SFGate: Airlines see hard landings with fees

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Friday, March 28, 2008 (SF Chronicle)
Airlines see hard landings with fees
George Raine, Chronicle Staff Writer


   There won't be a fix anytime soon for the low cloud cover that causes
weather-related delays many mornings at San Francisco International
Airport. But its director says a proposal allowing airports to vary
landing fees would help lessen congestion.
   The proposal, from the Department of Transportation, would permit airpor=
ts
to use landing fees as economic incentives for airlines that take off and
land at less-busy times.
   No specific fees are being discussed yet, but very likely airports would
increase the charge at peak congestion times and lower it during off-peak
hours.
   For 50 years or more, landing fees at airports have been based on weight.
The fee at SFO is $3.01 per 1,000 pounds aircraft landed weight. A 747
with a weight of 630,000 pounds pays $1,896. Landing fees do not vary by
time of day.
   "We have a problem," said SFO Director John Martin, about crowded airpor=
ts
and flight delays. "We have a serious problem nationwide and we need to
come together as an industry and this (proposal) gives us a tool to try to
find a solution. It's for the benefit of the passengers." 'Demand
management'
   San Francisco Mayor Gavin Newsom agrees. "This is tomorrow's headline - =
we
have got issues of how to deal with demand management, whether for parking
meters, parking garages, toll roads, airports."
   He added, "Conditions are only going to get worse at airports with curre=
nt
incentives, if weight is the only criteria in landing fees. It took
courage for John Martin to be out front, but look at this - now we are
hearing about market-based pricing and it's coming from the Bush
administration. It's fascinating."
   The concept for the landing fee adjustment grew out of the consternation=
 -
really consumer upheaval - over prolonged delays during peak hours at East
Coast airports last year. President Bush, who made military airspace
available to commercial airliners on East Coast corridors during the
holidays, said a solution will be found, and Secretary of Transportation
Mary Peters put airport congestion at the top of her agenda.
   Change is not going to be easy, however. The trade group representing the
major U.S. carriers, the Air Transport Association, as well as the
International Air Transport Association, vigorously oppose the plan,
saying that the pricing adjustment would be an unauthorized tax and that
it would lead to higher fares, disrupt transportation flow around the
globe and force passengers to wait hours for connecting flights when they
land at off-peak hours. Passing on fees
   "The airlines will turn over the fees to passengers," said Doug Lavin,
regional vice president for North America at the International Air
Transport Association in Washington, representing 240 airlines. "You'll
either pay more for a ticket (on a flight) landing at a congested time, or
you'll have to land at 2 p.m. rather than 5 p.m. for an evening flight,"
and spend a prolonged period of time in an airport not built to handle
long waits. "Those are the two things that would happen," said Lavin.
   "This is a government solution, not a market solution," said David
Castelveter, spokesman for the Air Transport Association in Washington.
   "That standard simply makes no sense today," said Martin of SFO. "Weight
is not our constraint. The number of landings we can handle per hour is
our constraint," and it simply makes more sense to provide an incentive to
airlines to spread out operations throughout the day, he said.
   Martin also objected to a landing fee being called a tax. "They are
flat-out wrong," he said. We do not impose taxes, we impose fees. We
impose fees to cover our costs and we only exactly recover our costs,"
said Martin.
   There were 10,279 delayed flights at SFO during 2006, accounting for 3
percent of all delays nationwide, according to the Department of
Transportation.
   "Poor weather, especially during busy morning hours, is a frequent, but
unpredictable problem that inevitably leads to delays when scheduled
aircraft operations exceed poor weather runway capacity," Martin said in
his written response to the proposal.
   Morning low cloud cover typically limits landings at SFO to about 30 per
hour, while 60 per hour can be accommodated at other times, Martin said.
   Martin supports other elements in the proposal, including the shifting of
service to less congested secondary airports within the region. Traffic
rising
   Traffic at SFO has been rising considerably lately. Some 36 million
passengers passed through in 2007. Although that is short of the 41
million in 1999, Martin expects the airport will reach that level in the
near term. In 2007, traffic was up 7.5 percent over 2006.
   D.J. Gribbin, the general counsel of the Department of Transportation,
said the proposal mirrors pricing schedules "you see a thousand times in
every day life," played out in the face-off between limited resources and
demand. "You see it in lower-priced tickets to a matinee to higher prices
at a convenience store, because there is value in convenience, to cellular
telephone anytime minutes on the weekend," he said.
   "Here, if you do not need to land in San Francisco during the peak morni=
ng
time, we want people to fly in after noon, when there is space available,"
said Gribbin.

   Delays lengthen at Delta, American as airlines continue to inspecti wiri=
ng
on planes. C4

   E-mail George Raine at graine@xxxxxxxxxxxxxxxx -------------------------=
---------------------------------------------
Copyright 2008 SF Chronicle

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