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 Modernizing the outdated PFC cap would allow our airports to fund critical projects, directly benefiting the experience of millions of travelers.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.

LAX CEO: We Need to Bring the Passenger Facility Charge Back to its Original Buying Power

Last week, Los Angeles World Airports Chief Executive Officer Deborah Flint addressed the Washington Aero Club at a lunch event in Washington, D.C. In her speech, Flint described Los Angeles International Airport’s (LAX) current $14 billion investment project and how it will help to relieve congestion and improve the LAX travel experience for passengers.

She also discussed how airports across the country are using technology to improve efficiency and ease long lines.

Finally, she urged Congress to return the Passenger Facility Charge to its original buying power by updating it to be $8.50. She noted that it’s been two decades since the PFC was updated and that it’s well overdue that we modernize it to keep up with inflation.

Excerpts from her speech are below.  Her full remarks are available here.

Flint on the need to modernize the PFC:

A new level of investment in infrastructure is needed and for airports this can be real by bringing the Passenger Facility Charge to its original buying power.

“It is time. It has been two decades that the PFC has been unchanged even though there have been 26 models of the iPod, which was released the same year. It has been so long that the styles have even come back – parachute pants and tracksuits are back in again.

The ask is to increase the PFC from $4.50 to $8.50 and index it for inflation in the future. That will make a difference for airports of all sizes – large, medium, and small.”

Flint on LAX’s infrastructure projects:

We are making a $14 billion investment in an Automated People Mover train system, roadways, a Consolidated Rent-A-Car facility that will combine the 20 separate facilities that burden our neighborhoods and roadways, a connection to regional rail, and modernizing each terminal.

“And we are beginning the environmental review to improve the airfield, build a new concourse off of Terminal 1, and a new Terminal 9, which requires billions of additional dollars.”

Flint on airports improving efficiency through biometrics:

Back to my 16 year old and her airport expectations. For her, wifi and cellular are like air – as they have become for all of us. Her face is everything.

“I am talking about biometric aircraft boarding gates, self-baggage drop, TSA and CBP screening – all biometrically enabled at LAX today. While privacy and data security must have high bars, the efficiency of biometrics is astounding. We boarded an A380 using biometric facial boarding in 20 minutes.”

Flint on the future of the airport industry:

Airport by airport, working with our partners in airlines and throughout the industry, we need to be excited, energetic and chase the next evolution. We need to push for our airports to be more innovative, sustainable, to be stewards for local communities, to bring the joy and certainty back to air travel, and together get the funding to invest and let our industry shine. At Los Angeles World Airports our vision is Gold Standard Airports … Delivered.  The U.S. deserves that vision for each and every one of our airports.”