ACI-NA applauds House for including funding for airport improvements
Airports Council International - North America (ACI-NA) applauded
House Transportation & Infrastructure (T&I) Committee Chairman Oberstar
and House Aviation Subcommittee Chairman Costello (and associated committee
members) 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 on 28-Jun-07 raises the cap on passenger facility charges (PFCs) to USD7.00. 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 travelling public, reducing congestion and delays" Principato added.
PFCs have funded more than USD50 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 USD87.4 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.