U.S. Airports Push for Higher Passenger Fees

By Daniel Yee, Associated Press Writer

posted: 23 March 2007 12:03 pm ET

ATLANTA (AP) - If airports get their way, the price of flying will increase further in the U.S. this fall as they push for higher boarding fees used to fund airport improvements, ranging from new runways to expanded terminals.

Airports and the Federal Aviation Administration are asking Congress to increase the "Passenger Facility Charge,'' a fee that's automatically added to the price of each air passenger ticket. It's the first time the agency has asked for an increase since 2001, when the original 1992 fee of $3 per ticket increased to a maximum of $4.50 (euro3.35).

The FAA now is asking Congress to increase the fee by another $1.50 to a maximum of $6 (euro4.50). But the country's major airports would like the increase doubled - for a $7.50 (euro5.60) fee - to keep up with construction cost inflation.

The inflation that worries passengers and the airline industry is the one that affects the cost of air travel, especially as other factors, such as soaring fuel costs, keep pushing up the cost of flying.

The Air Transport Association, which represents airlines, has long opposed a fee increase, said spokeswoman Elizabeth Machalek.

Congress has to revisit the fee because the current authorization for it expires Sept. 30.

"Part of the case we need to make to passengers is if we don't do this then the air transportation system in this country will be less efficient and we will not be able to handle the increased demand,'' said Greg Principato, president of Airports Council International-North America, which represents U.S. airports. His group estimates 300 million new passengers - for an estimated total of a billion passengers - will take to the skies by 2015.

Passengers are charged the fee, known as a "PFC,'' each time they leave an airport, sometimes including a second fee when a passenger has a connecting flight through another airport. The fees also are levied by airports on the return leg of a passenger's trip.

Twenty-four of the nation's largest airports charge the maximum rate of $4.50 per ticket.

The FAA says an increase of $1.50 per ticket is sufficient because it will give airports an extra $1.2 billion (euro900 million) annually for capital investments. Since their start in the early 1990s, the fees have provided more than $50 billion (euro37 billion) in airport capital improvements, according to Airports Council International.

Advertisement

Related Items from the LiveScience Store

  1. Go to Store
  2. Go to Store

More Stores to Explore

World Travel - iExplore.com
Adventure Travel - iExplore.com
Region:
Country:
Activity: