Click on a label to read posts from that part of the world.
Increased passenger ticket fee may help pay for airport expansions
.png)
Ever paid attention to the breakdown of the fees tacked on to your ticket? In addition to the $2.50 9/11 security fee, and a government tax of about $4, you also pay a passenger facility charge (PFC) of $4.50. This PFC is how the government pays for all the horribly outdated airports in the country. That is right - proceeds from selling $9 airport sandwiches are not enough to maintain and expand airport facilities. And neither is the current PFC - which is why a proposal has been made to raise the PFC from $4.50 to $7.
I'm guessing the government saw how the airlines were raking in the cash from luggage fees, and decided they wanted a piece of the action.
The increase should bring in billions of additional Dollars - an airport like Chicago O'Hare sees 70 million passengers a year, multiply that by $7, and you have a nice chunk of change. Then again, with an upcoming $5.5 Billion expansion plan scheduled for O'Hare, they need all the help they can get.
Thankfully, this $2.50 increase is actually very modest - international airports charge far, far more for the luxury of landing at their airport. Amsterdam charges a $90 "noise isolation charge and passenger service charge", Glasgow airport charges $145 for the UK PSC. But the real winner here is London Heathrow, with a $155 PSC.
When you fly to these airports in a premium cabin, the fees can be as high as $300. So really, $2.50 seems like a pretty good deal if you ask me (these charges are all averages - some flights can be lower, some higher).
The proposal has been approved by the house, and is currently pending before the U.S. Senate, but chances are, it will become reality very soon.
Reader Comments (Page 2 of 2)
davide463 Sep 9th 2009 11:34AM
How on Earth can anyone call a $2.50 increase "Modest". It is a hike of over 64%. That is outrageous under the present economic climate that any one, or any thing, can warrant such a huge raise. Yet another govnt. licence to print money.
msskt Sep 9th 2009 12:21PM
Why would the Government care how they waste money if you can just add another tax on people and raise more money. The Government is going to keep it up and there will be a revolt in this country. There is a limited amount of air space so an airport can only handle so much traffic regardless of how nice the airport is. This is just another tax, that Obama said would not happen.
Ray Sep 9th 2009 11:44AM
I just reviewed my latest ticket and find a PFC charge of $18.00 far above the $4.50 listed in the above article. My flight is oiut of Columbus, OH.
Michael Boyd Sep 9th 2009 12:27PM
Money doesn't grow on trees.
Does anyone actually expect THEM to pay the bills? THEY have never paid before. THEY will tell you the time and temperature, play you tunes on TV or radio (sell you a CD), extend all levels of propaganda your way, buy low and sell high, BUT THEY will never pay.
So, unless you are one of THEM...
gr8bsn Sep 9th 2009 1:03PM
Do they just not want people to fly anymore?
fun4holly Sep 9th 2009 1:05PM
Hmm - if immigration wouldn't LET questionable people into our
coountry - we wouldn't "need" the TSA - how about that for saving
money and saving our lives as well!!!!!!!
Carl Sep 9th 2009 6:00PM
I was happy to see Kevin's comments since the fund is very solvent and does not need further funding. As far as Bush versus Obama spending for travel, Obama is spending at a faster rate than Bush did so there is no CHANGE there. As far as funding O'Hare, the construction has already started and some is completed. As usual, it is behind and overbudget. No change there either.