Oberstar: Conditional Support To PFC Cap Hike

The House Transportation Committee is expected to include a raise in airport improvement program (AIP) grants and a hike in the current $4.50 passenger facility charge (PFC) cap in FAA reauthorization legislation likely to be introduced this week, said committee Chair Rep. James Oberstar (D-Minn.).

"This bill won't be the [Bush] administration's plan, but a plan that actually invests in aviation," said Oberstar in remarks at the American Association of Airport Executives annual meeting yesterday in Washington. "It will include investments in airport improvements, such as taxiways, runways and modernization of the air traffic control system."

Congress needs to deal with PFCs, said Oberstar. "I know we need to increase PFCs, but the question is by how much," he said. "I'm not keen on expanding eligibility for PFC uses. The larger end of a PFC increase to $6.00 would fall right into administration's plan, so they could shift onto local governments and airport authorities to cover costs of air traffic control and taxiways and runways."

Oberstar expressed concern about the past 16 years, when more than 17% of PFCs, on average, went to capacity enhancements. "The rest is invested in facilities at airports, and airlines don't like it. Airlines don't like PFC dollars going to expand gates that hub airlines may not like for competition," he stated.