With a new Congress now underway, America’s airports have a new and real opportunity to address their significant infrastructure needs. If one thing is certain in Washington, DC, there is bipartisan interest in moving an infrastructure package.
Airports Council International – North America (ACI-NA) and our partners in advocating for infrastructure investment in airports have wasted no time in taking to Capitol Hill to share the challenges airport are facing in meeting the demands of the future. While we are making the case on behalf of the airports, policymakers continually tell me that they want to hear directly from airports across the country how modernizing the way we fund airport infrastructure would benefit air travelers and local communities.
In a hearing before the House Transportation and Infrastructure Committee in March, executives from Cincinnati/Northern Kentucky International Airport, Spokane International Airport, and Tampa International Airport made a clear and compelling case about how America’s airports are in dire need of improvements in order to keep up with passenger and cargo growth.
In fact, a recent ACI-NA study found that America’s airports require more than $128 billion – or $25.6 billion annually – in infrastructure upgrades by 2023. This reflects a more than 28 percent increase since 2017, and an 80 percent increase since 2013. More than 56 percent of airport needs are inside aging terminals.
During her testimony, Cincinnati/Northern Kentucky International Airport’s Chief Executive Officer and ACI-NA Chair Candace McGraw told Congress that America’s airports are running out of time to make investments in their outdated and aging terminals.
And she is right as America’s airports lack the necessary funding resources to modernize and expand their infrastructure. The $25.6 billion in average annual funding needs for U.S. airports is significantly higher than the funding available through the existing system. Larry Krauter, Chief Executive Officer of Spokane International Airport, argued to members of Congress that this status quo is not working for airports of all sizes.
The good news is there is a solution. We can rebuild America’s airports without raising taxes or adding to deficit spending by modernizing the federal cap on the Passenger Facility Charge (PFC). Created by Congress in 1990, the PFC is a local user fee that goes directly to local projects to repair aging facilities, improve aviation safety and enhance the passenger experience. This local user fee enables airports to be able to fund new terminals, gates and security checkpoints – just to name a few. But, the current federal cap on the PFC has been in place since 2000.
Modestly adjusting the federal cap on local PFCs would allow airports to take control of their own investment decisions and become more financially self-sufficient. After all, each airport is in the best position to determine what its future holds in terms of competition, traffic, and capacity. Joe Lopano, the Chief Executive Officer of the Tampa International Airport, echoed this when he urged Congress update the funding options to let the local communities make decisions about how to best address the individual needs of their airports.
There is no denying that America’s airports are a fundamental component of our nation’s transportation infrastructure. In 2017, 1.7 billion passengers and 31.7 million metric tons of cargo traveled through U.S. airports. However, the sad reality is that our airports are falling further behind in their effort to upgrade their facilities and improve the overall passenger experience.
While these airport representatives made great progress in illustrating the need for modernizing the way we fund airport infrastructure before Congress, we need your help. I challenge you to reach out to your members of Congress about the needs of your airport in order to meet the demands of future with safe and efficient facilities.
The time to act is now.
Kevin Burke is President and CEO of Airports Council International-North America.
