Airports Council International \u2013 North America (ACI-NA)\nrecently released \u201cBuilding The Runway To Economic Growth,\u201d ACI-NA\u2019s 2021\nreport on the growing list of infrastructure needs at U.S. airports. ACI-NA\nestimates that America\u2019s airports need $115.4 billion for necessary\ninfrastructure projects over the next five years. These are projects that, if\nfunded appropriately, would help address critical needs to improve the\npassenger experience, increase convenience, enhance security, expand competition,\nand ultimately lower prices for travelers. Congress should modernize the\nPassenger Facility Charge \u2014 a flexible form of funding for airport\ninfrastructure \u2014 to allow airports the opportunity to meet these needs. This\nchange would help airports fund necessary infrastructure updates to make\nterminals even safer as the industry continues its aggressive response to the\nCOVID-19 pandemic.<\/p>\n\n\n\n
\u201cThe world has changed a lot in the last 20 years.\nUnfortunately, how airports fund vital infrastructure projects has not,\u201d said\nACI-NA President and CEO Kevin M. Burke. \u201cThe COVID-19 pandemic has hobbled\nairports financially, and they need continued help to rebound from the steep\nand sustained drop in passenger traffic. It\u2019s time for Congress to give\nairports the flexibility they need to reinvest in their facilities.\u201d<\/p>\n\n\n\n
Airports have been unable to fund necessary projects because\nCongress has not modernized one of the main funding mechanisms for airports in\nover 20 years \u2014 the Passenger Facility Charge (PFC). The PFC is a small, local\nuser fee on tickets that goes directly to the airports used by travelers to\nhelp fund critical infrastructure projects. Congress last raised the maximum\nPFC level 20 years ago \u2014 before 9\/11 \u2014 from $3.00 to just $4.50. In the two\ndecades since, construction and related costs have risen steadily, meaning that\nthe full value of the PFC \u2014 what it\u2019s actually able to purchase \u2014 has declined\nby 40 percent.<\/p>\n\n\n\n
The PFC is also equally valuable to commercial airports of\nall sizes, as it is responsive to local circumstances and traveling trends. An\nairport in a once-small town experiencing a rapid population boom could set a\nhigher PFC; another airport that\u2019s just completed a major terminal renovation\nproject could set a lower one. Modernizing the cap on this local user fee would\nenable airports to fund projects that provide concrete benefits to travelers\nand support regional economies.<\/p>\n\n\n\n
Airport infrastructure needs have been exacerbated by\nCOVID-19. Airports have seen a dramatic decline in passenger traffic and an\nassociated drop in revenues. ACI-NA estimated that airports are expected to\nlose at least $40 billion through March 2022 due to the pandemic, and losses\nare expected to climb if passenger traffic remains depressed. While stopgap\nfederal relief funding was a lifeline for many, those funds only helped\nairports survive, retain employees, and service preexisting debt; these funds\ndid not address the enormous backlog of infrastructure improvements at\nAmerica\u2019s airports. As our economy begins to recover from the impact of\nCOVID-19, airports must be a central part of the response.<\/p>\n\n\n\n
Airports are essential to American economic success. They\nhave a footprint in every community in America, supporting $1.4 trillion in\nannual economic output and 11.5 million jobs each year. Additional revenue from\nthe PFC will help further stimulate the economy through shovel-ready projects\nthat would put money into the pockets of local workers. These projects will\nhelp American communities remain competitive in an increasingly global world\nwhile also benefiting passengers by expanding competition, choice, and lowering\nprices. We have the opportunity to not only invest billions of dollars into\naddressing antiquated airport infrastructure but to do so in a way that doesn\u2019t\nrequire any federal funding, simply by modernizing the federal cap on the PFC.<\/p>\n\n\n\n