"More Funds Needed For PFC, AIP, Airports Say"

Friday, March 9, 2007

More Funds Needed For PFC, AIP, Airports Say
By Benet Wilson 
Aviation Week & Space Technology

 
Congress needs to raise the passenger facility charge cap to $7.50 and boost
Airport Improvement Program grant funding to $3.8 billion in fiscal 2008, so
that airports can keep pace with increased capacity and financial demands,
according to testimony given by the American Association of Airport
Executives.

AAAE President Chip Barclay yesterday testified before the Senate Commerce
aviation subcommittee, which is reviewing FAA's reauthorization bill. He
lauded Congress for supporting more funding for airports under the AIR-21
and Vision 100 bills but said more funding is needed to improve safety,
increase capacity and reduce delays at airports around the country.

FAA's National Plan of Integrated Airport Systems for 2007-2011 found $41.2
billion in AIP-eligible projects, about $8.2 billion a year, said Barclay.
He also cited Airports Council International-North America's Airport
Development Needs Survey, which put the need at $87.5 billion between 2005
and 2009, about $14.3 billion a year.

"Unlike the NPIAS, however, the [survey] includes projects that are
AIP-eligible and those that airports intend to fund with other revenue,
including PFCs and airport bonds," said Barclay. "The [survey] reveals that
there is a sizable gap between airport needs and the revenue that is
available for capital development projects."

The administration's boost of the PFC cap to $6.00 is a step in the right
direction, said Barclay. "It is not enough to close the funding gap,
especially when the administration is simultaneously proposing to cut AIP
spending by almost $1 billion from the authorized level," he stated.

AAAE expressed dismay with the administration's plan asking for only $2.75
billion for AIP in FY2008 despite increasing demand, inflation and
construction costs. "We urge you to continue to increase AIP funding as
Congress did in the previous two FAA reauthorization bills," said Barclay.
"At the very least, we urge you to increase AIP funding, so that the program
will keep up with increased construction costs. Doing so would translate
into $3.8 billion for AIP in FY2008, $4 billion in FT2009, $4.1 billion in
FY2010 and $4.3 billion in FY2011."

Other priorities outlined by AAAE in its testimony included reclassifying
airport bonds from private activity to public use on critical facilities;
creating a pilot PFC application program for large airports at $7.50;
streamlining the PFC application process; allowing more AIP and PFC
flexibility for small airports; providing a stable funding stream for AIP;
increasing funding for the Small Community Air Service Development Program;
and maintaining the Essential Air Service Program.

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