Northwest Airlines Slams GA

[GAHorn]

Northwest Airlines Slams General Aviation in their In-Flight Magazine. See: http://www.nwa.com/corpinfo/aword/

I have friends who fly NWA, and I don't want to see them hurt further by a boycott, ...but I think it's appropriate for all of us to write DIRECTLY to Richard Anderson, Chief Executive Officer, Northwest Airlines, Inc., 5105 NorthWest Drive, St. Paul, MN 55111-3034
(Ph: 612-726-2790)

I personally plan to tell him that Gen. Av. pays it's share of taxes and use fees thru fuel taxes, and has created a HUGE SURPLUS of funds which have been used to shore up the National Deficit for years, including supporting major airlines like NWA. I will point out to Anderson, that private aircraft are a major method of delivering NWA passengers to the airline!
I plan to tell him I do not appreciate his attack on his fellow citizens and on the freedoms of Americans, and that I will not be flying NWA until I find the magazine has been pulled from all flights, and the article has been denounced by him PERSONALLY, and with a PUBLIC APOLOGY not only in a near-future issue and on the WEBSITE, but also in the Public Media.
If such actions are not taken, I will excersize my rights as a stockholder, and also as an customer to make every effort to have him removed from office and boycott the airline until his removal.
I also intend to send copies of the letter to NWA, INC's partner, KLM (Royal Dutch) Airlines, and express my dissatisfaction with their partner, and let them know I will boycott KLM as well.
KLM Airlines
Central Airline Terminal
100 East 42nd Street (at 125 Park Avenue)
2nd Floor, NY10017

Don't read this and just think about it. While you're at your computer, write the letter, print it out, mail them. If airlines think they can get their customers riled about this, they need to know WE are their customers too, AND WE are TAXPAYERS TOO! I'm tired of not being able to use the major airports and terminals with my personal airplane that pays far more in taxes than the average traveller. (Think about this: YOU pay the same fees/taxes others do to build, support, operate airport terminal bldgs. ANYONE can drive their private vehicle to the airport terminal. But if YOU fly your vehicle to the airport, you are unlikely to have direct access like other citizens, AND you are very likely to have to pay a landing/access fee that other visitors to the airport do not. WHY should my family member have to submit to such fees, then a taxicab fee to access the terminal bldg? Why don't all terminal bldgs have a private aircraft/ramp access?)

Act now, or suffer the consequences of a rapidly, emboldened attack by the major airlines against us!

[GAHorn]

One more thing I noticed in Andersons statement: "Private aviation operators do pay a fuel excise tax, as do all commercial airlines – but that is about the extent of private aviation’s funding for airports."

What a load! Commercial operators may apply for a refund of fed. excise taxes if I recall correctl. Anyone with current info on this?
Also, We pay landing/useage fees at many airports, AND the FAA is not funded directly/solely by ticket taxes. General aviation for the most part uses uncontrolled, reliever airports that do not have the huge expenses the airlines require. WE PAY MORE THAN OUR FAIR SHARE!

[rudymantel]

George, I agree and will write accordingly !
What I'd really hate to see is "privatized" Air Traffic Control -
Rudy

[Bill Rusk]

I agree. Letter to be done. I fly for an airline, not NWA, and it really gets my dander up when the airlines get this "holier (sp) than thou" attitude. If the FAA would quit closing all the little airports it would help, but either way I figure I have paid my taxes, spent time in the military, and it is my right as a free citizen to fly and use tax funded facilities. Arrrggggg....

Bill

[JDH]

You know, when I see people that earn a living from anything to do with aviation, airports or air traffic, it baffles me to see them dump on G.A.
Like landing fees, bitch and complain about little planes being in the sky, etc... Do these people know where airline pilots come from?? If G.A dies or gets any more complicated or difficult to get or stay into, where will you get the folks to fly the big boys?? Military? Oh, that's right, I must have forgot, our top guns never looked at airplanes through a chain link fence when they were kids or get goose bumps when they see or hear a Cub...
I'm writing this guy and will invite himm to take the bus and to bring his family and friends with him...
JD

[JJH55]

Yet another laughable diversion by the airline "experts" to lay blame elsewhere on their inability to manage their real problems. NWA has lost an average of $2.2 million PER DAY for the last 3 YEARS so its not surprising that Anderson (a lawyer/beancounter, not a pilot) is throwing this out to the uneducated aviation traveler. Much like the CBS claims of the lack of GA security. It's a diversionary crock of excretment! Anderson and the rest of the Airline Executives might better be served in examining the real source of their problems such as their labor costs, management incentives and bonuses.
Phil Boyer (President of AOPA) will be having a field day on this issue, he is scheduled to meet with Anderson to discuss the article.
JJH55

[4-Shipp]

"Private Aircraft"?????? What the #$%&* does he think those NWA jets are? Not exactly owned by the tax payer, are they? He'll hear from me as well.

[rudymantel]

The following is a letter I received from Northwest Airlines in response to my letter to their CEO Mr. Richard Anderson. I look forward to your comments, guys.

March 29, 2004

Dear Mr. Mantel:

While he is traveling Mr. Richard Anderson has asked that I respond to your recent letter. We regret your disappointment with Mr. Anderson's article in our World Traveler publication concerning taxation of general aviation.

Having been in the air taxi business you may or may not know that general aviation does not pay to use the ATC system and small airports are significantly subsidized by large airports. Please allow me to review the basic functions and funding mechanisms under the various FAA Reauthorization Acts. FAA has three principal functions.

 Air Traffic Control System Operation
 Safety Oversight and Certification
 Airport Infrastructure Investment (AIP Program)

How are these funded ? Air 21, passed by Congress in the late 1990's basically set up the mechanism we operate under today by using airline ticket excise taxes, airline segment fees, and general funds. In addition, wepay Passenger Facility Charges to fund runways and airport infrastructure. Our ticket sales tax burden on Northwest is about 28% (based on an average domestic round trip ticket) paid to the government to run the ATC system, fund FAA and make capital investment in airports. General avition does not pay any fees to use the ATC system nor does it collect segment fees , excise taxes, or pay Passenger Facility charges. General aviation pays fuel flowage fees, and hangar rents on airports that do not fully cover allocated costs.

The ATC system is free for general aviation because Northwest and the airlines pay the taxes to fund the system. If our tax burden were cut in half we would be substantially closer to profitability. Thus, we need a fully compensatory funding mechanism for the ATC system so that all users pay a compensatory fee for their actual consumption of ATC capacity. Likewise, general aviation should pay their share of airport costs on a fully allocated basis.

Mr. Mantel, thank you for allowing me to clarify this matter for you. If your future plans include air travel, we hope you will think of Northwest.

Sincerely,

[rudymantel]

I also sent the letter from NWA to AOPA's Phil Boyer who responded by saying he had just had a 90 minute meeting with Anderson. He sent the following link which refutes each point made by NWA:

http://www.aopa.org/whatsnew/newsitems/ ... ponse.html

Rudy

[BSEC]

I've been following the NWA issue since Northwest filed suit against the MAC in December 2002, claiming that reliever airports should operate without subsidy and that general aviation users should also assume all depreciation and interest costs for its airports. I’ve had difficulty finding proof but it’s my understanding that NWA wants to refuse paying its maintenance costs to MAC. This happened shortly after NWA asked the state of MN to forgive the taxes they owed. I don't recall all the details but this whole issue is all about NWA looking for another handout from the state.

I thought the reply to rudymantel was interesting. NWA's argument seems to continue to revolve around this statement, "General avition does not pay any fees to use the ATC system nor does it collect segment fees , excise taxes, or pay Passenger Facility charges."

NWA is working hard to tell the average consumer that GA is taking money out of thier pockets. What they fail to mention is the millions of dollars the reliever airports save NWA. According to the MAC website “The Metropolitan Airports Commission operates the third-largest reliever airports system in the nation. Nearly 748,000 takeoffs and landings a year occur at the commission's six reliever airports - about 47 percent more than at Minneapolis-St. Paul International Airport.”

If MSP had to accommodate an additional 748,000 takeoffs and landings a year NWA flights would have to bear an enormous financial burden.

For one it would impact the availability of the airport. NWA would have to wait longer on the ramp to take off and would burn more fuel flying holding patterns waiting to land. NWA’s ability to schedule flights would also be impacted. Traffic at MSP is currently for the most part commercial and therefore on a semi-regular schedule. If general aviation were to use the field 47 percent more than commercial flights usage would be far more random and unpredictable. This would make maintaining a schedule difficult at best.

Safety and ease of use would also be greatly impacted. General aviation aircraft operate at a much slower speed than most commercial aircraft and are more difficult to see. That coupled with an increased workload on the aircraft controllers would be a disaster waiting to happen. Because of the vastly different needs between jetliners and most private aircraft the pace would have to be slowed down substantially. Additionally, space would have to be made available at MSP to house all the other aircraft. The six relievers have hundred’s of thousands of acres in use. If that were not available it would reduce the space available for terminals, jet hangers, etc… at MSP.

Anderson claims “Airports can charge PFCs of up to $4.50 per flight segment, or up to $18 roundtrip. As a commercial airline, we are required to collect this fee when you purchase your ticket. Private aircraft operators do not pay these fees for using the airport.”. What he fails to mention is the fact that general aviation doesn’t have access to the terminals and gates that the commercial airlines use. I wonder how NWA would operate without a place for passengers to be ticketed and wait for boarding.

Anderson further claims, “Private aircraft operators also do not pay ticket taxes to fund the FAA. Last year the FAA spent $6 billion operating the Air Traffic Control system in the U.S. This service is free of charge for private aircraft operators. Why? Because the commercial airlines pay taxes collected from you to pay for the operation of a system that all travelers use. Private aviation operators do pay a fuel excise tax, as do all commercial airlines – but that is about the extent of private aviation’s funding for airports.”

Claiming that Private aircraft owners do not fund the FAA is outrageous. I’ve never met a pilot without an income and I’ve never met anyone who didn’t pay taxes on their income. Furthermore, as mentioned private pilots pay a fuel excise just like the airlines.

According to MAC “More than half of all registered aircraft in Minnesota are based at reliever airports, which generate an estimated $1.4 billion annually for the Twin Cities economy.” All of these airports charge a lease for hanger space. On top of the monies paid for these leases property taxes are collected as well. These are just a couple of ways money flows from GA back into the reliever system. Many of the costs incurred to operate these reliever fields go directly into equipment to further reduce the load on MSP.

The old saying is apparently true… “Give them an inch and they will take a mile” NWA already has one of the better facilities in the country because of the reliever airports. Now they are demanding it free of charge. At what point does someone tell NWA "if you can't stand the heat get out of the kitchen? The suit filed and the position taken by NWA is hindering the growth of the reliever system put in place to ease the burden on MSP. It is an outrage that a company, which has taken so much, continues to look for ways to exploit the system.

NWA want's to pretend they don't benefit from the reliver system. All it would take to prove that wrong is for the folks in the area to spend 3-4 days filing IFR approches into MSP on a VFR day. Could you imagin how many of these airlines are comming in with minimum fuel reserves. They get spun for 30 minutes and would find themselves declairing an emergancy. What do you suppose that costs? Or what about the fuel they'd burn holding if a student did a gear up or ran off the runway.

[rudymantel]

I think the bottom line is that NWA is losing a ton of money and it has nothing to do with GA, but they're desperately looking for someone to blame and GA seems like an easy target.
As BSEC correctly explains, airlines are the main beneficiaries of reliever airports. They should welcome more reliever airports rather than complain about them. And the airlines are certainly the main beneficiaries of the taxpayer-funded ATC system.
Passenger Facility Charges cost NWA nothing- they merely collect and pass these charges on to the government. If the PFC's were to be cut in half I doubt if it would make any difference in NWA's traffic and load factors.
Interestingly, yesterday I happen to hear (on NPR) that NWA was seriously gouging passengers using their main hub MSP because they have little competition there. NWA's fares from MSP were considerably higher than their fares on similar sectors from other airports where passengers had a choice of carriers.
Rudy

[GAHorn]

Rumor is that Boeing, having developed a privatized ATC system model that has been temporarily "shelved" ... is encouraging the airlines to take and promote NWA's position publicly. If the ATC system can be privatized, the logic goes, ...then airlines will have fewer delays, more passengers (from the loss of GA aircraft useage) and Boeing will make a lot of money selling the software/hardware for the privatized ATC system.
We all need to copy AOPA's response and send it to NWA, think about boycotting NWA (to show other carriers what can happen) and get very loud and very public about this issue. (The current administration supports in theory, a privatized ATC. Get vocal to them.)
Rudy, how about posting the exact U.S. Mailing address and name of the person who sent you that letter. We need to overwhelm that person and NWA.
We also need to write NWA's Bd of Dir's to complain about their choice of Anderson, and how he is bad for business!

[rudymantel]

I wrote my original letter to Richard Anderson, CEO of Northwest.
The reply came from Chris Besener-Boulton, Administrator, Executive Communications. The mailing address is: Northwest Airlines, Inc.
P.O. Box 11875, St.Paul, MN 55111-0875.
Rudy

[GAHorn]

Since the time Northwest Airlines complained of General Aviation's useage of airports, the Metropolitan airports commission (MAC) has announced a planned 700% increase in general aviation fees for airports.
Simultaneously Northwest announced its four top executives, including Anderson, were granted more than $6 million in new stock bonuses, while at the same time the airline has reported a first-quarter loss of some $236 million.

If MAC plans to increase the fees, then General Aviation should demand equal facilities at reliever airports, including passenger waiting areas, access to the existing terminal buildings, with gates dedicated to General Aviation, and equal passenger facilities. The next time a GA airplane is stolen in MN perhaps the MAC should be sued for failure to provide security instead of blaming GA.
If I'm in the area, I plan to shoot at least one approach to a miss at MSP. If everyone did that it might affect NWA's time schedule just a bit more.
Maybe it would get NWA's attention.

If you are mad and haven't written Anderson AND their partner KLM, then get off your duffs.

[flyguy]

HIT ALL IS LOTS CLEERER NAOW. THAT CEO UV NWA THAT WEZA THINKIN WUZ SO IGGERNUNT, WUZNT SO CRAZIE AFTER ALL. HE WANT TU GIT ALL THEM THAT LIL OLE PLANES OFFN THEM RUNNYWAYS HE BOUGHT SO HIS PILOTS CAN LAN AT THE RONG AEROPORT AN NOT RUN SLAP INTA SUM DUM CESSNAS DRIVER.*

*NEWS STORY YESTERDAY INDICATES A NWA JET LANDED AT THE WRONG AIRPORT