Commercial Aviation: Raising Passenger Facility Charges Would Increase Airport Funding, but Other Effects Are Less Certain

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By Gerald L. Dillingham (au)
Year: 2014
Pages: 51
Binding Paperback
ISBN 978-1-4578-6628-9

Product Code: 1457866285

Description

About $2.8 billion in Passenger Facility Charges (PFCs) were collected in 2013. PFCs are federally authorized fees paid by passengers at the time of ticket purchase to help pay for capital development at commercial service airports and have been capped at $4.50 per flight segment since 2000. Airports are seeking an increase in the PFC cap to $8.50. Airlines, which collect PFCs at the time of purchase and remit the fees to airports, oppose an increase because it could potentially reduce passenger demand. Some airports have suggested that alternative PFC collection methods could allow the PFC cap to be raised without adversely impacting demand. This report discusses (1) the potential effects of PFC cap increases; (2) how well the current PFC collection process works; and (3) alternative PFC collection methods. Tables and figures. This is a print on demand report.

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