{"id":181,"date":"2018-06-25T20:39:33","date_gmt":"2018-06-25T20:39:33","guid":{"rendered":"http:\/\/www.aci-na.org\/?page_id=181"},"modified":"2022-06-03T16:37:51","modified_gmt":"2022-06-03T20:37:51","slug":"airline-competition","status":"publish","type":"page","link":"https:\/\/airportscouncil.org\/advocacy\/airline-competition\/","title":{"rendered":"Airline Competition"},"content":{"rendered":"

[vc_row el_class=”primary-nav-tabs-row”][vc_column][vc_tta_tabs style=”flat” shape=”square” alignment=”center” active_section=”1″ no_fill_content_area=”true”][vc_tta_section title=”Background” tab_id=”competition”][vc_row_inner][vc_column_inner width=”2\/3″][vc_column_text]<\/p>\n

Airline Competition<\/h2>\n

As the connection point between passengers and the sky, airports serve a vital role in fostering competition and providing passengers with the price and service options they demand.\u00a0 Through that important work airports emerge as powerful engines of economic growth for local communities.<\/p>\n

While airports embrace competition for the benefit of passengers, the airlines continually reaffirm their opposition to real competition by undertaking policy initiatives that protect profits and maintain control.\u00a0 Do not be fooled by airline rhetoric that claims the airlines are more competitive today than they ever have been.\u00a0 The airlines routinely fight against ideas that would enhance competition through necessary infrastructure investment and expanded carrier options, leaving passengers with limited choices and high airfares.\u00a0 What\u2019s resulted is a race to the bottom in air travel.<\/p>\n

Airports exist to provide for the safe, secure, and efficient movement of people and goods.\u00a0 Our airline partners are an important part of that equation.\u00a0 At the same time, airports work to represent the views of local communities within the broader aviation system, and that includes ensuring the most competitive industry possible for the benefit of our passengers, customers, and communities.\u00a0 Through competition, we can improve air travel for everyone, even the airlines.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_widget_sidebar sidebar_id=”cs-1″][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”PFC” tab_id=”pfc”][vc_row_inner][vc_column_inner width=”2\/3″][vc_column_text]<\/p>\n

Passenger Facility Charge<\/h2>\n

The locally set Passenger Facility Charge (PFC) user fee was designed by Congress in 1992 as a tool to spur infrastructure investment that would create competition among the airlines.\u00a0 Through more efficient and modern facilities, airports would be able to reduce operating costs and attract new service options.<\/p>\n

With nearly $100 billion in infrastructure needs over a five-year period, airports across the United States face unprecedented infrastructure challenges. The logjam that exists in keeping vital infrastructure projects moving is directly tied to user fee that has languished for almost 20 years.\u00a0 In fact, airport infrastructure costs have increased more than 32 percent over the last two years.\u00a0 Without action by Congress, costs continue to sky rocket and America\u2019s airports are left further behind.<\/p>\n

Each time Congress considers modernizing the PFC to meet current economic conditions the airlines use disingenuous rhetoric to try to stifle investment and competition.\u00a0 Let\u2019s not lose sight on the real reason the airlines oppose the PFC: they want to control airline competition and protect their monopoly status.\u00a0 Without competition, passengers are left holding the bag with higher airfares and limited flight options.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_widget_sidebar sidebar_id=”cs-1″][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”Open Skies” tab_id=”openskies”][vc_row_inner][vc_column_inner width=”2\/3″][vc_column_text]<\/p>\n

Open Skies<\/h2>\n

In recent years, international passenger traffic has grown at a rapid clip.\u00a0 The economic opportunity that comes with robust access to international passengers is too powerful to deny. It is estimated that the current Open Skies agreements contribute more than $4 billion in economic benefit to the United States. Eight out of the top 10 international bilateral agreements are Open Skies agreements \u2013 if the U.S. were able to implement this type of agreements with all countries, it is estimated that there would be a 16 percent increase in traffic, creating 9 million more jobs in the U.S. \u00a0\u00a0That\u2019s why it is important to protect and expand Open Skies agreements with countries around the world.\u00a0 Ensuring access to the global market creates competition.\u00a0 It\u2019s no surprise that many U.S. airlines have tried to diminish the positive impact of Open Skies agreements in recent years.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_widget_sidebar sidebar_id=”cs-6″][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][vc_tta_section title=”Slots” tab_id=”slots”][vc_row_inner][vc_column_inner width=”2\/3″][vc_column_text]<\/p>\n

Airport slot policy should serve consumers\u2019 interests<\/h2>\n

Airports around the world are categorized based on their congestion level: Level 1, Level 2 or Level 3. Level 2 airports, or schedule-facilitated airports, and Level 3 airports, or slot-coordinated airports, are the most congested, and just over half of the world\u2019s air routes operate at these airports globally.<\/p>\n

In North America, the busiest airports tend to see a level of demand that significantly exceed the capacity of their infrastructure, which require the implementation of a schedule facilitation or slot coordination process to ensure that airlines operate as scheduled and to stimulate competition.<\/p>\n