The ABCs of PFCs

Kristie’s musings…I think it’s a good idea… Akron-Canton Airport supports a PFC increase. There, I thought it and said it, and I feel better. What in the heck is a PFC you may ask? It’s a notorious acronym for Passenger Facility Charge. The government types in DC are thinking about raising it. I think it’s a good idea, although I generally dislike the idea of higher fees. This one is important though. Here’s why:

Anyone who buys an airline ticket pays a PFC which is then designated for the airports from which the passenger flew. Airports across the country, including the two major Cleveland + area airports (CAK and CLE), use funds to build runways, buy fire trucks, expand gate concourses and all sorts of things that our business requires to keep our operations safe and customer friendly. Airports are very capital intensive. It takes a lot of dough to build and maintain this infrastructure, a lot more than we make actually. That's where a program like this steps in. The PFC helped us expand our building when we needed additional space for our record growth in passengers. Plus, the buildings and pavement we construct will serve this region for a long time to come.

PFCs are unique because it is really a user fee. Passengers that use the airport help support it. Check out what other airports think about this issue in Benet Wilson’s Aviation Daily blog.

In the House version of the FAA Reauthorization Act, PFC charges could be raised to $7.50 per segment (right now CAK charges $4.50). Airports will have the discretion of offering PFCs based on their specific capital needs. The PFC increase doesn’t show in the Senate version. That means the issue will be duked out in conference.

If the flexibility to raise the PFC becomes law, cool things will come to CAK, I promise you that. Buh-bye for now…

Comments

Happy New Years to my neighbors out at Akron/Canton. Continue the tremendous work you do at your airport. Most airports are jealous of how well you have grown in just a 10 year span, and will continue growing in the future. I have flown it 10+ times in the last couple years, and will continue using it.

Right now my coalition of Airport Supporters are trying to help out the struggling Youngstown-Warren Regional Airport. They have done a successful job with flights to Orlando aboard Allegiant Air (ALGT-Nasdaq), but they have not done much since then.

YNG needs to look at how well CAK has done over the years and perhaps take some tips from you guys. You run a very successful operation and should be commended for IT! You earn my award for the best airport in Ohio and the best operation of any government funded operation in the region.

GOOD LUCK IN 2007!

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