Airlines, airport group go to war over passenger fee increase
As the airline industry continues its fight against a big increase in the passenger facility charge, a group of airport operators say raising the fee from $4.50 to a proposed $8 doesn’t go far enough.
The fee increase was proposed by the Obama administration to help fund airport improvement projects and will add an extra $2.3 billion a year.
However a report by the Airports Council International-North America says US airports need more than $70 billion in upgrades through 2019 to keep pace with growing travel demand.
“It is clear that the existing federally mandated funding system cannot meet US airport capital needs for modernizing and expanding airport capacity which is critical for a safe, efficient and globally competitive aviation system,” the report said.
Led by lobbying from trade group Airlines for America, US carriers have opposed the fee hike, concerned it will dampen travel demand.
“We support infrastructure investment. Those things need to happen,” said Sharon Pinkerton, senior vice president for legislative and regulatory policy at A4A.
“We just don’t need to tax passengers in order to make that investment happen.”
The trade group estimates airports already have access to about $11 billion and can raise more cash in a number of different ways without hitting passengers’ wallets.
George Kelemen, senior vice president of government and political affairs at Airports Council International – North America was quick to note airlines’ double standards in an increasingly heated debate.
“A modest $4 adjustment to a PFC that hasn’t been increased in 15 years, compared to $25 per bag for the average traveler, is pretty minimal,” he said.
A survey commissioned earlier this month by A4A showed 82% of travelers oppose an increase in the passenger facility charge.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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