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SMAAC to stage 40th anniversary Party Aug. 20

The South Metro Airport Action Council (SMAAC) will hold a 40th Anniversary Celebration from 5:30-8:30 p.m. Wednesday, Aug. 20 at Veterans Memorial Park, E. 64th St. and Portland Ave. S, Richfield.

The picnic marks three milestones in the citizen watchdog group's evolution:
The first induction of SMAAC volunteers and public officials into a new SMAAC Hall of Fame.

Winning the 2007 consent decree requiring the Metropolitan Airports Commission (MAC) to spend an additional $127 million for noise mitigation helping 5,286 residential units around the airport. MAC had not lost a citizen lawsuit in its 65-year history.

The unveiling of an expanded mission statement for the next decade: to monitor aviation safety, pollution and related economic development activities in the metro area.

The new Hall of Fame honors persons who led in the public's objections to jet noise over neighborhoods adjacent to Minneapolis-St. Paul International Airport (MSP). The first class covers the years between 1968-1986.

The court-ordered mitigation settlement, while welcome, falls far short of the 1996 commitment by MAC to install the same noise-reduction package as it did for homes closer to the airport from 1992-2005. The $147 million settlement was less than the $350 million estimated for the work when promised in the 1990's as part of MSP expansion.

SMAAC is also vigorously questioning air and ground safety co-ordination at MSP, beginning with an incomplete investigation of the very serious airliner collision in May 2005. Responsibilities for safety are divided among the MAC, the FAA, and the airlines.

Environmental regulation and enforcement at MSP and its six reliever airports is unusual and legally exempt from local government reviews.

The $3 billion expansion program finished in 2005 with the opening of the new north-south runway has failed to attract low-cost airlines or to relieve the high fares charged to local travelers as sought by the 1996 state legislature. This is partly due to untoward agreements with Northwest Airlines, whose hub operations at MSP have been supported with loans, operating policies, fee concessions, and capital improvements.

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Local Watchdog Group: FAA Budget Stalemate Threatens MSP

The South Metro Airport Action Council (SMAAC) today released a letter sent to the entire Minnesota Congressional delegation advising the utmost caution regarding the Federal Aviation Administration (FAA) reauthorization. The Washington Post stated recently that the FAA re-authorization "...became a legislative lint roller of non-aviation-related measures.” The reauthorization bill stalled when a cloture vote failed last month. A continuing resolution expires June 30.

Congressman Jim Oberstar told SMAAC “The House of Representatives soundly rejected the Administration’s proposed FAA reauthorization legislation, including its user fee proposal to fund the air traffic control system. H.R. 2881, the FAA Reauthorization Act of 2007, authorizes $68 billion for FAA for fiscal years 2008 through 2011. The bill includes a modest increase in the general aviation jet fuel and aviation gasoline tax. The Senate has developed its own bill in Committee, but had trouble passing it due to fights over extraneous provisions.”

Oberstar hopes the differences can be resolved soon, and that the House and Senate will be able to develop an appropriate bill to send to the President. 

SMAAC notes that five years ago many FAA research and development programs were canceled or cut back, and little has been done since. Even system maintenance and software fixes have been slowed to a trickle for lack of funding. Therefore, a continuing resolution, allowing expenditures under the status quo, gains nothing for busy hubs like Minneapolis-St. Paul International Airport (MSP). 

SMAAC and others doubt the FAA’s grand solution to air traffic control, the Next Generation system (NextGen) is any better because its development and deployment will cost billions and take decades, even if several serious technical issues are resolved. 

As a result of a specific Congressional action, the FAA announced on May 30 that an auction for a limited number of landing slots at Kennedy and Newark Liberty International airports will be conducted. Combined with the cap on the number of flights in and out of the New York metropolitan area during peak hours (also required by the special law), congestion there can be somewhat reduced. These airports already had fewer operations per hour than either O'Hare or MSP. 

While we wait, we need rate reductions and airline competition at MSP, as in New York. Congress apparently must do what makes us safer and more economically competitive in Minnesota, as local officials and entrenched airlines certainly haven’t.

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House Commerce Committee Hearings on the NWA/Delta merger

Remarks by James R. Spensley

TESTIMONY OF THE SOUTH METRO AIRPORT ACTION COUNCIL

The Legislature is to be congratulated for taking up the proposed merger of Northwest Airlines and Delta Airlines. We are here representing ordinary citizens in the deal. 
Both Delta and Northwest operate busy hubs. A hub airline's gate dominance effectively prevents its competitors from serving connecting passengers and the government allows airlines to refuse out-of-town reservations. At issue now is how the newly expanded hub at MSP might be used after this merger.
Without either regulation or commitment, Delta has stated that its hubs will be “consolidated” after the merger, with Memphis and Cincinnati operations steeply decreased. Minnesota needs to be interested in how and when changes will be made here, at MSP

If the MSP hub is “moved” to Detroit or elsewhere, almost certainly there will be a decade or more of financial crisis at MSP. Airline service sufficient for Minnesota economic needs is threatened just by uncertainty as to the “new Delta” plans and schedules. 
No doubt the airports commission testified that MSP costs per enplaned passenger are lower than at many airports, and they anticipate “demand” would attract other airlines to increase operations here. However, because of debt and over-expansion of gates, this ratio is misleading. If MSP enplanements are reduced, capital costs and debt will remain. Over-built MSP terminal facilities will be more available, but less used. Unless debt repayment is extended or airline operations are further subsidized, other airlines would not realize a comparatively better per-passenger cost at MSP. If they come, it will be because local business demand persists and high fuel and other costs remain universal. We still pay the cost.
Instead, big oil profits might completely stifle demand. Obtaining additional airline service with so much debt outstanding from expansion would then be very difficult. MSP revenues would decline precipitously.
Northwest, as the dominant airline at MSP, made various representations to and through the Metropolitan Airports Commission about supporting public-benefit programs to reduce airport noise and control air and water pollution from air operations. But this support is primarily after-the-fact mitigation, subject to withdrawal depending on merger details.

We believe that neighborhoods near MSP would not get noise and pollution relief. The programs’ funds depend on airline landing fees and gate leases as well as passenger fees, and could be lost or indefinitely delayed in a merger. Various representations made by Northwest to secure gate leases and landing rights at MSP are again in doubt, including court-ordered schedules.

We believe the Legislature should not allow MAC to terminate more than a few gate leases without substantial prepayments, and that payments should be at the original rates, which included amortization of capital costs. In the event MAC intended to allow contracts to be terminated in a merger, the State must hold that MAC lacked the authority to make such contracts favoring a Corporation against public interests. The merged airline rightfully should either honor Northwest’s lease terms and tenure or fully compensate MAC and the State of Minnesota. 
Neither ball clubs nor airlines ought to profit from public facilities and leave us taxpayers holding the bag for, in this case, billions of dollars in bond financing!

If the MSP hub is kept pretty much intact, there are also major problems.
By expanding MSP, the State planned to retain airline jobs in Minnesota (not necessarily Northwest jobs), to increase airline competition, to provide lower fares and better service for Minnesota travelers, and to maintain aviation safety and security. It hasn’t happened. Expanding Northwest’s hub is not the same.

The State of Minnesota, through MAC, is culpable. The Dual-track process addressed sustainable growth and economic impacts of aviation objectively, but as implemented, MSP expansion favored a larger hub mainly benefitting Northwest Airlines and financed it based on false assurances by Northwest Airlines' management. MAC in fact built Northwest more gates immediately after 9/11.

If Delta/Northwest schedules, especially hub flights, are maintained, fares and fees will remain very high for Minnesota businesses and travelers. The upshot is that a few less flights per day at a hub do not necessarily reduce peak-hour rates or increase safety. Busy, congested hubs complicate operational safety and security. We can expect steeply increased public costs for safety and security during operational peaks, particularly on a per passenger basis, if the hub is not reduced.

Consider the costs of a crash or a terrorist incident and how either would affect flight demand.

The best, but most unlikely, third alternative is more balanced use of MSP. By a 40% reduction in the hub (not abandonment or continuation), Northwest/Delta can reduce costs significantly by leasing fewer gates, balancing staff, and decreasing flight delays. Peak-hour rates of 100 to 110 operations per hour would be substantially safer, and if 20 or 30 of these slots were used by competing airlines, the hub could operate from as few as 45 or 50 gates (rather than 90). MSP could still have about the same number of daily flights overall. This plan is more likely to result in lower local fares and a shallower dip in airport revenues. There may be no other way to attract competing airlines. Work for it.

More than hand-wringing and deploring our unfortunate economic outlook will be required. Minnesota will suffer more than most States from airline mergers, even if Delta and Northwest are able to continue operating for awhile afterward. The State should actively oppose the merger as anti-competitive and inappropriate for public financing at best, and disastrous at worst. 

A return to fair-pricing rules and better enforcement of existing trade regulations (such as predatory temporary fare reductions) would be better market economics. High fuel costs make the hub-and-spoke system uneconomical because connecting flights add distance and expensive stopovers compared to direct (point-to-point) flights. The advantages in consolidating demand though collector (spoke) flights have mostly faded: the cost per passenger mile is higher than ever, and population growth in many cities has made consolidation unnecessary or less cost-effective for the traveler.

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Citizens‚ Group Urges Public Debate Of More Aid to NWA

The South Metro Airport Action Council (SMAAC) today said that the Metropolitan Airports Commission (MAC) may be acting presumptiously by scheduling a vote next month on plans to reduce airline fees and share airport revenue with incumbent airlines at MSP.

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Quieter Descents at MSP? Possible, But Unlikely

Long descents would save fuel and reduce noise but probably won't be implemented for arrivals at Minneapolis-St. Paul International Airport (MSP) because of the hub, according to a SMAAC communication to Minneapolis‚ MSP Noise Oversight Committee (NOC). Minneapolis‚ Representative, Council Member Scott Benson agreed to try to re-open noise-abatement versus noise mitigation discussions at NOC.

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MAC Hearing on Environmental Impacts Draws Testimony from SMAAC Only

The Airports Commission is required by Minnesota law to annually hold a Public Hearing to take testimony about the cumulative environmental effects of capital improvements at Metro airports. The Hearing was convened Wednesday with the entire Finance, Development, and Environment Committee as Hearing Examiner.

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Major airline mergers and acquisitions since 1985

Major airline mergers and acquisitions since 1985:

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MAC Wants to Quash Commissioner Depositions in Airport Noise Class Action Lawsuit

In the wake of former Metropolitan Airports Commission (MAC) Chair Vicki Tigwell's attempt to keep her deposition off the public record until after the election, the MAC has submitted a Motion to quash depositions of Commissioners, former Commissioners, and its General Counsel. in the Class Action suit over noise mitigation pending in District Court. Depositions and discovery were scheduled to be completed next week.

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