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   Vol. 15  No. 89
Tuesday November 15, 2016

All About Airports Part 5:
Alaska Advances Cargo Transfer Rights

Alaska Advances Cargo Transfer Right

     As FlyingTypers continues our exclusive series, “All About Airports,” asking leading world gateways about programs and initiatives that work for them and might prove useful to other airports in the world, we land this time at Fairbanks, Alaska.
     What becomes instantly apparent is that air cargo up north is much more than seat-of-the-pants operations and colorful ice pilots.
     Here we discover how a diversionary airport plays a critical role in a major cargo hub’s success.
     We have also included some other chapters in our coverage with easy click-through reading.
     Take a moment and read Atlanta’s plan for truck queues and other informative strategies our reporters have gathered about our airport partners. Thanks for your comment.


     A common misconception about Alaska is the impact of its geographic location in relation to the rest of the United States.
      The 49th state is most assuredly part of the U.S., but is so remote geographically it could be treated as its own territory or country.

The Exception

   John Parrott   With a few thousand miles between the state and the rest of the nation, certain regulations that apply to the lower 48 may not necessarily be relevant to Alaska. The U.S. Department of Transportation recognized these differences and implemented an exemption for air cargo.
      An example of this comes from The Jones Act, a law that prohibits a foreign entity from transporting goods between two points in the U.S.
      This exemption allows international cargo carriers to land in Alaska and transport goods to another U.S. destination without being subject to certain limiting federal regulations.
      In addition to the exemption, The Stevens Amendment authored by Alaskan Senator Ted Stevens further outlines Alaska’s unique cargo transfer rights and works in conjunction with the U.S. DOT exemption. In other locations, this could be considered cabotage, which Merriam-Webster defines as “trade or transport in coastal waters or airspace or between two points within a country,” and can be punishable by law.
      John Parrott, The Ted Stevens Anchorage International Airport (ANC) Manager stated that, “Between the two [pieces of legislation] it’s pretty interesting and creates a unique way of operating.”
      Alaskan airports must apply for the exemption every two years.

Cargo Transfer Chart

The Aerial Lifeline

      Another difference between Alaska and the rest of America is that many residents in rural areas rely solely on aviation as a means of transportation in and out of their communities since roads aren’t available. Aviation therefore is more a way of life and can determine one’s quality of living. Anchorage and Fairbanks are two of the largest cities in Alaska and are home to the Alaska International Airport System (AIAS), which is comprised of ANC and Fairbanks International (FAI) Airport, which play a key role in rural transportation.

Tale Of Two Airports

      Many Alaskans are familiar with long travel times. Anchorage and Fairbanks are separated by a mountain range and sit on separate fault lines. They each have distinct but different weather patterns. Rather than driving, residents prefer flying an hour from ANC to FAI or vice versa. The two cities are close by air but a far piece apart by road.

Anchorage Airport

Hand In Hand Never Closed

      Geographically, the two airports are close enough that either one could act as a diversionary airport for the other.
      What this means is if an event temporarily closed one or the other for any reason, a passenger carrier or cargo carrier could divert to the opposite airport without adverse impact on fueling requirements. Both airports are capable of handling the largest aircraft that can be flown. ANC is substantially busier than FAI, increasing the capacity at FAI to handle diverts. The geographic and operating differences between the airports enable them to boast that there hasn’t been a simultaneous closure since the airports were linked in the AIAS in 1961. “We are too far apart to be hit by the same thing,” Parrott stated. This is something the cargo industry can count on and upon which the system capitalizes and considers in their business model in hopes of gaining new air cargo business.

KAL ANC

 

Tops Air Cargo

      According to the Airports Council International (ACI), ANC was the 4th busiest airport in the world for air cargo tonnage in 2015.
      When asked about FAI’s role in ANC’s success, Parrott explains that “FAI is our spare runway” and carriers know that if they land in Alaska they will be attended. If for some reason cargo carriers are unable to land at ANC they have the peace of mind knowing they can land at FAI without having to carry more fuel.
      “It’s about maximizing your bottom line revenue,” he says. “If you have to carry more fuel, you’re carrying less cargo and you aren’t being paid to carry fuel.”
      He then goes on to explain what makes carriers decide to land at ANC over other airports: “money.”
      “In my humble opinion, as an airport manager and former Air Force pilot, that’s the real strength we have here,” said Parrott.
      If FAI weren’t close enough to have as a diversionary airport and carriers had to carry enough fuel to land somewhere else, they would bypass ANC all together.
CAL

 

Can't Have One Without The Other

      “My personal belief is we would not have the number of cargo airplanes that we have, if we didn’t have Fairbanks waiting to catch somebody that we couldn’t get in here.” Parrott wanted to stress that diversions aren’t common and carriers want the assurance that they would land where they originally routed, but two airports working together could positively impact one another.
      In summary, the remoteness of Alaska from the rest of the U.S. has enabled it to obtain and offer to the industry unique cargo transfer rights. From the perspective of the state’s aviation system, the enabling legislation, in combination with the operational positioning and relationship of Anchorage and Fairbanks, offer the logistics industry a unique, safe, and reliable route structure for transoceanic operations.
Geoffrey

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