We built it… You made it possible.
The Airport Authority, which owns and operates San Diego International Airport, is a financially self-sufficient agency. It doesn’t rely on local taxpayer dollars or City or County funds for operations. Revenue comes from a variety of sources and is reinvested in maintaining and improving the airport. To learn more about what this means, view this short video.
One essential source of airport revenue is the Passenger Facility Charge (PFC), a fee on every airplane ticket sold. The PFC helps airports of all sizes finance terminal, parking, multimodal and other projects both directly and through the issuance of bonds. In fact, $426.3 million of debt from the Terminal 2 expansion (The Green Build) completed in August 2013, is being repaid by PFC revenue. The PFC is a user fee, so only those who travel through San Diego International Airport pay the fee.
Since 2000, by an act of Congress, the PFC has been capped at $4.50. However, rising construction costs over the past 15 years have eroded the purchasing power of the PFC by about 50 percent. Like everyone else, we get less bang for the buck today. This year, Congress is expected to take up the Federal Aviation Administration reauthorization bill, which may include “modernization” of the PFC. This would allow local agencies like the Airport Authority to increase the PFC.
This is important to San Diego International Airport because 90% of current PFC revenue is already allocated to existing debt service. The ability to move forward on future improvements at the airport, notably the Airport Development Plan which considers the replacement of Terminal 1, will be dependent on increasing the PFC. This is vital to maintaining high levels of customer satisfaction and improving an airport that serves the region and the industries that support the local economy.
Thank you for choosing San Diego International Airport.
We look forward to building what you make possible. Let’s go.
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More information about the need to modernize the Passenger Facility Charge can be found at www.airportsunited.com.