There was a Congress in terms of which airports wanted to increase the cap on the “passenger facility charge” that passengers pay as a part for the airline tickets. At present the charge is $4.50 for each person and as for the round trip it is about $18. Such funds are for building of runways, terminals and gates.
Many airports want to raise the charge up to $7.50 and indexed to the expansionary cost construction.
The growth up to $7 per passenger was proposed by a bill in the House. But a Senate committee decided to keep the cap at $4.50.
According to Todd Hauptli of the American Association of Airport Executives, the only thing they were trying to do was to bear up with inflation. He was concerned about the fact that the facility charge dropped by 50% since 2000
James May, CEO of the Air Transport Association, the trade group representing most airlines wrote to Congress recently this year, in case the cap went up to $7, it would lay on an extra unwarranted $2 billion-per-year tax increase on commercial passengers.
“With airport revenue eclipsing record levels … the imposition of an increased PFC tax is not only unwarranted, but will also further reduce demand for travel,” he added.
The first facility charge was approved by Congress in 1992. Since that times U.S. airports have increased more than $27.5 billion.
In order to get the approval for each project that will get funds by facility charge funds, airports have to apply to the FAA.
John Meenan supposes the airports spend the money for projects very often that is not right and as for the FAA, it is too lenient when approving their projects.
It was considered that money received from the passenger facility charge should be used mainly for construction projects that improve safety, security or capacity, diminish noise or augment air carrier competition.