HIGHFILL -- Airline representatives came to the Northwest Arkansas Regional Airport board meeting Wednesday to complain about gate fees and got an earful about their high ticket prices.
American Airlines, Delta Airlines and United Airlines have been bickering with airport staff about fees and charges for about five years now. They claim Allegiant Air gets a better deal at XNA and called for a level playing field.
FAA on rates and fees
It is the fundamental position of the Federal Aviation Administration that the issue of rates and charges is best addressed at the local level by agreement between users and airports. The FAA has adopted a policy statement on the standards applicable to airport fees imposed for aeronautical use of the airport to provide guidance to proprietors and users, to encourage direct negotiation between these parties, to minimize the need for direct federal intervention to resolve differences and to establish the standards which the department will apply in addressing airport fee disputes.
Source: FAA
"We want a fair and reasonable rate structure," said Chuck Allen, with American.
Board member Art Morris had another suggestion, telling the carriers they need to drop their rates to match those charged at other airports in the region so people from Northwest Arkansas don't drive have to Dallas or Tulsa, Okla., to catch cheaper flights.
"That's the elephant in the room," board member Blake Woolsey seconded.
Board member Stan Green told the airline representatives it doesn't cost them any more to fly out of Northwest Arkansas than other airports but the tickets are substantially higher.
"There's not a link between what we charge you and what you charge our passengers," Green said. "Our customers tell us it costs too much to fly out of XNA."
Allen said if bigger companies such as Walmart balked at the ticket prices, the airlines might consider lowering prices.
"We charge what the market will bear," Allen said.
Philip Taldo, also a board member, said XNA isn't in the business to make money but rather to provide a much-needed service to residents of Northwest Arkansas, including those who don't travel for business. Taldo then pulled up on his cell phone a ticket quote from American of $341 for a round trip ticket to Washington, D.C., from Northwest Arkansas and a $72 round trip quote from another airline flying out of Tulsa.
"We're not blind to the fact you guys want to make as much money as you can," Taldo said. "But, to be really fair, you need to consider the people we represent. Folks don't understand."
Scott Van Laningham, executive director of the airport, said he's tired of fighting over the fees, which has cost the airport $500,000 for attorneys, consultants, travel, time, all with no tangible results.
"We can resolve this easily. File a complaint with the FAA and we'll set precedent," Van Laningham said. "Both sides can present our positions and let them decide. They can tell us which one of us is wrong."
Van Laningham said the legacy airlines' beef is not so much about the rates they are charged but rather the rate Allegiant pays. Allegiant is charged less because it flies about 10 flights a week and is housed in the old Concourse B while the legacy airlines have more than 120 flights per week each and are housed in the newer, and much nicer, Concourse A. More flights also mean more passengers and more wear and tear, he said.
"They objected from the get-go to the business deal with Allegiant," Van Laningham said. "We think that there is ample reason to justify treating those differently. You'll notice they didn't complain about their rates. It's not that they want us to lower theirs, it's that they want us raise the other guys."
Van Laningham said he was not surprised at Wednesday's exchange.
"I don't think they understand the magnitude of the comments that we get about our high airfares," Van Laningham said. "I know they get complaints but they do not know that is the single, by far most negative comment, we get."
NW News on 04/12/2018