To hear the argument from the airlines’ point of view, raising the passenger facility tax from $4.50 to $7 “would raise travel costs, thereby harming both consumers and the travel/tourism industry,” according to a letter sent by airline executives to the Democratic chairmen and ranking Republicans on the House and Senate transportation committees.
The airline executives probably chose to send this message as a letter because none of them could maintain a straight face if they were to deliver this same message and, at the same time have to answer questions about the dramatic increases in airline fees imposed by the airlines this past year.
The House version of the FAA Reauthorization bill includes an increase in the Passenger Facility Charge (PFC) from the current $4.50 to $7. The original fee was set back in 1990 and has not been changes since then. Obviously, costs associated with maintaining airports and building runways have increased.
The Senate version of the same bill institutes procedures whereby airports could collect PFCs individually. In other words, passengers would be faced with paying a separate airport tax when departing any airport that imposed such charges under the Senate version.
At the same time airlines are decrying the increase in the PFC they are raising their baggage fees, instituting seat reservation fees and charging for carry-on luggage. The airlines have also found ways to reduce the air transportation excise tax revenues through their unbundling of airfares.
Personally, I am not a big fan of taxes, however there needs to be some kind of charge to keep the infrastructure sound in the air transportation system. At least the PFC only charges the passengers using the airports taxes rather than taxing everyone no matter how often they fly.
Plus, this change in the PFC would “raise the ceiling” for the PFC. Not all airports charge the maximum charge. Most commercial airports charge between $3 and $4.50 currently (here is the current Southwest chart of PFCs at airports they serve).
Our air transportation infrastructure needs to be maintained, otherwise it crumbles. This PFC is one of our country’s main funding mechanisms for that infrastructure.
Do you think passenger facility charges are unfair? If so, how would you fund the airport and air transportation network?
Photo: MalkyMac at en.wikipedia
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
