What is the Passenger Facility Charge and Why Does It Matter?

Definition & Meaning

A passenger facility charge (PFC) is a fee imposed on passengers departing from or connecting through certain airports. This charge is typically collected by airport authorities or government agencies to fund significant improvements and enhancements at the airport. The revenue generated from PFCs is often used for projects approved by the Federal Aviation Administration (FAA), which may include safety upgrades, noise reduction measures, and enhancements to airport capacity and security. Notably, some airports may exempt connecting passengers who remain in the terminal or have short layovers from this fee.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: An airport implements a PFC of $4.50 to fund the construction of a new terminal that enhances passenger experience and increases capacity.

Example 2: A traveler connecting through an airport with a PFC may not be charged if their layover is less than two hours and they do not leave the terminal. (hypothetical example)

Comparison with related terms

Term Definition Difference
Airport Improvement Program (AIP) A federal grant program that provides funding for airport development projects. PFCs are fees collected from passengers, while AIP grants come from federal funds.
Ticket Tax A tax applied to airline tickets, typically used to fund aviation infrastructure. Ticket taxes are government-imposed, while PFCs are airport-specific fees.

What to do if this term applies to you

If you are a passenger traveling through an airport that charges a PFC, be aware that this fee is typically included in your ticket price. If you have questions about the fee or believe you may qualify for an exemption, contact the airline or airport directly. For those needing assistance with related legal documents, US Legal Forms offers a variety of templates that can help you navigate airport-related legal matters.

Quick facts

  • Typical fee: Up to $4.50 per enplaned passenger
  • Jurisdiction: Commercial airports controlled by public agencies
  • Use of funds: FAA-approved airport improvement projects

Key takeaways

Frequently asked questions

The PFC is used to fund major improvements and enhancements at airports.