PFCs-Pros or Cons-Should They Be Raised to Pay for 21st Century Airport Infrastructure?

PFCs-Pros or Cons-Should They Be Raised to Pay for 21st Century Airport Infrastructure?

As Congress suggests, the Passenger Facility Charge (PFC) should be increased but not doubled. Airlines and passengers oppose the increment, while airports support the cause. As explained, one of the main advantages of increasing the PFC is that it will provide sufficient funds for improving or updating facilities that airlines depend on for business. Expanding or growing runways and constructing new airports will be possible, averting the capacity crisis. This aspect also could improve the airlines’ ability to compete globally (Imes, 1995). In addition, updating security systems improves general security, making flying a safe mode of transportation for passengers. However, assessing the current use of PFC and diverting resources that are not well utilized for maximized benefits is essential before increment.

The disadvantage of increasing the PFC is an increment in ticket fees. As airlines have argued, this move may reduce the volume of passengers. At the same time, the salaries of airline staff may be reduced significantly (Rodriguez, 2017). Regardless of these negative possibilities, it is essential to highlight the need for quality services that clients would be willing to pay for. Offering air transportation services in the same manner as in the past and in the face of a looming crisis may paralyze the airline industry in the future. The proposed increment offers an opportunity for the industry to redeem itself and offer competitive and quality services (Imes, 1995). Failure to embrace this opportunity due to the short-term adverse effects may be disastrous. In addition, it could result in a total loss of the long-term positive outcomes that can be gained from the increment.

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References

Imes, S. (1995). Airline Passenger Facility Charges: What Do They Mean for an Ailing Industry. Journal of Air Law and Commerce, 60(4), 1039-1089. Retrieved from https://scholar.smu.edu/jalc/vol60/iss4/4

Rodriguez, F. A. (2017). Op-Ed: Should Passenger Facility Charges Be Increased?

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The Passenger Facility Charge (PFC) Program was implemented in the Aviation Safety and Capacity Act 1990. Read the following two documents highlighting the original intent and current debate surrounding the PFC Program:

PFCs-Pros or Cons-Should They Be Raised to Pay for 21st Century Airport Infrastructure?

Airline Passenger Facility Charges: What Do They Mean for an Ailing Industry by S. Imes/Journal of Air Law and Commerce (Links to an external site.)
Op-Ed: Should Passenger Facility Charges Be Increased?/Airways Magazine (Links to an external site.)
Prepare a case analysis titled: “PFCs: Pros or Cons – Should They Be Raised to Pay for 21st Century Airport Infrastructure?”

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