Editor's note: An earlier version of this story, based on information provided by two USAirways agents, stated that the carrier was to begin daily service from North Carolina on Feb. 1. The story and headline have been revised based on information received on Feb. 3 from the airline spokeswoman.
Jan. 31, 2003 – Three more major carriers — USAirways, American Eagle and United — on Friday joined the chorus of airlines objecting to the 25 percent increase in airport landing and passenger fees announced on Wednesday by the Port Authority.
USAirways spokeswoman Amy Kudwa said Friday afternoon from the carrier's corporate headquarters in Arlington, Virginia: "Given the financial condition of the airline industry, and given our own cost-saving efforts, we are not in a position to absorb any new costs."
USAirways, which on Nov. 2 went from weekly to daily service from Charlotte, North Carolina, direct to St. Thomas, also operates a daily flight to St. Thomas from Philadelphia.
Earlier in the day, Kudwa had made a milder statement. Upon hearing that American Airlines and Delta Air Lines had advised of coming cutbacks in their schedules, she had commented: "I wouldn't go that far, but rising costs are an issue, and we are working diligently to reduce our costs." (See "American, Delta: Higher fees mean fewer flights".)
Gary Ellmer, president of Executive Airlines, which operates American Eagle flights, wrote to Port Authority executive director Darlan Brin: "We wish to be perfectly clear on our position regarding this increase; Executive Airlines will immediately reconsider all of the service and employment opportunities that we presently provide."
American Eagle provides the major bridge between the territory and San Juan, where many direct flights from the mainland have their terminus.
Noting that airlines internationally are facing financial ruin, with many going into bankruptcy, Ellmer told Brin: "It is in the face of these realities that you have chosen to take this imprudent action." He added, "We strongly suggest the board reconsider its actions, and call for an open forum with all of your carriers to discuss proper and more appropriate solutions to your funding problems."
Janise Robinson, local manager of United Airlines, called from off-island Friday and said she would have to get back to St. Thomas on Saturday and contact United's corporate office for an official statement.
But, she said, "You are aware that we have filed for bankruptcy. Additional costs would be difficult when we are trying to cut costs in every, single area."
Robinson said that United would continue its Saturday-only flights providing service out of Washington, D.C., and Chicago to the territory, pending any notice otherwise from corporate headquarters.
Public hearing for airlines to come
Brin said late Friday that he was aware of the airline industry's reaction. "The board made a decision to go ahead and institute fees," he said. "It's a matter of the Port Authority losing $5 million — the fee increase will reduce that to about $2 million. We have to meet our coverage with respect to bonds." He pointed out, as had been noted at the VIPA board meeting on Wednesday;, "When we make money, we lower rates as part of our agreement with the airlines."
Brin said VIPA is "going to hold a public hearing with the airlines early in February. When we have a raise, we have to hold a hearing." Legally, he said, the hearing can be held either before or after a fee increase takes effect. He said a date for the hearing will probably be set on Monday.
According to Brin, all of the airlines serving the territory were notified of the fee increases in a letter faxed last Friday, and he said he followed up with telephone calls to the airline officials he was able to reach. He wasn't able to contact anyone at American Airlines, he said, but did reach Delta.
Calls to the Tourism Department concerning the repercussions of the fee hikes have gone unanswered since Wednesday. Tourism Commissioner Pamela Richards, who by virtue of her office also chairs the VIPA board, referred calls to Brin on Thursday. Calls to Monique Sibilly-Hodge, assistant commissioner, were not returned on Friday.
San Juan, St. Martin have lower landing fees
Airplane landing fees in San Juan and on St. Martin are lower than in the U.S. Virgin Islands. The fees, calculated per 1,000 pounds, are $1.86 in San Juan and $2.78 (or $5 in Dutch guilders) in St. Martin, according to airline officials.
They are $2.50 now in the territory. With the 25 percent increase effective Saturday, they will jump to $3.13.
The fees are based on the maximum gross landing weight of the aircraft, regardless of its actual passenger and cargo load. Both American and Delta use the Boeing 757 aircraft which has a gross maximum weight of 198,000 pounds.
For American Airlines, with its current service and equipment, the fee increase amounts to nearly $5,000 a week.
The fee per landing would increase by $118.47, from the current $495 to $613.74. American has six incoming flights a day to St. Thomas, so this would be an increase of $710.82 per day, seven days a week, for a weekly total of $4,975.74.
This does not take into account the separate per-passenger fees.
The 25 percent rate increases break down as follows:
– Landing fees, to $3.13 from $2.50 per 1,000 pounds.
– Arriving domestic passengers, to $3.24 from $2.59 per person.
– Arriving foreign passengers, to $10.19 from $8.15 per person.
– Departing commuter passengers, to $8.70 from $6.96 per person.
– Department pre-clearance passengers, to $9.63 from $7.70 per person.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
