There?s an interesting debate going on of which you may be unaware. Northwest Airlines is looking for another handout. They?ve done a fantastic job of disguising their intent but it still boils down to NWA wanting to operate at GA's expense. The debate is over who should pay for the six reliever airports.
As you may or may not be aware there are six airports in the Twin Cities area managed by the Metropolitan Airports Commission. According to the MAC website ?The Metropolitan Airports Commission operates the third-largest reliever airports system in the nation. Nearly 748,000 takeoffs and landings a year occur at the commission's six reliever airports - about 47 percent more than at Minneapolis-St. Paul International Airport.? These airports include Airlake (Lakeville), Anoka County (Blaine), Crystal, Flying Cloud (Eden Prairie), Lake Elmo, and Saint Paul Downtown.
Northwest filed suit against the MAC in December 2002, claiming that reliever airports should operate without subsidy and that general aviation users should also assume all depreciation and interest costs for its airports. I?ve had difficulty finding proof but it?s my understanding that NWA wants to refuse paying its maintenance costs to MAC. Now NWA is trying to sway public opinion by grossly misrepresenting the facts.
The following article from Richard Anderson, CEO of Northwest Airlines, was published in the March 2004 issue of Northwest's onboard publication, NWA WorldTraveler.
Fairness for all airport users
Welcome. We?re glad to have you onboard Northwest Airlines today.
Part of our commitment to putting customers first is to comment on issues that impact you as an airline passenger, including the taxes and fees you pay on your airline ticket. I?ve written about this general topic before, but now I want to address a specific issue: the disparity between what you pay as a passenger on a commercial airline, and what a passenger on a private airplane pays to use airport facilities.
Chances are that you will either depart from or arrive at an airport that is used by both commercial airlines like Northwest and privately owned aircraft. Airports levy passenger facility charges (PFCs) to cover airport maintenance and improvement projects, including runway and taxiway enhancements. (Look at your travel confirmation receipt.) PFCs are also used for Federal Aviation Administration (FAA) approved projects that enhance safety and security. Airports can charge PFCs of up to $4.50 per flight segment, or up to $18 roundtrip. As a commercial airline, we are required to collect this fee when you purchase your ticket. Private aircraft operators do not pay these fees for using the airport.
The total taxes and fees you pay as a commercial passenger can add as much as one-fourth to the cost of a $200 domestic ticket. For example, Northwest?s base fare for a roundtrip ticket from Fargo, N.D., to Madison, Wisc., with a connection in Minneapolis/St. Paul, is about $200. That?s a pretty good fare ? until you realize that nearly 28 percent or $55 in taxes and fees is added to that amount. That?s a hefty tax burden and it?s not being shared by private aviation.
Private aircraft operators also do not pay ticket taxes to fund the FAA. Last year the FAA spent $6 billion operating the Air Traffic Control system in the U.S. This service is free of charge for private aircraft operators. Why? Because the commercial airlines pay taxes collected from you to pay for the operation of a system that all travelers use.
Private aviation operators do pay a fuel excise tax, as do all commercial airlines ? but that is about the extent of private aviation?s funding for airports.
At NWA, we believe an airport?s operating costs should be borne by all who use them, including those who travel by private aircraft. As the system works today, you, the commercial airline passenger, are subsidizing private aircraft ownership. This is not right.
We are working with the federal government to find solutions to this and other issues which exacerbate the challenges we face as a commercial airline serving customers like you who deserve a ?fair fare.?
Thanks for choosing Northwest. We appreciate your business.
Richard Anderson
Chief Executive Officer
Northwest Airlines
Nowhere in the article was it mentioned the reliever airports save NWA millions of dollars a year. If MSP had to accommodate an additional 748,000 takeoffs and landings a year NWA flights would have to bear an enormous financial burden.
For one it would impact the availability of the airport. NWA would have to wait longer on the ramp to take off and would burn more fuel flying holding patterns waiting to land. NWA?s ability to schedule flights would also be impacted. Traffic at MSP is currently for the most part commercial and therefore on a semi-regular schedule. If general aviation were to use the field 47 percent more than commercial flights usage would be far more random and unpredictable. This would make maintaining a schedule difficult at best.
Safety and ease of use would also be greatly impacted. General aviation aircraft operate at a much slower speed than most commercial aircraft and are more difficult to see. That coupled with an increased workload on the aircraft controllers would be a disaster waiting to happen. Because of the vastly different needs between jetliners and most private aircraft the pace would have to be slowed down substantially. Additionally, space would have to be made available at MSP to house all the other aircraft. The six relievers have hundred?s of thousands of acres in use. If that were not available it would reduce the space available for terminals, jet hangers, etc? at MSP.
Anderson claims ?Airports can charge PFCs of up to $4.50 per flight segment, or up to $18 roundtrip. As a commercial airline, we are required to collect this fee when you purchase your ticket. Private aircraft operators do not pay these fees for using the airport.?. What he fails to mention is the fact that general aviation doesn?t have access to the terminals and gates that the commercial airlines use. I wonder how NWA would operate without a place for passengers to be ticketed and wait for boarding.
Anderson further claims, ?Private aircraft operators also do not pay ticket taxes to fund the FAA. Last year the FAA spent $6 billion operating the Air Traffic Control system in the U.S. This service is free of charge for private aircraft operators. Why? Because the commercial airlines pay taxes collected from you to pay for the operation of a system that all travelers use. Private aviation operators do pay a fuel excise tax, as do all commercial airlines ? but that is about the extent of private aviation?s funding for airports.?
Claiming that Private aircraft owners do not fund the FAA is outrageous. I?ve never met a pilot without an income and I?ve never met anyone who didn?t pay taxes on their income. Furthermore, as mentioned private pilots pay a fuel excise just like the airlines.
According to MAC ?More than half of all registered aircraft in Minnesota are based at reliever airports, which generate an estimated $1.4 billion annually for the Twin Cities economy.? All of these airports charge a lease for hanger space. On top of the monies paid for these leases property taxes are collected as well. These are just a couple of ways money flows from GA back into the reliever system. Many of the costs incurred to operate these reliever fields go directly into equipment to further reduce the load on MSP.
The old saying is apparently true? ?Give them an inch and they will take a mile? NWA already has one of the better facilities in the country because of the reliever airports. Now they are demanding it free of charge. At what point do we as GA pilots stop putting up with this kind of BS? The suit filed and the position taken by NWA is hindering the growth of the reliever system put in place to ease the burden on MSP. It is an outrage that a company, which has taken so much continues to look for ways to exploit the system.
If you can please take a moment to let Mr. Anderson know what you think of his article and his attempt to turn public oppinion against GA.
Richard Anderson, Chief Executive Officer, Northwest Airlines, Inc.,
5105 NorthWest Drive,
St. Paul, MN 55111-3034
(Ph: 612-726-2790)
As you may or may not be aware there are six airports in the Twin Cities area managed by the Metropolitan Airports Commission. According to the MAC website ?The Metropolitan Airports Commission operates the third-largest reliever airports system in the nation. Nearly 748,000 takeoffs and landings a year occur at the commission's six reliever airports - about 47 percent more than at Minneapolis-St. Paul International Airport.? These airports include Airlake (Lakeville), Anoka County (Blaine), Crystal, Flying Cloud (Eden Prairie), Lake Elmo, and Saint Paul Downtown.
Northwest filed suit against the MAC in December 2002, claiming that reliever airports should operate without subsidy and that general aviation users should also assume all depreciation and interest costs for its airports. I?ve had difficulty finding proof but it?s my understanding that NWA wants to refuse paying its maintenance costs to MAC. Now NWA is trying to sway public opinion by grossly misrepresenting the facts.
The following article from Richard Anderson, CEO of Northwest Airlines, was published in the March 2004 issue of Northwest's onboard publication, NWA WorldTraveler.
Fairness for all airport users
Welcome. We?re glad to have you onboard Northwest Airlines today.
Part of our commitment to putting customers first is to comment on issues that impact you as an airline passenger, including the taxes and fees you pay on your airline ticket. I?ve written about this general topic before, but now I want to address a specific issue: the disparity between what you pay as a passenger on a commercial airline, and what a passenger on a private airplane pays to use airport facilities.
Chances are that you will either depart from or arrive at an airport that is used by both commercial airlines like Northwest and privately owned aircraft. Airports levy passenger facility charges (PFCs) to cover airport maintenance and improvement projects, including runway and taxiway enhancements. (Look at your travel confirmation receipt.) PFCs are also used for Federal Aviation Administration (FAA) approved projects that enhance safety and security. Airports can charge PFCs of up to $4.50 per flight segment, or up to $18 roundtrip. As a commercial airline, we are required to collect this fee when you purchase your ticket. Private aircraft operators do not pay these fees for using the airport.
The total taxes and fees you pay as a commercial passenger can add as much as one-fourth to the cost of a $200 domestic ticket. For example, Northwest?s base fare for a roundtrip ticket from Fargo, N.D., to Madison, Wisc., with a connection in Minneapolis/St. Paul, is about $200. That?s a pretty good fare ? until you realize that nearly 28 percent or $55 in taxes and fees is added to that amount. That?s a hefty tax burden and it?s not being shared by private aviation.
Private aircraft operators also do not pay ticket taxes to fund the FAA. Last year the FAA spent $6 billion operating the Air Traffic Control system in the U.S. This service is free of charge for private aircraft operators. Why? Because the commercial airlines pay taxes collected from you to pay for the operation of a system that all travelers use.
Private aviation operators do pay a fuel excise tax, as do all commercial airlines ? but that is about the extent of private aviation?s funding for airports.
At NWA, we believe an airport?s operating costs should be borne by all who use them, including those who travel by private aircraft. As the system works today, you, the commercial airline passenger, are subsidizing private aircraft ownership. This is not right.
We are working with the federal government to find solutions to this and other issues which exacerbate the challenges we face as a commercial airline serving customers like you who deserve a ?fair fare.?
Thanks for choosing Northwest. We appreciate your business.
Richard Anderson
Chief Executive Officer
Northwest Airlines
Nowhere in the article was it mentioned the reliever airports save NWA millions of dollars a year. If MSP had to accommodate an additional 748,000 takeoffs and landings a year NWA flights would have to bear an enormous financial burden.
For one it would impact the availability of the airport. NWA would have to wait longer on the ramp to take off and would burn more fuel flying holding patterns waiting to land. NWA?s ability to schedule flights would also be impacted. Traffic at MSP is currently for the most part commercial and therefore on a semi-regular schedule. If general aviation were to use the field 47 percent more than commercial flights usage would be far more random and unpredictable. This would make maintaining a schedule difficult at best.
Safety and ease of use would also be greatly impacted. General aviation aircraft operate at a much slower speed than most commercial aircraft and are more difficult to see. That coupled with an increased workload on the aircraft controllers would be a disaster waiting to happen. Because of the vastly different needs between jetliners and most private aircraft the pace would have to be slowed down substantially. Additionally, space would have to be made available at MSP to house all the other aircraft. The six relievers have hundred?s of thousands of acres in use. If that were not available it would reduce the space available for terminals, jet hangers, etc? at MSP.
Anderson claims ?Airports can charge PFCs of up to $4.50 per flight segment, or up to $18 roundtrip. As a commercial airline, we are required to collect this fee when you purchase your ticket. Private aircraft operators do not pay these fees for using the airport.?. What he fails to mention is the fact that general aviation doesn?t have access to the terminals and gates that the commercial airlines use. I wonder how NWA would operate without a place for passengers to be ticketed and wait for boarding.
Anderson further claims, ?Private aircraft operators also do not pay ticket taxes to fund the FAA. Last year the FAA spent $6 billion operating the Air Traffic Control system in the U.S. This service is free of charge for private aircraft operators. Why? Because the commercial airlines pay taxes collected from you to pay for the operation of a system that all travelers use. Private aviation operators do pay a fuel excise tax, as do all commercial airlines ? but that is about the extent of private aviation?s funding for airports.?
Claiming that Private aircraft owners do not fund the FAA is outrageous. I?ve never met a pilot without an income and I?ve never met anyone who didn?t pay taxes on their income. Furthermore, as mentioned private pilots pay a fuel excise just like the airlines.
According to MAC ?More than half of all registered aircraft in Minnesota are based at reliever airports, which generate an estimated $1.4 billion annually for the Twin Cities economy.? All of these airports charge a lease for hanger space. On top of the monies paid for these leases property taxes are collected as well. These are just a couple of ways money flows from GA back into the reliever system. Many of the costs incurred to operate these reliever fields go directly into equipment to further reduce the load on MSP.
The old saying is apparently true? ?Give them an inch and they will take a mile? NWA already has one of the better facilities in the country because of the reliever airports. Now they are demanding it free of charge. At what point do we as GA pilots stop putting up with this kind of BS? The suit filed and the position taken by NWA is hindering the growth of the reliever system put in place to ease the burden on MSP. It is an outrage that a company, which has taken so much continues to look for ways to exploit the system.
If you can please take a moment to let Mr. Anderson know what you think of his article and his attempt to turn public oppinion against GA.
Richard Anderson, Chief Executive Officer, Northwest Airlines, Inc.,
5105 NorthWest Drive,
St. Paul, MN 55111-3034
(Ph: 612-726-2790)