WASHINGTON (June 27, 2007) – Airports Council International – North America (ACI-NA) today applauded House Transportation & Infrastructure (T & I) Committee Chairman Oberstar and House Aviation Subcommittee Chairman Costello, as well as T & I Committee Ranking Member Mica and Subcommittee Ranking Member Petri for providing airports with the financial tools necessary to fund capital improvements to meet increasing passenger traffic, encourage price and service competition and improve safety and security.
The House FAA Reauthorization Act of 2007 introduced this evening raises the cap on passenger facility charges (PFCs) to $7.00. PFCs are a local airport user fee that helps airports build infrastructure to meet airline and passenger demands to accommodate future growth and improve levels of service. The bill also provides important funding for the Airport Improvement Program.
“Every day we hear about delayed flights and growing passenger frustration,” said ACI-NA President Greg Principato. “The fact is there is simply no room in the system to absorb the additional demand.
“By increasing the PFC ceiling, Congress will enable airports to invest in the future by building more runways, taxiways, and terminals to better serve the traveling public, reducing congestion and delays” Principato added.
PFCs have funded more than $50 billion in airport modernization since 1990. Although PFCs are a foundation of airport capital investment, the value of the PFC has been significantly reduced because of construction cost inflation.
ACI-NA’s recently-released capital needs survey shows that airports must invest $87.4 billion over the next five years on new airport infrastructure, such as new runways, terminals and gates, in order to keep pace with projected passenger and air cargo demand. PFC revenue supports airport bonds and funds ongoing capacity expansion projects.