"ACI-NA Study Shows Airport Improvements Require $87.4B Investment to Keep Pace with Passenger Demand"

Tuesday, May 15, 2007

ACI-NA Study Shows Airport Improvements Require $87.4B Investment to Keep
Pace with Passenger Demand
Press Release


WASHINGTON, /PRNewswire-USNewswire/ -- Airports Council International -
North America (ACI-NA) today announced the results of a comprehensive study
that shows that airports must invest $87.4 billion over the next four years
on new airport infrastructure, such as new runways, terminals, and gates in
order to keep pace with projected passenger and air cargo demand. This
finding was included in ACI-NA's "Airport Capital Development Costs for
2007-2011," which was unveiled at a press briefing today.

"Anyone traveling by air today knows that aviation is already stretched to
the breaking point," said ACI-NA President Greg Principato. "This study
tells us that by prudently raising and investing money in the short term, we
have the opportunity to help future travelers avoid delayed flights and
inconvenience."

However, the study also found that if these improvements are not made,
travelers will encounter overcrowding at some of the nation's most congested
passenger airports, longer flight delays, longer waits for an open gate at
destination airports, and a system under-equipped and ill-prepared to
respond to new capacity, safety and security requirements.

As most air travelers have experienced recently, 2007 is stacking up to be
similar to, and in some instances, worse than, 2000, a year which until now
has had the dubious distinction of being the peak year for air travel
delays. In 2000, the average delay was 51 minutes -- that number increased
to 53 minutes in 2006, and will only increase more if airports don't launch
projects now to meet expected demand.

The Federal Aviation Administration has estimated that one billion
passengers will take to the skies by 2015. In order to help airports meet
this unprecedented demand, ACI-NA is launching its "Passengers First
Commitment" campaign, which will encourage airline competition, improve
safety and security, and enhance airport convenience and reliability.

A majority of airport improvement projects are paid for with the passenger
facility charge (PFC) - a local user fee included in the overall cost of the
airline ticket. PFCs are recommended by airports and, with input from
airlines serving that airport, approved by the Federal Aviation
Administration. The PFC has been capped at $4.50 since 2000, but through its
Passengers First Commitment campaign, ACI-NA plans to work with Congress to
provide airports with the resources they need by increasing the cap.

"Airports are already having a difficult time keeping up. An increased PFC
is the only long-term solution for passengers who are frustrated by the
current direction of air travel," Principato said. "With a sensible PFC,
airports will be able to create additional terminal and runway capacity,
which will promote airline competition and will ultimately lower airline
fares," he added.

"These critical infrastructure projects will enhance airline safety and
security. Increasing the cap is a critical step that Congress must take in
order to ensure that passengers can continue to count on the current air
travel infrastructure to keep up with expected demand," Principato
explained.

By law, PFCs are directly tied to local airport-related projects that
enhance safety, reduce delays by increasing national air system capacity,
reduce airport noise and traffic congestion, and promote competition among
commercial airlines.

About ACI-NA:

The mission of Airports Council International - North America (ACI-NA) is to
advocate policies and provide services that strengthen the ability of air
carrier airports to serve their passengers, customers and communities.
ACI-NA represents local, regional and state governing bodies that own and
operate commercial airports in the United States and Canada. ACI-NA member
airports enplane more than 95 percent of the domestic and virtually all the
international airline passenger and cargo traffic in North America. Nearly
400 aviation-related businesses are also members of the association, which
is the largest of the five worldwide regions of Airports Council
International. 

Source: Airports Council International

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