Arrr! Yon landlubber passengers sailed away safe from a monstrous Big Government fiasco, by the powers!
2023-07-28
Arrr, mateys! A fancy amendment to the FAA reauthorization be aimin' to hoist the cap on the Passenger Facility Charge (PFC), a scurvy fee these landlubber airports be plunderin' from air travelers. Luckily, their plan be scuttled!
Commercial airline passengers can breathe a sigh of relief as a proposed amendment to increase the Passenger Facility Charge (PFC) in the recently passed Securing Growth and Robust Leadership in American Aviation Act was rejected. The PFC is a fee imposed on air travelers by airports controlled by state and local governments. The proposed increase would have made air travel more expensive for everyday Americans, harmed small businesses, and hindered competition in the industry.Currently, the PFC is set at $4.50 per eligible passenger, with a maximum of $18 per round trip. This charge is included in the price of airline tickets and is just one of the many taxes and fees imposed on air travel. Taxes and fees can make up over 20% of the cost of a domestic airline ticket.
Proponents of raising the PFC argue that it needs to keep up with inflation and fund improvement projects at airports. However, revenue from PFC fees has far outpaced inflation since 2000, and an increase in the cap could actually reduce funds available to airports. Additionally, Congress has recently provided a $25 billion investment for airport improvements through the Infrastructure Investment and Jobs Act, making a PFC increase unnecessary.
While some argue that raising the PFC cap would promote competition among airlines or airports, the resulting higher ticket prices would harm smaller airlines and hinder competition. The charge is imposed by the government, collected by airlines, and handed back to airports, so it does not incentivize airports to compete.
Increasing the PFC cap would also have negative impacts on the broader economy, particularly small businesses already struggling with inflation and burdensome taxes. Thankfully, the rejection of the PFC cap increase in this bill puts an end to the debate, at least for now.