Airport Congestion Martin
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Transcript of Airport Congestion Martin
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Overview:
Airport Congestion Management Concepts
Regional Airport Planning Committee
April 27, 2007
Oakland, California
AIRPORTS COUNCIL INTERNATIONAL
North America1775 K Street, NW, Suite 500
Washington, DC 20006
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Discussion Topics
Framework for thinking about congestion management
Who plays what role?
What are the tools available?
What are the experiences and lessons learned?
Some observations in the context of other presenters
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Understanding the Playing Field
Administrative andRegulatory Approaches
Market-basedApproaches
FederalGovernment
Slots DCA, LGA, ORD, JFK
Slot Offspring ORD, LGA
Lottery-oriented solutions
Conceptual discussionsabout aircraft size minimums
No federal authority sincederegulation
LGA auctions or fees run by FAA
would be experiment
authority sought in FAAreauthorization
Local Airport
Operator
Local limits Long Beach,
White Plains Concepts for minimum
aircraft size
Up-gauging incentiveconcepts
Lease-based incentives Possible PANYNJ route for
LGA Regionalism solutions
Minimum landing fees various
airports Auction and peak hour concepts
floated by the PANYNJ in 2001 -LGA
PACE program and theenvironmentally driven peakperiod pricing concept not yetactivated BOS
WhoI m
plem
ents?
How to Implement?
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How - Administrative and Regulatory
Who - Federal Role and Limitations
FAA has historically leaned toward administrative/regulatory solutions
No FAA authority from Congress to impose fees
Whatever federal agencies may have had was lessened by the AirlineDeregulation Act
Slots under the HDR fell out of favor...Slot offspring emerge
FAA has some authority by virtue of the charge to run ATC efficiently FAA has not really been challenged here
When FAA has sought administrative authority to manage congestion it has
been granted to some extent
Often the measures are implemented as short-term fixes
ORD transitional program effective?
The measurements of effectiveness are usually incomplete
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How - Administrative and Regulatory
Who - Airport Perspective
Airline Deregulation Act limits airports too, althoughdifferently than federal agencies
Airport Noise and Capacity Act of 1990 (ANCA) explicitlyseeks to minimize or eliminate airport access restrictions
Part 161 for noise purposes only?
Part 161 path is not an easy or obvious one
No doubt that an airport has a very high burden of proof bothin taking action and in explaining why the proposed solution isacceptable
Catch-22 problem: If the FAA has not initiated corrective actionfor congestion and is responsible for efficiently running ATC, howcan FAA find that an airport is acting reasonably ?
May be a programmed failure approach in the absence of
FAA asking the airport to act
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How - Administrative and Regulatory
Who - PANYNJs Concept for LaGuardia ManagementA New Path?
1. Finite capacity - Universal agreement that LGA is congested andthere is no material capacity enhancing alternative
2. Regionalism has been and continues to be activelypursued Perimeter rule, G.A. designated airports, JFK marketingand growth, ground access to less congested airports (e.g.,AirTrain), airport acquisition (Stewart)
3. FAA limitations - Seems unlikely FAA will move forward on itsNPRM that would give FAA control of LGA access terms, and
legislation giving FAA new authority seems a limited probability
4. Clear Authority - Airports have more legal control over theleasing of facilities than airfield access regulations
Concept - The PANYNJ is considering a concept under which alease obligation would include certain operation performance
factors that manage congestion
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How - Market-Based
Starting Point for Airport Fees: Rate-Setting vs. Pricing
1. Use of pricing to allocate aeronautical resources or to manage congestion is rare
2. Airport fees are generally established as cost-recovery rates
3. Airport fees are analogous to public utility rates (e.g., electricity), but without any
time-of-day differentials
4. U.S. DOT has become a reactive regulator of airport fees over the years
5. U.S. DOT has not clearly endorsed concepts generating revenue in excess ofhistorical cost
Various concerns about revenue positive solutions
Inherent limitation on effectiveness of revenue neutral solutions
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How - Market-Based
Two General Approaches
1. Set the price at a level to produce the desired results
Generally referred to as peak pricing or congestion pricing
Minimum fees are the most simplified version of this
Massport has been down this path twice for Logan InternationalAirport
1. Define the results sought and use an auction to
determine allocation of supply
Lots of non-airport experience in auctions
Given segmented authority, would appear to require thecooperation of both FAA and an airport on many fronts
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Massports PACE Program - Goals
Delay Reduction -Customer service and environmental
drivers
Aircraft Size - Encourage the use of larger aircraft
Hubbing - Minimize Logans traditional role as a NewEngland connecting hub to reduce local impacts
Regionalism Hanscom, MHT, PVD, ORHAir
carrier
Com-muter
G.A.
Logans Traffic Mix
PACE shifted the fee schedule,but did not have time-of-day
variations in Phase 1
Phase 1 was revenue neutral
Phase 2 never happened
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Massports PACE Program - Results
Limited experimentProgram was in place for only 6 months.
Demand effectsIn line with estimates
General aviation: 30 - 50% of traffic eliminated
Commuter/regional: roughly 10% reduction in traffic
Flights reduced in saturated routes
Few flights eliminated in peak periods
Air carriers: no changes, as expected
Delay reductionResults confirmed that small reductions indemand produce large decreases in delays
Regional effectsNot determined in short period ofimplementation
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Why is Congestion Pricing Appealing?
Part 1
The traditional weight-based fee approach to landing fees:
Contradicts most experiences in society
Pretends that resources are not scarce
Cannot be explained, except by historical accident
Part 2
Limited congestion pricing experience makes it oftenperceived as a panacea
Complexities are often ignored regarding:
Establishing a defensible pricing model Modeling and quantifying the potential benefits
Estimating the potential negative effects of peak-spreading
Addressing regional and corporate economic impacts
Administrative and legal challenges
Recognizing the relative costs of aircraft operations
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Congestion Pricing Not for LGA?
The PANYNJ is by-passing congestion pricing, with good reason
Constraint of revenue neutrality makes little sense:
The peak hour is all day
Demand may be greater than any other airport
Ample evidence that an unconstrained LGA would be unmanageable
Complexities of establishing the price in a changing and reactingmarket are overwhelming
No solution offered for smallest communities
Perceived effects on ticket prices and airline finances
User support appears to be zero
Concerns about public perception, especially in regard to volume ofpositive revenue generated for this method to approacheffectiveness
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No one-size fits all
LaGuardia is different Probably has limited portability
Massports prospective approach for Logan has merit,
but may prove insufficient as currently defined
Ultimately, a mix of administrative and market-based
tools would be needed
Effectiveness means solutions cannot be pain free
FAA participation/cooperation is essential with current
uncertainties
A federally authorized pilot program is the best way tocut through the complexities and test what works and
Observations for Todays Program