The Passenger Facility Charge program allows commercial service airports to assess a fee against enplaning passengers for the purpose of funding FAA approved airport development projects at that airport. The collection of this fee is authorized under U.S. Code 49 U.S.C Section 40117.

As amended by the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21), commercial service airports may request authority to assess a PFC of $1, $2, $3, $4 or $4.50 on revenue passengers enplaned at their airport. Commercial service airports are defined as those public-use airports that enplane 2,500 or more passengers a year.

Authorized Use of PFC Funds

Airports electing to impose a PFC are permitted to use the revenues for one or more of the following:

• Pay all or part of the allowable cost of an FAA approved project
• Pay debt service and financing costs associated with bond issuance
• Combine PFC funds with Federal Grant funds (e.g. AIP) to accomplish an approved project
• Apply PFC funds to meet non-federal share of the cost of projects funded under the Federal airport grant program

PFC Project Eligibility

In order to be considered as an approved project, proposals must meet certain eligibility criteria, as outlined in Federal Regulation 14 CFR Part 158 . Section 158.15 states that projects must address one or more of the following;

• preserve or enhance safety, security or capacity of the national air transportation system
• Reduce noise or mitigate noise impacts resulting from an airport;
• present opportunities to enhance competition between or among air carriers.

Section 158.17 establishes further eligibility requirements for those location wanting to impose fees of $ 4.00 or $ 4.50.

PFC Restrictions

While the PFC program is complementary to Federal airport grant programs, there are limitations and restrictions. Most notably, medium and large hub airports that impose a PFC charge face a reduction in the AIP apportionment funds they would normally receive.