Trade Groups Point at Airports’ $75B “Wish-List” to Justify Increasing Passenger Fees
Joe Cortez March 20, 2015
Justifying a request to increase ticket fees, airports claim America’s air infrastructure requires $75 billion of overhauls and upgrades.
In order to accommodate a list of upgrades for American airports that totals over $75 billion, passengers may see more fees attached to their airline tickets. USA Today reports the trade groups petitioning for the increase — the Airports Council International-North America and the American Association of Airport Executives — released a report outlining the need to increase airport fees.
Currently, the FAA caps Passenger Facility Charge (PFC) at $18 for round-trip connecting itineraries. The two trade groups, however, claim that the money airports are collecting from the fees simply isn’t enough to provide the upgrades necessary for accommodating increased passenger demand.
In a 22-page report, the trade groups argue that the resulting lack of funds is causing several projects at major airports across the U.S. to stall. The projects cited in the report include gate and airfield improvements at Dallas-Fort Worth International Airport (DFW), John F. Kennedy International Airport (JFK) and Newark Liberty International Airport (EWR); an expansion at San Francisco International Airport (SFO); and a terminal connections program at Los Angeles International Airport (LAX).
“We need to have a system that will adapt to 1 billion passengers in 15 years,” said CEO of Airports Council International Kevin Burke. “Right now we’re not ready for it.”
The current PFC cap was last updated in 2012. With authorization for the cap expiring later this year, congress is set to discuss the issue as part of a legislative package for the FAA.
[Photo: iStock]
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here's a better way: force every greedy vendor in every US airport to pay $0.50 for every ridiculously overpriced bottle of water they sell, and everything else for that matter, to pay for airport upgrades.
I wish I owned a business where the customer/taxpayer paid for my facilities so I didn't have to (this applies to airports and sports venues).