New York Port Authority: Ease congestion, increase efficiency top priorities
Posted by Sheila Owens on March 16, 2010 | No Comments
Reducing flight delays, advancing NextGen and increasing the PFC level to $7 are major factors driving the agenda at the Port Authority of New York and New Jersey, Susan Baer, aviation director for PANYNJ, told attendees during a luncheon sponsored by the International Aviation Club of Washington.
“Flight delays plague the nation’s aviation system,” Baer said. “As demand has risen, the FAA continues to advance research, but regrettably has fallen short on the implementation of solutions that would have helped to mitigate delays.”
According to Baer, aircraft delays threaten the nation’s economic recovery at a cost of more than $9 billion in U.S. productivity. The cost to the New York region alone: $2.6 billion a year.
Baer outlined a number of delay reduction initiatives in New York, including JFK’s reconstruction of the Bay Runway that will result in additional access points on taxiways that will improve aircraft queing, provide swifter departures and enable easier access from taxiways to terminal gates. At Newark, the Authority is preparing to launch a ground-based augmentation system (GBAS) that will allow planes to fly closer together and land faster without compromising safety.
“All of our delay reduction initiatives on the ground will deliver incremental improvements, reduce delays and ease congestion,” Baer said.
However, the FAA and DOT are “ultimately the most critical players in helping reduce delays,” Baer said, calling for the agencies to implement “widespread use of 21st-century satellite systems – aka NextGen.”
Baer made her case with the following points:
- NextGen won’t be cheap. Total FAA spending over the first 10 years is expected to range from $8 billion to $10 billion. Estimates through 2025 range from $15 billion to $22 billion. This does not include the cost to equip aircraft or modify airports.
- According to the Authority’s estimates, 40 million passengers in the New York area could be affected if there is no improvement in congestion, with a cumulative loss of economic activity: $130 billion.
“The cost of inaction is too great,” Baer said, citing the Port Authority’s national coalition – the National Alliance to Advance NextGen – as a major driver for funding for NextGen: the Administration’s budget includes a request for $1.1 billion, a 30 percent increase.
Baer also cited prospective initiatives that could total up to $8 billion in capital investments at the New York-area airports, backing the need to increase the passenger facility charge level to $7.
“The truth is, I wish I could operate my airports and complete all the necessary construction while paying the same wages and contractor fees as I did in 2000, but I can’t,” Baer said, adding that while the cost of construction is rising “stealthily,” the PFC level remains at $4.50.
“Absent additional funding from PFCs, I will not be able to deliver necessary projects that provide direct benefits for our customers, where we’ve seen a growing demand as the economy rebounds.”
Principato Blogging About TSA in National Journal
Posted by webmaster on March 16, 2010 | No Comments
There is no more challenging job in government than running the Department of Homeland Security (DHS) — with the possible exception of running Transportation Security Administration (TSA). The relationship over the past many years has been rocky at times, but communications (in both directions) between airports and DHS/TSA has improved greatly. But there is still work to be done. See Greg’s six points in the National Journal.com’s blog.
Brooks Sees Better Days for Air Cargo
Posted by webmaster on March 15, 2010 | No Comments
Posted March 15 by Liying Gu
There is growth down the road for the air cargo business and the new, tighter security rules may give a forward-thinking small airport an opportunity to land new business.
At the second day of the annual ACI-NA Air Cargo Conference, held last week in Seattle, Dave Brooks, American Airlines’ president of its cargo division, talked about state of the industry, the near-term outlook and his airlines’ long-term strategy.
Brooks sees a 5 to 7 percent growth down the road. IATA last week also issued an optimistic forecast. Growth in 2010 follows a 20 to 40 percent drop in cargo volume during 2009. Because of excess capacity in the market, cargo yields collapsed.
Facing the downturn in 2008 and 2009, Brooks said air freight carriers fell into two camps: those who panic would let the shipping rates drop to close to zero and put long-term strategy on ice; and those who do not panic choose to stay in the course on long-term strategy. Those who panicked are not the smaller player, but rather some substantial companies, he noted.
Brooks still sees too many planes chasing too few shipments.
To cut costs, cargo carriers have moved their cargo operation to off-airport in a number of airports. Brooks’ advice to airports is that airports should ensure visibility: “Don’t just show up at the lease meeting. Engage with various local cargo associations and communicate your priorities.”
Carriers and shippers are working to meet an August deadline to have 100 percent air cargo screened. Brooks sees some periodic delays and backups; however, he is confident that major players have done enough preparation to meet the mandate. He said airports should allow third-parties to set up screening facilities.
The approaching screening deadline can present an opportunity to smaller airports, Brooks said. If there are delays and backups at major gateway airports, Brooks said shippers may divert some cargo business to the smaller airports that are ready to step up to provide the security screening.
In the next few years, American Airlines intends to focus on business re-engineering and process improvement, and attracting market share by focusing on rewards program. The airline recently opened two cargo facilities, one in JFK and one in LAX. Brooks said they firmly believe that these investments will pay off in the next few years. Carriers will coordinate their network to compete.
In his message to airports, Brooks urged them make sure the legislators aware of the value of cargo to the local community and to emphasize the jobs created and maintained by the cargo operations.
ACI-NA President Featured in Travel Weekly
Posted by Victoria Houghton on March 10, 2010 | No Comments
Greg Principato was featured in Monday’s edition of Travel Weekly’s “The Hot Seat.” Editor Michael Fabey sat down with Greg at the ACI-NA/AAAE 2010 Spring Washington Conference last week to discuss ACI-NA’s top priorities.
Click here to read the article.
FAA Predicts Improvements in Total Air Cargo
Posted by Victoria Houghton on March 9, 2010 | No Comments
The FAA’s annual forecast indicates that total air cargo Registered Ton Miles (RTMs) will increase from 30.8 billion in 2009 to 86.6 billion in 2030 – up an average of 5.0 percent each year. The FAA also expects domestic RTMs to increase 2.1 percent a year.
This is great news for airports as they convene in Seattle for the 2010 ACI-NA Air Cargo Conference to discuss the current air cargo commercial and policy landscape, the business of air cargo, and strategies to enhance air cargo revenue.
Click here to read more.