US DOT, airlines reach compromise on JFK congestion
Thursday December 20, 2007
Following weeks of contentious rhetoric over the US Dept. of Transportation's intention to implement a "market-driven" plan for reducing delays at New York airports, Transportation Secretary Mary Peters and US airlines yesterday announced a compromise solution in which flights will be capped at JFK during peak hours and carriers will make voluntary scheduling changes. Neither congestion pricing nor auctioning of existing capacity will be imposed.
Peters and the airlines heaped praise on each other and vowed to work together to mitigate delays next summer. While IATA strongly objected to DOT's stated intention to establish an auction system for new capacity, Air Transport Assn. President and CEO James May said US carriers would abide by such an auction and could "live with" a cap of 82-83 flights per hr. at JFK beginning in March.
US airlines also were highly supportive of Peters' proposal to appoint a New York airspace "czar" who would be responsible for overseeing and coordinating "regional airspace issues and all projects and initiatives addressing problems of congestion and delays in New York".
Peters said flights will be capped at Newark as well, but did not specify a number. "These measures will cut delays, protect consumer choice, support New York's economy and allow for new flights as we bring new capacity on line," she said.
May said DOT had found a "balanced solution" to the congestion problem. Peters noted that she would "continue to talk with airlines and airports to look at ways to utilize broader market-based mechanisms to combat delays," an indication that congestion pricing is not completely off the table.
May conceded that yesterday's compromise was "a beginning" but emphasized that airlines and DOT have developed a "working relationship" that will allow for a nonconfrontational approach to addressing congestion. "I'm pleased that the Secretary and the administration seem to have deferred any decisions on congestion pricing," he told ATWOnline. "But at no point would I ever let my guard down."
He acknowledged that IATA "appears to be more aggressive" in its response. DG and CEO Giovanni Bisignani said DOT was "out of step with the global aviation community" and derided its intention to auction new capacity as "an eBay approach" that fails to grasp the "complex situation" at JFK. "Experience tells us that auctioning will not achieve the desired result," he said. "And it potentially breaches international obligations and agreements."
by Aaron Karp
ATWOnline
Thursday December 20, 2007
Following weeks of contentious rhetoric over the US Dept. of Transportation's intention to implement a "market-driven" plan for reducing delays at New York airports, Transportation Secretary Mary Peters and US airlines yesterday announced a compromise solution in which flights will be capped at JFK during peak hours and carriers will make voluntary scheduling changes. Neither congestion pricing nor auctioning of existing capacity will be imposed.
Peters and the airlines heaped praise on each other and vowed to work together to mitigate delays next summer. While IATA strongly objected to DOT's stated intention to establish an auction system for new capacity, Air Transport Assn. President and CEO James May said US carriers would abide by such an auction and could "live with" a cap of 82-83 flights per hr. at JFK beginning in March.
US airlines also were highly supportive of Peters' proposal to appoint a New York airspace "czar" who would be responsible for overseeing and coordinating "regional airspace issues and all projects and initiatives addressing problems of congestion and delays in New York".
Peters said flights will be capped at Newark as well, but did not specify a number. "These measures will cut delays, protect consumer choice, support New York's economy and allow for new flights as we bring new capacity on line," she said.
May said DOT had found a "balanced solution" to the congestion problem. Peters noted that she would "continue to talk with airlines and airports to look at ways to utilize broader market-based mechanisms to combat delays," an indication that congestion pricing is not completely off the table.
May conceded that yesterday's compromise was "a beginning" but emphasized that airlines and DOT have developed a "working relationship" that will allow for a nonconfrontational approach to addressing congestion. "I'm pleased that the Secretary and the administration seem to have deferred any decisions on congestion pricing," he told ATWOnline. "But at no point would I ever let my guard down."
He acknowledged that IATA "appears to be more aggressive" in its response. DG and CEO Giovanni Bisignani said DOT was "out of step with the global aviation community" and derided its intention to auction new capacity as "an eBay approach" that fails to grasp the "complex situation" at JFK. "Experience tells us that auctioning will not achieve the desired result," he said. "And it potentially breaches international obligations and agreements."
by Aaron Karp
ATWOnline
