"US airports need vast upgrades: study"

Tuesday, May 15, 2007

Airports want travelers' help in expansions
By DAVID WETHE
The Fort Worth (TX) Star Telegram


Airports are asking Congress to reach deeper into travelers' wallets and
purses to help pay for billions of dollars in future airport expansion.

Airports Council International-North America, the country's largest airport
lobbyist, said Tuesday it wants Congress to raise the airline ticket tax by
two-thirds.

The current cap is $4.50 per flight segment, or up to $18 per roundtrip if
the itinerary includes a connection, and is tacked onto most passenger
tickets. The council wants to raise the per-segment cap to $7.50, or up to
$30 roundtrip.

The council said airports will need to spend $87.4 billion on new terminals,
runways and other infrastructure over the next five years to keep up with
growing passenger traffic and airplane congestion. Part of the money that
airports use for construction projects comes from the "passenger facility
charge," which is tacked onto tickets.

"Unless airports invest significantly to meet growth, they will become choke
points in the entire aviation system," Greg Principato, president of the
council, told reporters Tuesday. "Passengers ultimately pay the price by
facing long lines, crowded gate areas and more delays."

He points to projections by the Federal Aviation Administration that call
for 1 billion commercial airline passengers a year by 2015.

Three of every four medium and large airports charge the highest fee
possible, including Dallas/Fort Worth Airport. Dallas Love Field does not
have a passenger facility charge today, but the airport probably will have
to institute one to pay for the $150 million-$200 million in terminal
renovations that were called for in last summer's Wright Amendment
compromise.

D/FW has wrapped up a $2.7 billion capital campaign that added a fifth
terminal, second hotel, another parking garage, and an automated train
system. But the world's third-busiest airport will likely have to undertake
projects to spruce up or rebuild its four other aging terminals.

The council is asking Congress to raise the passenger facility charge
ceiling by adding a clause to the FAA reauthorization bill, which is
currently in the Senate.

If there is no change to the tax ceiling, Principato said he expects a
shortfall of about $2.1 billion by 2011 between what needs to be spent on
airport facilities and what revenue the airports would actually have.

Airlines are expected to fight any increase in airport ticket taxes, noting
that high fuel costs have already pushed up airfares.

"With the existing challenges associated with increasing energy costs,
increased airport fees is a big concern," said Paula Berg, a spokeswoman for
Southwest Airlines, based in Dallas. "At this time, the case hasn't been
made that the increase is necessary."

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