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Posted: January 24th, 2023
Research and analyze using scholarly resources.
Length/format: 2 pages (excluding references), APA format.
Include:
summary
problem
significance of the problem
two alternative actions
recommendation
reference page
The Passenger Facility Charge (PFC) Program was implemented as part of the Aviation Safety and Capacity Act of 1990. Read the following two documents highlighting the original intent and current debate surrounding the PFC Program:
https://airwaysmag.com/airports/op-ed-should-passenger-facility-charges-be-increased/
https://scholar.smu.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1382&context=jalc
Prepare a case analysis titled: “PFCs: Pros or Cons – Should They Be Raised to Pay for 21st Century Airport Infrastructure?”
PFCs: Pros or Cons – Should They Be Raised to Pay for 21st Century Airport Infrastructure?
Summary:
The Passenger Facility Charge (PFC) Program was implemented as part of the Aviation Safety and Capacity Act of 1990 with the intent to provide a funding mechanism for airport infrastructure projects. The PFC is a fee that is added to the cost of an airline ticket, with the revenue generated going towards airport infrastructure projects. The current debate surrounding the PFC Program centers on whether or not the PFC should be increased in order to pay for 21st century airport infrastructure projects.
Problem:
Airports are facing increased pressure to upgrade and modernize their infrastructure to meet the demands of 21st century air travel. This includes the need for new and expanded terminals, runways, taxiways, and parking facilities, as well as technology and security upgrades. However, funding for these projects is becoming increasingly difficult to secure.
Significance of the Problem:
The lack of funding for airport infrastructure projects can lead to delays in the completion of these projects, which can in turn lead to increased congestion, longer wait times, and a lower overall level of service for passengers. Furthermore, inadequate infrastructure can hinder the growth of the aviation industry and negatively impact the economy.
Two Alternative Actions:
Increase the PFC: One solution to the problem of inadequate funding for airport infrastructure projects is to increase the PFC. This would provide additional revenue for airport infrastructure projects, allowing them to be completed more quickly and efficiently.
Alternative funding sources: Another solution would be to find alternative funding sources for airport infrastructure projects. This could include partnerships with private companies, grants from the federal government, or bonds issued by the airport itself.
Recommendation:
While increasing the PFC can provide additional revenue for airport infrastructure projects, it is important to consider the potential negative impacts on the traveling public, such as the burden on lower-income passengers, who may not be able to afford the additional fee. Therefore, I recommend finding alternative funding sources, such as partnerships with private companies, grants from the federal government, or bonds issued by the airport itself, to provide the necessary funding for airport infrastructure projects.
References:
Airways Magazine. (2017). Op-ed: Should passenger facility charges be increased? Retrieved from https://airwaysmag.com/airports/op-ed-should-passenger-facility-charges-be-increased/
Southern Methodist University. (n.d.). The passenger facility charge: Pros and cons of raising the cap. Retrieved from https://scholar.smu.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1382&context=jalc
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