Airport Investment Needed to Meet Growing Capacity Demands

In this article (Paragraph No. 20,391), with an estimated 300 million new passengers projected to enter the U.S. aviation system in the next ten years, the nation’s airports have planned to invest more than $71 billion from 2005-2009 to provide the capacity and service to support the growth, according to a survey compiled by the Airports Council International-North America. Financing an investment of this magnitude clearly requires a fundamental reorientation of the nation’s aviation infrastructure funding system. The federal Airport and Airways Trust Fund, which is based on airline ticket prices is dwindling, the author notes, and any analysis of successful infrastructure investment systems will show that cost-based, stable, and predictable sources of revenue are required elements to plan and fund growth. The author calls on Congress to adopt a 2007 Aviation Reauthorization bill that, through federal AIP and local Passenger Facility Charges (PFCs), provides a balanced capital program that recognizes the abilities of airports to see debt financing and meet capital needs. The authors other proposals include streamlining the PFC process, adding flexibility to the use of AIP entitlements and PFC revenues, reclassifying all airport bonds as governmental and tax-exempt, simplifying airport grant assurances, and stabilizing revenues to the Trust Fund in order to adequately fund air traffic modernization and airport infrastructure.

  • Corporate Authors:

    International Aviation Law Institute

    DePaul University College of Law, 25 E Jackson Boulevard
    Chicago, IL  United States  60604
  • Authors:
    • Principato, Gregory O
  • Publication Date: 2008

Language

  • English

Media Info

  • Media Type: Print
  • Edition: Transfer Binder 2: 2004-2008
  • Pagination: pp 10065-10071
  • Monograph Title: Issues in Aviation Law and Policy

Subject/Index Terms

Filing Info

  • Accession Number: 01141808
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 6 2009 2:40PM