Supervisors Fume Over American’s ‘Flier’ Lobby

In what is being characterized as a public relations fiasco, a bid by American Airlines to enlist its frequent fliers in the battle for a bigger share of flights at crowded John Wayne Airport has county officials fuming and passengers complaining about American’s current service.

“Whatever marketing genius at American thought this up ought to go back to school,” said Supervisor Roger R. Stanton, who teaches courses in business management at Cal State Long Beach.

“It’s negative,” Board of Supervisors Chairman Thomas F. Riley said of his own reaction to American’s lobbying effort. “They even sent me a letter, because I’m a frequent flier, telling me in effect to write to myself.”

American urged its frequent fliers to state their opinions in letters to each of the five supervisors. The letters from frequent fliers began arriving in supervisors’ offices earlier this week and reached a level of 40 to 50 per day on Wednesday. Riley and Stanton said most of the letters support American, but about a third are strongly critical of plans to increase flights or of the quality of service provided by the Dallas-based company.

Officials at American said they expected some of the letters to be negative but believe, in the long run, that air travelers will support the airline’s position.

At issue is the county’s complex noise-abatement flight allocation system, which is up for review because of the scheduled opening of the new, $50-million passenger terminal at John Wayne in April, 1990.

A public hearing on proposed flight allocations before the county Airport Commission is scheduled for 7 p.m. Nov. 8, with a final decision by the Board of Supervisors scheduled for Nov. 15.

Airlines are jockeying for as many flights as they can get because Orange County is one of the most financially lucrative air travel markets in the United Sates, with each additional flight worth an estimated $750,000 a year in profit for a carrier.

But flights are restricted because of the airport’s strict noise standards and a 1985 court settlement between the city of Newport Beach, environmental groups, and the county. Currently, the airport is allowed up ato 4.75 million passengers a year. But under the settlement, the ceiling will rise to 8.4 million when the new terminal opens.

Airline flights are regulated according to three types: Class A (noisy), Class AA (less noisy) and Class E (quiet), with many variations in the mix of aircraft possible as long as total annual passenger volumes don’t bump the airport’s annual ceiling. The policy encourages airlines to use quieter planes.

When the airport’s new terminal opens in April, the total number of daily flights by all air carriers is expected to increase from the current 83 to more than 150.

The airport staff has proposed various scenarios, one of which would give American an increase in noise-regulated flights from 19 to 20 per day--in effect a 5% boost. Another scenario calls for American to lose one of its noise-regulated flights--a Class A departure--to Phoenix-based America West. American would like to “grandfather in” all of its Class E departures, but the airport staff is recommending that the Class E flight allocations be abandoned in favor of a new system that allocates seat capacity.

In thousands of letters mailed to members of American’s “AAdvantage” or frequent flier program, the airline stated last week:

“Currently, American Airlines serves 165 destinations out of John Wayne Airport, and we want to expand that service to most of our 245 markets. In order to do so, we need to have more departures authorized at John Wayne Airport.”

In a controversial move last year, American bought Orange County-based AirCal, giving American the most daily flights at John Wayne--28.

According to American, more than 136,000 Orange County residents accrued nearly 3 billion frequent flier miles through the AAdvantage Club.

But in one letter received by the supervisors Wednesday, Doris L. Foster of Newport Beach wrote: “I am opposed to expanded air carrier service for American or any other airline. I feel current takeoff procedures are unsafe and that the airport has gone too far beyond the original, intended size.”

And the supervisors were sent copies of angry letters that Orange County residents wrote to D.J. Carty, the senior vice president at American who had signed the letters to AAdvantage club members.

“I have been flying four to six times a month for 20 years, much of it out of Orange County (John Wayne) Airport,” wrote John E. Smith of Irvine. “Where USAir has improved the service PSA had, I have to report that American has ruined the good service that AirCal used to offer. . . . I would prefer that some of your competitors receive a portion of the flight slots you now have.”

And Bill Lawson of Costa Mesa wrote: “Orange County, at this moment, sir, is bulging at its seams. . . . Why should any air traveler desire more destinations and expanded services, when we cannot even get to the airport due to gridlocked traffic on our choked freeways now?

”. . . One would assume that your firm wouldn’t be so hungry this soon, after recently digesting AirCal at one feeding, with no California-based airlines left on the table.”

“We did ask our best customers if they could write to the board,” said American Airlines spokeswoman Mary O’Neill. “Although American Airlines appears to win with an increase in flights, (the airport’s plan) is geared to using larger equipment (that carries more passengers per plane) in order to keep the number of departures down.”

That’s fine, O’Neill said, except that under one scenario American would lose six quieter, noise-exempt departures to San Jose and the Bay Area. San Jose is American’s West Coast hub, and using larger Boeing 757’s or similar aircraft would be economically inefficient for service along the coast.

Supervisor Riley said American’s current lobbying effort is likely to fail.

“We’re not trying to discourage constituents from communicating with us, but the problem with this kind of thing is that the whole story has to be told,” Riley said. “Their letters to frequent fliers don’t mention the noise constraints we’re faced with, the 1985 court settlement, or our incentives to airlines who bring in the best equipment.”