Airports balance construction needs with passenger fees

Published: July 2, 2009
Tags: General Mitchell International Airport, safety improvements, ticket fee

Sean Ryan
sean.ryan@dailyreporter.com

A proposed change in federal law that would give airports more money for construction projects also could increase ticket prices and scare away passengers.

Passenger Facility Charges, such as a $3-per-ticket fee at Milwaukee’s General Mitchell International Airport, are the primary source of money for airport construction work. The federal government limits the fees to $4.50.

Increasing that limit to $7 would give airports more flexibility for construction projects, said Craig Thompson, director of the Transportation Development Association of Wisconsin.

“There’s not a lot of other places for revenue,” he said, “and this is a legitimate user fee.”

The $3 fee at General Mitchell is set to expire in 2010, but Milwaukee County is considering extending it through 2026 to pay for $28.2 million in projects. The airport still could increase the fee to $4.50.

If the federal government increases the cap beyond $4.50, the airport would have a better chance to finish all of its projects, said Jack Takerian, Milwaukee County interim director of transportation and public works.

“Funding may come from the (Federal Transit Authority) that needs a match,” Takerian said, “and if we have the flexibility of raising rates, that’s only going to help.”

National airline advocacy groups have opposed raising the fee ceiling because high charges deter riders, said General Mitchell spokeswoman Pat Rowe.

“That’s something that’s always weighing into the conversation is a low (Passenger Facility Charge) amount,” she said. “It’s an attempt to understand that these are tough economic times. On the other hand, a higher PFC allows for more capital projects.”

The $3 fee renewal the airport is requesting would raise money to pay for 14 projects. Almost $20 million would pay to borrow money to extend runways to improve safety, while $2.9 million is for sound insulation in houses around the airport, and $1.95 million would buy snow-removal equipment.

Takerian said he does not know if it will be necessary to increase the $3 charge to the maximum of $4.50. It all depends on whether new projects, such as safety improvements, will be needed. Takerian’s report to the County Board warns that increases may be necessary.

“It’s letting the board know that that flexibility may be needed to go to that level if need be,” he said.

Rowe said the airport is comfortable with the fee staying at $3 for now because it compares well to the fees levied at other airports in the region.

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