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Airport Protectionism?

June 9, 2008 By Adam Hengels

Richard’s Real Estate and Urban Economics Blog – Federalism and Taxis

Taxicabs in the Washington area are regulated by various jurisdictions–DC cabs may not pick up fares in Virginia and Maryland, Virginia cabs can’t get passengers in the District and Maryland, and District Cabs are forbidden from pick ups in Maryland and Virginia.

In New York, they charge an additional $15 surcharge fee to take a taxi to Newark, NJ. It seems like interstate protectionism to me, nudging me to use LaGuardia or JFK.

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Filed Under: Transportation Tagged With: Airport, airports, LaGuardia, NJ, nyc, protectionism, surcharge, Taxicabs

About Adam Hengels

Adam is passionate about urbanism, and founded this site in 2007, after realizing that classical liberals and urbanists actually share many objectives, despite being at odds in many spheres of the intellectual discussion. His mission is to improve the urban experience, and overcome obstacles that prevent aspiring city dwellers from living where they want. http://www.marketurbanism.com/adam-hengels/

Comments

  1. Bill Nelson says

    June 9, 2008 at 3:04 pm

    This $15 surcharge presumably does not include the $16+ in tolls to Newark Airport?

    I wonder if private car services have a similar rate structure…I guess not?

  2. Bill Nelson says

    June 9, 2008 at 3:04 pm

    This $15 surcharge presumably does not include the $16+ in tolls to Newark Airport?

    I wonder if private car services have a similar rate structure…I guess not?

  3. MarketUrbanism says

    June 9, 2008 at 3:16 pm

    I was actually shopping for private car service when I came across this surcharge. I should double-check whether or not those fees were to pay for tolls or not.

  4. Market Urbanism says

    June 9, 2008 at 3:16 pm

    I was actually shopping for private car service when I came across this surcharge. I should double-check whether or not those fees were to pay for tolls or not.

  5. MarketUrbanism says

    June 9, 2008 at 3:21 pm

    http://www.nyc.gov/html/tlc/html/passenger/taxicab_rate.shtml

    For a trip to Newark Airport the fare is:

    the amount shown on the taximeter using Rate Code 3 which includes a surcharge of $15.00; and all necessary tolls to and from the destination shall be paid by the passenger.

    It applies to private cars too….

  6. Market Urbanism says

    June 9, 2008 at 3:21 pm

    http://www.nyc.gov/html/tlc/html/passenger/taxicab_rate.shtml

    For a trip to Newark Airport the fare is:

    the amount shown on the taximeter using Rate Code 3 which includes a surcharge of $15.00; and all necessary tolls to and from the destination shall be paid by the passenger.

    It applies to private cars too….

  7. Bill Nelson says

    June 9, 2008 at 4:15 pm

    It’s too bad that there are no (?) carriers that operate outside the grasp of the bureaucratic tentacles.

    I agree that this stinks of protectionism, but there’s always an outside chance that there really is some reason (insurance, maybe?) for the surcharge.

    A comparison with an unregulated carrier might have provided some insight. But with that said, if I were a taxi driver, I might charge a discount to go to Newark. The mileage is about the same as to the other airports, but I would probably not have to waste time sitting in Belt/BQE/Van Wyck traffic. (Assuming that I could use the Staten Island Expressway instead.)

  8. Bill Nelson says

    June 9, 2008 at 4:15 pm

    It’s too bad that there are no (?) carriers that operate outside the grasp of the bureaucratic tentacles.

    I agree that this stinks of protectionism, but there’s always an outside chance that there really is some reason (insurance, maybe?) for the surcharge.

    A comparison with an unregulated carrier might have provided some insight. But with that said, if I were a taxi driver, I might charge a discount to go to Newark. The mileage is about the same as to the other airports, but I would probably not have to waste time sitting in Belt/BQE/Van Wyck traffic. (Assuming that I could use the Staten Island Expressway instead.)

  9. MarketUrbanism says

    June 9, 2008 at 6:02 pm

    hmmm, insurance does make sense, but it isn’t charged for other travel over state lines. I guess we would need to see if the surcharge is kept by the carrier, or goes to the city.

    Aren’t there protectionist insurance policies in most states that cause this? I don’t know much about insurance, but suspect it could have something to do with it.

  10. Market Urbanism says

    June 9, 2008 at 6:02 pm

    hmmm, insurance does make sense, but it isn’t charged for other travel over state lines. I guess we would need to see if the surcharge is kept by the carrier, or goes to the city.

    Aren’t there protectionist insurance policies in most states that cause this? I don’t know much about insurance, but suspect it could have something to do with it.

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