America’s air traffic delays cost money
The inefficient U.S. air traffic control systems are largely to blame for flight delays, analysts report. Those delays are costly to individual travellers and the overall economy. The Air Transport Association has put the cost for airlines and their passengers at $6 billion a year including ground delays, airport taxi times and in-flight delays.
Although measuring the costs is not a simple task, some organisations have come up with estimates:
Air traffic control delays cost passengers $1.6 billion a year, and $2.9 billion for airlines, according to National Business Travel Association estimates.
United Airlines says delays due to all causes cost it $41 per idled plane per minute and $7,000 per cancelled flight.
Southwest Airlines puts the cost of air-traffic control tie-ups, bad weather and other factors outside its control at $50 million to $100 million a year.
One in every four flights was delayed, cancelled or diverted last year, according to the U.S. Transportation Department. Departure and arrival delays increased 33 percent between 1995 and 2000.
There are a multitude of indirect costs also. For example, many business travellers anxious not to miss an important meeting schedule their travel a day earlier, necessitating an extra night's stay at a hotel and meals on the road. Or limousine drivers who have arranged to pick up passengers at airports must cool their heels when flights are late or cancelled.
Experts say many of these costs could be eliminated if the air traffic control system were privatised and modernised.
Source: Chris Woodyard, Constant Travel Delays Cost Money Lots of It, USA Today, April 10, 2001.
For text http://www.usatoday.com/money/biztravel/bonus/2001-04-10-cover.htm
For more on Air Traffic Control http://www.ncpa.org/pd/regulat/reg-1.html
Publish date: 18 April 2001
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.