Bizav Groups Cite 'Nonexistent Analysis' in NY Airport Limits

The FAA’s proposal to limit unscheduled operations at the three major New York-area airports is under fire for relying on “nonexistent analysis” that industry groups say will have economic, competitive, operational and safety implications.

In January, the FAA proposed to limit nonscheduled operations at Newark International (EWR) to one slot per hour and John F. Kennedy (JFK) to two per hour while permanently retaining the current three-per-hour limit at La Guardia Airport (LGA). The proposed limits are part of a larger notice of proposed rulemaking (NPRM) that addresses both scheduled and unscheduled operations at the airports.

The comment deadline on the January 8 NPRM, originally set as April 8, had been pushed back to May 8 at the request of numerous affected parties. The comments reflected opposition to the unscheduled limits from a number of business aircraft operators and aviation businesses, along with business aviation groups and other organizations. 

“NBAA is gravely concerned that FAA’s substantial reduction in slots for unscheduled operations at EWR and JFK will greatly affect a broad range of operations that no FAA or industry data suggests have ever materially contributed to delays or congestion at these airports,” wrote Doug Carr, NBAA vice president for regulatory and international affairs in the association’s comment.

Business aircraft operators flying to the area typically will choose Teterboro but must occasionally land at those airports, particularly during certain weather. “Large airports remain attractive safety options for business aviation operators facing deteriorating weather conditions. Aside from flights that have declared an emergency…it appears that operators facing a safety decision would no longer be able to plan on using EWR and JFK as alternatives when safety considerations would warrant their use,” Carr said, calling the restrictions “a de facto ban…. during those scenarios.”

Further faulting the FAA’s analysis, NBAA pointed to this FAA statement: “When considering the cost of travel by private jet compared with commercial passenger service, any additional ground transportation cost is not significant.” Carr said the statement “appears to be the extent of the FAA’s analysis of the impact of reducing access to some of New York and New Jersey’s most important airports for unscheduled operators.”

Solving a Problem that Does Not Exist

A General Aviation Manufacturers Association (GAMA) analysis of FAA Traffic Flow Management System Counts identified 5,848 business jet operations at EWR and 5,622 at JFK last year. Jens Hennig, vice president of operations for GAMA, said this translates into average operations of three per hour at EWR and 2.5 at JFK. “The proposed hourly limits would force a reduction of general aviation operations by at least 20 to 70 percent,” he said, adding that rather limit operations, the FAA should maintain them.

The Dallas Mavericks Basketball Club expressed concern about its ability to secure slots in New York, and the Ohio Regional Business Aviation Association warned of “unintended negative consequences.” Numerous other operators outlined the importance of the airports to their operations and businesses with an emphasis on weather-related diversions. “Traffic levels in the NYC area are tough enough as it is without basically forcing all GA aircraft out of JFK, LGA and EWR. One to two slots per hour is simply not acceptable,” said one commenter.

The Port Authority of New York and New Jersey (PANYNJ) weighed in against the unscheduled limits, saying they are “solving a theoretical problem of congestion caused by unscheduled operations that has yet to occur.” The PANYNJ questioned the use of old data, which “fails to make a case for imposition of such an onerous and harmful rule when neither safety or efficiency, nor an adverse effect on competition was demonstrated.”

The National Air Transportation Association (NATA) questioned whether the FAA factored in competitive ramifications between the airlines and large fractional and charter operators. The proposal provides airlines with fixed guaranteed access permitting them to sell guaranteed transportation. “The on-demand carrier competing for that same client can’t offer a guarantee of access at all,” said NATA president and CEO Tom Hendricks in NATA’s comments. “Favoring one type of carrier over another without considering the impact is inappropriate.”

Rather than restrict operations without supporting data, Hendricks suggested that the FAA “baseline monitor” operations. Should operations exceed a baseline amount, the FAA could work with industry to development mitigation strategies, he said. “The fact that JFK and EWR are not slot restricted but demand for operations has remained relatively low demonstrates that the current system is working as intended and slots are unnecessary.”

Hendricks also pushed for the FAA to exempt air ambulance operations. “It appears that these critical flights were not identified or analyzed and the NPRM offers no accommodation for them,” he said. The association also urged the agency to improve the computer reservation system.

Impact for FBOs

Carr added that the NPRM also affects fixed-base operators. Sheltair and Signature Flight Support, the FBO operators at the airports, have invested in infrastructure, anticipating a return based on traffic projections. “The FAA’s unscheduled slot proposal introduces a new market condition not previously analyzed that will substantially threaten these small businesses and their ability to survive while also reducing the overall attractiveness of these airports to new business that may seek to provide services,” he said.

Sheltair COO Warren Kroeppe said his company has invested $20 million in the New York area, including facilities at JFK and LGA. “Given the large investment and high operating costs of our New York City operations, our exposure to the impact of this unsubstantiated proposed rulemaking is of critical significance to the success of the organization,” Kroeppe said, noting a quarter of the company’s employment base is in New York.

He agreed that TEB-inbound traffic will divert to the other airports in time of bad weather. Restricting access will further complicate an already-complex airspace and curb general aviation operations to the area, he added.

Signature president and COO Maria Sastre noted her organization “has felt first-hand the significant negative economic impact as a result of government regulation at our Ronald Reagan Washington National Airport (DCA) facility, which faces both slot limitations and a restrictive security program.” The proposal could reduce Signature EWR revenue by up to two-thirds, Sastre estimated, noting Signature has invested $11 million at EWR.  “It is unacceptable to decrease revenue of a business by that magnitude without considering the loss in the economic analysis,” she said.  “The FAA’s initial economic analysis was cursory at best, most specifically due to the complete disregard of the negative impact on airport businesses.”

While the business aviation community opposed the proposed restrictions, a minority of the comments came from anti-noise groups and residents that either supported the restrictions or pushed for more overall limitations at the airports. “The amount of noise pollution and fumes from the existing flights is more than enough,” said one commenter, asking why the FAA would consider fixing the slots at the current levels.