer


   (01-14) 13:07 PST WASHINGTON (AP) --

   Congested airports nationwide can charge landing fees based on the time
flights land and traffic volume instead of on the plane's weight,
according to a federal policy introduced Monday.

   U.S. Transportation Secretary Mary E. Peters said the policy will make it
easier for airports to reduce delays by encouraging airlines to spread
their flights more evenly throughout the day.

   Some analysts say while the new fees will encourage competition among
airports, consumers ultimately will foot the bill.

   Airline arrival rates through November were the second worst since
comparable data began being collected in 1995, the Transportation
Department said earlier this month. The new policy will encourage
congested airports in New York and elsewhere to include the cost of
projects designed to expand capacity in the new landing fees now instead
of after construction has been completed, Peters said.

   The policy also will allow operators of multiple airports, such as the
Port Authority of New York and New Jersey, to distribute landing-fee
revenue among facilities, she said.

   But the Port Authority, which runs John F. Kennedy International Airport,
LaGuardia and New Jersey's Newark Liberty, said the new policy is a minor
fix for a major problem. Through November, those three airports had the
lowest on-time arrival rates, and aviation officials say delays there
cascade throughout the system, causing 75 percent of the nation's flight
delays.

   "It's good the (Federal Aviation Administration) is focusing on the dela=
ys
issue, but these small steps don't address the fundamental problem when
dramatic action is needed," according to a Port Authority statement. "The
right solution is expanding capacity through 21st century technologies,
working with the airlines on more rational schedules and better customer
service."

   Representatives from the Air Transport Association, which represents the
nation's largest airlines, were not immediately available to comment
Monday afternoon.

   But the association representing airport owners and operators welcomed t=
he
change, lauding Peters for recognizing that "airport proprietors are in
the best position to manage the use of the facilities they planned,
financed, built and currently operate," Airports Council
International-North America President Greg Principato said in a release.

   Consumers flying at peak travel times should not be singled out just
because the airports are charging airlines more for their flights, but all
travelers likely will see ticket prices rise as carriers distribute the
additional cost, said Terry Trippler, a travel expert who's had air fares
on his radar for decades. Still, he welcomed the new policy.

   "The best part about this is that it opens up competition among airports=
,"
Trippler said, adding that airports in Memphis or Philadelphia who see
their counterparts in Atlanta or New York raising landing fees may opt not
to follow suit as a way to attract more business. "That's what we want and
that's what we need."

   The proposed landing fee policy will be open to public comment for 45 da=
ys
before finalized.

   To avoid another summer of record delays, Peters last month said flight
caps will begin in March at New York City area airports.

   JFK will be allowed 82 or 83 flights per hour at the peak times, down fr=
om
about 100 that had been scheduled last summer. Similar caps, which already
exist at LaGuardia, also will go into effect at Newark, but the exact
number has yet to be determined.

   In its criticism of flight caps, The Port Authority has said they may
raise ticket prices or force some travelers to fly at inconvenient times.

   Meanwhile, the airlines and the FAA are pressing for a new, $15 billion
satellite-based air traffic control system to improve operations. In late
August, the agency awarded ITT Corp. a contract worth up to $1.8 billion
to build the first portion of the system, that will overall take nearly 20
years to complete. --------------------------------------------------------=
--------------
Copyright 2008 AP

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