Passenger Facility Charge Support
ACTION ITEM: PLEASE CONTACT YOUR SENATOR TO SUPPORT THIS RESOLTION
At the ACP October Conference, the Senate Aviation Caucus held their first public meeting. There was great discussion. One of the items discussed by numerous airports was the PFC.
The Passenger Facility Charge (PFC) Program PFC is a local user fee collected for every boarded passenger. The user fee is collected at the point of sale and determined locally. The program allows the collection of PFC fees up to $4.50 for every enplaned passenger at commercial airports controlled by public agencies. PFCs are capped at $4.50 per flight segment with a maximum of two PFCs charged on a one-way trip or four PFCs on a round trip, for a maximum of $18 total. In 1990, Congress authorized PFC to allow airports of all sizes to use these fees to fund FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.
Congress last raised the PFC cap to $4.50 in 2000. Since then, inflation has eroded the buying power of PFCs by approximately one-half due to rising construction costs. Over the next five years, airports will require over $75 billion to improve infrastructure to prevent passenger delays and congestion. However, direct federal funding through the FAA Airport Improvement Program has declined 10 percent over the past six years, covering only a fraction of the total infrastructure projects required to upgrade and maintain a world-class aviation system.
There is a growing recognition for the need of such infrastructure financing and funding to keep pace with inflation, consistent with the transportation package (Act 89 of 2013) recently passed.
Under the leadership of Senator Mike Folmer and Senator David Argall, Senator Mario Scavello, Senator Gene Yaw and Senator Patrick Browne, there is a plan to introduce a resolution calling on Congress to support an increase to the Passenger Facilities Charge (PFC) for commercial airports controlled by public agencies. Based on feedback the Senate Aviation Caucus has received, raising the PFC cap to $8.50 and indexing it for inflation would restore its original purchasing power, and would give local airports the ability to set their individual PFC user fees based on locally determined needs.
In 2010, Pennsylvania’s public use airport supported approximately 304,400 jobs, generated $9.2 billion in annual payroll and produced $23.6 billion in annual economic activities.
Currently the following Senators have agreed to co-sponsor this resolution:
Senator David Argall
Senator Patrick Browne
Senator Mike Folmer
Senator Mario Scavello
Senator Scott Wagner
Senator Gene Yaw
Please contact your senator today. If they are listed above, please thank them. If not, please ask them to support the proposed resolution to urge Congress to modernize the federal cap on the locally set PFC user fee by setting it at $8.50 and adjusting it periodically to offset the impacts of inflation.