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Passenger Facility Charges

In: Business and Management

Submitted By jrhalley3
Words 2888
Pages 12
The Passenger Facility Charge Program:
An Overview and an Examination of Increasing or Removing the Program’s Current Limits

Submitted by
Jim Halley
March 10, 2013

Presented in Partial Fulfillment of the
Course Requirements for
MGMT 533 Federal Regulations, Ethics, and the Legal System

Table of Contents | Executive Summary | ii | An Overview and History of the Passenger Facility Charge Program | 1 | Passenger Facility Charge Limits and the Arguments For and Against Raising the Limits | 2 | The Statutory and Regulatory Aspects of the PFC Program | 5 | A Recommendation Regarding PFC Limits | 6 | Works Cited | 7 |

Executive Summary
As established by the Aviation Safety and Capacity Expansion Act of 1990, the Passenger Facility Charge (PFC) program – codified at 49 U.S.C. §40117 and regulated by 14 C.F.R. Part 158 – allows airports enplaning more than 2,500 passengers per year to charge passengers up to $4.50 per each flight segment but not more than $18.00 per round trip ticket (Price & Forrest, 2012). PFC funds are collected by the airlines, forwarded to the airports by the collecting airlines, and must be expended by airports for projects directly related to safety, security, capacity, noise reduction, and carrier competition enhancement (Price & Forrest, 2012).
This paper will provide an overview of the PFC program and examine the program’s history, detail the arguments for and against an increase in current PFC limits, examine the potential implications or benefits of an increase or of keeping the limit where it is now, and discuss the statutory and regulatory aspects of the PFC program. Finally, this paper will make a recommendation as to whether or not the PFC limits should be removed or increased.

An Overview and History of the Passenger Facility Charge Program
As established by the Aviation Safety and Capacity...

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