White House Proposes Increase in Passenger Airport Tax
The Obama administration released its 2016 budget proposal, which calls for, among other things, an increase in the passenger airport tax, or Passenger Facility Charge, from $4.50 to $8:00.
The Passenger Facility Charge is a tax added to each ticket, collected at the point of purchase. The proceeds are used to “fund FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition,” according to the Federal Aviation Administration.
Airlines for America, an industry trade group that represents major U.S. airlines, came out against the proposal, calling it “an incredibly onerous and excessive burden on airline passengers.”
The budget also called for the elimination of the Airport Improvement Program “for large hub airports, giving them greater flexibility to generate their own revenue.”
(Photo: Accura Media Group)