Lynn Hampton, Vice President for Finance
& Chief Financial Officer
ACI World Economics
Committee Meeting
Abu Dhabi, UAE
Metropolitan Washington Airports Authority
January 2008
Report from ACI-NA
Air Traffic Congestion at JFK
US Visit Program
Air Traffic Congestion
• Since 1969: “Slot” based High Density Rule
(HDR)
 DCA, JFK, LGA, ORD: “Buy-and-Sell” since
1985
• In 2000, slots were phased out at all airports,
except DCA, in the name of competition
• Immediate problems resulted at each airport
• Severe congestion occurred on the East Coast
2
Case of LGA
LGA has
Two 7,000 ft
Cross-Wind
Runways
3
Case of LGA
• Early 2000: About 1050 flights each weekday
• April 2000: Air-21 (Wendell-Ford Aviation Act for the 21st
Century)
 Immediate exemption from HDR for aircraft seating 70 or
less on service between small communities and LGA
 Eventual elimination of HDR (by 2007)
• November 2000: Airlines added over 300 flights per day with
more planned
 Virtual gridlock at LGA
(25% of all OPSNET delays in Fall 2000)
• December 2000: FAA and PANYNJ implemented slot lottery and
announced intent to develop long-term policy to access LGA
• June 2001: Notice for Public Comment posted with regards to
long-term policy
• August 2001: FAA temporarily assigned slots by lottery
4
LGA Demand Before and After the Lottery
Scheduled operations per
hour on weekdays
100
Nov, 00
90
Aug, 01
80
75 flt/hour
70
60
50
40
30
20
10
0
5
7
9
11
13
15
17
19
21
23
Time of day, e.g. 5 = 0500 - 0559
1
3
• Scheduled
operations
reduced by
10%: from
1,348 to
1,205 per
day
Capacity of 75/hr does not
include allocation of six slots
for g.a. operations
November 2000 as a representative profile prior to slot lottery at LaGuardia; August 2001 as a representative after slot lottery.
Source: Official Airline Guide
5
Small Reduction in Demand May Lead to
Dramatic Reduction in Delays
Minutes of delay per operation
120
Nov, 00
Aug, 01
100
80
60
40
20
0
5
7
9
11
13
15
17
19
21
23
1
3
• Average delay
reduced by
over 80%
during
evening hours
• Lottery was
critical in
improving
operating
conditions at
LGA
Time of day
Capacity = 75 operations/hr
6
Distribution of Aircraft Size at LaGuardia
Frequency of Operations
140
• Average aircraft
size at LGA is 102
seats - or 52,000
kg MTOW corresponding to
about $1,600 USD
per hour in direct
operating costs*
120
100
80
60
• Four (4) aircrafthours of delay
translate to
approx. $6,400
USD congestion
cost per marginal
operation
40
20
0
20
40
60
70
80 100 120 140 160 180 200 220 240 260
Aircraft seating capacity (e.g. 40 = 21 - 40 seats)
* Prof. Amedeo Odoni, MIT
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Case of O'Hare
All Except
One of the
Existing
Runways at
O’Hare
Intersect
8
Case of O'Hare
• August 4, 2004: The Federal Aviation Administration
told the airline industry to clear congestion at
Chicago's O'Hare airport by reducing flight schedules
 If the airlines refuse, the FAA said the government
will do it for them
 The FAA proposed an interim solution to reduce
flights by all carriers until 2008
9
Case of O’Hare
• City Management is committed to a $6 billion Capital
Investment Plan
 The Plan involves a reconfiguration of the airfield and
additional terminal space
 The Plan’s first new runway is slated for completion in
2008-2009
 Terminals 3 and 5 will undergo expansion
 A new west terminal with western access into the airport
is also planned
• However, additional land acquisition is necessary requiring the
relocation of approximately 2,800 residents
• The Program will expand the airport's capacity to over 3,800
operations per day; up from the present capacity of 2,700 and
will vastly increase passenger throughput capacity
• The Plan will decrease delays by an estimated 79%
10
Case of O'Hare
Removed
Added
Lengthened
11
Case of JFK
• On-time arrivals at JFK are 62%
• Departures at JFK affect the aviation system around
the entire world
 October 2007: Secretary Peters created the
Aviation Rulemaking Committee (ARC) to
review potential solutions to the congestion
problems in the NYC region
 The ARC provides the Secretary with an
understanding of the implications of any actions
that are designed to reduce congestion
12
Case of JFK
JFK has
Two Sets
of Parallel
Runways
13
Case of JFK
• Group 1: Operational/Infrastructure
Improvements; NY Airspace Czar; Voluntary
Reductions
• Group 2: Congestion Pricing, Auctions, and
Aircraft Gauge
• Group 3: Gate Utilization and Perimeter Rule
• Group 4: Priority Aviation Traffic Preferences
• Group 5: IATA Scheduling Guidelines, Other
Administrative Options
14
Case of JFK
• In order to alleviate congestion at JFK, which is now ranked as third
most-delayed airport in the country behind Newark Liberty
International and LaGuardia, the FAA recommended a severe cut
back in air traffic. The agency would like to reduce JFK to about 80
flights an hour – significantly less than the 100-odd flights currently
scheduled at peak times. Port Authority officials claim the plan rolls
back the clock about 40 years at the airport.
“Limiting the flights to pre-1969 levels would be a disaster to JFK, and
an economic disaster to the region,” said Port Authority executive
director Anthony Shorris during a Monday press conference call.

Port Authority Officials estimate that last year 3.5 million passengers
would have been prevented from traveling out of the airport. The
limits would also impact cargo flights for companies such as FedEx
and DHL, as well as General Aviation, which includes private and
charter jets.
15
Case of JFK
“We’re pleased the DOT adopted many of our task force's
recommendations for expanding capacity. In addition, a broad
coalition convinced the administration not to implement
congestion pricing and, instead work with airlines to better
rationalize schedules and improve customer service.
But the DOT is simply wrong to go forward with restrictive caps
and auctions that will cut the number of passengers at JFK, reduce
travel options, and increase prices for every passenger.
We hope the DOT will take a better approach at Newark Airport
by acknowledging the capacity of the airport rather than
artificially shrinking it, and working closely with the airlines to
help rationalize the schedule process.”
Port Authority of New York and New Jersey
December 19, 2007
16
Case of DCA
Still “Slot” Controlled
Limited
Congestion
Related to
Weather and
Other Airports
Congress …
17
Case for Demand Management
• Conclusions: We cannot build our way out of
congestion
• Better ATC Management
 Opening military routes during holidays
 Traffic control from the cockpit
18
US-Visit
19
US-Visit
• US-VISIT is a top priority for the U.S. Department of Homeland
Security
 Enhances security for our citizens and visitors
 Facilitates legitimate travel and trade
 Ensures the integrity of our immigration system
 Protects the privacy of our visitors
• US-VISIT is part of a continuum of security measures that begins
overseas and continues through a visitor’s arrival in and departure
from the United States. It incorporates eligibility determinations
made by both the Departments of Homeland Security and State.
• US-VISIT is helping us demonstrate that we remain a welcoming
nation and that we can keep America’s doors open and our nation
secure
• 10 Fingerprint Scanners to deploy at all Ports of Entry
• Enrollment Requirements: US-VISIT currently applies to all visitors
(with limited exemptions) holding non-immigrant visas, regardless
of country of origin
20
US-Visit Program
• Homeland Security to Require 10 Fingerprints from
US Visitors
 Under US-VISIT, the Department of Homeland Security
Customs and Border Protection will begin collecting a
full set of fingerprints from foreign visitors to the U.S.
(IAD Pilot 11/29/07)
• Since 2004, US-VISIT has only required the collection
of two fingerprints. Their database now includes 90
million sets of prints.
• EPIC* has said that the system lacks adequate privacy and
security safeguards
* Electronic Privacy Information Center
21
US-Visit
22
Current State of International Travel
to the United States
• Overseas travel to the U.S. - excluding Canada
and Mexico - is down 17% since 2000
RESULT:




58 million fewer visitors
194,000 lost jobs
$94 billion in lost spending
$15.6 billion in lost tax revenue
23
The Good, The Bad, and The Disturbing…
• Good News: Inbound Canadian (+19%) and
Mexican flights (+15%) are forecasted to grow
between 2006 and 2011
• Bad News: Overseas travel to the U.S. will not
reach 2000 levels until 2010
• Disturbing: Even by 2010, Japan, Germany, and
France are forecasted to be below 2000 levels
24
Why the drop since 2000?
• September 11th Attacks
• New security procedures related to Visa
issuance and entry into the U.S.
• Perception that the U.S. is no longer a
“Welcoming Country”
• Competition from other destinations (Dubai,
Turkey, South Africa, etc.)
25
You Win Some…You Lose Some
• Weakened dollar a major advantage, but 10
years to recover from 9/11?
• United States may be winning on “Price”, but
losing the “Perception” battle
26
Biggest Perception Challenges…
• Visa Wait Times (the State Department goal is
that no wait be longer than 30 days)
• Entry Process is viewed by some travelers as
unprofessional and inefficient
• U.S. is no longer a “Welcoming Country” and
that we do not invite travelers to travel here
27
Solutions…
• Visa Reform: Reducing Visa wait times
• Entry reform: Establishing a “Model Ports”
program and creating a more efficient and
welcoming entry inspection process
• Travel Promotion: Creating an international
promotion program to win the perception fight
and market the U.S. as a destination
28
Rice-Chertoff Joint Vision
• Announced on January 16, 2006
• Three Parts to the Initiative:
 Renewing America’s Welcome with
Improved Technology and Efficiency
 Travel Documents for the 21st Century
 Smarter Screening
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Model Ports Program…
•
•
•
•
Enhanced queue management
Improved signage
Reduced “Touch Time” with travelers
Smoother transitions for travelers transferring
to domestic flights
• Improved “Welcome”
• Enhanced professionalism
All the while maintaining security!
30
International Travel
Greatest Opportunity is Public Diplomacy
• Public Diplomacy Benefit of Inbound
International Travel
• People in the U.S. are our greatest asset for
Public Diplomacy
• International Travel to United States =
Spending and Jobs…But, So Much More
31