“We
are pleased that the Obama Administration has recognized the need to
increase the local airport user fee to fund necessary safety and
modernization projects”, said George Kelemen, ACI-NA Senior Vice
President, Government and Political Affairs. “America’s
airports have documented $71.3 billion dollars in projects critical
for air travelers, shippers and airlines over the next five years.
However, the Passenger Facility Charge (PFC) user fee, which has not
been increased in 13 years, should be raised to at least $8.50 to
restore its original purchasing power. The PFC is a key
component in funding airport modernization so the U.S. aviation
industry can maintain its global competitiveness."
“However,
given that the PFC user fee cannot be increased by the
Administration, we look forward to more details on their plan for
legislative action to accomplish the increase” Kelemen added.ACI-NA also expressed concern about the proposal to cut Airport Improvement Program (AIP) funding by almost a half a billion dollars, to $2.9 billion. “Airline passengers and general aviation – aviation users, not taxpayers – pay for airport improvements through taxes and segment fees” said Kelemen. "By cutting AIP, the Administration's budget hinders airports’ ability to secure the resources necessary to provide safe and efficient facilities that reduce delays and inconvenience. This is especially true for smaller airports which would lose significant formula funding under the proposal.”
The Administration also proposes making significant changes to the tax treatment of municipal bonds, which would increase airport funding costs.
PFC user fees, AIP grants and bonds are the primary sources of airport infrastructure funding.
