Legislature(1997 - 1998)
03/10/1997 01:30 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HJR 27 - FAA "COMMUTER RULE" Number 027 CHAIRMAN WILLIAMS stated that the first order of business is HOUSE JOINT RESOLUTION NO. 27 "Requesting the Federal Aviation Administration to grant exemptions from the 'commuter rule' in order to maintain a high level of air safety and air transportation service in rural Alaska." He stated that Representative Ivan will provide sponsor testimony on HJR 27. Number 130 REPRESENTATIVE IVAN IVAN stated that HJR 27 will have a great impact on the economy and the travel service provided by commercial airlines. He read the Sponsor Statement into the record: "House Joint Resolution 27 proposes that the Federal Aviation Administration (FAA) grant specific petitions for exemption from individual operators affected by the 'Commuter Rule.' An exemption would ensure that safety is not diminished because the aircraft currently utilized, the Twin Otter, has a good safety record based on statistics on aircraft accidents in Alaska. "The Commuter Rule applies to any aircraft capable of carrying ten or more passengers under Part 121 of the FAA rules which applies to major operators as United Airlines, Alaska Airlines and any other major operators in the nation. Twin Otters currently operate under Part 135 of the FAA rules which apply to small aircraft. The Commuter Rule will come into effect, this month, March 20, 1997. "Rural Alaska relies totally on air transportation for passenger travel and moving goods and services. The aircraft affected by the Commuter Rule is the Twin Otter which carries 10 to 19 passengers and has twin-engine with turbo-props. This aircraft has a larger load capacity than a Cessna 206 or 207 and has a comparable approach speed. The Twin Otter also has a better safety record than those of smaller aircraft. There were a total of 67 accidents in 1995/1996 and seven of those occurred in ten plus seat aircraft. "The FAA has been given specific authority by Congress to provide exemptions to small air carriers in Alaska from provisions of the Commuter Rule. This resolution is requesting just that." Number 324 REPRESENTATIVE IVAN stated that the Commuter Rule is prompted by commuter aircraft accidents throughout the lower 48. Number 370 REPRESENTATIVE RICHARD FOSTER stated that he ran a commuter for 20 years and over the years Senator Stevens has been able to get various exemptions for Alaska because of the uniqueness and difficulty of maintaining business here. He stated that the Twin Otter is used on a lot of short runs in rural Alaska. He stated that one of the provisions of the Commuter Rule is that there needs to be a stewardess on board any aircraft with more that nine passengers on it. Having a stewardess on bush runs into the arctic makes it very expensive. He stated that ERA Aviation has indicated that they would withdraw from the market and ERA Aviation is, in some villages, the only aircraft that flies to certain villages. He stated that it would be very difficult to comply to the new ruling. He stated that he is in support of HJR 27. Number 500 REPRESENTATIVE KIM ELTON stated that he supports the resolution but he thought David Hinson was no longer the administrator for the FAA. Number 527 REPRESENTATIVE IVAN stated that they were working with the latest information and if updates are necessary, it will be changed on the House Floor. Number 536 REPRESENTATIVE BILL HUDSON asked what the timing is of the proposed changeover by the FAA. Number 552 REPRESENTATIVE IVAN responded that they are eminent and he believed the target date to be March 20, 1997. He stated that some of the airlines are already reacting to it. The existing airlines that are continuing to use the Twin Otters are going to take out some of the seats and operate under the previous rule that has been in operation. Number 591 REPRESENTATIVE FOSTER stated that it is compounded by the fact that there are not too many Twin Otters left, and they have got the Medivac contract for Bethel, so by pulling out of the market, they would have to be replaced by another aircraft which would result in a costly process to convert them into air ambulances. Number 633 REPRESENTATIVE JOHN COWDERY asked what would be a typical run if the aircraft was based in Bethel. Number 661 REPRESENTATIVE IVAN replied the area is the size of the state of Oklahoma, making milk run stops in 150 mile one-way routes. Number 742 REPRESENTATIVE COWDERY stated by eliminating one passenger it would give the opportunity for more fuel on board and asked if Representative Foster could comment on that. Number 770 REPRESENTATIVE FOSTER replied that the biggest problem is the change of record keeping for maintenance. He would foresee that the airlines would have to hire a complete new staff to conform because the regulations of the large commuters all conform to major airline maintenance and administrative record keeping. He stated that he could not see how an operator in a village could conform financially. It would force the bush operators to sell their equipment and go back to the single engine planes. He stated this would affect safety and the ability to get Medivac aircraft. He stated that he did not see how Alaska would have the financial ability to conform. Number 855 REPRESENTATIVE COWDERY stated that the probable cost to fly would increase. Number 878 JOHN KRUSE, Cape Smythe Air Service, testified via teleconference from Barrow, that their main base is located in Barrow. He stated that Mr. Hinson was replaced by Guy Gardner. He stated that Cape Smythe Air Service sold their Twin Otters in 1996 because they did not feel, with the Commuter Rule, it would be worthwhile to equip them with the necessary equipment. He stated that they have for sale their three beechcraft planes, which are 15 passenger aircraft, because this aircraft reduced to nine passengers will not compete with other piston aircraft. He stated that the Commuter Rule is requiring better communications and dispatchers that would cost around 50,000 a year, in addition to the $15,000 training program for each dispatcher. He stated that there are a lot of requirements that are not going to be able to be met by the operator. He said, "we also have better or more weather requirements which has been taken care of by less and less weather reporting. We have a lack of instrument approach which means, how are we going to go to these places without instrument approaches. This could be done by using GPS when approved by the FAA, the target date is the year 2005." He stated that these are a lot of things that almost can't be done by the operator, at least not economically. He stated that if this rule comes into being, they are going to go back to the Cessna 206 and 207 aircraft. He stated that the Commuter Rule is prohibitive to most operators. Number 1130 REPRESENTATIVE BEVERLY MASEK asked if besides Cape Smythe how many other airlines are in Barrow. Number 1146 MR. KRUSE replied that there are two other operators in Barrow. Number 1155 REPRESENTATIVE MASEK asked if the Twin Otters are safer to fly in the rural areas compared to the Cessna 206 or 207. Number 1180 MR. KRUSE replied that he has been around the Twin Otters since 1971 and has seen very few accidents and he knows they are a lot safer. Number 1214 JOHN HAJDUKOVICH, owner, Frontier Flying Service, testified via teleconference from Fairbanks, that he has owned the service since 1974. He stated that the resolution should be extended beyond the Bethel market. He stated that Alaska was focused on, when the Lower 48 was having the accidents, to invoke one level of safety. He stated that less then 1 percent of accidents have occurred on the aircraft. He stated that to comply with the Commuter Rule would be very costly and the question is whether or not the passengers will be able to afford the airfare. He stated that they have requested an extension of the implementation of the Commuter Rule until Alaska can address the commuter industry within Alaska. He stated that Guy Gardner replaced Tony Broderick and the acting administrator is Barry Valentine. He stated that he supports HJR 27. Number 1394 KIM ROSS, Executive Director, Alaska Aircraft Carriers Association, testified via teleconference from Anchorage, that she is representing 190 air carrier companies and associated businesses in Alaska. She stated that with the additional economic pressures that the Commuter Rule invokes, it has caused many of the carriers to downsize the airplanes with less than ten seats. Other operators are in a limbo position wondering if the obstacles created by the new rule will prohibit their ability to move into the new generation of aircraft. She stated that the Commuter Rule is another instance of the federal government's inability to acknowledge Alaska's unique operating environment. They are attempting to force Alaska to fit their mold at the expense of the safety of Alaska. Number 1498 REPRESENTATIVE HUDSON asked what action the association is taking to drive home the essence of HJR 27. Number 1570 MS. ROSS replied that the association has spent a lot of effort and time in putting together a 140 page document including a pictorial of all of the aviation industry around the state. Number 1557 JOSEPH SPRAGUE, Director of Marketing, ERA Aviation, testified via teleconference from Anchorage, that ERA is the largest regional airline in the state of Alaska. In 1996 Era carried just under 500,000 passengers, of which a large portion were Alaskan residents. He stated that seven villages are served from an ERA base in Bethel. He stated that ERA aviation is facing the difficult decision of reducing service to Alaska's rural communities. He stated that ERA's Twin Otters can accommodate up to 18 passengers and are currently the only twin engine, turbo prop, two pilot crew airplane, flown in village service from Bethel. He stated that due to the Commuter Rule ERA will reduce the seating capacity to a maximum of nine seats. These rules will require ERA to operate the Twin Otters under the same guidelines of major airlines, operating jet aircraft. He stated that these rules are appropriate for jets flying between large cities, but are completely inappropriate for a Twin Otter in bush operation. ERA has requested that the FAA grant certain exemptions from the new regulation. He stated that in 1995 the National Transportation Safety Board published recommendations on approving aviation safety in Alaska. Weather reporting, communications, and use of advanced navigation, were all cited as ways to improve safety and placed the burden to accomplish this on the FAA and the National Weather Service. He stated that the report did not indicate that operators should use certified aircraft dispatchers as the new rules require, and it did not say that each operator should supply and train a weather observer, nor did suggest that smaller aircraft carriers should change to different rules in the name of safety. He stated that ERA did have the intention to operate under these new rules, however, it was found that it would be impossible to comply with these regulations and continue to have a viable operation. The Commuter Rule will negate the safety aspect by forcing passengers onto smaller aircraft that have an inferior safety record. He stated that if the Twin Otter is no longer in service in western Alaska, the overall level of air carrier safety will decline. He stated that according to the FAA's statistics in 1995 and 1996 there were a total of 67 accidents, seven of those in ten plus seat aircraft. None of the seven would have been prevented had the new rule been in effect. The concern in the decrease of safety is now being expressed by the passengers that would be affected and are worried about the disappearance of the Twin Otter in rural Alaskan air service. He stated that the Commuter Rule does not apply a higher level of safety rather it is a different level of safety, one that was designed for larger aircraft operating between sizable communities. Number 1833 REPRESENTATIVE HUDSON made a motion to move HJR 27, with individual recommendations and asked unanimous consent. REPRESENTATIVE HUDSON stated that the name change of the administrator would be a technical amendment. Number 1898 CHAIRMAN WILLIAMS asked if there was an objection. Hearing none HJR 27 was moved out of the House Transportation Standing Committee.
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