Newark International Airport
Airline Competition Plan
Submitted by:
The Port Authority of New York and New Jersey
Submitted to:
The Federal Aviation Administration
As required to be submitted by:
The Wendell H. Ford Aviation Investment & Reform Act for
the 21
st
Century, Pub. L. 106-181, Section 155
Ms. Woodie Woodward
Acting Associate Administrator for Airports
Federal Aviation Administration
Room 600E, 800 Independence Avenue, S.W.
Washington, DC 20591
December 11, 2000
Re: Newark International Airport—Airline Competition Plan
Dear Ms. Woodward:
The Port Authority of New York and New Jersey (The Port Authority) is pleased to
provide
1
the Airline Competition Plan for Newark International Airport (EWR) as is
required to be submitted by The Wendell H. Ford Investment and Reform Act for the 21
st
Century (AIR-21), Pub L. 106-181. The Port Authority is keenly interested in ensuring
that residents and businesses in the region are provided with an airport system that
provides the highest levels of customer service, generates substantial economic benefits,
and provides a large and level platform for airlines to compete for passengers. We view
competition as essential to our thriving airport system and are dedicated to allowing
existing carriers the opportunity to expand operations and new airlines the opportunity to
serve this great metropolitan area. No other airport operator has done more to optimize
the operation and efficiency of its facilities to support airline competition.
Although the Port Authority is only required by law to submit a competition plan for
Newark Airport, that plan must be considered in the context of the overall system of four
airports and a commercial heliport owned or operated by the Port Authority within the
Port District, an area roughly 25 miles in diameter centering on the Statue of Liberty.
The Port Authority was created and exists by virtue of a compact entered into between
the states of NY and NJ which recited their confident belief that a better coordination of
transportation and commerce facilities in the Port of New York would have competitive
advantages and create great economies benefiting the nation and the States. That same
philosophy served as the underpinning for the Port Authority assuming operation of
regional aviation facilities in the late 1940’s. As a result it would be inappropriate for the
Airline Competition Plan for one airport, EWR, be viewed outside the competitive access
opportunities available within the entire Port Authority airport system. Within this
system, the businesses and residents of the New York/New Jersey region not only have
an enormous variety of non-stop destinations, and in fact more than anywhere else on the
globe, but also airline choices—over 100.
1
One copy of the Plan is enclosed, one copy was sent to Philip Brito, Manager of NYADO, and two have
been sent to Barry Molar, Manager of FAA Airports Financial Assistance Division.
We are continuously working to strengthen the airport system and one of the most
important methods entails addressing the airside and airspace constraints. Airside and
airspace constraints act as obstacles to increasing the number of passengers our airports
can accommodate, the number of airlines that can operate at the airport, and the quality of
service that passengers can expect. We applaud the FAA funding and support for airside
improvements such as high-speed taxiway turnoffs that are vital to increasing the
airports’ efficiency. These types of improvements are especially important as our
airports operate out of one of the world’s most densely populated and highly developed
geographic areas with virtually no opportunities for adding significant runway capacity.
2
Additionally, the New York/New Jersey metropolitan area’s airspace is the world’s most
congested and we are grateful for the FAA’s on-going efforts to expedite its redesign so
fewer aircraft remain immobilized on congested taxiways awaiting the opportunity to
depart.
We are also encouraged by the FAA’s recent announcements that during the next year it
will be looking at ways to encourage airport and airspace efficiency and airline
competition. We understand that FAA will be considering changing the way airlines are
charged for takeoffs and landings as part of a nation-wide plan to prevent the most
congested airports from reaching gridlock states. Our goal is to better use the scare
airport resources by encouraging airlines to use efficient aircraft and ensure the facilities
do not reach a gridlock state.
While maximizing airside efficiency the Port Authority is also looking at every
opportunity to upgrade and expand landside and terminal facilities. Building physical
capacity on the terminal and landside areas of the airport are paramount to allowing an
opportunity for new entrants to have a presence and providing incumbents expansion
possibilities. The Port Authority airports are in the process of a $14 billion construction
program aimed at expanding and modernizing the range of airport facilities from roads to
terminals to taxiways to ramp areas. We operate some of the nation’s oldest airports and
are grateful for the FAA’s past grants to assist in the modernization programs. However,
the majority of costs are covered by the users of the facilities, particularly the airlines,
whose support is essential in our goal of dramatically rebuilding our airports and
improving the passenger’s experience while at our facilities. While we look to the airlines
for partnering opportunities for these physical improvements, it is important that the Port
Authority maintains control over the capital investment planning process for common-use
infrastructure and can do so because of the absence of majority-in-interest clauses in our
leases.
We are currently in the process of updating our gate and ticket counter utilization studies
so we have the most current information and over the next year we will be looking for
ways to improve the utilization of those facilities. Also, we are reviewing additional
possibilities to expand terminal facilities at EWR. The additional gates would provide
the Port Authority with greater opportunities to accommodate new airlines as well as
existing airlines that are seeking to expand. We will also be looking at clauses in leases
2
For comparison, all of our airports combined can fit into the space occupied by Dallas/Fort Worth
Airport—twice.
as they come due to provide opportunities to maintain greater control over underutilized
facilities.
We are also very active at the other Port Authority system airports to encourage
competition. At JFK the Port Authority is currently working with jetBlue, a low-fare new
entrant, to assist with financing the design of a new terminal. The congested situation at
LGA caused by the increased number of regional jets has been widely reported and the
Port Authority is actively working with the FAA to fairly allocate this limited resource
initially with a lottery system and in the longer-term most likely with some form of
market mechanism. New entrants and flights to under-served markets are given special
consideration as we work with the FAA to assure competitive access to LGA in support
of the AIR-21 legislation.
We are grateful for the cooperative working relationship with the DOT and FAA aimed at
dealing with the ever-increasing growth at our airside and airspace constrained facilities
and look forward to further discussions to accommodate those pressures while providing
a positive experience for the travelling public. Airline competition is important for the
airports, our patrons, and the region’s economy, and something that we will continue to
strive to maintain and improve.
Sincerely,
William DeCota
Director
Aviation Department
Cc: S. Baer
P. Brito, FAA (with one report)
A. Graser
B. Molar, FAA (with two reports)
L. Scully
Newark International Airport
Airline Competition Plan
TABLE OF CONTENTS
1.0 The Port Authority’s Role and Mission 1
2.0 The Regional Airport System 3
3.0 The Aviation Department’s Strategic Vision 7
3.1 The Aviation Department Business Plan 7
3.2 Ensuring a Pleasurable Traveling Experience 7
3.3 Airport System Limitations 9
4.0 Airline Competition Strategy 11
4.1 Capitalize on Negotiating Opportunities 12
4.2 Administer Utilization Requirements 12
4.3 Alternate Business Arrangements for New Facilities 13
4.4 Continue to Pursue Airline System Concept 13
5.0 Current Gate Capacity and Leasing Arrangements 14
5.1 Availability of Gates and Related Facilities 17
5.2 Leasing and Subleasing Arrangements 23
5.3 Gate Assignment Policy 28
5.4 Gate Utilization 30
5.5 New Entrant/Gate Assignment Policy & Information 37
6.0 Financial Constraints 40
6.1 The Major Source of Revenue at the Airport for Terminal Projects 40
6.2 Rates and Charges Methodology 40
6.3 Past Use, if any, of PFC’s for Gates & Related Terminal Projects 40
7.0 Air Service Issues 42
7.1 Patterns of Air Service 42
7.2 Airport Controls Over Airside and Groundside Capacity 47
7.3 Construction or Acquisition of Common Use Gates 47
7.4 Airfare Levels Compared to Other Large Airports 49
8.0 Concluding Remarks 55
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
EWR Airline Competition Plan Page 1
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
1.0 The Port Authority’s Role and Mission
The Port Authority of New York and New Jersey (The Port Authority) is pleased to
submit this Competition Plan consistent with the requirements of Section 155 of the
Aviation Investment and Reform Act for the 21
st
Century, and the associated guidelines
developed by the FAA. The Port Authority operates one of the country’s most unified
airport systems that has a unique history and background because of its’ bi-state nature,
distinct facilities that include the nation’s first air traffic control tower and passenger
terminal, both at EWR, and the complexity of an airport system that is one of the world’s
largest. Therefore we are prefacing the presentation of our Competition Plan with a
discussion of our regional role and mission, and of our overall approach from our
Business Plan for ensuring a safe and pleasurable traveling experience for the public.
The Port Authority’s Role and Mission
The Port Authority is a bi-state agency formed by the States of New York and New
Jersey with the consent of the Congress. The Port Authority’s overall mission is to
develop and operate transportation and other facilities of commerce in the Port District,
the bi-state area within a twenty-five mile radius from the Statue of Liberty. The mission
of the Port Authority’s Aviation Department is to plan, develop, provide, promote,
operate and maintain a unified system of airport facilities. The Port Authority’s 1947 bi-
State air terminal legislation established our mission by explicitly recognizing that each
of the airports located in the bi-State port district serves regional needs and that their
unified operation is beneficial to the entire region. More specifically, the air terminal
legislation provides that:
“The States of New York and New Jersey declare and agree that each air terminal
within the Port of New York District serves the entire district, and that the
problem of furnishing proper and adequate air terminal facilities within the
district is a regional and interstate problem, and that it is and shall be the policy of
the two states to encourage the integration of such air terminals so far as
practicable in a unified system.”
The Port Authority operates the region’s airports and heliports as an aviation system in
the public interest with specific, vital and integrated roles based on regional needs and
each facility’s relative strengths and capabilities. The Port Authority operates five
aviation facilities that includes: John F. Kennedy International Airport (JFK); LaGuardia
Airport (LGA); Newark International Airport (EWR); Teterboro Airport (TEB); and
Downtown Manhattan Heliport (DMH). Each of the facilities has a specific mission in
that system. Newark International Airport is being nurtured as the region’s domestic hub
along with growing international connections. JFK is being nurtured as the Nation’s
premiere international passenger and cargo gateway with an increasing domestic
presence, and LGA is being nurtured as the region’s premiere business airport with
EWR Airline Competition Plan Page 2
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
emphasis on short and medium-haul operations. TEB will continue to serve as the general
aviation reliever for the region’s air carrier airports. The DMH is located on the east-side
of Lower Manhattan and is used by helicopters serving the immediate region.
While the Port Authority is only required by law to submit a competition plan for Newark
Airport, that plan must be considered in the context of the overall system of four airports
and a commercial heliport owned or operated by the Port Authority within the Port
District, an area roughly 25 miles in diameter centering on the Statue of Liberty. The
Port Authority was created and exists by virtue of a compact entered into between the
states of NY and NJ which recited their confident belief that a better coordination of
transportation and commerce facilities in the Port of New York would have competitive
advantages and create great economies benefiting the nation and the States. That same
philosophy served as the underpinning for the Port Authority assuming operation of
regional aviation facilities in the late 1940’s and remains true today.
EWR Airline Competition Plan Page 3
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
2.0 The Regional Airport System
The Port Authority operates one of the world's largest airport systems serving more
markets on a non-stop basis than anywhere else on the globe. The regional system, with
more than seventeen (17) terminals, is second worldwide in total annual passengers. Over
100 airlines serve the four Port Authority airports, including 31 US carriers, 71 foreign-
flag carriers and over a dozen cargo only or all-freighter airlines. These airlines fly non-
stop to 84 cities in the United Sates and nearly 100 cities around the world. The
following descriptions are intended to provide a quick overview of the five aviation
facilities that the Port Authority operates.
John F. Kennedy International Airport (JFK) has 10 terminals and is undergoing a
$9(+) billion redevelopment and expansion program that includes a new light rail system
for better airport access by public transportation. JFK is being nurtured as the Nation’s
premiere international and passenger gateway, with current emphasis on the Trans-
Atlantic corridor, and growing emphasis on the Trans-Pacific and South American
markets.
Newark International Airport (EWR) has three main terminals. EWR is in the middle of
constructing two new parking garages, expanding its terminals, building improved and
expanded roadways, and a monorail connection to the Northeast corridor train line. EWR
is being nurtured as the region’s integrated domestic and international hub.
Passengers* 32,752,356
Freight (in short tons) 1,752,167
Mail (in short tons) 153,238
Carriers 85
Domestic 23
International 62
Cities Served 125
Domestic 42
International 83
*Includes revenue and non-revenue passengers
JFK 1999 Data
EWR Airline Competition Plan Page 4
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
LaGuardia Airport (LGA) has a Central Terminal Building (CTB) and Delta and U.S.
Airways Terminals. The Marine Air Terminal (MAT) occupied by the Delta Shuttle is a
historic landmark. The airport also has direct ferry service to Downtown Manhattan.
LGA recently completed new concessions in the CTB and other passenger terminal
improvements. LGA is being nurtured as the region’s premiere business airport with
emphasis on short and medium-haul operations consistent with the 1,500-mile perimeter
rule.
Passengers* 35,087,567
Freight (in short tons) 1,084,660
Mail (in short tons) 121,120
Carriers 43
Domestic 21
International 22
Cities Served 129
Domestic 76
International 53
*Includes revenue and non-revenue passengers
EWR 1999 Data
Passengers* 24,857,854
Freight (in short tons) 22,392
Mail (in short tons) 57,051
Carriers 18
Domestic 16
International 2
Cities Served 65
Domestic 60
International 5
*Includes revenue and non-revenue passengers
LGA 1999 Data
EWR Airline Competition Plan Page 5
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Teterboro Airport (TEB) has nineteen hangars occupied by five fixed-based operators
and eight charter operators that provide aircraft and helicopter services. Teterboro is the
home of the New Jersey Aviation Hall of Fame museum, founded in 1972. It is also the
first airport to have a noise abatement monitoring committee and system. TEB is being
nurtured as the general aviation reliever for the region’s air carrier airports.
Downtown Manhattan Heliport (DMH), located on Pier 6, was the first heliport in the
United Sates to be certified for scheduled passenger helicopter service by the Federal
Aviation Administration. The DMH features a passenger terminal and is one of four
FAA designated national demonstration projects for the testing of the latest equipment to
enhance helicopter operations. The DMH will continue to serve both the tourism
industry as well as the high value courier business that is important to New York’s
financial services industry.
Combined Regional System
If there were only one commercial service airport in the New York/New Jersey region as
opposed to the three in existence today, that one airport would have over 92 million
passengers and almost three million tons of cargo. Because of the proximity the Port
Authority airports it considers them to a certain extent interchangeable as airlines and
passengers can chose among the facilities based upon their needs. But to another extent
as previously mentioned each facility serves different niches—JFK the premier
international gateway with long-runways, LGA the business airport with its close
proximity to the City and flight restrictions as a result of perimeter rules, EWR an
integrated domestic hub with growing international presence, TEB the general aviation
reliever airport for the region’s air carrier airports, and DMH serves both the tourism
industry as well as the high value courier business that is important to New York’s
financial services industry. Over 100 carriers serve the three airports and connect the
region to 182 cities throughout the globe.
Flight Movements 185,710
TEB 1999 Data
EWR Airline Competition Plan Page 6
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Passengers* 92,697,777
Freight (in short tons) 2,859,219
Mail (in short tons) 331,409
Carriers 109
Domestic 34
International 75
Cities Served 182
Domestic 84
International 98
*Includes revenue and non-revenue passengers
Summary 1999 Data
JFK, EWR & LGA
EWR Airline Competition Plan Page 7
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
3.0 The Aviation Department’s Strategic Vision
3.1 The Aviation Department Business Plan
The Port Authority’s Aviation Department has assembled a Business Plan whose purpose
is to guide development of the airport system for the next four years. The Strategic
Vision for the Aviation Department is to provide the region with unsurpassed global
access, restoring the region to its renowned, preeminent, dominant status as the Nation’s
state of the art gateway for passengers and cargo. This Vision is key to ensuring airline
competition by providing an airport with expanding capacity and an attractive and user-
friendly facility to maintain the constant flow of travelers which all airlines depend.
Severely space-constrained facilities will ultimately limit expansion by existing airlines
and the ability of new entrants to establish a presence. The following bullets highlight
some of the Business Plan’s goals such as ensuring sufficient capacity and customer
service levels:
Ensuring that excellent customer service is delivered to passengers and shippers by
Aviation, the airlines, contractors, tenants and concessionaires;
Ensuring the timely renewal of airport infrastructure, providing adequate airport
capacity and tenaciously advancing the planning and development cycle;
Ensuring that the region is a key hub in the global transportation network;
Maintaining supportive, productive and mutually beneficial relationships with our
partners, facility owners, airlines and host communities; and
Most importantly, by the Aviation Department of the Port Authority, continuing to be
the manager, operator and developer of the region’s aviation system.
The Port Authority strongly believes its strategic vision and overall department
planning practices have facilitated enormous investment in terminal facilities and that
those practices have tended to preserve and enhance our ability to assign capacity to
new entrants. The following priorities are identified in the Business Plan, are relevant to
the Competition Plan, and are discussed in greater detail.
3.2 Ensuring a Pleasurable Traveling Experience
The Competition Plan for EWR, including the gate use requirements, availability of gates
and related facilities, leasing and sub-leasing arrangements, patterns of air service, gate
assignment policy, financial constraints, airport controls over air- and ground- side
capacity, creating common use gates, and airfare levels, must all be considered in the
EWR Airline Competition Plan Page 8
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
context of our regional role and mission, and our overall approach to ensuring a
pleasurable travel experience for the public.
Our region continues to enjoy the greatest choices of air travel through the largest and
most diverse airport system in the world. These choices include over 100 air carriers (31
US-flag carriers and 71 foreign-flag) providing over 1.4 million flights to over 180 non-
stop destinations. They serve 92 million passengers and handle 2.8 million tons of cargo
and 331,000 tons of mail annually. In addition to maintaining and improving competition
among airlines, ensuring a pleasurable traveling experience for the public also requires a
focus on service excellence and adequate capacity.
Service Excellence - The Port Authority has successfully fostered a public/private
partnership that has provided enormous investments in new facilities for the region’s
airport system. The Port Authority will also build on the background of its joint
efforts with JD Power and Associates, and focus on developing, implementing,
measuring and enforcing compliance with service standards for itself, and for the
various services delivered by the airlines, contractors, tenants and concessionaires, in
the operation of these facilities. This will require a business strategy of gaining and
asserting greater influence over service delivery by the private sector.
An example of The Port Authority’s very active role in ensuring service excellence is
its issuance of a moratorium on additional flights at LGA when faced with a potential
increase of over 600 flights that would be possible as a result of AIR-21. The Port
Authority took a leadership position and informed the airlines that it would not allow
the airport to reach a gridlocked state and that if the airlines would not voluntarily
agree to shift flights the Port Authority may take further action. The resulting
inaction by the airlines forced the Port Authority to require them to move flights from
certain time slots where such activity exceeded the airport’s capacity. It was also
recommended that airlines shift those flights to JFK. The FAA and the Port
Authority are now in the process of investigating the use of a lottery system to
allocate flights during certain time periods and over the longer-term is researching the
use of other methods such as congestion pricing. As usual the Port Authority looks
forward to the input and assistance of the FAA and DOT during this process to ensure
service excellence for the airport patron is maintained.
Adequate Capacity - The Port Authority is addressing capacity issues at all three of
its commercial aviation airports focusing on the four key elements of air travel:
Landside Capacity, Terminal Capacity, Airside and Airspace Capacity. During the
last decade passenger growth at EWR has risen over 60 percent to nearly 35 million
air passengers. The Port Authority is addressing landside and terminal capacity
constraints resulting from that dramatic growth with significant investments both by
the airlines and the Port Authority. The redevelopment program will include the
Continental Airlines Global Gateway Project at Terminal C, two new parking
garages, new Central Terminal Area roadways, new roadway connections from the
southern part of the airport, additional aircraft expansions to the fuel farm, the
extension of the Monorail to the Northeast Corridor’s NJ Transit and Amtrak rail
EWR Airline Competition Plan Page 9
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
service, improvements to all terminals, and a new control tower being constructed by
the FAA. The specific objectives of the EWR construction projects are to:
Implement infrastructure improvements necessary to accommodate current
conditions and projected growth;
Provide assistance to airport tenants planning to expand their operations;
Ensure that projects are consistent with long-range plans for the facility and
are environmentally sound; and
Promote economic growth in the region.
The construction investment being made by the Port Authority, airlines and FAA
is as follows:
EWR Construction
EWR Redevelopment Program-Roadways, Parking
Structures, Airport Admin. Bldg.
$780 million
Continental Airlines Global Gateway Project $800 million
EWR Monorail & NEC Extension
1
$769 million
Runway & Taxiway Improvements $160 million
Cargo Facilities $310 million
FAA Air Traffic Control Tower $ 22 million
Terminal A & B Improvements $710 million
Other Airport Improvements $330 million
Total Investment $3.8 billion
Airline Competition - Building on a history of success consistent with our unified
system approach as previously discussed and each airport’s defined role, the Port
Authority has created a system offering the most choices to the most places in the
world for the benefit of the New York/New Jersey region. Within this system there
are 109 airlines operating at JFK, EWR and LGA. Almost one-half of those are
operating at EWR with 43 airlines about evenly split between domestic and
international-flag carriers.
3.3 Airport System Limitations
A significant constraint that the region’s airports face is airspace capacity. It is
significant to note that over the past decade, Port Authority airport system has
accommodated more aircraft operations, passengers and cargo than any other airport
complex in the world. However, over that same period the region’s three major airports
have had the dubious distinction of being among the ten most delay-prone in the country,
1
The NEC Connection is the Northeast Corridor extension of the EWR airport monorail system. The
NEC will connect the airport monorail with the Amtrak and New Jersey Transit trains that use the
Northeast Corridor train line.
EWR Airline Competition Plan Page 10
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
costing the region’s airlines over $200 million per year in terms of aircraft direct
operating costs and resulting in 17 million annual passenger hours of delay. In the last
several years EWR has had the greatest delays of any airport in the country and, most
recently, LGA has ranked second and JFK has been ranked in the top ten. While weather
is a contributor, other factors include airspace constraints, air traffic control staffing and
equipment, and noise abatement procedures to minimize noise over communities
surrounding the region’s airports—all of which require Federal recognition and funding
to address. The Port Authority is working with the FAA to identify and implement
airspace redesign, air traffic control procedural improvements, equipment upgrades,
airfield modifications, and other measures to mitigate the discrepancy in airfield and
airspace capacity between what exists and what is demanded by all of the aircraft using
these facilities.
EWR Airline Competition Plan Page 11
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
4.0 Airline Competition Strategy
The Port Authority is committed to the goal of making its airport facilities, including
EWR, available on a reasonable basis to all carriers wishing to use them. To this end,
EWR’s Competition Plan must be developed in the context of:
A regional aviation system operated by the Port Authority, and each airport’s role
within the system; and
Ensuring a pleasurable traveling experience for the public through adequate capacity,
service excellence and airline competition.
Based on Port Authority management policies as well as existing conditions at our
airports, we do not believe that there is a barrier to competition for carriers wishing to
initiate new or additional air service for the region. Certain policies and a lack of
airport facilities have apparently been identified by others as a barrier to entry at some
airports and, while the Port Authority’s airports do face some capacity constraints, the
Port Authority is aggressively working to overcome the perception of barriers.
Approximately $4 billion is being spent to upgrade and expand facilities at EWR and an
additional $10 billion at JFK and LGA.
New entrant airline accommodation in the New York/New Jersey region involves both
system and airport perspectives. At the system level, the Port Authority Aviation
Department located in the World Trade Center works to foster air service development
for the benefit of the region consistent with these objectives. At the airport level under
the direction of the airport General Managers and Assistant Director of Properties,
Property Managers at JFK, LGA and EWR implement those strategic policies by
negotiating lease terms that govern airline terminal occupancy and use.
To effectively exercise this capability, however, airline utilization rates should be
analyzed regularly consistent with applicable lease terms governing required use.
Responding fully to the concerns over airline competition will require that airports be
more proactive in anticipating and responding to new entrant airline requests. For the
Port Authority, this enhanced level of involvement in capacity administration would be
made more effective with certain changes to lease provisions and statistical reporting
practices, and by regularly conducting and disseminating gate utilization and scheduling
analyses.
In recognition of this context identified at the beginning of this section, we have
formulated a four-tier competition plan and strategy for EWR that is designed to:
Capitalize on negotiating opportunities to change the perceived barriers to entry;
Be more proactive in administering capacity;
EWR Airline Competition Plan Page 12
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Pursue alternative methods of financing and leasing expanded terminal capacity that
will enhance competition; and
Continue to pursue the regional airport system concept.
4.1 Capitalize on Negotiating Opportunities
The Port Authority will capitalize on opportunities to negotiate better forced
accommodation provisions applicable to certain master airline lessees, and to the extent
possible uniformly apply those provisions to all existing master lessees. Those
opportunities occur when agreements require changes either at the request of the Port
Authority or the tenant such as changing leasehold space, changes in fees and charges
such as changes in the monorail fee, or a request by a tenant to lease space to a subtenant.
It should be noted that some airline tenants are investing hundreds of millions of dollars
to increase capacity at EWR specifically because they need additional gate capacity and
therefore only when their facilities are underutilized would the opportunity to
accommodate others exist. Negotiating opportunities will be used to provide the Port
Authority with the opportunity to include imposed accommodation provisions that are
possible, practical and sustainable if required to be implemented. Some of the particular
changes that can be considered in future negotiations could include:
Eliminating a required 30-day notice of intent to exercise the forced accommodation
provision, and the associated submission and implementation of utilization plans by
master lessees that may be used to avoid forced accommodation;
Reducing the six months advance notice of forced accommodation to 90 days; and
Utilize or capitalize on opportunities (at EWR, LGA or JFK) to renegotiate existing
long-term leases and strengthen language related to utilization of gates.
4.2 Administer Utilization Requirements
The Port Authority will also develop a program to regularly assess and advise each
master airline lessee of its utilization rates consistent with lease provisions concerning
requesting airlines at the Airport, forced accommodation, and facility take-back. This
ongoing process will be the precursor to any Port Authority–imposed accommodation.
Ways will be investigated to improve the administration and documentation of the
“commencement basic schedule” requirement of each master airline lessee. The
commencement basic schedule is the basis of comparison for determining if an airline is
meeting its gate utilization requirements.
EWR Airline Competition Plan Page 13
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
4.3 Alternative Business Arrangements for New Facilities
The Port Authority will consider alternative methods of financing and leasing that will
enhance airline competition when new facilities are constructed. These alternative
methods may include common use and/or short-term leases, and the use of PFCs to
finance terminal expansion. For example, Terminal A may have space to be expanded
from the existing 27 gates to approximately 43 gates. Depending on the allocation of
funds some of those gates could be funded through the use of PFCs and thereby allow
those gates to be used as common-use facilities with short-term leases. As previously
stated policy decisions such as allocating funds for the construction of new gates can only
be authorized by the Port Authority Board.
4.4 Continue to Pursue Airline System Concept
It is possible that one of the other Port Authority airports would satisfy the needs of the
new entrants. The Port Authority will continue to operate the airports as a system and
encourage the use of its other facilities if one particular time slot is not available for a
new entrant. The role of the Port Authority’s World Trade Center Aviation Department
staff plays a particularly important role in ensuring this process operates properly.
EWR Airline Competition Plan Page 14
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.0 Current Gate Capacity and Leasing Arrangements
EWR accommodates approximately 15 million enplaned passengers annually with three
terminal complexes that have 92 aircraft gates and 349 ticket counters. Eight signatory
and 38 non-signatory air carriers use the three terminals designated as Terminals A, B
and C. Each terminal is divided into four levels including Departures, Arrivals, a
Concourse and a Parking/Operations Services level and each terminal has multiple
satellites stemming from the main terminal building where aircraft boarding gates and
loading bridges are located. The ground floor of the satellites consists of the airlines’
ground support and operations level and parking.
Ticket counters are located on the Departures level of each terminal. Airline bag claim
and ground transportation can be found on the Arrivals level and the satellite access
corridors are considered the Concourse level. Airline administrative offices are located
throughout the terminals, some can even be found off the corridors to the satellite
facilities.
Some of the facilities are designated for domestic use and others are designated for
international use. The Port Authority is responsible for the allocation of these facilities
consistent with its mission to develop and operate a unified airport system for the region.
It uses separate methods of gate and counter allocation for the domestic and international
operations as discussed below. In summary, the domestic gates are exclusively leased
and the international gates are common use.
Domestic Operations - The Airport’s domestic operations are conducted from 77
aircraft gates and 261 airline ticket counters located in Terminals A, B and C. This
equates to 84 percent of total gates and 75 percent of total ticket counters designated
for domestic use. The Port Authority has allocated these assets to eight master
passenger airline lessees through the use of long term exclusive use leases that
support the financing and operation of those facilities. The master passenger airline
lessees are Continental, United, USAir, TWA, American, Northwest, Air Canada
2
,
and Delta. Through subleases and handling agreements, the master lessees
accommodate 19 additional airlines offering service on their gates and counters.
International Operations - International operations are conducted from 15 aircraft
gates and 88 airline ticket counters located in Terminal B. This equates to 16% of
total gates and 25% of total counters being reserved for international use. Twenty-
two air carriers provide international service from these facilities. Some of these
carriers also utilize domestic facilities. The international assets are controlled and
allocated by the Port Authority pursuant to its Operating Guidelines for Use of the
International Arrivals and Departures Facility. This document references the
2
Air Canada has a month-to-month lease that can be extended for no longer than five-years (expires in
2003).
EWR Airline Competition Plan Page 15
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Scheduling Procedures Guide of the International Air Transportation Association, and
the semi-annual proceedings of its Scheduling Committee, as the procedures through
which international operations at the Airport are scheduled. Being scheduled in this
manner means that the Port Authority will accommodate the flight through the
Airport’s international facilities subject to its Operating Guidelines.
The table below identifies the terminals and satellites showing which are domestic and
which are international as well as the operator and number of gates. The map on the
following page shows the airport layout and location of those gates.
Terminal
Counters
Satellite
Use
Operator
Total Gates
Total Bridges
A-1
Domestic
Airline
8
8
A-2
Domestic
Airline
9
9
A
95
A-3
Domestic
Airline
10
18
B-1
Domestic
Airline
7
10
B-2
Int’l.
PANYNJ
7
12
B
126
B-3
Int’l.
PANYNJ
8
8
C-1
Domestic
Airline
25
25
C-2
Domestic
Airline
13
13
C-3
Domestic
Airline
0
0
C
128
C-4
Domestic
Airline
5
5
TOTAL
349
92
108
EWR Airline Competition Plan Page 16
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Drawing 1 – Terminal Facilities – Newark International Airport
EWR Airline Competition Plan Page 17
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.1 Availability of Gates and Related Facilities
All of the Airport’s domestic gate and counter facilities, which include those in Terminals
A and C and Satellite B-1, have been allocated pursuant to long term exclusive leases
with the eight master passenger airline lessees including United, US Air, American,
TWA, Northwest, Delta, Air Canada and Continental. The eight domestic master airline
lessees accommodated an additional 17 airlines on their gates and counters in August and
December of 1998 through sub-leases and handling agreements. These sub-leasing or
handled airlines provided 13 percent of total domestic departures and 11 percent of the
departing seats and enplaned passengers. The master airline lessees and the at-gate sub-
lessees or handled airlines are listed below:
Terminal A
United - Also handles AirTran and United Express.
US Airways – Also handles Allegheny, National Airlines, and US Airways Express.
American - Also handles Midway Airlines
TWA - Does not handle others at Newark
Continental - Also handles America West
Air Canada - Also handles Air Alliance, Canada Air, Chautauqua, Commet Air and
Spirit
The re-allocation or airlines within Terminal A will result in United Airlines releasing
seven underutilized gates so that Air Canada could directly lease three gates from the Port
Authority. The new lease with Air Canada is short term rather than long term and
requires Air Canada to handle at least one additional carrier that is currently not a master
lessee. This recapturing of gates will result in more effective utilization of Terminal A.
Terminal B
American, TWA, United and Continental – Arrival operations in the International
Terminal
Northwest - Does not handle others at Newark
Delta - Also handles Swiss Air, Sabena and Midwest Express.
International Carriers - Nineteen regularly scheduled foreign flag carriers operated
in Satellites B-2 & B-3 pursuant to Port Authority and IATA permits and procedures.
They are not considered master lessees, sub-lessees or handled airlines.
Terminal C
Continental - Includes Continental Express and handles Air France and Alitalia.
The availability of gates and related facilities must also be considered in the context of
lease terms concerning utilization rates, and the policy on monitoring use, which is
discussed in the next two sections of this Competition Plan. As a prelude to that
EWR Airline Competition Plan Page 18
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
discussion, certain utilization rates are summarized below for the period before and after
the Terminal A re-allocation.
EWR Terminal Utilization Rates
Domestic Intern’l.
Existing Allocation/Utilization
Terminal A Terminal B-1 Terminal C Terminal
B-2 & 3
3
Daily Departures Per Gate 5.07 6.34 7.72 4.73
Daily Departing Seats Per Gate 642.17 940.64 942.77 341.13
Daily Enplaned Passengers Per Gate 422.46 704.53 595.67 286.76
Ultimate Allocation/Utilization
4
Daily Departures Per Gate 5.15 6.34 7.68 1.33
Daily Departing Seats Per Gate 651.00 940.64 937.47 341.13
Daily Enplaned Passengers Per Gate 428.11 704.53 592.28 286.76
Change in Allocation/Utilization
Daily Departures Per Gate 0.08 ---- (0.05) ----
Daily Departing Seats Per Gate 8.83 ---- (5.30) ----
Daily Enplaned Passengers Per Gate 5.65 ---- (3.39) ----
5.1.1 Number of gates available at the airport by lease arrangement, i.e., exclusive,
preferential, or common use.
There are 92 gates available at EWR of which 77 are exclusive use and 15 common-use
gates in the international terminal.
5.1.2 Gate-use monitoring policy.
The Port Authority controls and monitors the schedule for the 15 common-use gates in
Terminals B-2 and B-3. The operations at these gates are conducted in accordance with
the Port Authority’s Operating guidelines for Use of the International Arrivals and
Departures Facility and the International Air Transportation Association’s Scheduling
Procedures Guide. The Guidelines were designed with the objective of moving the
maximum number of people through the facility with minimal inconvenience and
optimum security. The Guidelines describe the proper use of the facilities, airline
staffing and scheduling requirements and the assignment of assets including gates and
ticket counters. Initial requests to use the international facilities are submitted to the Port
Authority’s General Manager, New Jersey Airports. This is followed up by a meeting
with the Port Authority’s Principal Property Representative, and customs approvals for
3
The international facilities are more heavily weighted toward arrivals than departures, departing seats and
enplaned passengers and therefore it would not be appropriate to use departures per gate. International
terminal ramp schedule data indicates that total international carrier gate uses (arrivals, departures and
turns) averaged 4.73 per gate in August and 4.19 per gate in December, 1998.
4
Ultimate Allocation are projections of utilization when the airlines have moved to their new Terminal A
ticket counter and gate assignment as specified in recently executed agreements estimated to be completed
by approximately December 2001.
EWR Airline Competition Plan Page 19
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
arriving flights. Since Newark International is a “coordinated airport”, its on-going
international flight schedules are prepared by the scheduling committee of the
International Air Transportation Association. IATA meets semi-annually to prepare
future semi-annual flight schedules one year in advance. Proposed schedules are
submitted to an airline elected coordinator who represents all international airlines
operating at Newark International at the scheduling meeting. Unresolved conflicts are
referred to the Port Authority, which will consider requests for revisions en mass and
may impose a deadline after which no changes will be made.
The Port Authority assigns the terminal facilities needed to accommodate international
flights pursuant to processes and priorities also established in the Operating Guidelines.
Frequent communications with Port Authority gate management staff are required so that
gate assignments may be updated regularly and reflect the latest expected time of arrivals.
Ticket counters are assigned based on the approved IATA flight schedule and pursuant to
a shared ticket counter program that permits airlines to occupy counters for up to three
hours before and one hour after the scheduled departure time. The shared counter
program utilizes a space permit agreement. The Port Authority provides common use
terminal equipment at the departure ticket counters, gate, ticket pull stations and airline
service desks. Aircraft gate assignments are made pursuant to a priority system that
reflects certain customer service minimum standards.
The Airports international facilities are first reserved for international operations.
Domestic flights may only be accommodated during off-peak hours if they do not
conflict with the primary international uses. International arrivals take precedence over
international departures in the assignment of gates. The Port Authority may direct that
departures be rescheduled or relocated to another terminal and must so notify affected
airlines after it receives the IATA schedule. International carriers that are also master
airline lessees of domestic space at Newark International are required to use their
domestic space for the international departures as well. The Port Authority may grant
exceptions to this requirement. A maximum wait of two hours for arriving flights to be
assigned a gate has been established and the Port Authority maintains a permanent record
of gate assignments, including processing times, to ensure fair and reasonable
assignments. The order of assignment priority listed in the Operating Guidelines is as
follows:
Scheduled, all year, international flights
International charter flights, off-peak
International diversions
Scheduled domestic flights, off-peak
Domestic charter flights, off peak
Domestic diversions
EWR Airline Competition Plan Page 20
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.1.3 Differences, if any, between gate-use monitoring policy at PFC-financed,
facilities, facilities subject to PFC assurance #7, and other gates.
No gates were financed with PFC’s.
5.1.4 Has the PFC competitive assurance #7 operated to convert previously
exclusive-use gates to preferential-use gates or has it caused such gates to
become available to other users?
No gates were financed with PFC’s.
5.1.5 Gate Utilization (departures/gate)
The gate utilization is highest in Terminal C with 7.7 daily departures per gate, followed
by Terminal B-1 and Terminal A. The International Terminal gates in Satellites B-2 and
B-3 are used primarily to accommodate inbound traffic and the total international gate
use averaged 4.73 in August 1998. International flights must arrive at Terminal B-2 or
B-3 as those gates are the only location on the airport to process passengers through
customs and immigration; international flights can depart from gates at any other of the
airport terminals.
EWR Terminal Utilization Rates
Domestic Intern’l.
Existing Allocation/Utilization
Term. A
Term. B-1
Term. C
Terminal
B-2 & 3
5
Daily Departures Per Gate 5.07 6.34 7.72 4.73
Daily Departing Seats Per Gate 642.17 940.64 942.77 341.13
Daily Enplaned Passengers Per Gate 422.46 704.53 595.67 286.76
Source: Aircraft Gate and Ticket Counter Utilization Study, Louis Berger Group, June 1999.
5.1.6 Policy regarding “recapturing” gates that are not being fully used.
The Port Authority has the option as provided for in the Master Leases to require one of
the Master Lessees to accommodate the new entrant based on gate utilization.
Specifically a base year or commencement utilization is established for each of the
Master Lessees based on revenue seats daily average. The Port Authority has the right to
terminate all or a portion of the letting of the premises if, because of reasons within the
Master Lessees control, the Master Lessees revenue seats daily average for the
5
Intentionally Repeated Footnote: The international facilities are more heavily weighted toward arrivals
than departures, departing seats and enplaned passengers and therefore it would not be appropriate to use
departures per gate. International terminal ramp schedule data indicates that total international carrier gate
uses (arrivals, departures and turns) averaged 4.73 per gate in August and 4.19 per gate in December, 1998.
EWR Airline Competition Plan Page 21
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
immediately preceding calendar year is less than 60 percent of the base year utilization or
for reasons not within its control a 60 percent reduction over a two year period. The Port
Authority must give a six-month notice of the termination determination. Prior to issuing
the six-month notice it must give a 30-days prior written notice of its intention to give the
termination. The Port Authority is restricted from proceeding with such termination if
the Master Lessee provides definite plans for utilization and commences such use within
90-days of the submission of the utilization plans. The two provisions apply to all the
Master Lessees.
An additional condition applies to five airlines whose leases have recently been
renegotiated and include Air Canada, Continental TWA, United and US Airways. The
additional restriction includes a minimum of three aircraft operations per aircraft gate
position each and every calendar day for the immediately preceding three months.
Therefore, if any of the three provisions are not met the Port Authority can start the
notification process with the airline.
The length of time between when an air carrier initially contacts the airport and could
begin serving it greatly depends on the carrier, their scheduling requirements, and
whether they are a domestic or international carrier. It has varied from as little as two to
three months to almost one year. The Port Authority requests all new entrants to provide
as much time as possible given the high demand, but works as much as possible within
the timelines provided by the air carriers.
5.1.7 Use/lose or use/share policies for gates and other facilities.
See Section 5.1.6.
5.1.8 Plans to make gates and related facilities available to new entrants or to air
carriers that want to expand service at the airport; methods of
accommodating new gate demand by air carriers at the airport (common-
use, preferential-use, or exclusive-use gates); and length of time between
when an air carrier initially contacts the airport and could begin serving it.
To accommodate the 60 percent growth in EWR passengers over the past decade
approximately $3.8 billion is being spent on improvements and include the following:
Capital Investments Cost
EWR Redevelopment Program: roadways, parking structures,
airport administration building
$780 million
Continental Airlines Global Gateway Project $800 million
EWR Monorail and NEC Extension $769 million
Runway and Taxiway Improvements $160 million
Cargo Facilities $310 million
FAA Air Traffic Control Tower $22 million
EWR Airline Competition Plan Page 22
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Terminal A and B Improvements $710 million
Other Airport Improvements $330 million
Total Investment $3.8 billion
These investments include the expansion of ticket counters and gates at Terminal C.
Additionally the Port Authority completed in 1996 the expansion of Terminal B into an
International Terminal with common use gates and is in the planning stages for the
expansion of Terminal A. The Port Authority encourages private investment in its
facilities and works with airlines seeking to expand. Continental Airlines is investing
several hundred million for the expansion of Terminal C. However, just a decade ago
when the Port Authority proposed the expansion of Terminal B into an International
Terminal no airlines were willing to make the long-term investment. Therefore the Port
Authority expanded the terminal that was completed in 1996 and that is operated as a
common use gate facility. As identified, the terminal and ground capacity is increasing.
The most significant constraint on competition now and in the future is airspace capacity.
Until the airspace design is completed and has positive benefits on the airports the
airspace congestion will continue to pose the most substantial obstacle to improving the
efficient operation of the Port Authority airport and their capacity.
The expanded gates at Terminal C are exclusive use gates leased to Continental Airlines
who is investing substantial capital in the expansion project. The expansion of Terminal
B1 and B2 into the International Terminal was financed by the Port Authority and is
managed as common use gates with preference being given to international operations.
The possible expansion of Terminal A is still early in the planning stages.
5.1.9 How are complaints of denial of reasonable access by a new entrant or an air
carrier that wants to expand services resolved?
If a new entrant is unsuccessful in reaching an agreement with a master airline lessee the
Port Authority works actively with the new entrant to locate a suitable location at EWR
or one of the other Port Authority airports. The constant high demand for airport gates
means that the new entrant may need to be somewhat flexible as they may not get the
exact time slot initially requested.
5.1.10 Number of carriers in the past year that have requested access or sought to
expand, how were they accommodated, and the length of time between any
requests and access.
Excluding charter airlines, seven scheduled airlines have requested access to Newark
International Airport within the last year. These include Canadian Air International,
Canadian Regional Airlines, Piedmont Airlines, National Airlines, AirTran, Canada 3000
and Egypt Air. Each of these seven airlines had commenced flight activity at the Airport
on the date requested. Three of the airlines were handled and accommodated by their
parent company in Terminal A (Air Canada handled Canadian Air International and
EWR Airline Competition Plan Page 23
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Canadian Regional; USAirways handled Piedmont). National Airlines will be utilizing a
USAirways gate in Terminal A. AirTran was originally using Terminal B gates at the
International Facility and is now accommodated by United Airlines in Terminal A.
Egypt Air is the newest international carrier to commence service from the Port
Authority’s International Facility in Terminal B. Canada 3000’s scheduled charter
activity was accommodated in the Terminal B International Facility as well. The length
of time between the request and when the carrier was accommodated ranged from a few
months to up to a year depending on the airline requirements.
An additional airline (United Arab Emirates) requested and received information and a
presentation regarding the potential startup of operations at EWR in 2002.
5.2 Leasing and Subleasing Arrangements
As noted above, the Port Authority uses separate leasing and subleasing arrangements for
the domestic and international operations. The domestic gates are exclusively leased and
the international gates are common use. Leasing and subleasing arrangements are
addressed in more detail below:
5.2.1 Whether a subleasing arrangement with an incumbent carrier is necessary to
obtain access.
The Port Authority has entered into long-term exclusive use leases with eight master air
carriers for the domestic operations conducted from Terminals A and C and Satellite B-1.
The master leases at Terminal A were recently extended for the twenty-year term ending
in 2018 with two exceptions that includes Air Canada. The other exception is the
Terminal C lease that expires in 2028. The master leases and supplements thereto are the
same for all airlines with the exception of some business terms and conditions specific to
the particular airline. The master leases cover both exclusive use and non-exclusive use
space. The exclusive space includes the gates, ticket counters and operations space.
While long term, exclusive master leases have been used, the Port Authority has
protected its rights to assign capacity to new entrants and is sensitive to the concerns and
guidelines expressed in AIR-21 and the related reports and testimony. These rights and
sensitivities are demonstrated in three ways. The master leases contain relevant
provisions regarding new entrant airline requests to be accommodated, the Port Authority
has maintained rights of accommodation related to facility utilization, and the Port
Authority has recently negotiated a lease amendment to strengthen these provisions. The
following are the master lease provisions:
Requesting Airlines at the Airport - This provision mandates that airlines with master
leases use their best efforts to accommodate requests to provide scheduled service by
airlines that do not possess a master lease. If the airline with the master lease is unable to
reach an agreement to accommodate the requesting airline, the master lessee is required
to so advise the Port Authority, which in turn makes a final determination of the master
EWR Airline Competition Plan Page 24
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
lessee’s ability to accommodate the requesting airline. The Port Authority analyzes
specific requests for flight accommodation. The Port Authority’s determination includes
consideration of the nature and extent of the operations to be accommodated including
the master airlines’ utilization of the premises or a bona fide plan for future utilization.
Port Authority considerations also include the necessity for the flights, flight times,
operations, operating practices and aircraft equipment proposed by the requesting airline,
and the need for labor harmony.
Additional Rights of Termination by the Port Authority - This provision gives the
Port Authority the right to take back portions of the leased premises in the event that the
master airline lessee under-utilizes them. To provide the mechanism to determine
utilization, the master leases establish what is referred to as the lessee’s commencement
basic schedule, which reflects the lessee’s average daily revenue seats on its departing
flights. Each year, the Port Authority may calculate a master airline lessee’s revenue
seats daily average based on the official airline guide or other appropriate report, and the
aircraft equipment scheduled on published departures during the two weeks including
February 15
th
and August 15
th
. In the event that the revenue seats daily average is less
than 60 percent of the commencement basic schedule, the Port Authority may terminate
the lease with respect to portions of the premises determined to be under-utilized. A six-
month notice of termination is required and must be preceded by a 30-day notice of intent
to terminate. During this 30-day period, the lessee may submit plans for utilization of the
affected space. The termination may not occur if the lessee commences such utilization
within 90 days of submission of the plan.
New Lease Amendment - The Port Authority recently concluded negotiating an
amendment to the master leases with United, US Airways, TWA and Continental.
Negotiations have also recently been completed for new master leases with Air Canada
and Continental in Terminal A. This agreement facilitates the exchange of space between
the airlines involved and results in the net availability of three gates, 12 ticket counters
and support space for direct lease by the Port Authority to Air Canada for up to a five-
year term. During this period of time, planning and financing for new gate construction is
to occur. The Air Canada lease requires it to handle at least one non-signatory air carrier.
As part of this negotiation, the Port Authority further strengthened its ability to assign
capacity to new entrants.
The additional rights of termination discussed above were modified to provide the
Authority with the right to require the airlines to make available accommodations for new
entrants in the event the airline’s revenue seats daily average falls below 60 percent of its
commencement basic schedule, or the airline fails to operate a minimum of three aircraft
turns per gate position each calendar day for a period of three months. The movement
from termination to forced accommodation is viewed as strengthening the Authority’s
ability to assign capacity to new entrants for several reasons including:
Addition of the minimum use per gate requirement.
EWR Airline Competition Plan Page 25
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Accommodation has been defined to include necessary ramp and gate capacity,
ticketing, check-in, bag handling, FIDS, lounge and waiting areas, etc.
Handling agreements used to accommodate new entrants are subject to the prior and
continuing written consent of the Port Authority and the master airlines must consult
with and inform the Port Authority of all aspects of their accommodations.
Accommodations via sublease of exclusive space are subject to the same continuing
written consent and oversight as handling agreements.
The Port Authority has specified its right not to consent to service requirements
included in handling agreements or subleases, and the handled airline’s right to secure
catering, fuel, ramp and other services as it chooses.
Requires that handling agreements and subleases be at reasonable, non-discriminatory
rates based on a pro rata recovery of the lessees operating, maintenance, investment
and service costs.
Narrowly defines the conditions under which a lessee may request that The Port
Authority not require accommodation as those resulting in immediate and
unremediable labor disharmony that would seriously affect the operation of the lessee
on the premises.
5.2.2 How the airport assists requesting airlines obtain a sublease.
New entrants who are requesting space at EWR are instructed to contact the master lessee
airlines at EWR. While Port Authority approval is needed prior to the execution of a
sublease agreement, the negotiations on the terms of the gate occupancy are left to the
new entrant and incumbent airline. If the airline is not able to accommodate the new
entrant it is required to provide the new entrant with its decision in writing. When an
agreement cannot be reached the Port Authority uses its influence to negotiate on behalf
of the requesting airline to locate suitable gate times. Because of the continuous high
demand for gates at EWR the Port Authority may need the requesting airlines to be
flexible in terms of its scheduling requirements.
As a matter of policy, the Port Authority’s determination for accommodation includes
consideration of the nature and extent of the operations to be accommodated, including
the master airlines’ utilization of the premises or a bona fide plan for future utilization;
and the necessity for the flights, flight times, operations, operating practices and aircraft
equipment proposed by the requesting airline, and the need for labor harmony.
International operations are conducted at Newark International Airport pursuant to Port
Authority Operating Guidelines for Use of the International Arrivals and Departures
Facility and the International Air Transportation Association’s Scheduling Procedures
Guide. The master long term exclusive use leases discussed above for the Airport’s
EWR Airline Competition Plan Page 26
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
domestic terminal facilities are not used for the international facilities in Terminal B and
Satellites B-2 and B-3. Space permits and fee schedules are used in lieu of leases.
Operating Guidelines - The latest version of the Operating Guidelines for Use of the
International Arrivals & Departures Facility was issued May 22, 1998. The Guidelines
are designed with the objective of moving the maximum number of people through the
facility with minimal inconvenience and optimum security. The Guidelines describe the
proper use of the facilities, airline staffing and scheduling requirements and the
assignment of facilities including gates and ticket counters. Initial requests to use the
international facilities are submitted to the Port Authority’s General Manager, New
Jersey Airports. A meeting follows this with the Port Authority’s Principal Property
Representative, and customs approvals for arriving flights. Since Newark International is
a “coordinated airport”, its on-going international flight schedules are prepared by the
scheduling committee of the International Air Transportation Association. IATA meets
semi-annually to prepare future semi-annual flight schedules one year in advance.
Proposed schedules are submitted to an airline elected coordinator who represents all
international airlines operating at Newark International at the scheduling meeting.
Unresolved conflicts are referred to the Port Authority, which will consider requests for
revisions en masse and may impose a deadline after which no changes will be made.
The Port Authority assigns the terminal facilities needed to accommodate international
flights pursuant to processes and priorities also established in the Operating Guidelines.
Frequent communications with Port Authority gate management staff are required so that
gate assignments may be updated regularly and reflect the latest ETAs. Ticket counters
are assigned based on the approved IATA flight schedule and pursuant to a shared ticket
counter program that permits airlines to occupy counters for up to three hours before and
one hour after the scheduled departure time. The Port Authority provides common use
terminal equipment at the departure ticket counters, gate, ticket pull stations and airline
service desks. Aircraft gate assignments are made pursuant to a priority system that
reflects certain customer service minimum standards.
The Airport’s international facilities are first reserved for international operations.
Domestic flights may only be accommodated during off-peak hours if they do not
conflict with the primary international uses. International arrivals take precedence over
international departures in the assignment of gates. The Port Authority may direct that
departures be rescheduled or relocated to another terminal and must so notify affected
airlines after it receives the IATA schedule. International carriers that are also master
airline lessees of domestic space at Newark International are required to use their
domestic space for their international departures as well. The Port Authority may grant
exceptions to this requirement. A maximum wait of two hours for arriving flights to be
assigned a gate has been established and the Port Authority maintains a permanent record
of gate assignments, including processing times, to ensure fair and reasonable
assignments. The order of assignment priority listed in the Operating Guidelines is as
follows:
EWR Airline Competition Plan Page 27
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Scheduled, all year, international flights
International charter flights, off-peak
International diversions
Scheduled domestic flights, off-peak
Domestic charter flights, off peak
Domestic diversions
5.2.3 Airport oversight policies for sublease fees and ground-handling
arrangements.
The Port Authority consents to fees, but does not typically get involved in the discussions
between the incumbent and requesting airlines unless requested to do so. The Port
Authority approval is required of all subuse agreements and that includes fees and
ground-handling arrangements.
5.2.4 Airport policies regarding sublease fees (e.g., no more than 15 percent above
the standard airport-determined fee).
Master lease provisions require that sublease fees be reasonable and non-discriminatory
and based on a pro-rata recovery of the lessee’s costs. Consistent with the privatized
nature of the terminals the Port Authority does not regulate sublease fees. The Port
Authority requires that it receive ten percent of the sublease fees.
5.2.5 How complaints by subtenants about excessive sublease fees or unneeded
bundling of services are resolved.
Master lease provisions specifically express the Port Authority right not to consent to
service bundling required in subleases. Therefore the Port Authority would not provide
its consent to the sublease agreement. Subtenants to date have not submitted any
complaints related to excessive sublease fees or unneeded bundling of services.
5.2.6 How independent contractors who want to provide ground handling,
maintenance, fueling, catering or other support services but have been
unable to establish a presence at the airport are accommodated.
At present many of the airlines such as Continental, Delta and United Airlines provide
ground-handling services as do third party handlers such as World Wide Flight Services
and Signature Flight Support Services. At EWR there have been no complaints by the
airlines or independent contractors regarding the lack of competition by ground-handlers
at the airport. Ramp space constraints may serve to limit the number of handlers at the
airport.
EWR Airline Competition Plan Page 28
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.2.7 Are formal arrangements in place to resolve disputes among air carriers
regarding the use of airport facilities?
The airport can and does resolve disputes between airlines on a case-by-case basis upon
request by the affected airlines.
5.3 Gate Assignment Policy
5.3.1 Gate assignment policy and method of informing existing carriers and new
entrants of this policy. This would include standards and guidelines for gate
usage and leasing, such as security deposits, minimum usage, if any, fees,
terms, master agreements, signatory and non-signatory requirements.
The Port Authority employs several measures of utilization to monitor gate use. These
include each airline’s market share measured in terms of the percent of total departures,
seats and passengers, and airline utilization rates measured in terms of the number of
departures, seats and passengers on a per gate basis. International facility arrivals,
departures, turns and gate occupancy times are monitored as well. The sources of data
used to develop these ratios primarily include the “CATER” system, Passenger Facility
Charge reporting and the Master Ramp Schedules maintained by the Port Authority for
the international operations in Terminal B. These sources and utilization measures are
discussed below. In addition, The Port Authority analyzes specific requests for flight
accommodation. For example, several specific gate and ticket counter analyses were
prepared in 1998 and used in Port Authority new entrant accommodation determinations
relevant to service by AirTran, Sky Trek and Swiss World Air. The Port Authority
considers the nature and extent of the operations to be accommodated, including the
master airlines’ utilization of the premises or a bona fide plan for future utilization; and
the necessity for the flights, flight times, operations, operating practices; and aircraft
equipment proposed by the requesting airline, and the need for labor harmony.
CATER System - CATER stands for the collection and analysis of terminal records. It is
a data collection, repository and analytical process originally initiated by the FAA for the
New York region. When the FAA eliminated funding for the system, it was managed by
a not-for-profit organization known as the Aviation Development Council. For
approximately the last 11 years, the system has been maintained by Aviation Data
Systems of Long Island City, New York under contract with the Port Authority. The
primary source of data for the CATER system is FAA flight strip data from the airport
control tower. Flight strip data is also augmented with data from the Official Airline
Guide, and the U.S. Department of Transportation’s ASQP database concerning the on-
time performance of the top 10 U.S. domestic air carriers. The CATER system is a
proprietary, defined database used to provide reports on demand to such users as the
Aviation Development Council, the FAA, the Port Authority and its consultants.
EWR Airline Competition Plan Page 29
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
The data available in the system includes airline, flight number, arrival and departure
times and equipment type for all movements by air carriers at Newark. Using airline and
industry published data on the seating capacity of aircraft equipment types, the total
number of available departing seats that are offered at the airport by each airline may be
determined. Combining this data with the allocation of facilities among airlines as
previously discussed forms the basis for monitoring airline market shares, the average
number of departures per airline and per gate, and the average number of available seats
per airline and per gate.
Passenger Facility Charges - The Port Authority has also imposed Passenger Facility
Charges (PFCs) upon the air carriers for landside access projects at Newark International
Airport. PFCs may only be imposed pursuant to the provisions of Part 158 of the Federal
Aviation Regulations which mandate the reporting, record keeping and audit
requirements of public agencies and air carriers involved in their collection and use. Each
air carrier collecting PFCs is required to file a quarterly report with the airport providing
an accounting of all funds collected and remitted. Likewise, the airport is required to
compile a quarterly report reflecting the collection and use of PFCs from all air carriers.
Accordingly, PFC reporting requirements provide an excellent source of enplaned
passenger data, which can be combined with facility allocations, movements and
available seats determined through analysis of the CATER system data. This forms the
basis for monitoring passenger market shares, passengers per gate and load factors.
Master Ramp Schedules – Newark’s international facilities are common use. The Port
Authority is responsible for, and maintains a permanent record of, international gate
assignments, including processing times, to ensure that they are fair and reasonable. The
permanent record is known as the Master Ramp Schedule including a Daily Gate
Assignment Listing and a Daily Ramp Chart. The Port Authority uses independent Gate
Management Software for its scheduling activities. For each flight, the data includes the
airline, flight number, equipment type, origin or destination, schedule times, gate number
and actual time on and off the gate. The Ramp Schedule data also includes the type of
operation (arrival, departure or turn).
5.3.2 How announcements are made to tenant air carriers when gates become
available. Do all tenant air carriers receive information on gate availability
and terms and conditions by the same process at the same time?
With the exception of the Terminal B common-use gates all others have long-term lease
arrangements. All carriers have the option of offering to construct additional gates at the
terminal facility provided adequate land area is available. Some airlines have made long-
term investments at the airport and constructed or are in the process of constructing
additional gates. Additionally the Port Authority has allocated funds and is actively
planning for additional gates in Terminal A.
EWR Airline Competition Plan Page 30
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.3.3 New policies that have been adopted or actions that have been taken to
ensure that new entrant carriers have reasonable access to the airport and
those incumbent carriers can expand their operations.
There are a number of actions that have recently been completed, are ongoing, or planned
aimed at increasing gate capacity at EWR. In 1996, the Port Authority expanded
Terminal B into its current configuration for 15 international gates in Concourses B-2 and
B-3. Terminal C is currently being expanded by Continental Airlines. As previously
mentioned the Port Authority is also in the planning stage for the expansion of Terminal
A.
5.4 Gate Utilization
As noted in the previous section of this Competition Plan, the Port Authority has used
several measures of utilization to monitor gate use at EWR. These include each airline’s
market share measured in terms of the percent of total departures, seats and passengers,
and airline utilization measured in terms of the number of departures, seats and
passengers on a per gate basis. International facility arrivals, departures, turns and gate
occupancy times have been monitored as well. Extensive data was analyzed for the
Summer and Winter peak months of August and December 1998 in conjunction with the
Port Authority’s internal assessment of gate allocation practices and also presented
elsewhere in this Plan.
The analyses presented indicates that Continental Airlines, together with its express
operation and sub-tenants, holds the largest market share in terms of total domestic and
international aircraft departures, departing seats and enplaned passengers with a 65%,
61% and 59% share of each measure respectively. No other master airline, including the
international carriers as a whole, represented more than a 14% market share in any
measure. However, it should be noted that these calculations include sub-tenant and
handled airline activity accumulated to the master airline consistent with applicable lease
provisions concerning use requirements. Separating this activity indicates that the sub-
tenant and handled airlines actually provide for over 14% of departures and 12% of
departing seats and enplaned passengers at the Airport.
Analysis of the data on a per gate basis indicates that Continental Express made the most
efficient use of its gates with 19.55 average daily departures per gate. This is because it
operated from five ground level gates that provide access to 12 dedicated aircraft parking
positions. Delta and US Airways were the next most efficient operators with 6.95 and
6.76 departures per gate respectively. On the opposite end of the utilization spectrum,
United Airlines departs 4.97, and the international carriers uses are 4.73
6
, average daily
flights per gate based on the CATER data. The usage at the international facility is due to
6
As previously mentioned international flights are not required to depart from B-2 or B-3 while
international flights must arrive at those gates as it is the only location on the airport to process passengers
through customs and immigration. The total international carrier gate uses (arrivals, departures and turns)
averaged 4.73 per gate in August and 4.19 per gate in December.
EWR Airline Competition Plan Page 31
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
the larger planes used for international travel resulting in longer turnaround times and
that the terminal is used more heavily for arrivals than departures.
The other master airlines are within a reasonable range of each other in terms of
departures per gate. Measuring utilization in terms of departing seats and enplaned
passengers per gate also puts United Airlines and the international carriers at the low end
of the ratios developed. The international carriers and United generate between 50% and
66% of the utilization rates generated by the other master airline lessees.
Analysis of ticket counter utilization data presents somewhat different conclusions.
Continental Airlines makes the most efficient use of their counters with 200 average daily
enplanements per counter. Delta is the next most efficient with approximately 161
enplanements per counter followed by United, American, Northwest and US Airways in
the 100 to 130 range. TWA was the least efficient domestic user in terms of counter
utilization with only 66 enplanements per counter. It should be noted that these rankings
assume equivalent ticket counter bypass ratios among the domestic operators. The
international carriers experience 52 average daily enplanements per counter. However,
the bypass ratios experienced internationally are much lower than domestically and the
international peak period is more intense than the domestic peak making the counter
ratios not comparable between domestic and international uses.
The international facilities are more heavily weighted toward arrivals than departures,
departing seats and enplaned passengers. Accordingly, the Port Authority maintained
master ramp schedules for the international operations in Terminal B were also analyzed.
International terminal ramp schedule data indicates that total international carrier gate
uses (arrivals, departures and turns) averaged 4.73 per gate in August and 4.19 per gate in
December. This confirms the international carrier utilization conclusions drawn from
analysis of CATER System data.
Total daily block times per gate for the international carriers averaged 9.41 hours in
August and 8.53 hours in December of 1998. This equates to average aircraft gate
occupancy per use of approximately 2 hours. International carrier occupancy times have
been further broken down by arrivals, departures and aircraft turns. In August, arrivals
consumed 1.32 hours on average, departures 4.60 hours and aircraft turn 3.34 hours.
Similar results were obtained through analysis of December data. The actual occupancy
times are well above the minimums established in the Port Authority’s operating
guidelines. Continental Airlines is the most frequent user of the international facilities. It
represented 71% of total arrivals in August and 73% in December.
The Port Authority has recently concluded negotiations for the reallocation of space in
Terminal A. The Terminal A reallocation involves United Airlines releasing seven
underutilized gates so that Air Canada could directly lease three gates from the Port
Authority and US Air could double its gate capacity from two to four gates. Continental
Airlines received the other two gates.
EWR Airline Competition Plan Page 32
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
As part of its internal assessment of gate allocating practices, the Port Authority
estimated the allocation percents and utilization rates that would be experienced with the
above stated reallocations in place by reassigning gates and counters to the airlines as
noted and applying the departures, departing seats and enplaned passenger activity for the
months of August and December 1998 to those allocations. Airline representatives
involved with the assessment advised that no air service changes were contemplated as a
result of the reallocations. Continental was planning to relocate certain flights from
Terminal C to Terminal A. Based on a schedule provided by Continental, it was
estimated that Continental’s relocation represents approximately 64 departures, 7,389
departing seats and 4,729 enplaned passengers assuming a 64% load factor. The
utilization ratios estimated by terminal and airline before and after the anticipated
reallocation are shown below:
EWR Gate Utilization
Domestic
Term. A Term. B-1 Term. C
Intern’l.
Term. B-2 & 3
Existing Allocation/Utilization
Daily Departures Per Gate 5.07 6.34 7.72 4.73
7
Daily Departing Seats Per Gate 642.17 940.64 942.77 341.13
Daily Enplaned Passengers Per Gate 422.46 704.53 595.67 286.76
Ultimate Allocation/Utilization
Daily Departures Per Gate 5.15 6.34 7.68 1.33
Daily Departing Seats Per Gate 651.00 940.64 937.47 341.13
Daily Enplaned Passengers Per Gate 428.11 704.53 592.28 286.76
Change in Allocation/Utilization
Daily Departures Per Gate 0.08 -- (0.05) --
Daily Departing Seats Per Gate 8.83 -- (5.30) --
Daily Enplaned Passengers Per Gate 5.65 -- (3.39) --
The tables presented on the following pages represent the data obtained, and analyses
conducted, in order to monitor market shares and utilization rates measured in terms of
scheduled aircraft departures, available seats and enplaned passengers. The analyses were
conducted in June 1999 for the summer and winter peak months of August and December
1998 as part of the Port Authority’s internal assessment of its allocation practices.
7
Intentionally Repeated Footnote: The international facilities are more heavily weighted toward arrivals
than departures, departing seats and enplaned passengers and therefore it would not be appropriate to use
departures per gate. International terminal ramp schedule data indicates that total international carrier gate
uses (arrivals, departures and turns) averaged 4.73 per gate in August and 4.19 per gate in December, 1998.
EWR Airline Competition Plan Page 33
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Airline August December
Monthly Daily
Market Share
Continental 8,043.0 7,923.0 7,983.0 257.5 46.9%
Continental Express 3,195.0 2,864.0 3,029.5 97.7 17.8%
United Airlines 2,423.0 2,200.0 2,311.5 74.6 13.6%
American 1,091.0 1,100.0 1,095.5 35.3 6.4%
Delta 831.0 892.0 861.5 27.8 5.1%
Northwest 478.0 550.0 514.0 16.6 3.0%
US Airways 425.0 413.0 419.0 13.5 2.5%
Trans World Airlines 182.0 174.0 178.0 5.7 1.0%
International 658.0 579.0 618.5 20.0 3.6%
Total 17,326.0 16,695.0 17,010.5 548.7 100.00%
* Includes the following sub-lessee and handled airlines excluding seasonal / charter operators:
Continental
- Includes Kiwi in Terminal A, America West, Air France, Air Nova
& Air Alliance in Terminal C.
United
- Includes United Express, Air Canada, Pro Air, Trans Meridian, Sunjet International,
Spirit, Sun Pacific and the various US Air Express operators.
US Airways
- Includes only US Airways' flights. Express operations are from United gate 24.
American
- Includes Midway Airlines
Delta
- Includes Midwest Express, Sabena and Swiss Ai
r
Avera
g
es
EWR--Analysis of Average Departures Per Airline, Year 1999
Average Departures Per Airline
Continental
Continental Express
United Airlines
American
Delta
Northwest
US Airways
Trans World Airlines
International
EWR Airline Competition Plan Page 34
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Airline* August December
Monthly Daily
Market Share
Continental 826,640.0 728,800.0 777,720.0 25,087.7 52.9%
Continental Express 104,078.0 80,214.0 92,146.0 2,972.5 6.3%
United Airlines 177,994.0 144,851.0 161,422.5 5,207.2 11.0%
American 110,204.0 100,300.0 105,252.0 3,395.2 7.2%
Delta 95,954.0 83,696.0 89,825.0 2,897.6 6.1%
Northwest 61,890.0 64,224.0 63,057.0 2,034.1 4.3%
US Airways 36,728.0 26,807.0 31,767.5 1,024.8 2.2%
Trans World Airlines 17,994.0 14,500.0 16,247.0 524.1 1.1%
International 152,921.0 113,763.0 133,342.0 4,301.4 9.1%
Total 1,584,403.0 1,357,155.0 1,470,779.0 47,444.5 100%
* Includes the following sub-lessee and handled airlines excluding seasonal / charter operators:
Continental
- Includes Kiwi in Terminal A, America West, Air France, Air Nova
& Air Alliance in Terminal C.
United
- Includes United Express, Air Canada, Pro Air, Trans Meridian, Sunjet International,
Spirit, Sun Pacific and the various US Air Express operators.
US Airways
- Includes only US Airways' flights. Express operations are from United gate 24.
American
- Includes Midway Airlines
Delta
- Includes Midwest Express, Sabena and Swiss Ai
r
Avera
g
es
EWR--Analysis of Average Enplanements Per Airline
Average Enplanements Per Airline
Continental
Continental Express
United Airlines
American
Delta
Northwest
US Airways
Trans World Airlines
International
EWR Airline Competition Plan Page 35
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Airline August December
Monthly Daily
Gates
Monthly Daily
Continental 8,043.0 7,923.0 7,983.0 257.5 43.0 185.7 6.0
Continental Express 3,195.0 2,864.0 3,029.5 97.7 5.0 605.9 19.5
United Airlines 2,423.0 2,200.0 2,311.5 74.6 15.0 154.1 5.0
American 1,091.0 1,100.0 1,095.5 35.3 6.0 182.6 5.9
Delta 831.0 892.0 861.5 27.8 4.0 215.4 6.9
Northwest 478.0 550.0 514.0 16.6 3.0 171.3 5.5
US Airways 425.0 413.0 419.0 13.5 2.0 209.5 6.8
Trans World Airlines 182.0 174.0 178.0 5.7 1.0 178.0 5.7
International 658.0 579.0 618.5 20.0 15.0 41.2 1.3
Total 17,326.0 16,695.0 17,010.5 548.7 94.0 181.0 5.8
* Includes the following sub-lessee and handled airlines excluding seasonal/charter operators:
Continental
- Includes Kiwi in Terminal A, America West, Air France, Air Nova
& Air Alliance in Terminal C.
United
- Includes United Express, Air Canada, Pro Air, Trans Meridian, Sunjet International,
Spirit, Sun Pacific and the various US Air Express operators.
US Airways
- Includes only US Airways' flights. Express operations are from United gate 24.
American
- Includes Midway Airlines
Delta
- Includes Midwest Express, Sabena and Swiss Ai
r
Continental Express
- Gates represent 5 doorways to 22 parking positions where passengers board
(12 parking positions are dedicated to the scheduled operations of Continental Express)
Airline Avera
g
es Gate Avera
g
es
EWR--Analysis of Average Aircraft Departures Per Gate
Average Aircraft Departures Per Gate
0.0
5.0
10.0
15.0
20.0
25.0
Daily
Continental
Continental Express
United Airlines
American
Delta
Northwest
US Airways
Trans World Airlines
International
EWR Airline Competition Plan Page 36
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Airline August December
Monthly Daily
Gates
Monthly Daily
Continental 826,640.0 728,800.0 777,720.0 25,087.7 43.0 18,086.5 583.4
Continental Express 104,078.0 80,214.0 92,146.0 2,972.5 5.0 18,429.2 594.5
United Airlines 177,994.0 144,851.0 161,422.5 5,207.2 15.0 10,761.5 347.1
American 110,204.0 100,300.0 105,252.0 3,395.2 6.0 17,542.0 565.9
Delta 95,954.0 83,696.0 89,825.0 2,897.6 4.0 22,456.3 724.4
Northwest 61,890.0 64,224.0 63,057.0 2,034.1 3.0 21,019.0 678.0
US Airways 36,728.0 26,807.0 31,767.5 1,024.8 2.0 15,883.8 512.4
Trans World Airlines 17,994.0 14,500.0 16,247.0 524.1 1.0 16,247.0 524.1
International 152,921.0 113,763.0 133,342.0 4,301.4 15.0 8,889.5 286.8
Total 1,584,403.0 1,357,155.0 1,470,779.0 47,444.5 94.0 N/A 504.7
* Includes the following sub-lessee and handled airlines excluding seasonal / charter operators:
Continental
- Includes Kiwi in Terminal A, America West, Air France, Air Nova
& Air Alliance in Terminal C.
United
- Includes United Express, Air Canada, Pro Air, Trans Meridian, Sunjet International,
Spirit, Sun Pacific and the various US Air Express operators.
US Airways
- Includes only US Airways' flights. Express operations are from United gate 24.
American
- Includes Midway Airlines
Delta
- Includes Midwest Express, Sabena and Swiss Ai
r
Continental Express
- Gates represent 5 doorways to 22 parking positions where passengers board
(12 parking positions are dedicated to the scheduled operations of Continental Express)
Airline Averages Gate Averages
EWR--Analysis of Average Enplanements Per Gate
Average Enplanements Per Gate
0
200
400
600
800
Daily
Continental
Continental Express
United Airlines
American
Delta
Northwest
US Airways
Trans World Airlines
International
EWR Airline Competition Plan Page 37
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.5 New Entrant/Gate Assignment Policy and Information
The allocation of gate and counter facilities at Newark International Airport reflects an
historical evolution of facility construction, occupancy and improvement from Terminals
A and B and the old North Terminal, to construction of Terminal C, demolition of the
North Terminal, assignment of the Peoples Express lease to Continental Airlines, and the
on-going renovation of Terminal A and associated reassignment of space and negotiation
of leases supplements. Facility financing, historic relationships with the major US
domestic air carriers, code sharing arrangements, strategic alliances and forced
accommodation have all played a part in the existing allocation of gates and counters.
5.5.1 Policy regarding “recapturing” gates that are not being fully used.
Please refer to Section 5.1.6.
5.5.2 Plans to make gates and related facilities available to new entrants or to air
carriers that want to expand service at the airport; methods of
accommodating new gate demand by air carriers at the airport (common-
use, preferential-use, or exclusive-use gates); and length of time between
when an air carrier initially contacts the airport and could begin serving it.
The Port Authority has recently “recaptured” gates at Newark International Airport and
provided them to Air Canada on a short-term lease pending the completion of planning
and construction of additional gate capacity. Please refer to Section 4.1.8 for further
discussion.
5.5.3 How are complaints of denial of reasonable access by a new entrant or an air
carrier that wants to expand services resolved?
Please refer to Section 5.1.9.
5.5.4 Number of carriers in the past year that have requested access or sought to
expand, how were they accommodated, and the length of time between any
requests and access. Whether a subleasing arrangement with an incumbent
carrier is necessary to obtain access.
Please to refer Section 5.1.10.
EWR Airline Competition Plan Page 38
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.5.5 How the airport assists requesting airlines obtain a sublease.
The negotiations between a requesting airline and an incumbent carrier do not involve
Port Authority involvement unless requested so by the airlines. The operator does not
take a lead role in these discussions because of the privatized nature of most EWR
terminal facilities. For further discussion please refer to Section 5.2.2.
5.5.6 Airport oversight policies for sublease fees and ground-handling
arrangements.
Please refer to Section 5.2.3.
5.5.7 Airport policies regarding sublease fees (e.g., no more than 15 percent above
the standard airport-determined fee).
Consistent with the privatized nature of the terminals the Port Authority does not regulate
sublease fees. The Port Authority requires that it receive 10 percent of the sublease fees.
5.5.8 How complaints by subtenants about excessive sublease fees or unneeded
bundling of services are resolved.
Please refer to Section 5.2.5.
5.5.9 How independent contractors who want to provide ground handling,
maintenance, fueling, catering or other support services but have been
unable to establish a presence at the airport are accommodated.
Please refer to Section 5.2.6.
5.5.10 Are formal arrangements in place to resolve disputes among air carriers
regarding the use of airport facilities?
The airport can and does resolve disputes between airlines on a case-by-case basis. The
nature of complaints can vary widely; there are no set procedures in place on the method
to resolve each type of complaint.
EWR Airline Competition Plan Page 39
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
5.5.11 Gate assignment policy and method of informing existing carriers and new
entrants of this policy. This would include standards and guidelines for gate
usage and leasing, such as security deposits, minimum usage, if any, fees,
terms, master agreements, signatory and non-signatory requirements.
The Port Authority maintains a new entrant airline information manual that is provided to
new entrants. The manual describes all of the steps and information needed to serve the
Airport. Additional information, standards and guidelines are included in the master
lease agreements as previously discussed.
5.5.12 How announcements are made to tenant air carriers when gates become
available. Do all tenant air carriers receive information on gate availability
and terms and conditions by the same process at the same time?
Please refer to Section 5.3.2.
5.5.13 New policies that have been adopted or actions that have been taken to
ensure that new entrant carriers have reasonable access to the airport and
that incumbent carriers can expand their operations.
Please refer to Section 5.3.3.
5.5.14 Differences, if any, between gate-use monitoring policy at PFC-financed
facilities, facilities subject to PFC assurance #7, and other gates.
The Port Authority has not financed terminal or gate facilities with Passenger Facility
Charges at Newark International Airport.
5.5.15 Has the PFC competitive assurance #7 operated to convert previously
exclusive-use gates to preferential-use gates or has it caused such gates to
become available to other users?
The Port Authority has not financed terminal or gate facilities with Passenger Facility
Charges at Newark International Airport.
EWR Airline Competition Plan Page 40
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
6.0 Financial constraints (identify or describe)
6.1 The major source of revenue (capital) at the airport for
terminal projects
In contrast with many airports in the nation EWR terminals are primarily privatized and
operated by the airlines with the exception of the international gates in Terminal B (B2
and B3). Capital improvement projects are funded by either the airlines or the Port
Authority or a combination of both. No PFC funding has been used for terminal
improvement projects.
Terminal A was funded by the Port Authority and is operated by the airlines.
Terminal B, with the exception of the FIS facility, was constructed by the airlines and
funded by the Port Authority. The FIS Facility in Terminal B was funded and is
operated by the Port Authority. The Port Authority also operates the gates in B2 and
B3 concourses.
Terminal C was funded by the Port Authority and operated by the airlines.
On-Going EWR Airport Development
Continental Airlines is using New Jersey Economic Development Authority bond
financing for its “Global Gateway” expansion project including improvements to
Terminal C and Terminal A, rehabilitating Hangar 55 complex, constructing a new
Hangar 56, and refurbishing the old cargo building to a ground service equipment
maintenance facility. United is using its own financing for the construction of a new
cargo building, ARIS Development Corporation is using GE Capital Corporation
financing for a two-building cargo complex. Federal Express is using its own financing
for interior improvements to cargo Building 156.
Modifications are also being made to Terminal A and are being paid for with funding
provided by the Port Authority that is repaid by the tenant through additional terminal
rental.
6.2 Rates and charges methodology (residual, compensatory,
or hybrid)
EWR’s schedule of rates and charges employs the compensatory, residual, and hybrid
approaches. Cost centers have been established for direct recovery of airfield, access and
fueling facilities. Both the airlines and the Port Authority share in the concession
revenue. The share received by each party varies depending on the type of concession,
EWR Airline Competition Plan Page 41
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
food or retail, and also varies depending on the terminal. Other charges are established
by agreement or regulation.
6.3 Past use, if any, of PFC’s for gates and related terminal
projects.
The PFC’s collected at EWR are allocated for the following uses:
Project
Amount (millions)
EWR Monorail $100
Landside Roadway Improvements $50
Initial Planning for NEC* $7
NEC* $250
Total $407
Note: NEC* is the monorail connection to the New Jersey Transit/Amtrak
Northeast Corridor Rail Line.
No PFC funds have been used for the construction of gates or terminal projects.
EWR Airline Competition Plan Page 42
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.0 Air Service Issues
7.1 Patterns of air service
The three Port Authority commercial service airports are served by 109 airlines most of
which (93) are identified below.
No. Airline No. Airline No. Airline
1 Aer Lingus 32 China Airlines 63 Midwest Express
2 Aeroflot 33 Colgan 64 National
3 Aerolineas Argentinas 34 Comair 65 North American
4 Air Afrique 35 Continental 66 Northwest
5 Air Aruba 36 Corsair 67 Olympic
6 Air Canada 37 Czech 68 Pakistan
7 Air China 38 Delta 69 Pro Air
8 Air Europa 39 Ecuatoriana 70 Qantas
9 Air France 40 Egyptair 71 Royal Air Maroc
10 Air India 41 El Al 72 Royal Jordanian
11 Air Jamaica 42 Ethiopian 73 Sabena
12 Air Malta 43 EVA Airways 74 SAS
13 Air Plus Comet 44 Finnair 75 Saudi Arabian
14 AirTran 45 Frontier 76 Serviensa/Avensa
15 Alitalia 46 Ghana 77 Singapore
16 All Nippon 47 Guyana 78 South African
17 Allegro 48 Iberia 79 Spirit
18 America West 49 Icelandair 80 Sun Country
19 American 50 Japan 81 Swissair
20 AreoMexico 51 jetBlue 82 TACA International
21 Asiana 52 KLM 83 TAM
22 ATA 53 Korean 84 TAP Air Portugal
23 Austrian 54 Kuwait 85 Tarom-Romanian
24 Avianca 55 Lacsa 86 Tie Aviation
25 Biman Bangladesh 56 Lan Chile 87 Turkish
26 British Airways 57 LOT Polish 88 TWA
27 BWIA 58 Lufthansa 89 United
28 Canada 3000 59 Malaysia 90 US Airways
29 Canadian Airlines Int'l. 60 Malev 91 Uzbekistan
30 Cathay Pacific 61 Mexicana 92 Varig
31 Chautauqua 62 Midway 93 Virgin Atlantic
Airlines Operating at EWR, JFK, & LGA
EWR Airline Competition Plan Page 43
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.1.1 Number of markets served
As an airport system the three New York/New Jersey airports serve more markets on a
non-stop basis than anywhere else in the world. At EWR 125 markets are served of
which 79 are domestic and 57 international.
7.1.2 Number of markets served on a non-stop basis. Average number of flights
per day
There are 136 markets served on a non-stop basis. The average number of flights per day
is 591 flights with 83 percent domestic (490 flights) and 17 percent international (101
flights).
7.1.3 Number of small communities served
The definition of small communities used in this Competition Plan are domestic
communities served by airports at which 1999 enplanements are less than .25 percent of
total national domestic enplanements. Based on that definition almost one-half (47
percent) of EWR’s domestic market is comprised of small community destinations (37
small communities). The 37 communities are shown in the following table.
No. Small Community No. Small Community
1 Aguadilla, Puerto Rico (US) 19 Hyannis, Massachusetts
2 Albany, New York 20 Ithaca, New York
3 Atlantic City, NJ 21 Keene, New Hampshire
4 Bangor, Maine 22 Knoxville, Tennessee
5 Binghamton/Endct/Jn Cy, NY 23 Manchester, New Hampshire
6 Burlington, Vermont 24 Marthas Vineyard, MA
7 Charleston, South Carolina 25 Melbourne, Florida
8 Charlotte Amalie, VI (US) 26 Myrtle Beach, SC
9 Charlottesville, Virginia 27 Nantucket, Massachusetts
10 Columbia, South Carolina 28 New Haven, Connecticut
11 Dayton, Ohio 29 Ponce, Puerto Rico (US)
12 Daytona Beach, Florida 30 Portland, Maine
13 Detroit, Michigan 31 Richmond Intl, Richmnd, VA
14 Elmira/Corning, New York 32 Rochester, New York
15 Grand Rapids, Michigan 33 Sarasota/Bradenton, FL
16 Greensboro/High Point, NC 34 Savannah, Georgia
17 Greenville/Sprtnbg, SC 35 Syracuse, New York
18 Harrisburg/York, PA 36 Utica/Rome, New York
37 Worcester, Massachusetts
Small Communities Served
EWR Airline Competition Plan Page 44
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.1.4 Number of markets served by low-fare carriers
Low-fare carriers serve ten domestic markets with six of those markets in the southeast
portion of the country.
7.1.5 Number of markets served by one carrier
With 136 different domestic and international markets being served, and as previously
mentioned many to small communities, it is inevitable that many will be served by only
one carrier. Of the 79 domestic non-stop markets 57 percent (45 flights) are served by
one carrier. Sixty-eight percent of the 57 international destinations are served by one
carrier.
Markets Served by
One Carrier
Total Markets Served
Number Percent
Domestic 79 45 57 %
Int’l 57 39 68 %
Total 136 84 62 %
No. City Name Low-Fare Carrier
1 Omaha, Nebraska Midwest Exp.
2 Las Vegas, Nevada National Airlines
3 Milwaukee, Wisconsin Midwest Exp.
4 Atlanta, Georgia Airtran Airlines
5 Fort Lauderdale, FL Delta Express and Spirit Air
6 Myrtle Beach, SC Spirit Air
7 Orlando, Florida Spirit Air
8 Raleigh/Durham, NC Midway
9 Tampa, Florida Delta Express
10 West Palm Beach/Palm B, FL Spirit Air
EWR Airline Competition Plan Page 45
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
No. City Name No. City Name
1 Kansas City, Missouri 23 Charlotte Amalie, VI (US)
2 Omaha, Nebraska 24 Charlottesville, Virginia
3 Albuquerque, NM 25 Columbia, South Carolina
4 Tucson, Arizona 26 Daytona Beach, Florida
5 Chicago, Illinois 27 Fort Myers, Florida
6 Cleveland, Ohio 28 Greensboro/High Point, NC
7 Dayton, Ohio 29 Greenville/Sprtnbg, SC
8 Indianapolis, Indiana 30 Jacksonville, Florida
9 Boston, Massachusetts 31 Norfolk/Va B/Pt/Ch, VA
10 Buffalo, New York 32 Richmond Intl, Richmnd, VA
11 Burlington, Vermont 33 Sarasota/Bradenton, FL
12 Elmira/Corning, New York 34 Savannah, Georgia
13 Hartford, Connecticut 35 Washington, DC
14 Manchester, New Hampshire 36 Austin, Texas
15 Phila, PA/Camden, NJ 37 Houston, Texas
16 Portland, Maine 38 New Orleans, Louisiana
17 Birmingham, Alabama 39 San Antonio, Texas
18 Knoxville, Tennessee 40 Honolulu, Oahu, Hawaii
19 Louisville, Kentucky 41 Portland, Oregon
20 Nashville, Tennessee 42 San Diego, California
21 Aguadilla, Puerto Rico (US) 43 San Jose, California
22 Charleston, South Carolina 44 Santa Ana, California
45 Seattle/Tacoma, WA
Domestic Markets Served by Only One Carrier
EWR Airline Competition Plan Page 46
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.1.6 Number of new markets added or previously served markets dropped in the
past year.
Slightly more markets were added than dropped at EWR. Eleven new markets were
added within the last year to EWR with seven of those being domestic and the other four
international. Ten markets are no longer being served with three of those domestic and
the remaining six international.
No. City Name No. City Name
46 Calgary,Canada 66 Oslo, Norway
47 Quebec, Canada 67 Porto, Portugal
48 Vancouver,Canada 68 Prague, Czechoslovakia
49 Antigua, Antigua & Barbuda 69 Stockholm, Sweden
50 Aruba, Aruba 70 Warsaw, Poland
51 Bermuda, Bermuda (UK) 71 Seoul, South Korea Direct Service
52 Montego Bay, Jamaica 72 Taipei, Taiwan Direct Service
53 Nassau, Bahamas 73 Tokyo, Japan
54 Puerto Plata, Dominican Rep 74 Cozumel, Mexico
55 Punta Cana, Dominican Republic 75 Guatemala City, Guatemala
56 Santo Domingo, DO 76 Panama City, Panama
57 St Martin, Neth Antil (NL) 77 San Jose, Costa Rica
58 Birmingham, England, UK 78 San Salvador, El Salvador
59 Copenhagen, Denmark 79 Dubai, United Arab Em
60 Dublin, Ireland 80 Bogota, Colombia
61 Glasgow/Prestwick, Sct, UK 81 Caracas, Venezuela
62 Krakow, Poland 82 Lima, Peru
63 Madrid, Spain 83 Rio De Janeiro, RJ, Brazil
64 Manchester, England, UK 84 Sao Paulo, SP, Brazil
65 Munich, Germany
International Markets Served by Only One Carrier
EWR Airline Competition Plan Page 47
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.2 Airport Controls Over Airside and Groundside Capacity
7.2.1 Majority-in-Interest (MII) or “no further rates and charges” clauses
covering groundside and airside projects.
Not applicable as there are no MII clauses.
7.2.2 List any capital construction projects that have been delayed or prevented
because an MII was invoked.
Not applicable as there are no MII clauses.
7.2.3 Plans, if any, to modify existing MII agreements?
Not applicable as there are no MII clauses.
7.3 Construction or Acquisition of Common Use Gates
7.3.1 The number of common-use gates available at the airport
Fifteen common-use gates are available at EWR with 7 gates located in satellite B2 and 8
gates located in satellite B3. Satellites B2 and B3 are commonly referred to as the
International Facility at Terminal B with the Customs/FIS hall located between the two.
No. Added No. Dropped
1 Albuquerque, NM 1 Detroit, Michigan
2 Tucson, Arizona 2 Bangor, Maine
3 Elmira/Corning, New York 3 Harrisburg/York, PA
4 Knoxville, Tennessee 4 Kingston, Jamaica Direct Service
5 Aguadilla, Puerto Rico (US) 5 St Lucia, St Lucia
6 Charlotte Amalie, VI (US) 6 Basle, Switzerland
7 Charlottesville, Virginia 7 Luxembourg, Luxembourg
8 Puerto Plata, Dominican Rep 8 Barranquilla, Colombia
9 Punta Cana, Dominican Republic 9 Cartagena, Colombia
10 Porto, Portugal 10 Santiago, Chile
11 Cozumel, Mexico
Markets Added or Dropped Within the Last Year
EWR Airline Competition Plan Page 48
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.3.2 The number of common-use gates the airport intends to build or acquire
(specify) and timeline. Intended financing arrangements for these common-
use gates
The Port Authority has allocated funds to investigate the feasibility of additional capital
investments at EWR beyond the current “Global Gateway Project” that includes two
parking garages, roadway improvements, new Control Tower, expansion of Terminal C
and extension of the on-airport monorail to the Northeast Corridor Train Line. The study
will include determining the need for additional gates in Terminal A, possible
reallocation of space in Terminal B, and other alternatives that involve both Terminals A
and B. Funds allocated for planning purposes do not guarantee that any future
development will take place. At the conclusion of the study staff has the option of
recommending to the Port Authority’s Board of Commissioner’s that certain capital
improvements be made. The Board has the authority to authorize capital improvement
expenditures at Port Authority facilities.
7.3.3 Are there any air carriers that have been serving the airport for more than
three years relying exclusively on common-use gates
The following international airlines have utilized the common gates of satellite B2 and
B3 for at least three years:
These airlines depart from Terminal A, Terminal C, or the B1 satellite in Terminal B, but
use the B2 & B3 common use gates for international arrival purposes. Alitalia and Air
France arrive at Terminal B common use gates, but depart from Terminal C. Continental
also uses common gates in B2 & B3 for international arrival purposes and departures to
London via a Virgin Atlantic code share.
No. Airline No. Airline
1 Virgin Atlantic 9 El Al
2 British Air 10 EVA Air
3 Lufthansa 11 Korean
4 SAS 12 LOT Polish
5 Air Aruba 13 Malaysia
6 Aer Lingus 14 Mexicana
7 Air Jamaica 15 Singapore
8 Czech Air 16 TAP Air Portugal
17 Ethiopian Airlines – two years.
EWR Airline Competition Plan Page 49
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.3.4 Whether common-use gates will be constructed in conjunction with gates
leased through exclusive- or preferential-use arrangements
The additional gates Continental is constructing in Terminal C will be exclusive use
gates. The Port Authority is planing a possible expansion of Terminal A. Additional
information related to the construction of additional gates is discussed in Section 7.3.2.
7.3.5 Whether gates being used for international service are available for domestic
service
The common use gates in the International Facility (concourses B2 & B3) are made
available to domestic airlines when available and this is currently prior to noon.
7.3.6 Do air carriers that only serve domestic markets now operate from
international gates?
No domestic carriers are currently using the international gates, but they have in the past.
International carriers are given the priority at Terminal B-2 and B-3 gates.
7.4 Airfare levels compared to other large airports
7.4.1 Data showing each carrier’s local passengers, average fares, market share,
and average passenger trip length.
The weighted average fare at EWR is approximately 26 percent higher than the national
average. When comparing fares between airports it must be remembered that the
characteristics of an airport will influence the fares. For example the New York/New
Jersey region has a higher number of business travelers who are less price sensitive and
typically pay a higher fare for unrestricted tickets than leisure travelers. Additionally, a
higher number of international travelers will also serve to increase fares.
When the distance is considered and the average fare per mile is used EWR ranks around
the median (six other airports have the same average fare per mile as EWR) for the 68
airports. The table below shows all of the airports and the average fare per mile as
obtained through the FAA Origin and Destination data.
EWR Airline Competition Plan Page 50
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Difference
Weighted from Nat'l
Avg. Fare Average
National 153.22$ ------
EW
R
193.60$ 26%
JF
K
197.70$ 29%
LGA 176.02$ 15%
Logan 180.08$ 18%
Seattle 149.84$ -2%
Philadelphia 191.35$ 25%
Source: USDOT, Origin and Destination Survey
Note: 99*--designates passengers that travel onan internlines itinerary (itinerary reflected two or
more ticket-issuing carriers.)
National Comparison
EWR Airline Competition Plan Page 51
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Avg. Fare Avg. Fare
Ran
k
Per Mile Airport Ran
k
Per Mile Airport
10.29$ CLT 11 0.17$ SNA
20.27$ CVG 11 0.17$ OMA
30.26$ MEM 11 0.17$ SAT
30.26$ DAL 12 0.16$ BDL
40.25$ PIT 12 0.16$ SJC
50.24$ DCA 12 0.16$ MSY
60.22$ DFW 13 0.15$ OA
K
6
0.22$ LGA
13 0.15$ ABQ
60.22$ ORD 13 0.15$ SLC
60.22$ MSP 13 0.15$ TUS
70.21$ ATL 13 0.15$ SMF
70.21$ STL 14 0.14$ MDW
80.20$ RDU 14 0.14$ MIA
80.20$ PHL 14 0.14$ ONT
80.20$ CLE 14 0.14$ TPA
80.20$ IAH 14 0.14$ PBI
80.20$ DEN 14 0.14$ SFO
80.20$ TUL 15 0.13$ BWI
90.19$ SDF 15 0.13$ PHX
90.19$ BU
R
15 0.13$ RSW
90.19$ MKE 15 0.13$ PDX
90.19$ AUS 15 0.13$ SAN
90.19$ BNA 15 0.13$ PVD
10 0.18$ OKC 15 0.13$ RNO
10 0.18$ DTW 15 0.13$ FLL
10 0.18$ HOU 15 0.13$ SEA
10 0.18$ IAD 15 0.13$ MCO
10 0.18$ BOS 15
0.13$ JF
K
10 0.18$ JAX 16 0.12$ LAX
10 0.18$ IND 16 0.12$ SJU
11
0.17$ EW
R
16 0.12$ ANC
11 0.17$ MCI 17 0.11$ LAS
11 0.17$ CMH 17 0.11$ OGG
Avg. Fare Per Mile
By Airport
EWR Airline Competition Plan Page 52
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.4.2 Data showing local passengers, average passenger trip length, average
passenger yield, and number of city-pair markets served disaggregated by
distance and depending on whether or not a low-fare competitor is present.
Most of this information was previously shown and discussed in previous sections.
However, the following table identifies information from the FAA O&D database. The
average trip length is 1,187, the average revenue per passenger is $206 and there are 136
markets served.
Using data provided by the FAA airline revenues were compared by block distances to
determine if there was a relationship between the carrier that had the most flights from
EWR, Continental, and the per passenger revenue when block distances were considered.
Of the eight block distances two of the eight categories had just one or two airlines for
those markets and were not considered. For the other block groupings Continental
Airlines was towards the low end to mid-range of the per passenger revenues. United,
Northwest and TWA were typically among the highest for per passenger revenue. The
table below identifies the carriers and categorizes the airline revenue by block distance
for 1999.
Average Trip Length 1,187
Revenue Per Passenger 206$
Markets 136
Summar
y
Data
EWR Airline Competition Plan Page 53
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
Per Pass. *Distance Per Pass. *Distance
Competitor Revenue Bloc
k
Competitor Revenue Bloc
k
US Airways 169.66$ 250 Spiri
t
106.43$ 1500
Continental 170.01$ 250 Delta 149.87$ 1500
AirTran 178.35$ 1500
Continental 195.88$ 500 Continental 204.09$ 1500
American 252.86$ 1500
Pro Ai
r
91.34$ 500 Midwest Express 256.66$ 1500
Northwes
t
117.87$ 500 United 277.97$ 1500
Midway 146.81$ 500 US Airways 278.49$ 1500
US Airways 149.86$ 500 TWA 301.45$ 1500
America Wes
t
213.27$ 500 Northwes
t
310.43$ 1500
Spiri
t
85.69$ 750 American 198.02$ 2000
Northwes
t
137.69$ 750 Continental 226.50$ 2000
Delta 176.12$ 750 Delta 270.64$ 2000
Continental 187.75$ 750 KP 160.06$ 2000
US Airways 200.71$ 750 Northwes
t
260.79$ 2000
Midwest Express 211.47$ 750 TWA 173.23$ 2000
TWA 215.53$ 750 United 280.05$ 2000
American 221.88$ 750
United 234.63$ 750 American 219.41$ 2001
Delta 246.36$ 2001
Delta 131.52$ 1000 America Wes
t
249.26$ 2001
Continental 153.20$ 1000 Continental 282.84$ 2001
US Airways 184.64$ 1000 Northwes
t
292.10$ 2001
American 208.38$ 1000 United 318.83$ 2001
United 211.58$ 1000
Midwest Express 214.14$ 1000
Northwes
t
257.37$ 1000
TWA 280.73$ 1000
*Note: Airline revenue includes PFC's, taxes and airfares.
A
dditional Notes:
*Distance Blocks
250: 0 to 250 miles
500: 251 to 500 miles
750: 501 to 750 miles
1000: 751 to 1,000 miles
1500: 1,001 to 1,500 miles
2000: 1,500 to 2,000 miles
2001: greater than 2,000 miles
Source: USDOT/FAA, 1999
Comparison of Airline Revenue*
EWR--1999
EWR Airline Competition Plan Page 54
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
7.4.3 Additional information that is pertinent to EWR.
EWR is very space constrained with little land available for terminal expansion. It needs
to be recognized that because of the airport’s geographic constraints no land is available
for new runway construction and minimal space available for facility expansion.
As previously mentioned one of the most significant constraints on competition at EWR
is the impact of the outdated airspace system. Delays at EWR have been consistently the
worst in the nation for past decade primarily due to airspace constraints.
EWR Airline Competition Plan Page 55
The Port Authority of New York and New Jersey
Downtown Heliport / John F. Kennedy Int’l. Airport / LaGuardia Airport / Newark Int’l. Airport / Teterboro Airport
8.0 Conclusion
Operating one of the largest airport systems in the world with the most non-stop
destinations on the globe and the greatest variety of carriers, the Port Authority takes the
issue of competition very seriously. The Port Authority has and will continue to
encourage competition while maintaining its airports as one of the most successful airport
systems of its type offering the New York/New Jersey metropolitan region unparalleled
access while striving to provide the best airport experience by completely rebuilding
facilities such as terminals, roadways and parking. Private initiative and investment have
been and, without a source of replacement funding, are keys to this modernization
strategy.
Utilizing public funds for airport operations and expansion carries responsibilities
including making certain that public access is provided. While it is obvious from the
sheer number of carriers at our airports, 34 domestic and 75 international
8
, that entrance
into the New York/New Jersey market and competition is not an issue, our monitoring
process can be strengthened and become more formalized and uniform across the
facilities. Further, the Port Authority has an obligation to continue to monitor closely the
utilization of the airport gates and strengthen the Port Authority’s ability to recapture
gates or require higher utilization of the facilities when necessary.
Influences outside of the Port Authority’s control also serve to severely limit efficient
airport operations and can be argued pose a far more significant constraint for new
entrants than any gate use policies could. The most significant influence is airspace
congestion that is meant to be resolved through its redesign. It is of the utmost
importance to the Port Authority to have sufficient resources devoted to the airspace
redesign effort aimed at providing relief to EWR and LGA whose travelers have suffered
consistently as the most delayed airports in the Nation. We applaud the DOT and FAA
for their interest in maintaining competition at the nation’s airports and would hope that it
would consider all of the factors that influence access including airspace limitations.
As previously stated, the Strategic Vision for the Aviation Department is to provide the
New York/New Jersey region with unsurpassed global access, restoring the region to its
renowned, preeminent, dominant status as the Nation’s state of the art gateway for
passengers and cargo. Airline competition and diversity is an important part of that
strategy and one that the Port Authority will strive to maintain and improve.
8
Some carriers serve all three airports and therefore summing the number of airlines at each facility will
not provide the overall total. The number of airlines by facility are as follows: JFK—23 domestic and 62
international; LGA—16 domestic and 2 international; and EWR—21 domestic and 22 international.
