Presidential Candidates Biden and Klobuchar Express Support for a PFC Increase at ACI-NA-Hosted Infrastructure Forum

This month, ACI-NA had the pleasure of co-hosting the first ever presidential candidate forum focused on infrastructure, offering candidates a platform to address key infrastructure issues that impact every American and discuss their visions for the future. The forum – called Moving America Forward – was moderated by The Wall Street Journal’s Washington Executive Editor Jerry Seib and Deputy Washington Bureau Chief Jeanne Cummings. Attendees included former Vice President Joe Biden, Sen. Amy Klobuchar (D-MN), former South Bend Mayor Pete Buttigieg, and Tom Steyer.

Notably, both Biden and Klobuchar expressed support for legislation that would increase the federal limit on airports’ Passenger Facility Charge (PFC). The PFC is a local user fee that airports rely on to repair facilities, improve the passenger experience, and increase airline competition that results in lower ticket prices. Unfortunately, the PFC has remained capped at $4.50 for the last 20 years and is simply insufficient to fund necessary infrastructure improvements by airports across the country.

 

Former Vice President Joe Biden says that, if elected president, he would sign legislation that would increase the PFC.

U.S. airports face more than $128 billion in infrastructure needs by 2023. Modernizing the outdated PFC cap would allow our airports to fund critical projects, directly benefiting the experience of millions of travelers.

“There is clear, mounting evidence that the [funding] deficit is only getting worse, that there are growing infrastructure needs for airports, and we don’t have money to address them,” said ACI-NA Senior Vice President of Government and Political Affairs, Annie Russo, in a United for Infrastructure podcast ahead of the forum. “Absolutely, hands down, the way to solve the airport infrastructure funding gap is through the Passenger Facility Charge.”

“I hate the thought that our airports are lagging behind,” Klobuchar said at the forum. “I do think that we need to continue to upgrade our airports if we’re going to be able to compete.”

 

ACI-NA Senior Vice President of Government and Political Affairs Annie Russo and Cincinnati/Northern Kentucky International Airport CEO Candance McGraw discuss the need for a modernized PFC with Sen. Amy Klobuchar at Moving America Forward.

Increasing the PFC is an idea that’s gaining traction in Congress. Recently, a group of Representatives, led by House Transportation and Infrastructure Chairman Peter DeFazio (D-OR), proposed an infrastructure framework that includes language on lifting the PFC and indexing it for inflation.

More than 90 percent of swing state voters believe that the next President of the United States should prioritize a strong infrastructure system that bolsters the economy, creates jobs, protects consumer safety, and supports our security. As pillars of the national economy, fixing our airports’ infrastructure is paramount.

We’re encouraged that this issue is at the forefront of presidential candidates’ minds, and we look forward to continuing working closely with Congress and the White House to make these improvements.

Members of Congress Announce Framework for Infrastructure Bill That Includes a PFC Increase

Last week, ACI-NA welcomed the news of an infrastructure investment framework – called the “Moving Forward Framework” – which was announced by a group of Members of Congress, led by House Transportation and Infrastructure Chairman Peter DeFazio (D-OR). The start of the new year represents an important opportunity for Members to announce their top policy priorities and we are pleased that improving airport infrastructure across the U.S. is a high priority for so many Members, as well as the American people.

The Moving Forward Framework calls for raising the federal cap on the Passenger Facility Charge (PFC) and indexing it for inflation. If enacted into law, a lift on local PFCs would allow airports to fund necessary infrastructure improvements, including repairing aging facilities and making expansions to accommodate record-breaking passenger traffic.

In his remarks, Chairman DeFazio highlighted how airports are in dire need of infrastructure upgrades and addressed the fact that the very same airlines who are comfortable with increasing baggage fees oppose an updated Passenger Facility Charge because they know it will increase airline competition in many airports. You can watch his remarks here.

Immediately following their announcement, ACI-NA President and CEO Kevin Burke thanked the group, and specifically Chairman DeFazio, for their leadership.

“The House Democrats’ infrastructure framework recognizes the time has finally come to increase the woefully outdated PFC,” said ACI-NA President and CEO Kevin Burke. “A long-overdue adjustment to the Passenger Facility Charge (PFC) will provide the lift America’s airports need to take off into the future. Unlike a $40 bag fee that just pads an airline’s bottom line, a modernized PFC will help our terminally challenged airports make transformative investments in new infrastructure that will improve the passenger experience for millions of travelers. I am particularly thankful for the leadership of Chairman DeFazio, the father of the PFC, for making this one of his top legislative priorities.”

Burke also joined American Association of Airport Executives President and CEO Todd Hauptli and Airport Consultant Council President T.J. Schultz in a joint letter thanking Chairman DeFazio for his leadership on this issue. In the letter they write:

“…we strongly support proposals in the House Democrats’ infrastructure framework that call for raising the federal cap on local PFCs and indexing it for inflation. We are grateful for your leadership. We look forward to working with you and your colleagues to advance legislation that would help airports finance critical projects and repair our nation’s infrastructure.”

Just this month independent research from RAND Corporation confirmed the best way to fix America’s airports is by modernizing the PFC. Further, according to a recent ACI-NA study, U.S. airports face more than $128 billion in infrastructure needs by 2023, with over 56 percent of the needs inside aging terminals. President Trump has repeatedly called for renewed investment in American airports, so we will be listening closely for any references to infrastructure investments in his State of the Union address.

We look forward to working closely with Congress to get this framework over the finish line so that we can finally empower airports to improve their infrastructure and continue to meet the demands of the traveling public.

The Countdown Begins: REAL ID Will Be Required for Air Travel in Exactly One Year

Earlier today, Airports Council International-North America (ACI-NA) President and CEO Kevin Burke teamed up with travel industry leaders and government officials to urge the traveling public to obtain REAL ID compliant identification.

The REAL ID Act, which was passed by Congress in 2005, implements a 9/11 Commission recommendation for the Federal Government to “set standards for the issuance of sources of identification, such as driver’s licenses” as a way to enhance aviation security.

“Ensuring the safety and security of the traveling public is the top priority for airports – and REAL ID is an important component of our efforts,” Burke said. “We are encouraging the public to ensure you have a REAL ID compliant license by October 1st of next year. This will be critical to ensure you are able to travel.”

According to a recent study by the U.S. Travel Association, many Americans may not be aware all Americans will be required to have a REAL ID compliant license in order to board a commercial aircraft beginning on October 1, 2020 – just one year from today.

The purpose of this week’s event held at Reagan National Airport in Washington, DC was to encourage the public to obtain proper identification before the rapidly approaching deadline. It also marks the start of a yearlong educational effort by TSA, airports, airlines, and other stakeholders about the importance of obtaining a REAL ID compliant license.

“We are working hard to ensure the public is aware of this fast approaching deadline,” Burke said. “Despite the ongoing efforts to raise awareness, we remain concerned about the small number of travelers who have obtained a REAL ID compliant licenses”

 

 

Some states and airports are already taking advantage of local opportunities to educate travelers. ACI-NA joined with our airline partners and other associations to send a joint letter to each governor of all 50 states and territories, encouraging them to launch public awareness campaigns to more effectively educate residents about REAL ID requirements.

In lieu of a REAL ID compliant license, air passengers are able to use other federally approved identification for air travel, including U.S. passports or Global Entry, NEXUS or SENTRI identification cards.

Burke was joined by Transportation Security Administration Acting Deputy Administrator Patricia Cogswell, as well as officials from Airlines for America, the American Association of Airport Executives, the American Association of Motor Vehicle Administrators, and the DC, Maryland, and Virginia Department of Motor Vehicles commissioners.

You can learn more about the importance of REAL ID here. And don’t forget to save the date for October 1, 2020. Act now to ensure you have a REAL ID.