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Airport Protectionism?

By

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.

  • Bill Nelson

    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?

  • Bill Nelson

    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?

  • 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.

  • 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.

  • 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….

  • 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….

  • Bill Nelson

    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.)

  • Bill Nelson

    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.)

  • 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.

  • 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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