PFC — How airports are funded by passengers instead of local businesses

How PFC are used for airport funding

Airports should allocate infrastructure funds effectively and share their airport costs among all airport users – passengers and businesses in the region surrounding the airport. 

However, with free federal money coming in, airports have not had to charge local businesses for their airport.

Can you blame them? Airports, regional, and local businesses are getting free federal money from Congress. It saves the local representatives from having to ask their own constituents for more tax funds. It is always better to get money from those you don’t have to look right in the eye.

We have plenty of money for airports.

From airlines, you will hear this ad nauseam – let me add to the message…

Customers already pay billions per year in airport taxes. Airport revenues have soared to a record of over $30 billion, they have more than $14.5 billion in cash on hand and access to a healthy aviation trust fund that has a surplus of more than $7 billion. Airports have some of the best bond ratings with the lowest interest rates available. They can borrow money and have their taxpayers pay it back, not hapless passengers who don’t even have representation.

Consumers have heard the airline pitch based on money, but we are also looking at fairness of the PFC (passenger facility fees) payments. Here are the allowable expenses for PFC.

Passengers are paying virtually all the costs of airports. 

Consumers pay the 

• PFCs. 
• Segment fees. 
• Security fees. 
• Surcharges for taxis, Ubers, and Lyft.
• Parking surcharges and fees.
• Purchases at retail and airport restaurants.
• Rental car facility fees.
• Bus fees for surrounding businesses.
• Ultimately, passengers are paying takeoff and landing fees.
• Plus, we are paying much of the bond financing – not the localities.

MAKE THE SYSTEM FAIRER – INCLUDE LOCAL BUSINESSES AS USERS

As part of the new infrastructure programs, Congress should not increase airport taxes (passenger facility charges — PFCs) on America’s airline passengers. 

Local leaders should figure out how to share the burden of airport costs with their own local taxpayers as well as travelers. 

I often get questions, dripping with condescension, like, “Mr. Leocha, Just what don’t you understand about user fees?” 

My answer is always the same. I ask them another question. Who do you consider a bigger user of the airport? A traveler who may fly in and out of an airport four or five times a month? Or, local businesses like office buildings, hotels, and parking lots, which drive their profits from the airport 365 days a year, 24/7. 

1. The PFCs (or federally-mandated hidden taxes) are considered user fees. These PFCs are collected to pay for the use of airport facilities. They are not a substitute for municipal bond issues that are normally used for the construction of airport facilities.

2. The real users of airports are local businesses. These include money makers — parking lots, warehouse facilities or office building owners. These businesses generate revenue 365 days a year from the airport’s presence. Passengers certainly do not generate the most profits for airport use; the surrounding region does.

3.  The surrounding businesses should bear the burden of construction and mortgages. Passengers are already paying around $4.50 every time they take off from an airport. The surrounding communities get the economic benefits of the airport for free. That is not fair.

4.  The federal funding rules create a false separation. This is a bad budget requirement between airports and the regions that they serve.

5.  Localities or the nearby community do not pay their fair share.

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