Principato: $2.50 Fee Increase Could Support An Estimated 40,000 Jobs

Airports Council International- North America (ACI-NA) has reached out to DOT Secretary Ray LaHood asking the Administration to support the House language in the FAA Reauthorization bill which increases the ceiling for the Passenger Facility Charge (PFC) from $4.50 to $7.00.

In the letter sent to Secretary LaHood, ACI-NA President Greg Principato stated:
"The enactment of the $7.00 PFC in the House FAA Reauthorization bill will create jobs immediately at airports, construction companies, building supply companies, and engineering and architectural firms while improving and building the infrastructure necessary to meet the future needs of the national air transportation system."

Principato estimated that 40,000 direct jobs would be created nationwide if every airport currently at $4.50 adopted the $2.50 increase. These jobs would be in addition to the 80,000 created by the $4 billion allocated for the Airport Improvement Program (AIP) provided in both bills.

Principato also shared with the Secretary the coalition letter signed by 19 aviation, transportation, construction and local government groups that support the House language raising the ceiling for the PFC from $4.50 to $7.00.

In the letters sent to House Committee on Transportation and Infrastructure Chairman James L. Oberstar (D-MN), House Committee on Transportation and Infrastructure Ranking Member John L. Mica (R-FL), Senate Committee on Commerce, Science and Transportation Chairman John D. Rockefeller (D-WV), and Ranking Member Kay Bailey Hutchison (R-Texas), the coalition stated:
"The need for new airport infrastructure to meet the demands of future air traffic is substantial and without an increase in this important funding mechanism airports will not be able to keep up with demand. Additionally, there are a number of airports that desperately need to modernize and repair aging infrastructure to ensure passenger safety and customer service."

The coalition letters cited the ACI-NA 2009 Capital Needs Study that found that there are $94.3 billion in essential airport capital projects that need to start between 2009 and 2013-amounting to $18.9 billion per year in projects.

Although the ceiling on the PFC has remained at $4.50 for the last ten years, it has not been indexed to inflation. If the PFC had been indexed to the construction cost of inflation it would be worth $8.14 today.

FMI: www.aci-na.org