The old expression “what goes up must come down” is true for landing fees at Pittsburgh International (PIT).
The Allegheny County Airport Authority has refinanced bonds issued to fund the airport’s construction, resulting in a lower debt service from $62M to $52M and thereby lowering fees charged to airlines. The change will become effective March 1.
The authority also reduced $1M in insurance costs. As part of the airlines’ lease agreements, the $11M total savings will be passed on to them.
“Reducing our fees directly impacts the airlines’ costs and could positively influence decisions to add more flights here,” said Glenn Mahone, authority chairman. “We are very interested in seeing our current airlines grow and are eager to attract new carriers and routes.”
Landing fees had been raised Jan. 1 because of US Airways cutbacks; the airline had cut flights from 108 to 68 a day Jan. 6, which meant a $5.5M loss in annual rent revenue for the airport authority.
