LV aviation interests see funds, issues in new bill

Thursday, March 16, 2000 | 10:49 a.m.

There's something for everybody in the $40 billion aviation bill expected to be signed into law by President Clinton.

For the nation's airports and air traffic control systems, there's more money to make the skies safer.

For McCarran International Airport in Las Vegas, there's a mechanism for funding new projects to keep ahead of anticipated growth.

For Las Vegas-based National Airlines, there's an opportunity for flights to and from Reagan National Airport in Washington D.C.

For Southern Nevada's scenic air tour operators, there are new regulations for flying over national parks -- but not Grand Canyon National Park.

And for airline passengers, there's something they don't want: more expensive plane tickets.

The legislation, formally known as the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century -- AIR 21 -- is a three-year bill that will increase aviation spending by $10 billion over current levels. The House passed the bill 319-101 Wednesday after the Senate approved it last week. President Clinton supports the bill and is expected to sign it.

Most of the funding will go to radar modernization and airport construction projects. Between 2001 and 2003, the bill would raise $40 billion, $33 billion of which would go to a trust fund earmarked for aviation projects and $6.7 billion to the general fund.

"To the weary air traveler who is spending more time sitting in airports rather than flying on airplanes, help is on the way," said House Transportation Committee Chairman Bud Shuster, R-Pa. "At last, our aviation system is going to get the help it needs."

Randy Walker, director of the Clark County Department of Aviation, concurs.

Walker said McCarran would apply for AIR 21 funds for improvements like ramp renovations and taxiway extensions.

AIR 21 funds won't be used to begin work on the proposed new airport at Ivanpah Valley, south of Las Vegas. Walker said that project is still several years away from getting construction funding.

"We still have to acquire the land and do environmental assessments before we can do any engineering or construction," Walker said.

Walker said the Federal Aviation Administration looks favorably on air safety and pavement projects at airports. Terminal buildings more often are paid for by funds raised by user fees approved by individual airports.

And those improvements destined for McCarran and airports nationwide come out of the pockets of passengers who use them.

Under the new legislation, passenger facility charges (PFCs) can be raised $1.50 per flight segment. Under existing rules, airlines pass through up to $3 in PFCs to airports for every flight segment for the first four segments of any plane trip. That means the maximum PFC assessment has been $12 per trip.

Now, the maximum is $4.50 per segment, or a maximum of $18 per trip. The PFC amount varies by airport and Walker said he wouldn't begin the process of increasing the PFC collected for McCarran to the new $4.50 maximum until an eligible project is on the table. That could be a year or two away.

Walker said McCarran has the expansion of the D gates and construction of Terminal 3, a new international facility, on the horizon. When those projects get started depends on the level of growth in the next couple of years.

The process for raising PFCs involves developing a proposal and showing it to airlines that use the airport. Their support or objections are noted in the application to the FAA, but an airline's objection usually won't kill a project, Walker said.

"Allowing airports to raise the rates certainly is a giant step in the right direction," Walker said.

Increases nationwide ultimately will help Las Vegas, he said, because airports that are at capacity would be able to build runways and other facilities to increase traffic, potentially to McCarran.

While most of the major airlines have supported raising PFCs to generate income for aviation improvements, some have opposed them.

Herb Kelleher, chairman and chief executive officer of Southwest Airlines, McCarran's dominant carrier, has opposed raising the fees, but was more conciliatory about the final outcome, a compromise from the $6 maximum that had been proposed in the original House version of the bill.

Bloomberg News reported that Kelleher called the move to spend aviation trust fund receipts on aviation infrastructure "an important step in the right direction." Speaking at an aviation conference in Washington last week, Kelleher said while he opposed the move to boost the departure fee cap, the increase was "worth it to get the entire bill through."

Other McCarran competitors have interests in other sections of AIR 21. A section of the bill shepherded through the legislative process by Nevada's congressional delegation will open up 24 daily flight slots at Washington's Reagan National Airport.

Any take-off or landing would take a slot, so a flight into and out of Reagan National would require two slots.

The Nevada delegation and former presidential candidate, Sen. John McCain, R-Ariz., stipulated that 12 of those slots allow flights to and from destinations beyond a 1,250-mile perimeter. The rule establishing that restrictive perimeter was drafted in the 1960s and was designed to stimulate growth at Dulles International Airport in suburban Washington.

Now, at least three airlines are expected to line up for the 12 slots. Among them are Las Vegas-based National Airlines, which flies to seven cities from McCarran and is looking to expand this year.

Dik Shimizu, a spokesman for National, said the airline is interested in acquiring six of the 12 slots.

Patty Nowack, a spokeswoman for Phoenix-based America West Airlines, said her company intends to apply for service to Reagan National to and from Las Vegas and Phoenix. Nowack said for competitive reasons, she could not disclose how many slots America West hopes to secure.

America West, which operates a hub at McCarran and is the airport's second-largest carrier, in other markets has focused on daytime flights to and from Phoenix and late-night flights to and from Las Vegas.

Another contender for slots at Reagan National is Denver-based discount carrier Frontier Airlines. Frontier spokeswoman Elise Eberwein said the airline plans to apply for six slots for three round-trip operations between Washington and Denver International Airport, which also is outside the 1,250-mile perimeter.

Walker said he wouldn't be surprised to see United Airlines apply for Reagan National slots from Denver, Los Angeles or San Francisco and American Airlines from San Jose, Calif. He said he expects the proposed routes from McCarran "to be very competitive."

Which airlines get how many slots will be determined by the Department of Transportation. The department will review applications and submit recommendations to Transportation Secretary Rodney Slater.

Bill Mosley, a spokesman for the Department of Transportation, said officials are still studying the particulars of the legislation and will determine how to award the slots based on enhancing competition.

Mosley said he did not know how long it would be before selection criteria is established, "but I'm sure we'll have airlines asking us about it as soon as the legislation is signed."

Another section of AIR 21 addresses scenic air tours over national parks. The Air Transportation Improvement Act, introduced in the Senate, was attached as a rider to AIR 21 and approved with the legislation.

The air tour management section of the bill directs the FAA and the National Park Service to establish a management plan for any park that doesn't have one. The National Parks Overflights Working Group -- comprised of representatives from general aviation, air tour operators, environmentalists and Indian tribes -- will make recommendations on the plan.

It also establishes an application process and competitive bidding for flights in parks with limited capacity. The legislation specifically exempts flights over Grand Canyon National Park and Lake Mead National Recreation Area.

But it doesn't exempt flights over Zion and Bryce Canyon national parks in southern Utah. Scenic Airlines, Southern Nevada's largest air tour operator, offers flights to Bryce Canyon. Zion National Park lies on the route between Las Vegas and Bryce.

Barry Ferber, a spokesman for Scenic, said his company would review the legislation to determine what impact, if any, it would have on operations.

"Grand Canyon already has a complex air tour management plan that is in dispute," said Jim Petty, chief executive officer of Air Vegas Airlines, which flies over the Grand Canyon, but not Bryce or Zion. "The new law sets (air tour) guidelines for parks that don't have them and they're quite stringent. It will be a very difficult thing to get done."

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