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ACTE to Congress: Do not raise PFCs as part of FAA reauthorization

The Airport and Airway Trust fund is carrying an uncommitted balance of $6 billion, which should be more than enough to fund the FAA’s Airport Improvement Program.

The Association of Corporate Travel Executives opposes any proposal to increase passenger facility charges as part of the reauthorization of the US Federal Aviation Administration. According to an announcement by Greeley Koch, ACTE’s executive director, the association objects to any increases in PFCs (airport usage taxes) considering the huge income streams currently available to airport operators and authorities across the country.

“Airports have access to billions of dollars in revenue, including airline generated rents and fees, non-airline revenue, and the FAA’s Airport Improvement Program,” said Koch. This added up to $24.5 billion in 2013, including $2.8 billion is existing PFCs. The Airport and Airway Trust fund is carrying an uncommitted balance of $6 billion, which should be more than enough to fund the FAA’s Airport Improvement Program.

“What is the point of increasing passenger facility charges, a users’ tax, when billions of dollars remain uncommitted and unspent?” asked Koch. “Business travelers want to see more enhancements and improvements for the current charges, before they will consider new ones.”

In a statement sent last week to Congressman Bill Shuster (Chairman, Committee on Transportation and Infrastructure), Congressman Frank LoBiondo (Chairman, Subcommittee on Aviation), Congressman Peter DeFazio (Ranking Member, Committee on Transportation and Infrastructure), and Congressman Rick Larsen (Ranking Member, Subcommittee on Aviation), Greeley Koch reiterated that corporations and the business travel community cannot be regarded as a constant source of increased tax revenues.

“An average $300 roundtrip ticket currently carries $63 in federal taxes and fees, or about 21 percent of the ticket’s final price. Attempting to increase the $20 billion already paid in 17 unique transportation taxes could cause companies to cut back on business travel, especially in a fragile economy,” said Koch. “As representatives of one of the largest, and most heavily invested user groups of commercial aviation and airport resources, ACTE wants a voice in any discussion involving an increase on PFCs.”

Photo caption: Greeley Koch, ACTE’s executive director.

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