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Tue, Jan 15, 2008

DOT Says Airports May Soon Charge Landing Fees During Busiest Times

Shockingly, ATA Opposes User Fees Imposed On Airlines...

As it turns out, the notion of 'congestion pricing' wasn't as dead as it may have appeared. Despite leaving the provision off last month's compromise deal with airlines to combat flight delays at jam-packed New York-area airports, on Monday the Department of Transportation announced airports nationwide will soon be allowed to charge landing fees during their busiest times.

DOT Secretary Mary E. Peters said the new policy, once implemented, will allow airports to curb delays through imposing fees on airlines landing at airports at peak times -- a practice that, in theory anyway, should result in flights being spread out throughout the day.

"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," Peters said.

The policy would give airports added leeway in their ability to set fees, by granting the flexibility to vary charges based on the time of day and the volume of traffic; currently, airports may only charge based on aircraft weight.

One thing is clear: the Air Transport Association doesn't see the logic of such a plan, deriding the idea of new landing fees "congestion pricing disguised as an airport fee."

"Unfortunately, (the policy) does nothing to fix the primary cause of delays -- our nation's increasingly antiquated air traffic control system," ATA President and CEO James May told The Associated Press. "Additional fees ... will only increase the cost of flying for the consumer."

Some analysts agree with that assessment, noting while landing fees should encourage competition between airports -- as airlines reroute flights to less-congested fields, or airports that opt not to charge fees -- passengers will ultimately wind up paying in the form of higher ticket prices.

"The best part about this is that it opens up competition among airports," airline analyst Terry Trippler said. "That's what we want and that's what we need."

Airport operators, on the other hand, applauded the move. Airports Council International-North America President Greg Principato noted "airport proprietors are in the best position to manage the use of the facilities they planned, financed, built and currently operate."

The proposal is open for comment from the industry for 45 days.

FMI: www.dot.gov, www.airlines.org, www.aci-na.org

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