CLE Landing Fees

[Rob]

Since this board seems to know all about CLE, here''s a question.
CLE landing fees are supposed to be reduced when the new runway is completed. Does this mean in December when the first 7,000 ft of 6L/24R is opened or a year and a half later when the full 9,000 ft length is finished? Or even later yet when 6R/24L is extended to 11,500?

 

[mrf777]

I've never heard anything about landing fees being lowered because of the new runway, however I have heard that the shops and restaurant sales impact fees that the airlines pay. thats why they said the security move will improve sales.

 

[CLEfan]

I remember the same thing. It was in the Plane Dealer a few years back, but I havent heard anything about it. I have been asking frequently, but i have never gotten an answer. Best bet may be to call the Airport Directors office and ask about it. You might get an answer, or you might not. Also, you can try to email Mark Rollenhagen, the aviation reporter for the PD, at [email protected]. If you find anything, please let us know!

 

[Rob]

Google had about 350 references to CLE and landing fees. All I got was confirmation that the fees were temporarily raised in 1999 to support the city's share of the runway cost; but no details on actual dollars and cents or the exact trigger that will reduce them.

I'll try some more.

 

[Rob]

The latest comes from Crain's CLeveland Business:


Landing fees at Hopkins up in the air

By DAVID BENNETT

Cleveland Hopkins International Airport's 7,000-foot runway that opened for business last week is seen as critical to improving air service in Northeast Ohio. But observers say Hopkins' high landing fees for airlines may negate some of the promise the runway holds for increasing the number of flights at the airport.

Hopkins officials are negotiating with air service providers to set the landing fee rate that all air carriers will pay next year. The fee, which is the amount an airline pays per 1,000 pounds of landing weight at the airport, was $3.10 at Hopkins in 2002, according to Hopkins spokeswoman Pat Smith. That figure is significantly higher than many competing airports, including Cincinnati/ Northern Kentucky International Airport, Pittsburgh International Airport and Port Columbus International Airport, where the rates are 98 cents, $1.28 and $2.51, respectively.

Observers say high landing fees likely will continue to be an obstacle to bolstering air service at the Cleveland airport - especially if Hopkins follows the route of some other major airports in raising landing fees in an attempt to recoup other revenue lost following the terrorist attacks of Sept. 11, 2001.

Cleveland City Councilman Michael Dolan, former chair of council's Aviation and Transportation Committee, said even if landing fees decrease for carriers at Hopkins in 2003, a sizable gap will remain between Hopkins and other competing airports.

If they go down, they will go down very little, Mr. Dolan said.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

The current $3.10 was increased from $2.93 in 1999/2000. My recollection was that the rate was to decline when the runway was finished. It sounds as if Mr. Dolan has forgotten that part.

 

[7.5victim]

Sounds to me like they just took a lesson from the masters. Remember the fuel surcharges that never went away after the price of fuel droped significantly? Oh wait, I remember now... They were just added into the fares!

 

[N305AS]

CLE really needs to get their act together.

 

[Rob]

Last Friday, John Mok, Director of CLE and BKL, gave a speech at the City Club of Cleveland. The speech was a ho-hummer, but contains interesting material for CLE fans.

http://www.prwebcast.com/webcast/index.asp...p?WebcastID=238

It *does* answer the landing fees question, indirectly; Mok said that CLE adds up all costs, subtracts non-airline revenues, and divides up the remainder among the airlines with the airlines specifically approving all capital costs. No surprise, he said his goal is to reduce costs.

He also cited one shopkeeper's experience; since moving the security points, the shop's revenue has gone up 24%.

 

[CLEfan]

A report was just on the news about the landing fees at Hopkins. They say CLE''s landing fees are highest in the region. They gave PIT and DTW as comparisons to CLE

PIT: about $1.50/ 1000 lbs.
DTW: about $3.20/ 1000 lbs.
CLE: $4.20/ 1000 lbs.

They had a city council member on saying that they will work with Continental to lower fees and make it better to do business at CLE. Hopefully, a sizible cut will be made and we can see some mainline growth as a result.

Report was on WEWS, Channel 5. There is nothing on the website, but will keep looking.

 

[mrf777]

Gordon will be in CLE on Tuesday, discussing CALs future here. He will be meeting with the mayor and other city officials, so hopefully the city wakes up.

 

[CLEfan]

http://www.newsnet5.com/crimestoppers/2054...tml

This is the link from the report I stated above. From the tone of the article, it sounds like CLE''s leaders are ready and willing to work with CO. Look forward to seeing the hopefully positive results from Gordon''s visit.

 

[Spruance]

The city should of woke up about 10 years ago. The landing fees there are equivalent to LGA and HNL, so its no wonder CAL has never made money in CLE. I hate to say it to you guys but CLE is a dying hub for both CAL and Express. If UAL goes under then watch for CAL to flip CLE the bird and shift the mainline operation to DIA. Ten years from now CAL''s presence in CLE will be a shell of what it was in the late 90''s. Trust me I know this bites since CAL has so few hubs, but it is reality...