LONG BEACH, CALIF. – A coalition established by Airports Council International-North America, the American Association of Airport Executives and the U.S. Travel Association with the aim of increasing the cap on user fees that help build infrastructure projects at airports has reached 34 members and should surpass 40 by year’s end, according to Kevin Burke, president and CEO of ACI-NA.
The members include labor organizations and associations representing industries outside of aviation that are involved in constructing and refurbishing terminals, airfields and other assets vital in keeping airports and skies safe and functional. Despite the delay by Congress in introducing a new reauthorization bill that will fund the Federal Aviation Administration, these organizations remain committed to fighting for an increase to the passenger facility charge, which has been capped at $4.50 since 2000.
“With more than $75 billion in capital improvement needs through 2019, our efforts to modernize the locally set passenger facility charge and maintain the Airport Improvement Program are crucial to our FAA reauthorization agenda,” Burke told attendees.
He made the announcements during a session and reiterated many of the key points again at a media briefing during the ACI-NA Annual Conference and Exhibition in Long Beach, Calif.
He acknowledged uncertainty about when a reauthorization bill would be introduced. A six-month extension of the current financing bill passed through Congress in late September, just as it was about to expire Sept. 30.
Maureen Riley, executive director of Salt Lake City Department of Airports, acknowledged that the financing issues facing the airport are not going to be fixed easily but adds that it’s important to get the funding bill done without repeating the 23 extensions necessary before a new bill was signed in 2012.
“There was so much dysfunction in Congress at that time,” she says. “I don’t know that it’s gotten any better.”
She says increasing the PFC is vital toward improving the infrastructure at airports that is deteriorating across the U.S.
“We need to step in now and make sure those systems can be repaired and replaced over time,” Riley says.
One of the issues industry sources say is holding up the introduction of a reauthorization bill is discussion over the possibility of privatizing or corporatizing air traffic control operations.
Jim Cherry, CEO of Aeroports de Montréal, indicated during the media briefing that privatizing air traffic control in Canada nearly two decades ago and spinning its control off into the non-profit Nav Canada was part of an overall effort of privatizing the entire aviation industry. Airports were privatized at the same time. They set their own rates and revenue structures and are run independent of government.
It’s been a good system, Cherry says, albeit more expensive for the airport operators. Airports are not in line for government subsidies and are not eligible for tax-free bonds. They borrow money on the ordinary market, and they pay taxes to the government each year.
“I think it’s been very good,” he says. “The airports in Canada and Nav Canada are considered to be at or above the state of the art in terms of the infrastructure that is in place. Canadian airports are in great shape. If the objective is to bring them up to the state of the art, I think it’s a good system to follow.”
With respect to the possibility of privatizing air traffic control in the U.S., Cherry says doing so would require a similar model that would allow the newly established organization to set its own rates at a funding level deemed necessary to operate successfully.
“The question people have to ask themselves is, ‘Is the U.S. prepared to make that fundamental philosophical change?’” Cherry says.
Burke told attendees he would soon be traveling to Canada to embark on a fact-finding mission on the efforts undertaken there. He says if the U.S. is going to proceed with a privately run organization heading up air traffic control, “it is important for U.S. airports to have a seat at the table during negotiations, and learning more about the Canadian model will be valuable.”
Also during the conference, Riley was sworn in as ACI chair, succeeding Cherry. Burke credited Cherry for helping advance airport priorities through effective collaboration within aviation borders and with non-traditional partners. He says Riley has broad industry expertise and a deep understanding of the challenges facing airports in the U.S. and Canada.
“We look forward to her leading our work to develop innovative ideas to ensure that the North American airports remain globally competitive for the years to come,” he says.
William Vanacek, director of aviation at Buffalo Niagara International (BUF), assumed the vice chair role.
The conference drew nearly 1,800 attendees and included an exhibit hall with more than 200 booths. During the conference, ACI-NA recognized 10 North American airports that achieved certification under the airport Carbon Accreditation program the organization joined in 2014.
Seattle Tacoma International (SEA) was the first to achieve certification and the first to successfully renew it. Pierre Elliot Trudeau International (YUL), Portland International (PDX), Portland Hillsboro (HIO), Portland-Troutdale (TTD), Victoria International (YYJ), Dallas/Fort Worth International (DFW), Denver International (DEN), Honolulu International (HNL) and Toronto Pearson International (YYZ) also were recognized during an event at the conference for achieving certification.
DFW became the first airport in North America to achieve Level Three Optimization certification.
To achieve accreditation, airports commit to reducing emissions by making investments in heating and lighting efficiency, technology, electric or hybrid vehicles, public transport incentive schemes, less corporate travel and stakeholder engagement toward encouraging further emissions reductions.
“I applaud these early adopters who have committed to lowering their carbon footprints and becoming better partners in the global aviation system,” Burke says. “By achieving the ambitious goals of Airport Carbon Accreditation, these airports are setting our industry on a path toward continued success in innovation and sustainability.”
