Passenger Facility Charges is a small fee attached to all tickets purchased by all travelers using airlines across the United States; the money collected helps in the repair and maintenance of the airports(Graham, 2017). PFCs and Airport Improvement Programs go together; together, they contribute almost half of the capital that facilitates the implementation of the airports' projects. Passenger facility charges help to improve airport efficiency, provides a sustainable revenue source to the airports, and promotes healthy airline competition.
Passenger Facility Fee improves airport operations efficiency since it avails financial resources that helps in the repair of runways and operations at airports across the states (Chang, 2016). Passenger facility provides a reliable and sustainable source of income to the airports since it is collected and availed to the airports directly without going through the federal treasury. Congress should, however, reduce the capping placed on PFCs as this would promote healthy competition among the airlines and even lead to a reduction in the airfares.
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Passenger Facility fees should not go higher; this would lead to a hike in other charges, for example, seat selection. Passengers will shift to other means of transport like trains; hence, resulting in low finances available for the maintenance of the airport.
Passenger facility charges are a vital tool that is essential in the operations of airports across the globe (Lin, 2016). It is more reliable than funding from taxes provided by the federal treasury. Passenger facility charges promote operational efficiency at the airports; the costs, create a healthy competitive environment among airlines, which is an added advantage for the passengers since it leads to the lowering of airline fares. Therefore, all airports across the globe should embrace the use of passenger facility charges.
Reference
Chang, Y. T., Park, H. K., Zou, B., & Kafle, N. (2016). Passenger facility charge vs. airport improvement program funds: A dynamic network DEA analysis for US airport financing. Transportation Research Part E: Logistics and Transportation Review , 88 , 76-93.
Graham, A. (2017). The regulation of US airports. The economic management of airports (pp. 63-72). Routledge.
Lin, M. H., & Zhang, A. (2016). Hub congestion pricing: Discriminatory passenger charges. Economics of Transportation , 5 , 37-48.
