The Daily Dish

The FAA and More Choices at DCA

Congress is back in session, but the prospect for substantive legislation seems pretty thin. Indeed, only the reauthorization of the Federal Aviation Administration (FAA) remains as a must-do item. Congress has until May 10 to get this done. In light of the recent commercial airline mishaps, a great deal of the focus is on safety. From the perspective of Eakinomics, an interesting wrinkle in this reauthorization is the possibility that Congress will permit more flights in and out of Reagan National Airport (DCA).

Recall that this is the one airport that Congress regulates directly. It limits the number of slots (ability to take-off and land planes) and requires that flights in and out of DCA be limited to a “perimeter” of 1,250 miles, except for 20 exemptions (“beyond perimeter” flights). These regulations originated in 1966 as a way to control noise and support the development of nearby Dulles International Airport and were last updated in 2012. For any number of reasons, these objectives are no longer relevant.

As part of this cycle of FAA reauthorization, Congress has considered legislation to expand the number of slots and beyond perimeter flights. (AAF’s Fred Ashton analyzes such proposals here.) The current version – see Section 502 on page 425 – would add 10 slots or five round-trip flights at DCA. These could be used for either within perimeter or beyond perimeter flights.

This expansion of flights is far from a done deal, as there is a lot of opposition. As noted earlier, the debate has focused on the implications for the region’s airports, the impact on local control by the Metropolitan Washington Airports Authority, and the prospects of each of the commercial airlines flying into the area. It cannot be emphasized enough that this misses the most important point: Would the proposal be good for airline consumers? What will happen to the choices, prices, and flying services available to travelers?

This is the focus provided by the consumer welfare standard in analyzing competition, which is exactly what this is. This misplaced debate is precisely what the Federal Trade Commission and Department of Justice are attempting to institutionalize, in general. Eakinomics would prefer a more aggressive, deregulatory approach to slots and flights, but this incremental step seems sensible to safely expand choices and reduce environmental damages.

Disclaimer

Fact of the Day

Across all rulemakings this past week, agencies published $103 billion in total costs and added 11.6 million annual paperwork burden hours.

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