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Market Based Actions to Relieve Airport Congestion and Delay

The Department of Transportation (DOT) is gathering information on the possible role, feasibility, and effectiveness of using market-based approaches to relieve airline flight delays and congestion at busy airports. It is the Department's intention to use this and other requests for comment along with the full array of public 
policy tools to develop a comprehensive aviation strategy that focuses on ways to reduce delays, improve airport capacity management, enhance competition and promote the efficiency of the overall aviation system. Market-based approaches are broadly defined to include all market-pricing regimes that could encourage air carriers to use limited capacity in a more efficient manner. We intend to meet with representatives from airports, airlines, professional associations, and
other interested participants, to analyze and model available data, to review comments filed in this docket, and to use other means as appropriate to evaluate the possible use of market-based approaches at airports from a public policy perspective. DOT will use the information and data provided by interested parties, as well as our analysis, to develop appropriate policy on issues associated with the design, implementation, and impacts of the possible adoption of various market-
based pricing regimes at airports. Parties filing comments are requested to discuss how market-based approaches would affect such public policy objectives as airline competition, general aviation, and small community access to important air travel markets. Delay problems at LaGuardia Airport are the subject of a separate notice and comment procedure.

DATES: Comments should be received by November 19, 2001.

By:  Susan McDermott

This paper analyzes the internalization of airport congestion by nonatomistic carriers. It is shown that, in allocating traffic between the peak and off-peak periods, a monopolist fully accounts for the effect of congestion on passenger time costs, while also taking account of its impact on his own operating costs. The analysis thus suggests no role for congestion pricing under monopoly conditions. In an oligopoly setting, carriers are shown to internalize only the congestion they impose on themselves. A congestion toll that captures the uninternalized portion of external costs can then improve the allocation of traffic.

By:  Jan K. Brueckner, Department of Economics and Institute of Government and Public Affairs

Over the years the airline industry has migrated toward alliances and code shares. Many of the foreign flag carrier operating between US Cities have no ability to carry domestic passengers even if it has code-share with a US Domestic carrier. The re-defining of cabotage in the Jones act would allow US Domestic Carriers to either sell empty space on its foreign flag partners or use these partners to move over-booked flights.

By:  Robert Caton

Market Based Actions to Relieve Airport Congestion and Delay

By:  Brad Blaich

By:  Stanley Katz

By:  Michael Howard

By:  Davis Douglas

Market Based Actions to Relieve Airport Congestion and Delay

By:  Larry Workman

By:  Gary Iker

By:  Joseph Hearst

By:  Stephen Maschue

By:  Richard Buerge

Market Based Actions to Relieve Airport Congestion and Delay

By:  Terry Tracy

By:  Rosemarie Alfieri

By:  Rosemary Bryant

By:  Susan Goldberger

By:  Diana Hird

By:  Michael Alfieri

Market Based Actions to Relieve Airport Congestion and Delay

By:  Larry Workman

Market Based Actions to Relieve Airport Congestion and Delay

By:  Jones Ellensdfsdfs

Market Based Actions to Relieve Airport Congestion and Delay

By:  Matko Zelick

By:  Nada Zelich

By:  Ed Perkins and Darryl Jenkins

Market Based Actions to Relieve Airport Congestion and Delay

By:  Bruce Macfarlane

Market Based Actions to Relieve Airport Congestion and Delay

By:  Stephen Hendel

Market Based Actions to Relieve Airport Congestion and Delay

By:  Stephen Csenge

Market Based Actions to Relieve Airport Congestion and Delay

By:  Peter Pinkowish

By:  Pierre-Antoine Boulat

Market Based Actions to Relieve Airport Congestion and Delay

By:  Erick Blanc

By:  Patricia Trifiletti

By:  Leslie Newman

Market Based Actions to Relieve Airport Congestion and Delay

By:  Mark Fredland

By:  Nancy Moloff

By:  Holly Moskow

By:  Stephen Hendel

By:  Daniel Lagani

By:  Lorna and Jack Adler

By:  Dr. and Mrs. Steven Green

By:  Mark Friedland

Market Based Actions to Relieve Airport Congestion and Delay

By:  Robert Blake

By:  Timothy Huggins

Market Based Actions to Relieve Airport Congestion and Delay

By:  Gladys Parker

By:  David Edell

By:  Anne Di Pippo

By:  Leslie Newman

By:  Grace Mayer

By:  NRCC New Rochelle Citizens Committee, Lawrence Whistler

Market Based Actions to Relieve Airport Congestion and Delay

By:  Stella Lasker

Market Based Actions to Relieve Airport Congestion and Delay

By:  Lane Newman

By:  Joseph Murtha, Jr.

Market Based Actions to Relieve Airport Congestion and Delay

By:  Cathy DeVore

Market Based Actions to Relieve Airport Congestion and Delay

By:  Ralph Engel

Market Based Actions to Relieve Airport Congestion and Delay

By:  Lois and T. J. Russo

Market Based Actions to Relieve Airport Congestion and Delay

By:  Santina Costantini

Market Based Actions to Relieve Airport Congestion and Delay

By:  Jane Landes

By:  Jean Doran Putnam

By:  Ann Carlin 

Market Based Actions to Relieve Airport Congestion and Delay

By:  Bruce Macfarlane

By:  Joan Macfarlane

By:  Joseph Shein

Market Based Actions to Relieve Airport Congestion and Delay

By:  New Rochelle Citizens Committee, Yuri Molozanoff

By:  Dawn Provencher

Market Based Actions to Relieve Airport Congestion and Delay

By:  NRCC New Rochelle Citizens Committee, Maria Aceuedo

By:  Lonny Silverman

Market Based Actions to Relieve Airport Congestion and Delay

By:  Nada Zelich 

By: Jeffrey Wanshel 

By:  Diana Roswick

By: Matko Zelich 

Market Based Actions to Relieve Airport Congestion and Delay

By:  Jane Landes

Market Based Actions to Relieve Airport Congestion and Delay

By:  David Wit

By:  D. Maury

Market Based Actions to Relieve Airport Congestion and Delay

By:  Leigh Giroux

Market Based Actions to Relieve Airport Congestion and Delay

By:  Carmen Fischgold, Robert Hazan and Valerian Hazan

Market Based Actions to Relieve Airport Congestion and Delay

By:  Peter Beshar

By:  Patrice Carlin

By:  Daniel Moros and Ann Schongalla

By:  Patrick Mahoney

By:  Tom Carlin

Market Based Actions to Relieve Airport Congestion and Delay

By:  James Wilde

By:  Stockton Metropolitan Airport, Barry Rondinella

Market Based Actions to Relieve Airport Congestion and Delay

On any given day at any given time, a consumer can choose from a myriad of different flights out of the New York Metropolitan area to any given destination around the country. These flights are typically flying at much less than full capacity. This is an inefficient use of the limited number of slots available to air carriers. If the FAA were to study the number of empty seats in flights going from the New York metropolitan area to other airports around the country at any given point in time, the FAA would easily find wasted slots. The FAA should encourage air carriers to more efficiently schedule flights based on consumer demand. Thus, for example, if 4 air carriers fly to Chicago from New York airports between 9:00 a.m. and 9:30 a.m. and each flight is half-full, then only two slots should be allotted for this route at that particular lime. The two slots could be auctioned off to the highest bidder.

By:  Brad Eisenpress

Market Based Actions to Relieve Airport Congestion and Delay

The Michigan Department of Transportation, Bureau of Aeronautics, wishes to express its opposition to the recently-announced Federal Aviation Administration proposal to introduce "congestion pricing" as a means to reduce airport delays. While we fully appreciate the need to address the gridlock facing many of the nation's busiest airports, congestion pricing raises a number of concerns from a legal and technical standpoint that cannot easily be addressed.

By:  State of Michigan Department of Transportation, Matthew Brinker

Market Based Actions to Relieve Airport Congestion and Delay

By:  Geoffrey Wiener

By:  Janice Bozian

Market Based Actions to Relieve Airport Congestion and Delay

By:  Denise Herrmann

By:  Caren Gerszberg

By:  Mark Friedland

Market Based Actions to Relieve Airport Congestion and Delay

By:  Mr. & Mrs. Christopher Allen 

Market Based Actions to Relieve Airport Congestion and Delay

By:  Andrew Moloff

Market Based Actions to Relieve Airport Congestion and Delay

By:  Patricia Horing

Market Based Actions to Relieve Airport Congestion and Delay

By:  Priscilla Dibble

By:  George Schweitzer

By:  Scott Magram

By:  Harry Jackson

Market Based Actions to Relieve Airport Congestion and Delay

By:  Edward and Paula Ryan

Market Based Actions to Relieve Airport Congestion and Delay

By:  Cynthia McClintock

Market Based Actions to Relieve Airport Congestion and Delay

Following the terrorist attacks on September 11, the FAA temporarily ceased all non-military flights in the United States and imposed new security measures prior to the resumption of commercial air service. After commercial service resumed, air carriers reduced their flight schedules significantly, thereby reducing congestion at formerly busy airports. Given these events, and the major operational changes air carriers made in response to the new environment, on November 5, 200A, the Department published a notice in the Federal Register suspending the closing date for the comment period in this proceeding until further notice. 66 FR 55978. The Department indicated in that notice that, at a later date, it would publish a notice setting forth the new closing date for comments.

By:  Susan McDermott

Market Based Actions to Relieve Airport Congestion and Delay

By:  Anonymous

Market Based Actions to Relieve Airport Congestion and Delay

By:  Anonymous

Market Based Actions to Relieve Airport Congestion and Delay

By:  Alysa Martin

Notice of Alternative Policy Options for Managing Capacity at LaGuardia Airport and Proposed Extension of The Lottery Allocation
Market Based Actions to Relieve Airport Congestion and Delay

The balanced approach to capacity at DCA has worked for years to accommodate the unique concerns that arise with respect to service to the Washington area and to the seat of the United States government. These range from the need to assure access to small communities, to the desire for frequent daily service to major East Coast population centers and business destinations. And in today's extraordinary security environment, any shifts to increase capacity at DCA would likely need to undergo a rigorous review by the various agencies charged with the national government's security, from special air marshal assets to regulatory entities concerned with overflights of sensitive areas and other unique aspects of DCA flight operations. For all of these reasons, MWAA respectfully submits that in considering new capacity management approaches for LaGuardia Airport or other capacity-constrained facilities, the DOT/FAA should not direct such policies toward DCA. National is not confronted by the same capacity problem as LGA, and while some new approach to allocating capacity at LGA could be applicable in theory to National, if it has the effect of destabilizing the equation worked out several years ago by a successful compromise, it would be more of a setback for National and the region's system of airports than a benefit.

Counsel:  MWAA, Edward Faggen, 703.417.8615, edward.faggen@mwaa.com 

Notice of Market-Based Actions to Relieve Airport Congestion and Delay

The Washington Airports Task Force urges the Department not to impose so called market based capacity solutions on local airports. Rather, the Government should allow local airport operators to manage the capacity of their airports and provide them with the market based and administrative capacity reduction tools that they need for such local actions. In any event, the combination of High Density and Perimeter rules that have been in effect at Washington Reagan National Airport for the past 20 years should not be altered by government action in this docket. Indeed, these effective rules provide an excellent model for other communities. The imposition of government imposed airport capacity restrictions of any kind, however, must not be allowed to delay or interfere with the creation of adequate airport and ATC capacity - which are the only long-term solutions to the problem of congestion.

Counsel:  Hewes Gelband, Stephen Gelband, 202.337.8970, slg@hewesgelband.com

Notice of Market-Based Actions to Relieve Airport Congestion and Delay

This submission consists of two basic parts. Sections 1 through 4 examine the consequences of market pricing at congested airports, for four different types of aviation users and three different types of airports. We seek to show that while pricing will, of necessity, change the patterns of airport use, those changes will not be adverse to the public interest in a dynamic, competitive aviation marketplace. Sections 5 and 6 address the crucially important question of how best to make use of the revenues which a pricing system will generate. We suggest that the best use would be to earmark these new revenues for projects to expand airport capacity in the metro area served by the congested airport whose access is now being priced. A large new source of capital investment would make it easier to overcome the formidable obstacles to adding airport capacity in those regions where it is most needed, as indicated by demand exceeding supply at one of the airports in that metro area. Safeguarding the pricing revenues for airport projects is the approach most likely to win the support of airport users, which is crucial to gaining political support to actually implement pricing.

By:  Robert Poole

Market Based Actions to Relieve Airport Congestion and Delay

While the implementation of demand management solutions may be seemingly attractive for solving near term congestion and delay problems, there is a significant downside to be considered. The effort required to implement these solutions would divert focus and attention, as well as resources, from the more fundamental need of capacity enhancement. There is also the potential that demand management actions would mask the congestion problem and make it appear that the aviation system has adequate capacity to meet demand. As a result, the motivation to find more effective long-term solutions would certainly wane.

By:  Boeing, Rudy Leon

Market Based Actions to Relieve Airport Congestion and Delay

By:  City of El Segundo, Mike Gordon

Market Based Actions to Relieve Airport Congestion and Delay

By:  Janofsky Walker, Robert Span

By:  Aircraft Owners and Pilots Association, Andrew Cebula

By:  Airports Council International, David Plazin

Counsel:  American, Carl Nelson, 202.496.5647, carl.nelson@aa.com 

By:  American Association of Airport Executives, Charles Barclay

By:  Cape Air, Daniel Wolf 

By:  Boston Environmental Services, Andrea d'Amato

By:  Department of Transportation, Austin Wiswell

Counsel:  Continental, Leonard Ceruzzi

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202-663-8060

By:  Environmental Defense, Michael Replogle

By:  The European Regions Airlines Association, Simon McNamara

By:  IATA, Eugene Hoeven

By:  Daniel Kasper

By:  Zuckert Scoutt, Frank Costello

By:  Regional Airline Association, Deborah McElroy

By:  San Francisco International Airport, John Martin

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6960

Market Based Actions to Relieve Airport Congestion and Delay

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6651

Market Based Actions to Relieve Airport Congestion and Delay

By:  RAPm Maurice Parker, rap.exdir@mindspring.com 

By:  Aircraft Owners and Pilots Association, Andrew Cebula

Market Based Actions to Relieve Airport Congestion and Delay

By:  Jan Brueckner

Market Based Actions to Relieve Airport Congestion and Delay

By:  South Bay Cities Council of Governments, Ken Blackwood

Market Based Actions to Relieve Airport Congestion and Delay

Metropolitan Nashville Airport Authority believes implementation of market-based pricing rules could result in both benefits and detriments to the air service which Nashville receives. On balance, it supports such rules provided they are not mandated uniformly throughout the nation and implementation is left in the hands of individual airport operators.

By: Stephen Gelband

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